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You’ve researched the perfect car to buy and the perfect time to buy it. But have you checked your credit report and credit score?

3-in-1 Credit Report Is Car Buyer’s New Best Friend

You’ve researched the perfect car to buy and the perfect time to buy it. But have you checked your credit report and credit score? A quick review of your credit report online before you visit dealerships can save you both time and money when you are ready to make your deal.

1. Give that credit report a tune-up.

Check your credit report early in the process to avoid embarrassing or costly episodes at the loan desk.

• Get the facts first. Having your 3-in-1 credit report from TransUnion’s TrueCredit.com before you shop for a vehicle allows you to compare and review your financial information from each of the three credit bureaus: TransUnion, Equifax and Experian.

• Check the accuracy of your 3-in-1 report. If you find any mistakes, report them immediately.

• Are your credit card balances high? Reducing these or paying off small debts can sometimes boost your credit score and save you money on a loan.

• A few months of prompt bill payments can improve the way lenders view you.

2. Don’t overextend yourself.

Brand new sports car vs. used and practical? Before you decide which car is right for you, it’s a good idea to see how much you can really afford.

• After all your other bills are paid each month, how much do you have left to put toward a vehicle?

• Do you have a trade-in or down payment? These can help you negotiate a better rate with lenders and can be especially important if you have problem credit.

• Calculate your debt-to-income ratio by dividing all your monthly payments by your gross monthly income. Make sure to add in your expected new car payment. A ratio greater than 30 percent may be a red flag to lenders.

3. Do your financing homework.

Applying for an auto loan doesn’t have to be stressful if you arrive prepared. Consider the following:

• Be ready to discuss your income, occupation, home loan and credit history.

• To negotiate the best loan, check the rates banks and credit unions will offer you before visiting a showroom to make your final deal.

With these tips and your credit report from TransUnion’s TrueCredit.com in hand, you should be well-equipped to negotiate a better deal on your next car. Now, go get ‘em!

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Credit card fraud is becoming more and more of a problem, and if you are not careful then you could lose money to fraudsters. If you are worried about fraud but are unsure how you can protect yourself and your credit cards, then this article could help you. Here are some useful tips and advice about how to protect yourself from credit card fraud:

Methods of fraud

The methods and types of fraud are increasing as criminals learn new techniques and get improved technology….

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Credit card fraud is becoming more and more of a problem, and if you are not careful then you could lose money to fraudsters. If you are worried about fraud but are unsure how you can protect yourself and your credit cards, then this article could help you. Here are some useful tips and advice about how to protect yourself from credit card fraud:

Methods of fraud

The methods and types of fraud are increasing as criminals learn new techniques and get improved technology. The most common methods of fraud today include:

·Copying and ‘cloning?of cards
·ATM fraud
·Internet card fraud
·PIN number stealing

All of these methods are used more commonly than ever before to effectively steal your money. Obviously, it is impossible to totally eliminate the problem of credit card fraud, but there are things you can do to greatly reduce the risks.

Keep cards close

Make sure that you never let your cards out of your sight. Never leave cards unattended, and certainly don’t lend your card to anyone. If you are paying in a restaurant or shop, make sure you pay attention as to where your card is. A common method used to copy your card is to get the details whilst you pay, so keep an eye on your card at all times.

Check receipts

Whenever you get a receipt or a credit card bill, check that all the items and amounts are correct. If there are any amounts that you are unsure about, contact your card issuer immediately. Any paperwork that you throw away should be disposed of properly. Shred documents so that people cannot go through your rubbish and discover your card details.

Look behind you

When withdrawing money from a cash machine, make sure no one is looking over your shoulder to read your PIN. The easiest way for someone to use your card illegally is to see your PIN and then steal the card. Also, make sure you never keep a written record of your PIN, especially near your cards.

Use reputable firms

When buying on the Internet, make sure that you only purchase items from large and well-established providers. Small or unknown providers should be avoided as even if they are genuine, their security and encryption may be poor and allow fraudsters to access your details.

Keep contact numbers

If you have your card stolen or you think you have been the victim of credit card fraud, then you need to sort the problem out as quickly as possible. Keep all the contact numbers for your card issuer in a safe place so that you can call them up and sort out problems immediately. If you are careful and act quickly, you can limit the damage of fraud or prevent it occurring at all.

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If you are trying to make ends meet and are having past due bills pile up, the last resort you would want is to take out a payday loan to pay your dues. There are many sources available today that offer payday advances. To get a quick payday advance loan, you can connect online with many payday advance loan companies. Most payday loan companies do not check credit so even if you have bad credit or no credit, you can still apply for a payday loan. The loans are issued after you show proof of banking account, Social Security, Driver License and Pay stub proofs. This information is used against you, often the lenders will deduct money from your accounts including interest, and principals that apply to each loan you take out.

