Tag Archives: budget

Budgeting to Afford an Auto Loan

One of the biggest question that people have when they go to get an auto loan is what can they afford with financing a car. That’s a question that Approved Loan Store is striving to answer, and Loans.org has some great first steps towards planning a car purchase.

People need to understand just where their monthly income should go to. An auto loan is something that can cause a great deal of financial stress and should be prepared for. Following the steps the article lays out, it can make a world of difference in making sure that a family can repay an auto loan without breaking the bank.

The budget plan was proposed by Liz Weston, a finance writer. It’s the 50/30/20 budgeting plan. What this breaks down to is that the person following the plan needs to divide one’s needs, wants, and savings in different allotments. Needs should take up no more than 50 percent of one’s after-tax income, wants are 30 percent, and the 20 percent that remains should be saved.

Breaking it down even further, the plan calls to make sure that needs are actual needs. Needs do not include those nice new shoes but rather things that are necessary for survival. Those items include housing and food, and, in the case of this blog, transportation. One of the items in needed that the article recommends possibly cutting back on is a cell phone plan if the basic plan can help keep costs down. Other ways to cut back on needs is to stop eating out for dinner and instead opt for home-cooked, and generally healthier, meals.

Wants include things such as movies, video games, clothing, or anything else that goes beyond the basic. In order to accomplish this, you can cut back again on a cell phone plan. You can also avoid the new season’s style and instead save money for later. That’s where the final 20 comes in, putting aside 20 percent every month in savings. This will go a long way in giving comfort of mind. The recent economic collapse put everyone on edge, creating an atmosphere of fear of sudden and long term job loss. If you’re properly prepared for such life altering events, then you can be in a better situation should the worst case arise.

Bringing it back to auto loans, this budgeting plan can go a long way in making sure that anyone is comfortable with paying back an auto loan. By breaking down just what in someone’s life is necessary versus a want and putting a set sum aside for saving, it puts the person in control of their financing. Following this budgeting can help borrowers assure themselves that they can make the loan payments and still have enough set aside in case something happens.

Set your budget and head on over to Approved Loan Store to sign up today to get a car loan. Don’t forget to also follow Approved Loan Store on Facebook in order to stay up to date on any future budgeting tips.

Image: Stuart Miles / FreeDigitalPhotos.net

Debunking Common Credit Score Myths

What’s your credit score? This is a question that defines so much in our lives. It determines loan rates, the ability to refinancing a home, credit card rates, and the list goes on. Your credit score is a magic number that’s kept in secret by the major credit score agencies because for the longest time, FICO didn’t want consumer to even know that these scores were out there. They sure weren’t even going to let people know what exactly went into giving a score. It wasn’t until early in 2000 that the curtain was pulled back a little and customers were given a chance to see their FICO scores. This was due to tremendous pressure from both politicians and consumer advocates. Now people have a better understanding of what they can do to improve their credit scores to give them a better shot at the best rates. That knowledge, however, is a double sided coin that has lead to many myths being passed along to improve scores.

One such myth is as long as you handle finance properly, then the credit score will just take care of itself. The problem with this thinking is that a credit score doesn’t simply examine your financing health. Credit scores tell lenders how likely you’ll default based on how you handle credit which is why having no credit can be just as bad as poor credit.

Another rampant myth in credit scores is that to have a good score you must carry a credit card balance. What’s being reported to the agencies is the balance from your last statement, not a leftover from when you got the statement and paid it. This myth can cause people to carry debt that is completely unnecessary under the belief that it affects a credit score in a positive manner. This is not true, and you should pay your bills in full anyway just to avoid interest.

Next myth that needs debunking is that you should never close an account if if can be helped. This falsehood exists because people are under the impression that closing unused accounts can help scores. That just isn’t true. Having unused or available credit can actually be seen as a low-risk factor viewed favorably by FICO. Closing a credit card removes available credit. Just shutting down unused accounts will not instantly improve your score.

