Tag Archives: special finance

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

Economic Improvement Spurs Auto Affordability

Everyday seems to bring with it optimistic news of the auto industry. Whether its seeing sales skyrocket in the previous year or in the month of January, or seeing more people finally able to start paying off their loans, or just people who have been hurting due to poor credit scores finally seeing financing extended to them, it seems that the bad times are really starting to go away. Hope is finally starting to break through a bleak economic climate.

To further this good news, Autofinancenews.net is reporting that Comcerica Bank has revealed the best auto affordability reading since the third quarter of 2009. According to the article, the purchase and financing of an average-priced new vehicle took 23.1 weeks of median family income in the fourth quarter of 2011. Consumers, on average, were down 4% from last year having spent $1,050 less on new cars in the fourth quarter.

“Household credit conditions are also improving, as shown by the low household financial obligations ratio, which measures total debt payments as a percentage of income. When you put those two concepts together, it means that households are increasingly willing to take on a reasonable amount of debt by purchasing an attractively priced automobile,” says Robert Dye, Chief Economist of Comerica Bank in Dallas. “Those favorable trends are allowing consumers to feel more confident about unleashing their pent-up demand for automobiles. Favorable affordability and improved job growth mean more upside potential for auto sales in early 2012.”

Good news is such a blessing these days, especially after watching the entire economy collapse and take so much with it. Things are really starting to rebound and people are really seeing that. Sales figures with the auto industry point to people finally going out to purchase a vehicle. This is the best time to take advantage of such an optimistic time. Go to Approved Loan Store’s website to see how you can sign up today! You can also follow ALS on Facebook, that way you can stay up to date on all the latest news.

Low Income Drivers Struggling to Find Reasonable Auto Insurance

Car Insurance is something that many drivers struggle with. By law, they are required to have it for their cars. The problem is that many have issues with even affording it. Due to things, such as credit problems, many are not getting a fair chance to get reasonable insurance.

The Consumer Federation Of America recently released a study called, “Lower Income Households and the Auto Insurance Marketplace: Challenges and Opportunities.” The study shows some of the ways that low income consumer are being denied economic opportunities in the auto insurance market. A couple of the major auto insurers are even refusing to sell policies to low income customers. The ones that do sell them are often at much higher premiums and give much less coverage.

The startling number the study reveals is that a third of low income drivers don’t even have insurance. That means that low income families have an incredibly hard, almost impossible, time getting qualified for an auto loan. The Consumer Federation of America is wanting state regulators to lead a charge in getting something done. They are asking for low income families to be able to get access to insurances by lowering minimum liability coverage requirements, by creating low income purchasing programs, and starting a program that will reward safe drivers.

Buyers shouldn’t have to be concerned if the insurance deal they are getting is for the best. They should be concerned about getting the car they want. Approved Loan Store is looking to make sure that buyers get the best deal for a car loan. Check it out today on their website and be sure to follow ALS on Facebook to stay up to date on all the latest news and offerings.

Car Loan Repayment Sees Improvement

New analysis from Equifax on consumer debt has found some interesting results. What they found was that consumers were more likely in 2011 to make their payments on time on auto loans than any other year. The delinquency rates of 60 days or more fell not only for auto finance companies but for banks as well. To be exact, the auto finance companies saw a decrease in 19 percent while the auto banking sector’s drop was 23 percent. An even more remarkable figure to go with that report is that more than 30 billion dollars in new auto loans were taken out in October 2011.

Auto loans weren’t the only place in the credit industry that was seeing consumers paying back their loans. Bank credit card lending was given its greatest year over year improvement with a 29 percent decrease in 60 day plus delinquency. Retail credit cards had about a 15 percent improvement.

Michael Koukounas, senior vice president of analytics for Equifax, had this to say about the news, “The improvement in 2011 delinquency data, paired with consistent growth in loan origination in multiple sectors, provides truly positive momentum for the industry as we begin a new year.” With the recent job numbers and unemployment rate going down to 8.3 percent, there’s hope that this trend continues into 2012. Consumer debt itself is down from the 12.4 trillion in 2008 to about 11.1 trillion.