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If you are trying to make ends meet and are having past due bills pile up, the last resort you would want is to take out a payday loan to pay your dues. There are many sources available today that offer payday advances. To get a quick payday advance loan, you can connect online with many payday advance loan companies. Most payday loan companies do not check credit so even if you have bad credit or no credit, you can still apply for a payday loan. The loans are issued after you show proof of banking account, Social Security, Driver License and Pay stub proofs. This information is used against you, often the lenders will deduct money from your accounts including interest, and principals that apply to each loan you take out.

If you are applying for a payday loan online…Beware…Some of the sources are not even institutes that specialize in payday loans. When you are trying to repair your credit, the last thing you need to do is spend money that is not necessary. When you borrow money from payday loaners, your personal information may not be private. Since many of the lenders are outside of the United States and are out of government regulations, your information just might fall into anyone’s hands. This puts your credit at great risk. You would be wise to perform some extensive research to ensure the payday loan institute is valid and trust worthy.

Payday loans offer you a loan against your paycheck, but the downside is you will be paying higher fees to get the loan. You could be wasting money and taking a chance on your identity. Some payday loan companies offer a “free” loan to their new customers i.e. no fees as long as the loan amount is paid in full on its due date. If you are searching for help to repair your credit, it might be wise to search the market for legitimate resources that will help you restore your credit at little or no cost to you. There are Debt Counselors and Debt Management Companies available that assist people with credit repair but the best source is you. You might be wise to check out government options that are available to people with bad credit.

Many services are available to help you repair your life. The best solution is keeping up to date on your bills if possible or minimizing your monthly installments by opting for credit cards that have no fees attached and low interest rates. If you have a credit card, or else applying for a credit card avoid charging items to your cards unless it is absolutely necessary. You might want to apply for a different credit card if you card has high interest rates and discontinue your old card once you receive your new card. In some cases, depending on your credit card history, you could call your credit card company and ask them to reduce your interest rate. If you have had a good history with the company, they will most likely oblige.

If you suspect that someone has access to your card be sure to contact your provider immediately to report the card lost or stolen. Always keep this information in close vicinity to ensure a quick response. Be sure to only provide your personal information to those you trust i.e. Social Security Number and Bank Account Number. Never give information pertaining to you freely especially over the phone. If you are considering a loan to payoff your debts, check the market first before applying. The more applications you complete, the more it applies against your credit report. You might want to cut back on your utilities, i.e. reduce your heat or air conditioning, to save funds that can be applied to your bills.

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This article describes the selection process behind airline credit card offers for consumers.

Airline Credit Cards, Airline Credit Card

Airline credit cards are increasingly becoming popular. Airline companies and banks, in particular, often sponsor airline credit cards in order to provide incentives to attract consumer interest. But before choosing an airline credit card, you should collect as much information as possible about each airline card that you are considering.

If you are a business traveler or a frequent flyer, an airline credit card is definitely something to investigate. But you might be wondering how airline credit cards work. Quite simply, you earn reward points, or miles, for every dollar spent with the credit card. These points can earn you free flights, free companion tickets, lost baggage protection, first class upgrades, car rentals, free stays in hotels and more.

It was the Citi Aadvantage card that first offered the airline credit card. Consumers got points with every purchase they made. These points could be redeemed for free air travel through a variety of different airlines. Today,most airlines have partnerships with credit card companies in order to provide airline credit cards rewards programs, and the incentives offered by these companies is attractive thanks in part to the existing competition in this industry.

When compared to standard credit cards, airline credit cards charge a higher interest rate and, in many cases, also charge annual fees for membership. But when used effectively, there are several attractive features of airline credit cards that help to offset those added charges and fees.

There are two general types of airline credit cards:

1) Airline-Sponsored Credit Cards
2) Bank-Sponsored Credit Cards

The points you earn from airline-sponsored credit cards can be used only on a particular airline. These cards are convenient, if you wish to fly on a particular airline or that airline dominates the routes to your potential destinations. Otherwise, it might be better to go with the many bank-sponsored airline credit cards now available.

Bank-sponsored credit cards are more flexible in nature. Unlike airline-sponsored credit cards that generally only allow you to redeem your points on one airline, you can use your points earned from the various bank-sponsored airline credit cards to redeem your miles on a wider selection of airlines. And typically, the points required to earn free travel is generally less with bank-sponsored credit cards. But there are exceptions to this rule.