These are just a few of many of the credit myths that have managed to weave their way into society. It’s hard to blame anyone seeing as how the credit agencies keep everything about the process so secretive. For anyone looking to finance a car, it’s important to have a grasp on your credit score. That being said, Approved Loan Store is looking to work with you, should you have excellent or bad credit. Go to the website today and check out how they can help you find the car or truck of your choice at an affordable price with the best rates. Follow on Facebook as well so you can view all future tips and news.

Image: FreeDigitalPhotos.net

Lower Your Graduate Debt by Picking the Right School

Before looking at student loans and comparing interest rates, there is an easy step that people often miss in preventing high debt post-graduation: picking the right school.

Last week, U.S. News released their rankings of schools whose students had the most and least post-graduation debt. These rankings were determined by the percentage of students who took out loans and the average total indebtedness per student graduating in 2010. Schools that performed better typically had more opportunities for student employment, scholarships, and grants.

Topping the list of schools with the least debt was Alice Lloyd College in Kentucky where 32 percent of students took out loans and owed an average of $3,108 post-graduation. Following closely is Princeton University with 24 percent of students taking out loans with an average of $4,385 debt after graduation. The highest rate of borrowing on this list was East-West University of Illinois in ninth place with 80 percent of students taking out loans and graduating with an average of $7,000 in debt.

Now, prospective students are getting bombarded with glossy flyers and sucked in with new fitness facilities, bigger fine arts centers, or a better cafeteria. Post-graduation debt is a problem that seems far away when taking college tours, but it is something that cannot be overlooked. A degree no longer guarantees work. Jobs for graduates are harder to find, and if the economy does not improve in the next few years, future graduates might be stuck out of work with a mountain of debt.

You can view the full list of the Top Ten Schools with Least 2010 Graduate Debt here, and if you are looking for a student loan, learn more and apply for a loan here. You can also follow Approved Loan Store on Facebook here.

Image: Stuart Miles / FreeDigitalPhotos.net

Avoiding Student Loans: Good Financial Sense or Common Financial Pitfall?

In tough economic times, people are less willing to take on debt, even if it means a long-term gain. Case in point, student loans. The Associated Press published a story recently about a movement amongst students starting college to avoid taking out student loans. They will live at home, borrow their textbooks from the library, and take on several jobs to pay off their tuition right away.

At first glance, it sort of makes sense. Many recent graduates are having trouble finding jobs paying well enough to pay off their student loans. If a student wants to put in the time and work to pay off their tuition now and avoid debt later, then why shouldn’t they do it? Isn’t it the most responsible path available?

Well, it is actually not as simple as that. First off, Deborah Santiago of Excelencia in Education says that students who take out loans are more likely to complete their degree and argues that, “If you can go to a more selective institution that gives you more resources and support, you’re more likely to compete.” Depending on the student, it is usually a better idea to take out a loan and go to a first-rate school than get a second or third-rate education without taking out a loan.

Besides that, if a student wants to set themselves up for a strong financial future, they will want to establish a good credit history. With a student loan, they can spend more time studying and getting better grades, and they won’t have to take on as much extra outside work hours. Instead, they can focus on making their loan payments on time which will make them desirable to lenders if they want to get a car or house in the future. A lot of employers also look at job applicants’ credit reports, and they might look on them more favorably after seeing that positive payment history.

If you are exploring your options in student loans, click on Student Loans under the Approved Loans tab above, and keep an eye on our blog and Facebook page for the latest developments in student, car, home, and personal loans (and more!).

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TransUnion Study Means Good News for Car Buyers

TransUnion has a simple message for consumers on the fence about buying a car: Buy now!

According to a new study released by TransUnion, one of the “Big 3” credit bureaus, all signs are pointing to a good time to get an auto loan. Only about a half of a percent of consumers are 60 days or more past due with their auto loan payments, and at the same time, there have been 28 percent more auto loans signed during the second quarter of 2011 than the second quarter of 2009. Furthermore, the Detroit Free Press predicted this week that banks and lenders would be competing more fiercely in the new year and making sweeter offers to entice consumers who might not even be considering buying a car.

