Solving Your Short-Term Credit Requirement through Car Title Loans
By admin | November 27, 2009
It is a commonly acknowledged fact that the ongoing economic crisis has eaten into the credit history of many people. Most financial institutions have been in a regulatory overdrive, upgrading their credit guidelines to extremely stringent benchmarks. As a result, a severe credit crunch is being felt, particularly among short-term credit seekers. People with average credit scores too are finding it difficult to procure a short-term loan. Among the limited alternatives that can be considered, seeking a Car Title Loan presents itself like a safer and sensible credit choice.
Car Title Loan Basics
A Car Title Loan is in essence simply a secured loan and, the security in this case is your vehicle. The amount of the loan awarded is based on the equity in your vehicle. Since the loan is based on the vehicle’s value, your credit rating is virtually irrelevant, so even those with bad credit, no credit, or a bankruptcy on file can be approved for financing; the title (or ownership) of the vehicle, remains in the borrower’s name at all times. The lending company has the authority to claim ownership of the car if the loan isn’t repaid within the stated timeframe. Since car title loans are often sought by folks with seriously poor credit ratings, the interest charged is higher than the market norm. However, the higher interest rates are offset by the undemanding nature of car title loans.
Ease of Obtaining a Car Title Loan
Unlike bank loans or any other form of conventional financing, procuring a car title loan is uncomplicated. For starters, the lending company evaluates the car and puts forth a value on the car. This value is essentially the amount the company deems, the car would be able to fetch in the market if it needs to be sold, i.e. to recover non-payment of a loan. The loaned amount is quoted, based upon this value. Unlike traditional mortgages or banking loans, there are no hidden costs or extensive calculations involved. There are minimal financial qualification parameters and the paperwork is presented in an easy-to-understand format. The legalities for the entire process are negligible that includes basic information like proof of income/age and residence status. The only limiting condition is that there should be no outstanding payments on the car because in such cases, the title of the car belongs to the financing authority.
Car Title Loan Precautions
There has been an overwhelming increase in the number of companies presenting themselves as ‘dependable’ Car Title Loan providers. Please understand that Car Title Loan companies are not obligated to get their status verified by state or federal regulatory agencies like banks. These are essentially private companies and hence, evaluating their reliability as your loan provider is slightly difficult. Before deciding upon a loan provider, you should thoroughly, read through the fine print that is present in the application form and brochures. Ensure that you equip yourself with a comprehensive understanding of how the interest rate/interest amount is being calculated. It is critical that you are well versed with penalty clauses for making late-payments. Some reputable Car Title Loan companies extend the privilege of limited mitigation wherein they consider slight re-negotiation of payment conditions or allow delayed payments without charging significant financial penalties.
Posted in Car-Title Loans, Lending
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Practical Budgeting
By admin | November 18, 2009
Budgeting is as difficult as dieting: keeping track of money spent is at least as challenging as keeping track of calories intake. That’s why there is such a wide variety of budgeting software available today, but does it really make our life easier?
If you are not computer savvy, or if you do not have sufficient time available to spend in front of the computer learning a budgeting program and then keeping it regularly updated, don’t worry, you’re not alone. There is another excellent, inexpensive, and practical method to keep your budget on track and your expenses in check: the use of envelopes and cash.
Once you have set your budget, label each envelope as per the expense categories you have identified (E.g. groceries, medical expenses etc.) and fill each envelope with the established amount of cash for that week or month, depending on how much cash you feel comfortable in keeping around and depending, of course, on your cash availability.
Once you a make a purchase, replace the cash with the purchase receipt in the appropriate envelope. Refrain from using debit cards since you can’t see the money going out. They make it too easy to spend; thus, ruining your budget.
Use your bank account only for online payments or pre-authorized payments, such as your mortgage, rent, loan, and utilities. Refrain from using credit cards unless it is an emergency, in order to keep your high interest rate debt under control.
If you pay monthly memberships or subscriptions, keep careful track of them especially if they are charged to your credit card, or if they are automatically withdrawn from your account. Often, memberships and subscriptions automatically renew unless you request otherwise in writing. Hence, you may be paying for something you do not even know is still active.
Setup a subscriptions notebook so that it lists:
- Date of subscription
- Monthly amount
- Due date
- Expiry date
- Whether or not you have to request a cancellation in order to avoid automatic renewal of the subscription
- How much in advance you have to send in the cancellation request
This will help you in making sure you are not charged beyond the desired contractual term or amount.