Things to Keep in Mind

You should make it a point to thoroughly understand airline credit cards and how they work for you as well as how they work for the card companies before making a decision. You might want to peak with people who already have one like family or friends and solicit their feedback on the cards that they use. You can also utilize the Internet, which offers an unprecedented amount of information on a wide variety of credit cards and their features and benefits.

First of all, when selecting any credit card, you should start first with the applicable interest rate of each card. Is the interest rate comparable to other card offers currently available or does it appear to be abnormally high? If you plan to carry a balance on your credit card, you need to be absolutely sure that you select an airline credit card with the lowest ongoing interest rate available. In general, airline cards are not the right choice for those who carry a balance on their credit cards because of the generally higher costs associated with airline cards. Higher interest rates combined with high card balances never go hand in hand.

Some airline credit cards offer points but only on certain purchases. Keep these reward schemes in mind while choosing a card because the card will be essentially worthless if you are not able to make the type of purchases allowed on the card.

Another important item to consider is the expiration date on points that you earn. Also, find out if your points can be used even after the redemption period has expired. Certain cards will stipulate specific uses for point redemption at certain retailers after the expiration date.

And finally, the number of reward points earned per dollar spent varies from card to card. The number of points necessary to earn free or reduced travel will vary from card to card as well, so make sure to carefully weigh those factors when selecting an airline credit card as well.

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There is a difference between an airline credit card with frequent flyer miles or a reward credit card that offers airline miles. As when looking for any consumer product, it’s a good idea to compare the offers side by side.

Airline Credit Card With Frequent Flyer Miles

An airline credit card is for a specific airline. You earn air miles for every dollar you spend on that airline and your miles are routinely added to your frequent flyer account. If you have a preference…

airline credit card, frequent flyer miles, reward credit card

There is a difference between an airline credit card with frequent flyer miles or a reward credit card that offers airline miles. As when looking for any consumer product, it’s a good idea to compare the offers side by side.

Airline Credit Card With Frequent Flyer Miles

An airline credit card is for a specific airline. You earn air miles for every dollar you spend on that airline and your miles are routinely added to your frequent flyer account. If you have a preference to a particular airline, this would be the card for you.

The airlines generally have partners such as hotels, restaurants, and car rental agencies and you typically receive points when you use your card to purchase services from any of their affiliates. You may also be given a choice to spend your points to upgrade your flight to first class. Some airlines offer a special bonus of an additional ticket for each ticket your purchase at full fare.

An airline credit card generally carries a yearly fee, whether you use the card or not. They also tend to have higher interest rates, so if you’re not one to pay your balance in full each month, this may not be the type of card for you.

Reward Credit Card Air Miles

If you want a choice of airlines, a reward credit card with air miles may be what you’re looking for. You can earn bonus points to be used for air miles that can be spent on your choice of any airline. Most reward credit cards have no annual fee and lower interest rates than an airline credit card.

With air miles earned with a reward credit card, you are not allowed to apply your air miles earned with frequent flyer miles on another account. Unlike with an airline credit card where you can easily make last minute plans for your flight, generally a reward credit card requires a 21 day notice in advance and a Saturday night stay. Reward card airline miles are often limited to the continental U.S. or a specified zone.

For an international traveler, an airline credit card with frequent flyer miles could be just what you want. Those airline miles can mount quickly. However, if you are just hoping to earn enough points for a short vacation within the U.S. or a specific area, if you use your card for every day purchases and pay the balance each month, to earn free tickets, a reward credit card with air miles would be more suited for you.

Be practical when reviewing your personal needs and financial situation before choosing between an airline credit card with frequent flyer miles or a reward credit card with air miles.

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This article describes how to identify the best balance transfer credit cards available in the marketplace.

Balance Transfer Credit Cards,Best Balance Transfer Credit Cards,Balance Transfer Credit Card

Balance transfer credit cards are those that make an excellent choice for transferring balances from one card to the other. The main purpose behind transferring balances is to remove debt from a card with a higher interest rate to one with a lower interest rate. In this way, the consumer can save money by reducing or even eliminating finance charges. When looking for the best balance transfer credit cards, it is important to look at a variety of factors.

The Annual Percentage Rate (APR) is one of the first factors a consumer should consider when looking for the best balance transfer credit cards. Credit card companies are hoping to steal your business away from other credit card companies. As a result, they often make special introductory offers with lowered interest rates for balance transfers. In many cases, this APR will even be 0.00%. Be sure to find the balance transfer credit card offering the lowest APR, and then only use that card for your balance transfer. Don’t use it to make any purchases. This is what the credit card companies are hoping consumers will do so they can assess finance charges on the purchases they make with their card.