For car buyers, using Approved Loan Store makes sense now more than ever. With lenders making increasingly better deals, it only makes sense to let Approved Loan Store help you find the best deals out there. Approved Loan Store keeps it easy. To apply for a car loan, click on the Approved Car Loan tab above, fill out the application form, and you will be contacted by a representative in 24 to 48 hours.

To learn more about what Approved Loan Store can do for you, read more about us here and follow us on Facebook.

Image: M – Pics / FreeDigitalPhotos.net

4 Percent Rates Spur Rise in Home Purchases

Hoping to jump-start home sales, lenders have been slashing their loan interest rates to under 4 percent for many consumers.

According to facts released Thursday by Freddie Mac, 30-year fixed-rate mortgages (FRM) were averaging 3.99 percent. 15-year FRM were at an average of 3.27 percent, and adjustable rate mortgages (ARM) were staying low as well with a 5-year Treasury-indexed ARM of 2.93 percent and 1-year Treasury-indexed ARM of 2.8 percent. Lenders are hoping that these low interest rates will make people rethink home ownership, and so far, it has paid off. Home loan applications spike to a four-month high after Thanksgiving.

This is great news for people thinking about buying a home. These lower interest rates combined with the recent drop in unemployment mean that being a homeowner is attainable for more Americans, and people are taking advantage of the opportunity. 2011 was a tough year for the American people, and it is heartening that so many are giving new meaning to the phrase “home for the holidays.”

If you are looking for a new home, click on the Approved Home Loan tab above to qualify for the best available interests rates, and try out our Home Affordability Calculator here. You can also like Approved Loan Store on Facebook and follow industry trends on our blog.

Image: Simon Howden / FreeDigitalPhotos.net

Wells Fargo Student Loan Interest Cuts: Deal or No Deal?

Recently, student loans have been all over the news. Some members of Occupy Wall Street are calling for the government to forgive student loan debt, and many young people are concerned about finding a job that will help them pay off their student loans.

In response to these growing concerns, Wells Fargo announced late last week that it will be offering lower fixed interest rates on loans for undergrads as well as lower rates for parents, community and career college students, and consolidation loans. With the new program, undergrad loan interest rates can be as low as 7.24 percent.

It may sound like a good deal, but Wells Fargo might not be the right choice for everyone even with the interest rate cut. As with all loans, consumers with better credit will get lower interest rates, and Wells Fargo’s student loans can still have interest rates up to 13.99 percent. Shopping around for the best rates is vitally important in today’s economy, whether a consumer has good credit or poor credit. Otherwise, lenders can end up spending more money than necessary.

Approved Loan Store is a great place to start looking for a student loan. They make it easy to find the best student, home, and car loans available. Click on the Student Loans tab above to learn more about finding the right student loan for your needs, and don’t forget to like Approved Loan Store on Facebook!

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Auto Loans on the Rise

Americans are feeling comfortable with credit again, particularly when it comes to car loans.

According to Bloomberg, auto loans are on the rise and heavily contributed to the year-end boost in consumer borrowing. Credit in the United States hit $2.46 trillion during the month of October, and non-revolving debt alone increased by $7.28 billion. Non-revolving debt includes student loans, mobile home loans, and auto loans.

What does it mean? Well, clearly lenders are more willing to approve consumers for a car loan, and consumers are more willing to invest in larger purchases. Recently, unemployment numbers started dropping and payroll numbers have been steadily going up in 2011. More consumers have a stronger financial standing than they did one year ago or two years ago, and many of them want or need a new car. Overall, more consumers are getting car loans now than they have since 2009, so it is an optimal time to look for an auto loan.

You might be looking to get a new car and want to shop around for the best deal. You might be concerned that you can’t get approved. No matter what your situation, Approved Loan Store can help you find the best car loan! Click on the Approved Car Loan tab above and fill out our car loan application. Also make sure to like Approved Loan Store on Facebook and keep up with our loan education blog here!

