Loans and Credit Cards

What else should you consider when buying a car?

Show up with financing.

Most car buyers assume that the car dealership always has the best financing deals. That’s not always the case. While you should certainly consider the loan the dealership offers, it’s a good idea to have an approved loan application from a bank or credit union when you go to the dealership. That way, you’ll know if the dealer is offering you a good financing deal, and you’ll have an alternative if they’re not.

Having financing all ready also means you’ll be protected from some dealer tricks. Some dealers will give you a great price on a car, but will charge you a higher interest rate on the loan, which will cost you more money in the long run. With financing in hand, you can focus on the price of the car.

Car financing is tricky even when the credit market is good. Now that the credit market is tight, it’s back to basics for buyers and lenders.

Taken from:
U.S. News & World Report

Confused about what to buy? Find the right car at the right price on AutoSMART.

What else should you consider when looking for a Home Equity Loan?

A natural place to look for more funds is in your single biggest asset: your home.

Want to pay off high-interest debt in one fell swoop? Searching for ways to pay for a basement renovation, a bathroom upgrade, or a new tile roof? Since you probably don’t have that kind of money stuffed under your mattress, a natural place to look for more funds is in your single biggest asset: your home.

But before you tap into those funds, you need to know exactly what you’re getting into. Putting your home at risk isn’t for the uninformed or undisciplined.

Taken from:
“Home Equity 101″ The Motley Fool

Want to know more about getting a Line of Credit?

Many factors come into play when you apply for a line of credit.

As you probably know, your creditworthiness is expressed by your credit score, a number based on the size of your debt and how timely your debt payments have been in the past. The higher the score, the more likely a financial institution will extend you a line of credit.

When you apply for a line of credit, a lender also looks at your ability to repay and your credit history. It evaluates how much money you make, how secure and sustainable your job and lifestyle are and how you’ve paid your past debts. For business lines of credit, a financial institution evaluates profitability and business risk. It scrutinizes your business’s profit/loss history, as well as any risks like a large investment in a new technology that could impact your ability to pay back the loan.

Taken from:
How Stuff Works

Want to know more about Credit and your rights as a consumer?

A good credit rating is very important. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. They can use it when they choose to give or deny you credit or insurance, provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a computer error. Solving credit problems may take time and patience, but it doesn’t have to be an ordeal.

The Federal Trade Commission (FTC) enforces the credit laws that protect your right to get, use and maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws protect your rights by requiring businesses to give all consumers a fair and equal opportunity to get credit and to resolve disputes over credit errors. This brochure explains your rights under these laws and offers practical tips to help you solve credit problems.

Taken from:
The Federal Trade Commission