The length of the special introductory APR varies from card to card. Sometimes, the length is also dependent upon the applicant’s credit history. It is important to be sure how long this period lasts and to set goals to have the balance paid in full once the introductory period is complete. The best balance transfer credit cards will keep the special introductory rate in effect on the card for the life of the loan. In other words, the APR stays the same until it has been paid off entirely. For consumers that will not be able to pay off the balance within the introductory period, this is certainly the best way to go.

Most credit cards assess fees when making balance transfers. These fees are generally determined as a percentage of the total amount of funds transferred. Most commonly, balance transfer fees are 3% of the amount transferred. Many balance transfer credit cards will, however, waive these fees during the introductory period. It is best for consumers to choose these balance transfer credit cards. Otherwise, they may be paying large amounts in fees, negating the savings in finance charges.

Some balance transfer credit cards require initiating balance transfers at the time of application for the card. Yet others allow balance transfers to be completed throughout the duration of the introductory period. The best balance transfer credit cards are the former, simply because they allow for more flexibility. Consumers who are sure they will not need to transfer balances later may, however, be happy with a credit card that only allows transfers to be made at the time of application.

Some balance transfer credit cards place restrictions on the types of balances that can be transferred. For example, some business credit cards only allow business expenses to be eligible for introductory rates. It is important for consumers to be sure to understand what type of balances can be transferred before applying for a card to ensure it meets their needs.

Many balance transfer credit cards also have special rewards programs. Consumers need to compare the programs before deciding on a credit card so they can choose the card with the rewards program best suited to their lifestyle. In addition, some balance transfer credit cards do not count the funds that are transferred toward the points system used in the rewards programs. To get the most of the card, consumers should find balance transfer credit cards that do count the transfers toward their rewards programs.

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This article describes the value proposition of airline credit cards and miles reward programs.

Airline Miles Credit Cards,Airline Credit Card,Airline Credit Cards

Travel has become an expensive proposition, especially if you are not earning future flying miles while airborne. Airline credit cards generally offer points per flight taken, bringing rewards as a byproduct of each trip. These points will earn the cardholder free stays at hotels, future flights, car rentals, as well as other desirable rewards. A few of the cards charge around twenty-five thousand points per flight so a comparison in airline miles should be considered when choosing a credit card.

Most times, you will receive flyer miles per trip taken, and some of these airline credit cards will offer a generous point total per flight.

Some people use cash to travel, however others prefer to use airline mile credit cards. The airline credit cards often have airline miles attached, which provides ongoing benefits. While the cards benefits vary, some provide categories that are major points to consider when selecting an airline credit cards, (i.e. while earning flights the person could choose from more than 200 airlines to fly from, by selecting the choice of airline). If you prefer to use a major airline, (i.e. an airline which you frequently fly) the cards often include features, such as earn x amount of points for each flight taken.

Airline credit cards are often referred to as mileage credit cards. The card enables you to earn points per dollar charged on the card then you can use the points toward a flight. Some cards offer more points than others do.

Checking out the marketplace for the bargains is ideal while considering airline miles credit cards. Once you select a card and accepted, as a cardholder you will discover that you earn points on the card. Be sure to take full advantage of discounts and free offers, since the points will expire on some credit cards.

Some of the disadvantages of airline credit cards are that the cards often have higher interest rates and annual fees attached. Most of the airline cards are for those that can handle paying off the monthly debts incurred on the cards, or for travelers that frequently take trips and utilize the credit cards as a means to manage and document purchases. Still, the rates are comparable in an online search. If you are considering an airline mile credit card, take time to research and compare the values, APR (Annual Percentage Rate), points available, and other services.

While traveling, the idea of the credit cards is to save money, so why not take the time to find the best rates and save even more cash while using your airline credit cards to earn points.

Some of the no-annual-rate cards include the Miles Card from Discover. This card offer no APR fees, and you will receive 5,000 miles once the initial purchase is charged to the card. Balance transfers are free for the first twelve months, and you will find an added benefit in earning a mile per dollar charged to your card.

The Value Miles Platinum Visa cards offer miles per dollar spent with no blackout dates. Fly on the major airlines and earn points while receiving assistance on travel. If you are in an emergency, this card offers emergency funding, and the rates per interest are attractively low.

Noting the two cards named in this article will help you to see the comparison. The Discover Card offers 5,000 points on the first debt incurred on the card, while the Visa Card does not. Now, how can we decide which card is more of an advantage? We can do this by contrasting and comparing airline credit cards. Check for the best rates online, since here you can compare at your own pace, finding multiple offerings and significant savings in fees and interest.