If you’re looking to get a car loan, then Approved Loan Store is the place to start. It’s easy to find the best available loans. Just click on the Approved Car Loan tab on the main website and get the process started. Don’t forget to like ALS on Facebook so you can stay up to date on all the news and deals being offered.

Image: anankkml / FreeDigitalPhotos.net

Auto Lenders Optimistic About Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau has been out of the news as of late. With President Obama finally selecting someone to lead it, it’s now in its infancy and about to embark on what it was created to do. To this extent, Autonews.com reports that members of the CFPB have begun to meet with auto loan traders. With so much mystery behind just what the bureau intends to do, the members of the American Financial Services Associations who were involved in the private meetings walked away with optimism about what was going to happen next.

AFSA CEO Chris Stinebert was impressed by the agencies want to make measures based entirely on data rather than knee jerk reactions. “There are some good people at the CFPB — honest, dedicated, hardworking people with good experience and background. We have been very encouraged in our dealings with them. They are not shooting from the hip. They state repeatedly they want to base decisions going on facts — not on anecdotes, but on data, on empirical research. If that is true, then we have very limited concerns.”

CFPB Assistant Director Richard Hackett echoed this approach to regulations they would pass. “Our decisions on use of regulatory tools, whether enforcement, supervision, or otherwise, will be informed by data from stakeholders, including industry.”

According to the article, auto dealers will be exempt from the bureau with the exception of buy here, pay-here stores. That being said, it’ll be impossible for dealers not to be affected by what happens to the auto lenders. That leaves many of the lenders still anxious to see what happens next. Bill Himpler, the AFSA executive vice presidents said, “Despite what we hear from the CFPB staff, what we hear from the field I don’t think really lowers our anxiety level.”

Approved Loan Store is looking to make the loan process easy for you. For more information on getting a car loan for yourself, visit the Approved Loan Store to start the process and look into getting the car you want. Be sure to also follow on Facebook so you can stay up to date on any offers and all the latest financial news.

Financing Not an Issue with Buyers

People are more concerned about how their car looks than finding the financing for it according to a survey that was put out by J.D Power and Associates given to analyze why people buy certain cars. The findings they turned up paint quite the interesting picture of car buyers.

In a break down of the results, the reason that scored the highest for not buying a certain car was the look and/or design. The next reason was the price of the vehicle. Other notable reasons were online ratings, lack of reliability, and the interior design. The amazing thing about the results, however, is that financing didn’t rank highly on the list. Barely one percent of survey subjects stated that they wouldn’t purchase because of financing issues. That means that finding financing was less of a concern than the vehicle’s gas mileage or design choices.

I think the survey results say a lot, that even in such economic straits, people still care more about the car’s reputation or how cool it looks on the road before worrying about financing. This survey shows that people still care that their money is going towards quality, wanting only the best looks and gas mileage. They just seemed too stressed out about finding a loan to help them achieve that dream car that they want.

Approved Loan Store is a company dedicated to ensuring that people don’t have to worry about finding that funding, regardless of credit. Approved Loan Store is the business that wants your concern to be about which car you want to drive away in, not about wondering if you’ll get the loan for it. Make sure to also follow on Facebook so you can see all the offers and start dreaming about the car you want without the hassle or worry.

Easier Financing Offsets Rising Used Car Prices

Some good news and bad news for car buyers today. Autofinancial.net is reporting that 2012 is expected to see an increase in 2012, making it the third straight years of the price raising. In his speech on February 4th, Jonathan Banks, the executive automotive analyst with the National Automobile Dealers Association, said that the increase will be because of an increase in demand and decrease in the supply of used cars. Compact cars will be seeing a rise of 2.7 percent while SUV’s are expected to see only a 1.4 percent increase. That translates to used prices going up by 1.8 percent over the course of the year.