If you can’t seem to find a way to make your budget balance in the first place, you may have too many payments going out to too many creditors. Consider consolidating your debts into one monthly payment by applying for a debt consolidation loan. Even those with bad credit can obtain a loan to consolidate debt if they own a vehicle. A car title loan is approved based on the value of your vehicle, not on your credit rating.
Once you have established your budget and stabilized your cash flow with a debt consolidation loan (if necessary), you will regain control of your finances and with some persistence, be out of debt in no time.
Posted in Reducing Debt
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The Importance of Financial Responsibility
By admin | November 13, 2009
It is well known that when people fall into debt, lose their job, or experience financial difficulties for any reason, emotional trouble follows financial trouble with the same certainty sunset follows sunrise. Relationships are strained, bankruptcies are filed and dreams are dashed. For a period at least, the feeling of failure burns not only one’s credit, but one’s self-esteem - deeply.
Recovery is consequently something one must initiate as soon as possible, both financially and psychologically. Although it may take time and be painful, this process can also be an eye-opener, a hard lesson one can use to build a more solid and safe future based on financial responsibility.
Nothing long-lasting, in fact, is built on the spur of the moment, but it is the result of hard work, dedication, and resilience. The widespread belief that “having a lot of money” is what makes a person’s future safe does not, in fact, hold true in reality.
Big lottery winnings, for example, can be just as disastrous for a person as falling into debt. This is quite surprising to many, but lotteries’ sudden “millionaires” end up filing for bankruptcy and divorce, have their homes foreclosed and their dreams and families shattered with alarming frequency.
Reading some of these life stories, although saddening, can be indirectly soothing since it debunks the myth: “if only I had more money”.
What makes a person’s future safe is not the amount of money in itself, rather making the concept of financial responsibility an integral part of life: the skills, endurance, and willingness to manage one’s finances wisely.
Once that is accomplished, money becomes truly effective and so does borrowing. This is why banks and financial institutions rely on your credit rating: they use your credit score to determine if you have achieved a satisfactory level of financial responsibility. In the end, that is their true collateral.
But how can one get there after having experienced serious financial trouble? If your credit is not satisfactory, sometimes, this means that even if you have collateral you may be denied credit, or have to pay very high interests for it.
Fortunately, there are other options to get you back on the saddle when you’re ready to start your path to financial recovery. As soon as you have acquired an inner understanding of how finances should be run, one of these options is to rebuild your credit through a secured loan such as a car title loan. These loans are approved based on the value of your car are truck and can be obtained regardless of your credit rating. Reputable financial organizations that offer these services are ready to give you another chance at building a truly safe financial future.
Posted in Fixing Bad Credit, Reducing Debt
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How to Take Advantage of the New Home Renovation Tax Credit Program
By admin | November 5, 2009
Recently, there has been significant media exposure on the tax savings opportunity offered by the Home Renovation Tax Credit Program (HRTC). The initiative is not only designed to spur the Canadian economy, but to also offer an once-in-a-lifetime opportunity to put some money back into your pocket for expenses that would not otherwise be eligible for tax credits.
This is especially true if you were planning to carry out home renovations anyhow, either out of necessity, or, more wisely, to maintain or increase your property value.
However, as inviting as the HRTC program may be, it is valid only for renovation expenses incurred between January 27th, 2009 and February 1st, 2010; thus, if you have not yet taken advantage of the program, time is running out.
In these days of tight cash, taking advantage of this opportunity may not be as simple as one would think. Borrowing from the bank for a home renovation loan can be both a difficult and frustrating experience and if your credit is less than perfect it may become impossible.
It is at this point that creative solutions may come in handy. Instead of trying the traditional bank loan road in vain, or giving up on the opportunity to increase the value of your property and at the same time claiming home renovations deductible expenses on your 2009 income tax return, if you own your vehicle or mobile home, you are well positioned to apply for and obtain a title loan.
A title loan offers a very practical way to obtain the cash you need to carry out your home renovations. Moreover, title loan lenders do not need your credit to be perfect to qualify you for the loan and the process is quick, at the contrary of the banks that keep you biting your nails for days only to turn you down at the last minute.
The beauty of all of this is that by obtaining your loan, you’ll be able to increase your home value through the home renovations without need to disburse savings or hard earned cash; you’ll be able to pay back the loan through convenient monthly payments that are within your budget and by doing so rebuild your credit and, as an added bonus, you’ll be able to claim tax credits on your home renovation expenses. Talk about killing three birds with one stone!
Posted in Car-Title Loans, Economy, Financial Dreams
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