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Are you thinking of applying for a new credit card? If so, you may want to begin asking yourself what your personal financial goal is. After you’ve recognized your own needs, you can then pick the category of card you desire and begin your journey to compare credit card offers.

For a student who is applying for a first credit card there are a number of credit cards available that include a variety of features. The benefits of each card vary and can include 0% APR introduct…

compare credit card, student credit card, airline credit card, first credit card, 0% APR

Are you thinking of applying for a new credit card? If so, you may want to begin asking yourself what your personal financial goal is. After you’ve recognized your own needs, you can then pick the category of card you desire and begin your journey to compare credit card offers.

For a student who is applying for a first credit card there are a number of credit cards available that include a variety of features. The benefits of each card vary and can include 0% APR introductory, no annual fee, and rewards offered such as cash back, selected merchandise and entertainment

Quite often a student credit card has a lower credit limit which is actually a plus. It introduces the student to the world of credit, while limiting the chance of running up too large of a bill. An added bonus of a student credit card is it helps to build that needed credit rating which is important in today’s world. Of course, the student needs to maintain the credit card account in accordance to the issuing company?terms and conditions.

There are available airline credit cards. But if you wish to travel on more than one airline, perhaps a rewards credit card that offers bonus travel points would be more suitable. The benefit to a reward card would be that the owner has a choice of how to spend those bonus points. In addition to air miles, the added choices include cash back, selected merchandise, entertainment and gift certificates.

If you already have a number of credit cards that you’re paying the minimum balance and they charge an interest rate of more than 0% APR, you might consider a balance transfer credit card. With an introductory 0% APR, you could have anywhere from six to eighteen months to pay down your debt interest free.

Even if you already have bad credit there are still credit card opportunities for you to apply and even receive instant approval. A credit card for people with bad credit, has a higher interest rate than cards for more stellar credit. However you can avoid these higher fees if you pay your balance billed each month. After you’ve been able to rebuild your credit, you can then talk to the issuer and get a lower interest rate or reapply for a lower interest credit card.

Two additional cards are available for people with bad credit or for people who don’t really want to owe on a credit card, but need a card for the convenience of ordering merchandise by telephone or on the internet. These are prepaid credit cards and debit cards.

These two types of cards can be obtained by completing an easy application and making a specified deposit. They work just like a regular credit card and are also accepted at any ATM machine, giving you total access to your available funds.

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a step-by-step guide to buying a car with bad credit and taking control of the entire deal.

bad credit car loan

Are you tired of hearing the word ‘No’ when it comes to a car loan? I set up auto bad credit financing loan specifically so that you could hear the words ‘yes’. Who am I, you ask?

I spent 14 years in the automobile business as a Finance Manager so I believe it’s fair to say that I know a thing or two about getting a loan financed, irregardless of your past credit history.

Remember, regardless of your past credit history, you still need a car, want a car and most of all, you deserve a car. You should also be treated with respect and given choices. I’m going to teach you how to have a choice with auto bad credit financing loan.

I know what you’re thinking here: this lady has lost her mind! But, I know a few insider tips about Ford Motor Credit and some other big name lenders that may help you here. First of all, all lenders now purchase deals based on what is called a beacon score, which is the same as your credit score. There are three credit bureaus that make up the package. Each lender will choose whichever credit bureau(s) they prefer when looking at your credit or a combination of bureaus.
I highly advise everyone to have all three credit bureaus pulled when checking your credit and to pay for the credit score. If you only look at one bureau, you’re only seeing part of the whole picture. Bad credit financing is an art and there is a skill to it.

If your credit score happens to be around 600 or higher, Ford Motor will look at your deal with the intention of purchasing it; there are a few exceptions. They are as follows:
1- You cannot have had a previous Ford Motor repossession-
2- If you have had a repo, it needs to be a year or older; if you have had 2 repo’s, forget it and move onto another lender.
3- You can be freshly discharged from a bankruptcy, have a high enough beacon score and qualify for a loan with Ford Motor. You just can’t have any negative credit after the bankruptcy was discharged.

With the exception of these three things, beacon score will play a large part in your approval. Staying within your financial means is another, so be realistic. If you make $2500 per month and have $1200 going out, don’t walk in all high-and-mighty and tell the Finance Manager that you will only have an Expedition or nothing. You’ll end up with nothing.

