Tips For Financing Your Next Car

If you are looking to get a new car, then it can be a pretty big purchase. You have to budget for the car that you want, especially if you are planning to buy it outright in cash. There are other options when it comes to saving and buying a car, though, including getting the vehicle on finance. But one of the biggest mistakes that people make when it comes buying cars on finance is not taking into account the final price that you pay. If you’re buying something on a pretty high rate of interest, then you can end up paying quite a lot of money for it, and then after all of that the car might not seem like such a bargain after all.

Another important note to remember is that cars depreciate like crazy. So if you are thinking of buying a car as an investment or want to get a brand news one, then that is not always going to be a good route to go down. For example, looking into Audi used cars could be better for you financially than getting one brand new. So when you are looking for a new car and looking at how to finance it, you need to be looking at the total cost of the car once everything is paid, and not just if you can make the monthly repayments. Paying over the odds is never a good idea. With all of that in mind, here are some recommendations to be thinking about and planning for when it comes to the total cost of things.

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Understand Your Credit Score

If you’re planning on getting a new car then it is a good idea to check your credit score as you decide what it is that you want to be doing on the finance side of things. You certainly need to check it before you go down the route of a car financing loan. You need to know your score as you will need to check the kind of rate that you’ll be offered. If you have a pretty bad credit rating, unlike getting a mortgage or a credit card, you are likely to still be offered a loan, as the bank can easily take and sell on the car if you are unable to make payments. But the chances are that you’ll pay over the odds if you do have a bad credit score. So just something to think about; if your score is low, then the decision could be to not go down the finance route in order to not pay more than you have to.

Keep the Term Short

Having a loan on a pretty short term can mean that you get monthly repayments that are higher, but the interest rates can be lower. And reducing the interest, is what you want to do if you are ever borrowing money; as it keeps saying, don’t pay more than you have to. So the longer that you have to pay back the loan, the more that you will pay overall. It can be tempting to make the term longer, but really, keeping the term short is what you want to do.

 

The Best Ways to Overcome Financial Stress

Many people these days end up in financial problems. There are many reasons one could end up in financial difficulties, such as poor money management, lack of planning, loss of employment and so on. However, one thing is certain, everyone faces immense stress when faced with financial struggles. The main reason is that financial problems are one of the most difficult things to overcome. Once you’re in too deep, it becomes a lot more difficult to get back on track.

Still, if there’s a will, there’s a way. When faced with financial stress, one must keep their head cool and strategize instead of panicking. Yes, that’s a lot easier said than done, but panicking won’t get you anywhere. If you analyze the situation correctly, you’ll soon find the main cause of your problems. And, when you know what’s causing your financial stress, you’ll be able to fix the problem. Therefore, here are a few of the best ways to overcome financial stress.

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Develop a budget

Developing a budget will give you a clear picture of what your financial status looks like. Having a budget assessment helps you determine how much you earn and how much you spend. It’s the easiest way to find loopholes in your finances and close them up. You’ll be able to reduce stress levels when you know what’s causing your finances to leak and when you know you can fix the issue.

For example, calculate your earnings and deduct all the necessary expenses, such as utility bills, maintenance, taxes and so on. Now, this will show you how much money you’ll be left with once the expenses are covered. It will also help you notice if any of the bills cost more than they should. If you have a budget plan, it becomes simpler to manage your finances and reduce costs so that you can avoid financial difficulties.

Maintain a good credit score

Many people neglect their credit score. The main reason is that a lot of people aren’t even aware of bad credit score’s negative implications and impact on your finances. Late bill payments, outstanding debt, exceeding your card limit and more all contribute to a bad credit score. A bad score means you’ll have more fees and more expenses on your back.

For instance, being denied a bank loan, being charged with high interest rates on loans or being unable to get a better credit card deal are just some of the consequences of having a bad credit score. What’s more, you must read your credit report regularly. The main reason is that even a simple accounting mistake could hinder your credit score.

Reduce costs

As mentioned before, having a budget plan helps you spot anything that stands out with your expenses. That way, you can even reduce the costs of your bills and utilities. For example, are you paying 50$ for a landline you almost never use? If that’s the case, cancel it or switch to an emergency only plan. Moreover, do you pay a fee on your checking account? If so, switch to a bank that offers no checking fees.

Another example of cutting costs on bills is avoiding using air conditioner or heater when you’re not home or leaving the lights on when you’re not in the room. All of these bad habits cost money and by simply changing your approach, you can save yourself a lot of money in the end.

Seek additional funds

If you find yourself in a particularly difficult financial situation, you can always seek additional funds to help you cover the expenses. For instance, you can apply for a loan at your bank. However, banks tend to be picky when it comes to allowing loans, especially if your credit score is low.

In that case, you may get denied or charged with very high interest rates that aren’t suitable for your current financial situation. If that’s the case, you can seek out alternative lenders for more flexible personal loans. These loans are particularly handy when you want to consolidate your debt and get your finances in order.

Pay your bills on time

Avoiding financial stress means avoiding financial difficulties. Paying your bills on time can save you from such difficulties. Many people are late with bill payments, yet they become frustrated with extra late fees and additional costs. That way, you still pay your bills with extra expenses. All that it takes is for you to be a bit more organized, in order to pay your bills on time. As a matter of fact, even a single late credit card payment can cost you up to $300 annually.

There’s no reason for you to pay additional fees and risk yourself ending up in difficult situations, as well as stressing over expenses that could have been easily avoided. Furthermore, you can even leverage technology to help you pay bills on time. For instance, you can schedule automatic payments or set reminders to make sure you don’t miss out on paying the bills before they’re due.