That’s the bad news, the good news is that even though prices are rising, there are other factors to help buyers. Credit loosening is making it so that people with problems on their credit can get a loan. Another factor is that trade-ins are going to be getting more leverage. “The slowing rate of depreciation on used vehicles over the course of the year will lead to even stronger trade-in values and enhance the equity that a consumer has in their vehicle,” Banks said.

Approved Loan Store is here to make sure that you can get the financing you need to drive away in the car you want. You can go online to learn more and apply for a loan here. Make sure to also follow on Facebook so you can stay up to date on all the latest news and offers.

Image: vichie81 / FreeDigitalPhotos.net

Freddie Mac Making Homeloans Difficult

According to an article in MSN’s Bottom Line tells people of what was found by an investigation of ProPublica and NPR into Freddie Mac. This investigation discovered that Freddie Mac has invested in financial instruments that profit when homeowners are stuck in high-interest mortgages.

What makes this such terrible news is that Freddie Mac is supposed to be the ones dedicated to backstopping mortgages, they are supposed to be making it easier for people to be getting home loans. When the government bailed the troubled company out in 2010, one of the requirements was that they get rid of all of their riskier investments. They apparently didn’t do that, however, and have doubled down on securities when homeowners lose.

To make matters even worse, Freddie Mac has been making it harder for homeowners to get credit and has even been raising fees for refinancing. It’s getting so bad that the Federal Reserve has said about the fees for both Freddie Mac and sister company Fannie Mae, “difficult to justify.”

When homeowners lose, when they can’t get refinanced to lower rates, it damages the economy. According to the research company Corelogic, there are around 11 million homes underwater just last year. If there is one person who is benefiting greatly from that number, it’s definitely not the homeowners, but it just so happens that the head of the trading division at Freddie Mac, Peter Federico, is. In 2010 he was paid 2.5 million and in 2011, he’s up to make even more.

With news like this so prevalent in the news cycle, it’s a scary thought to be a first time home owner in this market. Luckily, Approved Loan Store is here to make sure that you can get the just the right loan. There are a variety of options, such as 30 or 15 year fixed mortgages, adjustable rate mortgages, etc. The staff is always ready to answer any questions and do what they can to help you. You can find out more information on getting a home loan here. Don’t forget to like on Facebook to stay up to date on news and offers.

Car Loans: Using Tax Refund as a Down Payment

It’s the silver lining of having to deal with taxes. After all the math and beating your head against a table trying to figure out why box 8 doesn’t add up right because of box 6, it’s nice to see that chunk of change coming back into your pocket. The average tax refund in 2011 was $2,913 according to an article in Yahoo Finance. Another figure the article quotes is that the average American worker spends just shy of $2,000 a year on lunches and coffee.

It begs the question of just what to do with a hefty amount of money. Does it go towards all those lunch breaks? Does it go towards paying off the credit card debt built up from holiday shopping? Is it time to buy that new TV? 57% plan to use it to pay off debts. There’s another option though. That amount of a refund is perfect for putting down towards a new vehicle. It’s sound advice for the weary car buyer out there afraid of their credit score. Lending is really starting to pick up in the sub-prime market as the economy is starting to turn around. That’s great news for someone with extra spending cash in their wallet.

A higher down payment can lead to a much better monthly. The difference between putting $1,000 down on financing a $15,000 car is about $297.46 a month at 10% interest. If you put down closer to $3,000, that rate goes down to $254.96. That’s over $50.00 a month and that savings can add up fast. So before just using that tax refund to head to Starbucks, think hard about how much it might benefit the buying of a new car.

Now is a good time to buy and explore your options. Approved Loan Store has a number of dealers available to work with you even if you have bad credit. Fill out the easy application here and you’ll hear back from someone within 48 hours. Make sure to also like us on Facebook to keep up to date on the latest news and trends in the industry.

Image: Robert Cochrane / 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