In order to effectively use auto bad credit financing, you are going to have to know what your credit looks like and what your credit score actually is. Otherwise, you are working in the dark.
Pay for the credit score or it’s just almost useless. With the credit score, you will know whether or not you qualify for a lender such as Ford. Also, the higher the score, the lower the interest rate. Got it? With an auto bad credit loan, the higher the beacon score, the better.

Let me explain websites like cars.com and the such: They collect applications for car loans online. They then have a network of dealerships that PAY them for the leads. These are generally dealerships that have departments that specialize in getting you financed, regardless of your credit. These departments pay for these leads, so most take them very seriously, as they are their bread-and-butter, so to speak.

If you have a lower than usual credit score, a current repo or just plain, all-around bad credit, this might be the way to go. If your credit is really that bad, remember that you are going to need some cash or a paid-for trade in that’s actually worth something.

O.K., now for the step-by-step system that I promised. First, take control of your car deal! You need to be in the driver’s seat, if at all possible. Go online and run a copy of a tri-merge, which is all three credit bureaus, plus pay for your credit score. You can get a FREE copy of your credit report once per year HERE:
http://www.annualcreditreport.com

This is the new Federal law that actually entitles you to receive a FREE copy of your credit bureau once per year and with some other exceptions. This is not a credit monitoring site. You have to run each bureau separately; Experian, Equifax and TransUnion. Then, you have to pay for the credit score.
So as to hold down on confusion, here’s the scoop: Each credit score for each separate bureau will be different. That’s why a Tri-Merge is called what it is called. You can run a specific bureau called a Tri-Merge from one company (there are many-just do a Google search) and you actually get one bureau (it’s actually all three combined but the credit score is also one credit score). It’s more expensive and generally runs around $34.00 but it just depends on your preference.

Now, with your credit score in hand and a copy(s) of your credit bureau, look at your credit. Do you have anything strange on there that is not yours? If so, it’s time to fix it. You should review your credit bureau at least every 6 months to a year. Plus, if your identity has been stolen, you will know quickly. P.S. you can also have a liner placed on the bottom of your bureau that simply states “Do not extend any credit on my behalf without contacting me first. Work # (111)222-3333 Home#(222)333-4444 Cell# (333)444-5555.?Call or write the credit bureaus and request that this is done. You can now do this online for free. Again, do a Google search for all three bureaus listed above.

How do you fix your credit, you ask? I give away a totally FREE book that I wrote on the subject simply for the asking. Email me with Free Credit Repair Book in the headline and I’ll email it to you.

Next in line: Know what you want to buy BEFORE you even go out shopping! Let me make this very clear. Car dealer’s jobs are to sell you a car on your very first visit. A salesman/woman and their sales manager believe that if you walk into their dealership and do not leave with a car, you will never come back again. They are going to hammer on you until they either A) Make you mad and you get up and leave or B) Sell you a car. It’s the nature of the beast. Accept it ahead of time.

What do you want to buy? Where can you get unbiased information on the auto? Again, Google for Kelley Blue Book or NADA and you can get cost, warranty repairs, recalls, and information on problems and tons of info beforehand. Limit your shopping to three models. Keep it simple. Those will be the ones that you will shop for.

Can you afford the car? You may think you can afford the car, but the bank may think otherwise! I have seen this so many times in my career. Automobile economics 101: Take your gross income (what you make per year BEFORE Uncle Sam taxes you) and remember, this income needs to be provable-tax returns, check stubs with taxes taken out or a W-2. If you are self-employed, you will need two years of tax returns with Schedule C’s. This is the income that you actually paid taxes on. Being self-employed can be tough. You may need to combine a spouse’s income if you are self-employed.

Now with your gross income figured out, find out what all of your debts are that are going out each month. Include everything…it’s listed on your credit bureau’s. Example: Car note=$450.00 + House note= $560.00 + Credit card debt= $425.00
Boat note= $310.00 Charge-offs=$1200.00 (yes, charge-offs; these are bills that you never paid and they were written off). Add all of your debts up. With just your obvious debts (including the charge-offs), you have $1805.00 per month going out. I arrived at that figure by adding up all the monthly notes and taking 5% of the charge-offs. 5% of $1200.00 = $60.00. We’re not through, though. Now we have to figure in cost of living-utilities. Each lender has their own algorithm for utilities but a good range to estimate would be to add $300.00. Now we have a total outgo of $2105.00. This is what you have to have to pay your current bills before you take on any other debt.

