How Guaranteed Car Finance Could Actually Help Improve Your Credit Rating (home loans)
No commentsBy William Penworthy
Did you know that if you have a poor credit rating, getting car finance can actually help improve your rating considerably, allowing you more financial freedom in future? It often seems like a catch 22 situation - you have a low credit rating, and can’t get credit, yet having credit helps improve your rating.
Not everyone appreciates that having car finance, a car loan or other credit arrangement can help improve your credit worthiness in the eyes of most lending institutions. You might be forgiven for thinking that having credit will lower your rating, since it’s obvious you already have existing commitments.
Although it’s certainly true that if you have a huge mountain of active credit agreements, loans, store cards and credit cards, your chances of getting car finance or any other form of credit or finance are low, but this is only in cases where the number of credit arrangements is excessively high. The most important point is that those credit arrangements demonstrate payments being made regularly, on time and in full.
As long as this is the case, then your credit rating will still be good, and you stand a good chance of getting the car finance, car loan or credit you need. But what if you do have missed payments, defaults, even CCJs or arrears on your mortgage?
Certainly getting car finance can prove much harder in such cases, and you may already be in the situation where you have applied for cars on finance or car credit finance, and been declined. It’s not a good feeling being declined for car loans, and these days it seems to take very little to knock your credit rating down. The economy has been bad, and credit companies have become very much more conservative, with the result that missed or late payments get punished harshly, the letters being sent out worded more forcefully, and patience seems thin on the ground.
But if you can get car finance, then you will be able to help start to rebuild your credit worthiness. Although your credit history may show missed payments, late payments or other problems in the past, you may now find yourself in a much more stable situation, with either those arrangements paid off, or agreements in place.
But unless you’re prepared to wait six years for your missed payments, defaults and CCJs to automatically clear from your credit history, how else can you repair the damage caused? The answer is simple - get credit, and start paying it off on time. You’d be surprised the difference it makes to your credit rating having a car finance arrangement which demonstrates that you are paying on time, in full, every month.
As long as you keep up the payments, your credit rating will improve every month, cancelling out much of the damage caused in the past, and helping you to get back on track much sooner than the six years it would otherwise take. But this still brings us to the same problem it would seem - how do you get the car finance that’s likely to improve your credit rating if your credit rating is already a disaster?
The answer is to use guaranteed car finance. Perhaps you have heard of guaranteed car finance arrangements - they’re car finance deals for those with poor credit ratings, or no credit history at all. Rather than using your credit history to judge whether you’ll be able to pay the monthly instalments they assess your income and expenditure as it currently stands. As long as you have enough income to pay the monthly payments, you’ll be guaranteed car finance.
This means that you can afford to buy a new car, as well as improving your credit rating. It’s essential to make sure of two things though. Firstly, you absolutely must keep up the repayments, otherwise the improvements to your credit rating will be lost. Secondly, make sure that you approach a car finance company which allows you to use your guaranteed car finance to buy any car, from any dealer, rather than being forced to choose one of their own cars.
With just a single phone call it really is possible to get yourself a new car of your choice and improve your credit rating all in one go.
Car Finance http://www.carloan4u.co.uk/ Guaranteed Car Finance
Short Term Car Insurance
By Ella Mentryk
People who are under the age of 21 want to drive. That’s perfectly normal. But in a situation like this you should consider getting a short term car insurance for under 21. If you have a lot of speeding tickets or if you have been responsible for an accident then the cost for regular car insurance will be very high. What can you do in a situation like that? Purchase a short tem car insurance for 21. What is this insurance? It is a temporary insurance, not a full year one. It is also good for people who do not drive during the whole year.
How much do you have to pay for short term car insurance for under 21?
The price that you will need to pay to get the short term car insurance for under 21 will be pretty much the same as of regular car insurance. If you are under the illusion that you will save some money by choosing this plan then you are making a mistake because this is not possible. But do not be surprised when you are asked to pay a little bit above the regular amount. This is because you are not selecting a long term plan and that’s why you may have to pay more. However, the extra money that you will need to pay is not going to be too much.
If you are a someone who does not drive very often, then getting the short term car insurance for under 21 is the best option available for you because you will not have to keep making the payments for the premium. When you don’t to drive for several months, what you can do is put your temporary car insurance on hold. By chosing this insurance, it will also be possible for you to change or cancel the insurance. Almost all the major auto insurance companies offer short term car insurance for under 21, so you can ask any of these companies for more information.
For more information about short term car insurance for under 21 and how to get it visit this site.
Use a Life Insurance Policy For Better Debt Management
By svb blogger
Everyone wants to be debt free since debt is a curse. When your debts start getting out of control, nothing can be worse than that. Accumulating excessive debt can become a hindrance to your path towards debt freedom. This is the time when you need debt management tips or the assistance of a financial advisor to get out of debt. You may be surprised to know that life insurance policies can help you handle and pay off your existing debts. How is it possible? The following details will help you understand.
How do life insurance policies help you manage your debts?
There are some life insurance policies that can help you with managing your debts efficiently. You can tap your life insurance, borrow from it or go for a life insurance settlement:
1) Borrowing from your life insurance policy
If you have a whole life insurance policy, you can borrow from it if it has already accumulated sufficient cash value. However, you cant borrow more than 90% of the accumulated cash value.
2) Opting for a life insurance settlement
A life insurance settlement refers to the selling of a life insurance policy in lieu of a one time cash payment. If a policyholder faces a financial crunch, he might opt to sell his life insurance policy to a third party. This way, the ownership rights are transferred to the buyer. The buyer gives the policyholder a lump sum payment in exchange for the life insurance ownership rights.
3) Tapping your life insurance
Obtaining a cash surrender loan is a good option if you have a whole life policy with adequate cash value. The policyholder receives a certain amount of money when the policy is terminated.
So how do these above mentioned techniques help you with your debt management plan? These techniques can help you fund your debt management plan (DMP) by helping you establish a cash flow. You’ll then be able to send a monthly payment to the debt management company, which subsequently distributes the payment among your creditors. This will help you alleviate your debt burden and will also save some money on interest.
It is also recommended that you develop a sensible budget in order to ensure that you can continue to save money and pay off your balances due.
The Digerati Life is personal finance site that offers some of the best deals around the web. If you’re looking for great prices and discounts, check out these Best Buy coupons for top deals on electronics, or check out this Overstock coupon code list for a variety of special offers.
Your Source Online For A Financial Advisor
Tuesday, February 9th, 2010 at 10:00 pm and is filed under finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
