Tag Archives: student loan

Auto Loan vs. Cash: When a Loan is the Better Choice

Last Friday, guest blogger Lance from “Budgets are Sexy” was featured on MSN Money and stirred up some controversy with the headline “Why a car loan can beat paying cash.” As expected, many cash-only advocates got very upset and all but called for the authors head to be served on a silver platter to Dave Ramsey. We wanted to take a quick look at why he took out a car loan instead of paying cash and then open it up to our readers for feedback.

First, he wanted to get an installment loan on his credit history. At this point, he had several credit cards which he paid off regularly and on-time, and he did not take out any student loans in college. With such a sparse credit history, he thought that an auto loan that was paid on time would make a good addition to his credit report.

Second, he got a 0.9 percent interest rate for 36 months. Some readers didn’t know why he would pay any interest rate on a purchase he could afford to pay with cash, but considering that the interest he was earning on his savings account covered the additional interest on the car loan, it was a smart choice. Under these circumstances, he built up his credit history, and it didn’t cost him anything extra.

Finally, he appreciated not depleting his funds to pay for the car outright. By taking out the loan, he could still maintain his emergency fund in case of job loss or medical emergency. Most personal finance experts recommend keeping an emergency fund with enough money to live on for six to eight months, and thanks to the loan, he could keep his six-month emergency fund.

What do you think about his decision? If you could pay for a car in cash, would you choose to take out a loan? Leave us a comment below, and tell us what you think!

Are you looking for an auto loan? Approved Loan Store can help! Fill out our secure online auto loan application here, and get connected with Approved Loan Store on Facebook, Approved Loan Store on Twitter, and Approved Loan Store on YouTube!

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“Clean up your credit overnight! Get the best rates without leaving the house, and pay no money down on a Mercedes-Benz!”

These days, a lot of companies are promising the world to people with challenged credit who are looking for a way back. One of the fastest ways to re-establish credit is through a car loan, so there is a high demand for car loans from people with challenged credit. Unfortunately, this means that some businesses will take advantage of that demand and take advantage of less-informed consumers. We wanted to clear up some misconceptions and misinformation that is spread about credit restoration and auto loans. If more consumers are educated, then less people will fall prey to these predatory companies.

First off, credit restoration is not an overnight process. Any company that offers an overnight solution or a new Social Security number with a clean credit record is lying. Worse, anyone that offers to sell a new Social Security number is committing a crime. These Social Security numbers have to come from somewhere, and some of these scam artists are selling children’s Social Security numbers. Foster children are especially vulnerable to these crimes because their personal information is passed around so much, and most parents wouldn’t think to check their child’s credit report.

The truth is that the credit restoration process can take as little as a month or up to half a year. By law, the credit bureaus have to be given about 35 days to respond to any credit report dispute, so the quickest way to gauge if a credit restoration company is legitimate is asking them how long the process takes. Also, credit restoration companies cannot charge upfront for services. Some companies get around this law by bundling credit restoration with other services, but they cannot specifically charge consumers for credit restoration work until they see results.

Another misconception about credit is that getting negative information taken off will automatically improve the credit score. A large part of a credit score is based on credit history, so getting a good credit score means having open accounts that have been paid on time consistently. (Once again, this is why an auto loan is a great option for people who want to improve their credit.) Still, some people expect their credit score to dramatically increase immediately after starting credit restoration, but any change in the credit score depends on the individual and their own credit history. One person might go from a 500-something credit score to low 700s while someone else will struggle to break 600. It is not a one-size-fits-all process, and every person will have a different experience.

When consumers understand how credit restoration works, they have an easier time picking out which companies are legitimately trying to help people with challenged credit and which companies can’t deliver what they are promising. Doing credit restoration in one week and getting an auto loan with premium rates the next week is simply not possible. At Approved Loan Store, we know that rebuilding credit takes time, and we offer real solutions, not fantasies. If you have challenged credit, we can help you in getting a car loan, and we can also advise you on reputable credit restoration services. The road back to good credit is tough and getting a car can be tough too. That is why Approved Loan Store is here to help, getting customers into a car and back on the road to good credit.

To learn more about our auto loan program, fill out our secure online application here, and stay up to date with the latest from Approved Loan Store by liking us on Facebook and following us on Twitter. Also, watch real Approved Loan Store customers talk about their experience on our YouTube channel.

Image: M – Pics / 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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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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Approved Loan Store Provides Financial Tools, Competitive Deals to Consumers


Approved Loan Store Provides Financial Tools, Competitive Deals to Consumers

New York, NY – October 28, 2011 – For people looking to purchase their first home, buy a new car, or get approved for a loan, the process can be daunting. Most consumers don’t know where to start looking to get the best deal, and with poor or challenged credit, finding a bank or dealership is even tougher.

There are online resources available, but oftentimes consumers spend more time weeding through the junk than finding good deals. With their combination of social media savvy and good old-fashioned networking, Approved Loan Store hopes to change how people shop for a loan. Approved Loan Store is a network of banks, car dealerships, mortgage bankers, and other lenders who want to give consumers, particularly ones with poor credit, the best available interest rates.

Additionally, Approved Loan Store is a resource for financial education. Approved Loan Store founder Todd Campanella recently spoke about his intent in starting ApprovedLoanStore.com, stating, “I created ApprovedLoanStore.com to offer consumers the best financial resources to accommodate their needs.”

To that end, sections of the website are dedicated to credit cards, credit repair, and other topics that consumers face on a daily basis. Consumers with challenged credit can also seek help through the website with advice on improving credit health and referrals to credit repair services. There are also calculators that consumers can use to find out if they can afford a house or how much they are spending in interest on their credit card. Approved Loan Store is also utilizing newer technologies and social media like Twitter and Facebook to bring people more financial advice and news daily.

There is a perception that tools like Approved Loan Store are for people with poor credit, and consumers with good credit won’t have to shop around for a good deal. In reality, a consumer with very good credit have the most potential for getting a great interest rate and benefit the most from shopping around. Anyone can search for a better deal using Approved Loan Store whether they have a stellar credit history or they have survived a rockier financial history.

Rachel Godfrey
New York, NY
Phone: 877-217-2217