Almost all lenders will not allow your new car note to exceed 20% of your current income. For our example, let’s assume that your gross income is $5300.00 per month. Let’s take $5300.00 and subtract your debts, which are $2105.00. That leaves you with $3195.00. To make it easy, take $2105.00 and double it. That would be $4210.00. That would leave you with disposable income of $1090.00. What the lender is looking at here is referred to as debt-to-income. They want to know if you have more going out than you can handle. This is strictly a case of numbers and provable numbers. If your gross income was $4500.00 and you had $2105.00 in debts each month, you need to be prepared for one of two things; add your spouse’s income and your spouse to the deal or trade in the other auto. If your debt-to-income is running too close to 50%, you’re going to have a hard time getting a loan for anything. Make sense? The way the bank looks at it is this: you can’t afford both cars so they assume that you are going to let the other (older) car go back to the lender-repossession. That’s their take. Debt-to-income is a HUGE deal.

In this case, your disposable leftover income is $1090.00. 20% of that would be $1060.00. Whoa! Let me be the first to inform you that you are NOT getting a car payment of $1060.00! Why? Well, you only have $1090.00 left over for starters. Let’s be realistic here. Most lenders will slice that in half which will equal $530.00. Your payment call should be around that figure, give or take a few dollars.

How expensive of a car can I buy on a $530.00 payment? Good question and one that you absolutely need to know so that you can pick out the correct car. One answer depends on the term of the loan. You can finance for 36, 48, 60 or 72 months, as a for-instance. That equates to 3 years, 4 years, 5 years and 6 years. I will tell you this: the worst thing you can do is extend the note out the longest amount of time in order to get the payment where you can afford it. That creates a syndrome that now affects over 75% of car owners called being “Upside Down.?It means that you owe more on your car than it’s worth. It also means that you need more money down when you go to trade it in. The only way around that is a lot of money down or a short-term loan.

You can again do a Google search for a ‘car loan calculator? You will punch in the loan amount you want to borrow, the term (48,60, etc.) and the interest rate. If you have not gotten approved already and know the rate, you will have to guesstimate. Here’s a rule of thumb for you-it’s not an exact science without knowing your credit, but it is a guide you can follow to get you close. Let’s base the rate on your beacon score: that’s what most of the lenders are going to look at. If your beacon (credit score) is in the 400 or lower range, you will need to figure your interest rate on a new car at 21% (state maximums differ-it could be 18%). If you are looking at a used car, figure on 33%. If your beacon score is in the low 500 range, figure your new car loan as you would for the above-mentioned 400 beacon. If your beacon score is in the mid to high 500-range, figure a new car at 18% and a used car at 27%. If you have a beacon of 600 to 649, figure a new car at 16% and a used car at 20%. If you have a beacon score of 650 to 699, figure a new car rate at 12% and a used car rate at 16%. I may be hitting too high on a few of these, but I live in a state that has the highest rates in the nation. Better safe than sorry.

Get Pre-Approved BEFORE you start shopping. This is the easy part, in a way. Remember I told you at the beginning of this article to take charge of your car deal instead of letting the dealer lead you by the hand. It all boils down to financing. If you can walk in with a check in your hand, you are in control. I will recommend a few companies that are reputable, have a proven track record in sub prime loans and all mail the check to you at home. You then go into a dealership and pick out your vehicle, negotiate and buy like a cash buyer! These companies are Household Finance, Capital One Finance, Americredit and E-Loan. You can do a Google search for all four, apply online, and get either an instant approval or one really quickly. When you are approved, they mail the contract to you and then the check. It’s that easy.

On the final decision for the car-work smart here. There is nothing more valuable than time and nothing more rewarding than piece of mind. Please don’t go running from dealership to dealership. Wrong. Pick out the 3 models of auto that you can afford. If you are looking for a program car (rental), call dealerships and inquire as to whether or not they have any. If you want a new, ask other people that are driving that model where they bought theirs and would they purchase there again. If you start hearing a lot of “I’ll never buy from them again? move on. Something is wrong. Your new car is only as good as the service you will get AFTER the sale.

Negotiating-Most people hate this. I have only met 2 people in 14 years that enjoyed it; they were both retired and had nothing better to do. One did it for the fun of it and never even bought if you agreed to his price. Don’t waste other people’s time. If you don’t like the car, don’t negotiate on it. When you do find a car that you would own, tell the salesman you’d buy it right then if the price was right and if they provided you with a Car Fax. The keyword here is: ‘If the price is right? How do you know what a good price is? Well…glad you asked. If it’s a new car, Kelley Blue Book will have dealer cost. Go to: http://www.kbb.com
If it’s a used car, compare used car figures at http://www.kbb.com
And
http://www.nadaguides.com

What’s the difference? Most dealers (with the exception of the West coast) will use NADA as their guide.