Image: vichie81 / FreeDigitalPhotos.net

Auto Loan Education: Best Fuel Efficiency Cars

Anyone who has ever owned a car knows that the true cost of a car goes beyond what is paid at the dealership. Maintaining a car and keeping it in top shape is important to avoid more expensive repairs, but one of the biggest day-to-day costs of a car is, of course, paying for gas. By getting a car that is more fuel efficient, however, drivers can save big bucks over the course of a year at the gas pump. We have compiled some of the most fuel-efficient cars according to FuelEconomy.gov, the United States government’s official online source for fuel economy information, alternative fuels, and ways to save money on the road.

2012 Honda CR-Z
Price: Starting at $19,545
Approximate Fuel Cost/Year: $1365
Miles/Gallon: 35 for city driving, 39 for highway
Reviews: Motor Trend praised the Honda CR-Z for its “bold looks, high quality, and genuine driver appeal” and emphasized that this is more than just a good hybrid car. The Honda CR-Z is a great car, period.

If you’d like to get into a pre-owned Honda CR-Z, fill out this application today.

2012 Scion iQ
Price: Starting at $15,265
Approximate Fuel Cost/Year: $1365
Miles/Gallon: 36 for city driving, 37 for highway
Reviews: Motor Trend gave the Scion iQ a glowing review after driving it around San Francisco. Its small but surprisingly not cramped layout makes it the perfect car for city driving.

If you’d like to get into a pre-owned Scion iQ, fill out this application today.

2012 Mitsubishi i-MiEV
Price: Starting at $21,625
Approximate Fuel Cost/Year: $540
kw-hrs/100 miles (for electric cars): 27 for city driving, 34 for highway
Reviews: The Mitsubishi i-MiEV did not do so well with Motor Trend as far as lengthy drives, but they called it a good investment for city commuter drivers who are looking for an environmentally-friendly car.

If you’d like to get into a pre-owned Mitsubishi i-MiEV, fill out this application today.

2012 Chevrolet Volt
Price: Starting at $33,500
Approximate Fuel Cost/Year: $1470 for gas, $648 for electricity
Miles/Gallon: 35 for city driving, 40 for highway
kw-hrs/100 miles: 36 for city driving, 37 for highway
Reviews: The folks over at Motor Trend couldn’t praise the 2011 Chevy Volt highly enough, calling it “one of the most significant automobiles to come out of Detroit in the 60-year history of [Motor Trend.]” While their “First Test” review was not available as of this article’s publication, we expect that Motor Trend will continue their love for 2011’s Car of the Year.

If you’d like to get into a pre-owned Chevy Volt, fill out this application today.

2012 Nissan Leaf
Price: Starting at $27,700
Approximate Fuel Cost/Year: $612
kw-hrs/100 miles: 32 for city driving, 37 for highway
Reviews: Motor Trend did not have their review for the 2012 Nissan Leaf yet, but The Car Connection called it a “quiet, smooth” ride and loved the car’s unique design. They also appreciated that it was an electric car with 5 seats instead of the usual 4 seats standard to most electric cars.

If you’d like to get into a pre-owned Nissan Leaf, fill out this application today.

2012 Hyundai Sonata
Price: Starting at $20,000
Approximate Fuel Cost/Year: $1805
Miles/Gallon: 24 for city driving, 35 for highway
Reviews: According to Motor Trend’s review, the Sonata’s design is not only distinctive and visually attractive but also makes sense aerodynamically. Tests showed that the 2012 design lessened the drag over the 2011 model, showing that Hyundai is constantly striving to make their cars better.

If you’d like to get into a pre-owned Hyundai Sonata, fill out this application today.

2012 Audi A3
Price: Starting at $27,270
Approximate Fuel Cost/Year: $1768
Miles/Gallon: 30 for city driving, 42 for highway
Reviews: Motor Trend hasn’t reviewed the 2012 Audi A3 yet, but U.S. News ranked it as one of their top 11 Upscale Small Cars, calling it practical but fun. Their review said it was the car “able to do it all” from winter driving to back road races.