Financial stress isn’t uncommon these days. Many people fear what they’ll do if they lose their job or if they end up in financial trouble. Stress makes people see the worst in every situation. The truth is that with a bit of good planning and organization, you can avoid financial issues and save yourself from stressing over a situation that seems impossible to overcome.

 

The top 5 advantages of hard money loans

Hard money loans are offered by private firms and real estate investors. They are usually borrowed against property assets. There are many advantages of these loans, but you should always be careful not to get into the sea of debt. Here are the top five advantages of hard money loans:

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  1. Hard Money Loans Are Approved Faster

Many realtors do not realize that as long as they have their property, they can quickly acquire loans for their urgent projects. These loans are usually approved within 3 to 5 business days. The alternative that most borrowers use is bank funding, and this can take close to a month to be approved. Hard money lenders therefore come in handy to save borrowers from long waiting periods. In some cases, the borrower requires funds as an emergency.

  1. Flexible Payments

Hard money lenders offer flexible repayment plans for their clients. The repayment plan can easily be tailored to suit your circumstances. In situations where you have difficulties repaying loans, you can easily explain your reasons for defaulting and agree on a new deal. When it comes to repayment, companies in Los Angeles try to treat you like a partner and not a client.

  1. Fewer Requirements

Normally, before mainstream loans are approved, a lot of due diligence is conducted. The banks check the client’s credit history thoroughly, and collateral is often needed. The rigidity of banks makes the process complicated, and this means only a few individuals can qualify for their products. However, with hard money lenders, the borrower is only required to have an asset that he can borrow funds against. Well, the fewer requirements for approval come as a savior for most borrowers.

  1. Zero Prepayment Penalty

It is possible to pay a hard money loan before the due date and face zero prepayment penalties. Banks, on the other hand, often subject their borrowers to penalties if they pay off the loan before it matures.

  1. Credit History Is Not a Big Issue

Not everyone has a history with mainstream credit bureaus. This is one reason why hard money lenders only require one to have a property that can be valued against the loan required. An equity stake can also be used to obtain loans from these institutions. Banks, on the other hand, will require you to have a high credit score. Otherwise, your loans will be very expensive. Most people who need loans are denied loans from banks because of their weak credit score.

Conclusion

Hard money loans are very easy to obtain. There are many advantages of these loans, and one of the biggest is the flexible repayment plan. You can even choose to pay the loan before the maturation date and still face zero consequences. Also, these loans are typically approved in very short periods.

 

The Road To Good Credit

One of the things that you don’t necessarily learn at school is how to improve your credit score. Why is this important? The health of your credit score can dictate whether or not you have a difficult time acquiring a loan, a car and even a mortgage. So needless to say, understanding how to look after it is a pretty important life skill.

It’s easy to fall into the trap of thinking that because you’ve never needed to borrow money before then your credit profile must be great but this isn’t always the case. In order to build up good credit you need to be able to show lenders that you’re a responsible borrower and not a risk to lend to. I mean, if someone’s going to let you drive away in a car worth thousands of pounds, they want to make sure that you’re reliable and able to stick to the terms of your contract.

Credit reference agencies will keep a record of your credit information, and this is what lenders will use when assessing whether or not you’re going to get that car or mortgage. Having good credit will also open you up to the best deals and interest rates, so you’ll ultimately save money in the long run.

Likewise, bad credit can mean higher interest rates as you’ll generally be seen as more of a risk. It can be very worthwhile to read up on the subject, such as this guide on Stoneacre, to help you understand the pitfalls of a bad credit profile.

Understanding what can influence your score ensures that you can take the necessary steps to repair it if required. There are some simple steps you can take to make sure you keep a good credit profile, several of which are outlined in this handy infographic below.

 

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Back On Track: Reaching Your Financial Goals ASAP

It’s always a great time to reflect on your financial goals and choices to help decide what changes you’d like to make over the months ahead. So much in your life will be dictated by your financial situation, and your decisions will be significantly influenced by your income and expenses. Therefore, it’s always a smart idea to take charge of your money and get a thorough understanding of how you can improve them from month to month. Whether your financial goals are to do with owning property, cutting your interest rates, or finding a better deal on your monthly outgoings; there’s no time like the present to begin making necessary changes and improvements.

Sorting out your money, and having a clear idea of what your future holds will also give you peace of mind throughout the year, meaning that you’ll have a successful and productive time ahead to look forward to. The following are some ideas, inspiration, and advice for those who what to manage their income better and give their finances a boost so that they have more freedom and choice, and will enjoy a fruitful future where they can make their dreams a reality.

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It’s time To Start Saving

There are always excuses you can find not to save some money each day, week, or month. However, getting into good saving habits now will be something that you appreciate in the future. There is always a way to put a little (or a lot) aside and cut back on your expenses, so figure out how to do so as soon as possible. Open up a separate savings accounts, and begin making wise financial choices each month so that a portion of your income can automatically end up in your savings pot. If you’re unsure if you really need to buy something, don’t; utilise that cash in the future and put it away so that it can earn some money back for you in the months and years ahead. It’s always worth discussing your situation with your bank or a financial advisor so that you have a clear understanding of what you can achieve, and by when. You’ll have a stash of cash for that rainy day or an important deposit in the future which will be a great way to feel when you’re putting the money aside.

A Better Score

A good credit score can lead to all sorts of opportunities; it can affect your ability to successfully apply for a loan for something vital like a car, to being able to lease a variety of accommodation and rental properties. Therefore, it’s crucial to a happy and straightforward life that you check your credit score regularly. If you haven’t ever taken out any form of credit; this can be just as detrimental to your ability to apply for things as having a poor credit score. If you’re keen to increase your assets, improve your surroundings, or purchase something major; a great credit score could be the key to getting what you need and want, so don’t ignore it, or push it to one side for a later date. Check out ways to improve and better your score so that you’ll have less to worry about and more to look forward to.