Before you ever drove the car, you went by the dealership on Sunday, when there are no salespeople and you got the Vin# of the car and the equipment, year model and had a good look at it. You already know if you like the car when you drive it, that you would buy it. The list price is in your pre-approved check category, to boot. You’ve already gone online and gotten wholesale, trade-in and retail values for the car.

Retail is what the dealer should ask for the car. This will help you to know whether or not the salesman is trying to add money to the car, or if the dealership is. Trade-in is a figure to gauge approximately what the dealership traded for the car for. It will give you an idea of what the dealer paid for the car, before reconditioning fees and any ticket from service. Now, not every make of car will bring trade-in value. Two that will at this time are a Honda and a Toyota. Those cars will bring trade-in value. Domestic cars generally will not bring trade-in value, with the exception of new, hot models. Other models will only bring wholesale. As an example, Kia makes a great car, but most will not bring close to trade-in value. Mitsubishi is going through changes and also won’t bring close to trade-in value. There are exceptions to the rule: Katrina and Rita-two hurricanes that created a short supply of used cars. If you live in the south, that will be the case for a while. With the exception of a Honda and a Toyota, you can probably be safe offering less than trade-in. Not thousands, mind you, but less. Take into consideration the other costs of trading for a car. Also, ask the salesperson how long they’ve had the car. If the salesperson slips up and tells you they’ve had it a while, your negotiating should be easier. The reason behind that is that the dealer is paying interest on the car every month it does not sell. The book value is also dropping every month so it needs to go.

Throughout the car deal, make sure they know you are paying cash. Don’t mention that you have a check from Americredit or whoever. That’s none of their business. When you make a deal, insist on the Used Car Manager running a Car Fax before you sign any paperwork. A Car Fax will show if the vehicle has been involved in a serious wreck, was bought back from the original customer or is salvaged. This will put your mind at ease. If you don’t like the Car Fax, don’t buy the car.

Throughout your shopping, I can’t stress this enough-Do NOT fill out credit applications at each dealership. Every time you sign a credit application, the dealer pulls your credit report and your beacon score goes DOWN. That’s why I advise on getting approved ahead of time. There are numerous advantages to getting approved ahead of time. The main advantage is that you are in control, not the dealership. That’s worth a fortune in itself. Their job is to take control of you from the start of every meeting. Believe me; I know what I’m telling you. I lived that life for a long time.

For some reason, should you not be able to get pre-approved because your credit is extremely bad (a discharged bankruptcy is an instant-approval, by the way), and you have to go through an online clearinghouse like cars.com, don’t despair. Continue to follow my previous steps and advice and negotiate and insist on a Car Fax report.

When you do decide on a car and go into the Finance Office to sign the papers, I would like for everyone to know that you do not have to purchase any products in order to get the loan. If anyone in Finance tells you that you have to purchase a warranty and credit life to get the loan, which is a bold-faced lie. Why would a Finance Manager do that? Because they work on commission, also. Surprised? Don’t be. That’s the way dealers set up Finance Offices from the start when they realized how much money could be made. The Finance Manager makes money off of the rate they quote you, the warranty they sell you, the gap insurance and the credit life and disability you buy. That’s how they make a living.

I’m not saying that any of these products are bad, though. I believe in extended warranties. I’m just telling you to shop around first. If you find a cheap warranty, check out the company and make sure they will give the dealer a credit card over the phone immediately when in need of repairs in any state. All in all, I will say this-A manufacturers warranty is always better than an after-market warranty. Always. Just negotiate on it if you want it. The only reason why you would not want gap insurance would be if you literally paid cash for the car. Otherwise, gap is cheap (should retail around $495) and will pay the portion that insurance won’t pay if it’s totaled. Just remember what I said about the book dropping on a car every month. It will never be worth what you owe unless you put down a lot of money at the time of purchase.

Credit life and Disability insurance are a personal matter. If you have a life insurance policy, it can be used to pay off the car in the event of your death. If you are single, why do you need Credit Life? The only benefit would be if you are married with a family, it cuts down the payout time. In this situation, your spouse would not lose the car. Disability Insurance pays out for a specified amount of time. It will not pay out for the entirety of the loan. It also has a specified start date from the time you are disabled. It doesn’t just kick in immediately.

This is a lengthy article, but the gist of it is this: do your homework at home first. Then get approved online. Then shop on Sunday. Then go get your car and negotiate on everything. It will be the easiest car-buying experience you have ever had. Regardless of your credit situation, if you follow my steps, you’ll have a car in no time and you’ll be an educated and informed customer during the process. Good luck!