If you’d like to get into a pre-owned Audi A3, fill out this application today.

2012 Volkswagen Jetta SportWagen
Price: Starting at $16,495
Approximate Fuel Cost/Year: $1768
Miles/Gallon: 30 for city driving, 42 for highway
Reviews: No review from Motor Trend yet, but Edmunds claims that the Volkswagen Jetta SportWagen is “in a class of its own,” praising everything from its luxurious interior to its fuel efficiency.

If you’d like to get into a pre-owned Volkswagen Jetta SportWagen, fill out this application today.

2012 Toyota Prius V
Price: Starting at $23,520
Approximate Fuel Cost/Year: $1203
Miles/Gallon: 44 for city driving, 40 for highway
Reviews: The Toyota Prius V was a contender for Motor Trend’s Car of the Year award, and even though the fuel efficiency was not as strong as the 2011 model, the 2012 model has more interior space. They said with the added space, it was a good choice for people who wanted something like an SUV but didn’t want an SUV.

If you’d like to get into a pre-owned Toyota Prius V, fill out this application today.

2012 Kia Forte
Price: Starting at $16,200
Approximate Fuel Cost/Year: $1946
Miles/Gallon: 23 for city driving, 32 for highway
Reviews: U.S. News ranked the 2012 Kia Forte in their top 10 Affordable Small Cars, and amongst reviewers, the consensus is that there is a lot to love about the Kia Forte. Besides that, it is the best deal for the dollar when compared to similar cars in its class with a roomy interior and more standard features including iPod USB port, Bluetooth, and satellite radio.

If you’d like to get into a pre-owned Kia Forte, fill out this application today.

Ready to get into a car? Apply for a car loan by clicking on the Approved Car Loan tab, and stay tuned to our blog to learn how to save more on your day-to-day car expenses! Make sure to also follow Approved Loan Store on Facebook.

Approved Loan Store Features: Car Loans

In the upcoming weeks, we will be running a regular segment on the site called “Approved Loan Store Features.” We hope that this segment will help introduce our readers to all the features of ApprovedLoanStore.com and take full advantage of the website. Today, we’ll be showing off the features for consumers looking for a car loan.

Approved Loan Store is the best place for consumers to start and end their search for a car loan. The tools on our website will help you understand what you can afford, how much you should put for a down payment, and where you can find a dealership to give you the best interest rates possible.

First, you will want to test out the Car Affordability Calculator, located under the Credit Resources tab. The Car Affordability Calculator will ask you how much you have saved for a down payment, the trade-in value of your current vehicle, what rebates are available, how quickly you want to pay off your car (24 months to 60 months), how much you can afford to pay per month, what is the possible interest rate you could qualify for, and what is the sales tax for your county of residence. Based on all of this information, it will tell you the price range that you could afford without breaking the bank.

Second, the Approved Loan Store wants you to understand all the terminology behind car loan agreements. If you don’t understand the terms used by car dealerships and what it would mean if you took a deal, then check out the Approved Loan Store Glossary, once again located under the Credit Resources tab. The Glossary includes an alphabetized directory of many of the most-used terms in loan agreements, explained simply so that anyone could understand it.

Thirdly, you can stay up to date on all the latest news in loans and interest rates by reading the Approved Loan Store blog. We will keep you informed of trends in the industry, the best times to buy, and how to adjust your budget when buying a car.

Finally, the ApprovedLoanStore.com lets you apply for a car loan online. After filling out a sign-up form online, Approved Loan Store will contact you by phone within 24 to 48 hours. From there, we will verify your information and review car buying opportunities in your area. Consumers with good and bad credit can both benefit because consumers with bad credit can find dealerships willing to work with them, and consumers with good credit can find an even better deal than they might have found on their own. We have connections to dealerships all over and banks that are ready to work with you to get you the best interest rates possible.

Stay tuned to our blog in upcoming weeks to learn more about all the features offered by ApprovedLoanStore.com, and follow Approved Loan Store on Facebook here.

Image: M – Pics / FreeDigitalPhotos.net