Bad Credit Car Loan Or Guaranteed Auto Financing – Should You Avoid Both?
Bad Credit Car Loan Or Guaranteed Auto Financing - Should You Avoid Both?
Are you considering buying a new car or truck? Here's a valuable tip on car financing. Today most everyone buying a new vehicle will need some form of auto financing and if you find your personal finances or credit are less than perfect, you can still get very affordable and cost effective auto financing if you know good from bad and what car financing you should try and avoid like the plague.
An informed car buyer is a smart car buyer. When you know your auto financing options ahead of time and you're all ready pre-approved, you can walk into any car dealership you want and negotiate a great money saving deal on your terms.
If you know that you have certain credit challenges, you should understand the differences between bad credit car loans and guaranteed auto financing.
Bad Credit Car Loans Facts…
Bad Credit Car Loans typically have been available through some new car dealerships on the purchase of a new car or a pre-owned certified used vehicle. The actual auto loan financing paper-work is handled at the dealership but in general, the bad credit car loan finance contract is typically sold off to another lender within weeks. That lender will maintain and service your loan. These loans typically have a term of 24 months up to 60 months.
The downsides to a bad credit car loan are that many franchise car dealerships are not set up to arrange these type loans in-house, interest rates and cost can vary widely and limit your car or truck purchase choices.
Many larger dealerships and franchise dealerships prefer strictly A paper credit borrowers. Even when new car dealerships offer sub prime car financing, you can expect to take a beating with much higher interest rates and limited flexibility with terms.
Guaranteed Auto Financing…
Guaranteed Auto Financing differs from a bad credit car loan primarily in that this type financing is offered directly by smaller or independent auto facilities and car lots. Your finance contract is provided by the actual auto wholesale dealer and the loan is paid directly to the auto dealer that sold you the car. In other words, you would be financing your car purchase from the company that owns it and sold you the vehicle.
Guaranteed auto financing is used typically for the purchase of used vehicles and rarely if ever for purchasing a brand new car, truck or sport utility. Loan terms are shorter than more conventional auto loans and they rarely offer terms over 36 months. Most vehicles you'll find, will have high mileage and no extended factory warranties offered. Many of these cars and trucks are either repossessions or wholesaled out from regional car auctions.
The advantage to guaranteed auto financing is that often no credit check is required to obtain this financing. Payments are normally made weekly and sometimes in person. The major disadvantages to this type of auto loan financing is that many car dealers providing guaranteed auto financing will never report your credit to the credit bureaus. So if you're making payments regularly and establishing an excellent payment history, this will not be reflected in improving your personal credit profile or your credit score. Because there's no credit check often required, you can pretty much expect outrageously higher interest rates.
You'd be wise to avoid this type of car loan and purchase if at all possible because the disadvantages to you far outweigh any benefits.
Lower Cost Car Loan Options...
Your best approach would be to start now and see what auto loan financing options are available for you online. Then get yourself pre-qualified or approved online for a loan first, before you start negotiating your deal. There are excellent specialized auto financing services available online today that offer affordable bad car loan programs throughout the US and Canada for car buyers who have special financial credit issues to overcome. These companies have access to large networks of dealerships and major finance companies and they can usually overcome all types of credit issues and still offer more affordable car loan programs with less hassle for you.
Business Finance and Commercial Real Estate Mortgage Loan Choices
Business Finance and Commercial Real Estate Mortgage Loan Choices
Even though longer-term business finance techniques might be appropriate for many circumstances, there are some important short-term business loan options that will be less costly in producing improved credit card processing and commercial mortgage results for business owners. Short-term business financing choices can be misunderstood because of a preference by many business owners for long-term commercial real estate loan and commercial loan programs.
Two Important Short-Term Business Finance Options
Two of the most overlooked short-term working capital business loan strategies are short-term commercial mortgage loan programs and business cash advance programs in conjunction with credit card processing. Both of these business finance options are relevant for most business owners but are frequently misunderstood.
Short-term Programs for Commercial Real Estate Investment Financing
A long-term business loan is appropriate for many businesses that own commercial real estate investment property. Business properties should normally be financed with a combination of short-term and long-term business finance funds. When a longer-term commercial mortgage is viable, it is preferable to secure long-term business financing, preferably for 30 years.
However there will be many commercial mortgage loan situations in which longer-term real estate business financing is not appropriate for the business owner. In such circumstances it is important for a business owner to realize that there are viable short-term working capital management options.
When a Short-Term Commercial Mortgage is Appropriate
If a business owner plans to sell or refinance their business within a few years, it is preferable to explore short-term business finance options. The best short-term business loan will have minimal prepayment penalties in comparison to terms commonly included with long-term commercial real estate investment property financing.
The avoidance of business finance prepayment fees and lockout fees fees in some short-term business financing programs is an important benefit of these short-term commercial mortgage approaches. The absence of these potential fees could produce a savings of up to 20% or more if the business property is sold during the period which would have involved lockout fees in a longer-term commercial loan.
Short-Term Commercial Real Estate Investment Property Financing Limitations
There are some trade-offs that need to be understood if a business owner chooses shorter-term business financing even though prepayment fees will usually be avoided with a short-term business loan. When short-term commercial real estate financing is a realistic option, the loan-to-value will usually be no higher than 70%, the commercial mortgage will not be readily available for special purpose business investment properties such as golf courses and the interest rate will frequently be in the range of about 12%.
Best Investing Possibilities for a Short-Term Commercial Mortgage Loan
Warehouse, multi-family, office, mixed-use and retail business properties are the best possibilities for short-term business financing. Business owners should be comfortable with a time period of less than three years for a typical short-term business loan.
Fewer Mortgage Lenders for a Short-Term Commercial Real Estate Loan
There will typically be a very small number of commercial real estate investment property lenders who are effective at implementing the short-term commercial mortgage loan strategy properly. There are also a number of problems to be avoided with a short-term commercial real estate loan, so choosing an appropriate provider is extremely important to any business owner considering a short-term business finance program.
Credit Card Processing and Business Cash Advance Programs
For any business that accepts credit cards as a method of payment, a business cash advance is a critical working capital management tool that is often overlooked. Even thriving businesses frequently need more working capital than they can borrow. One of the least-known business finance strategies for successful businesses is potentially the single best working capital loan strategy for obtaining needed cash for growing their business: the use of a merchant cash advance or business cash advance program.
Primary possibilities to take advantage of this business financing program are service and retail businesses. This credit card processing and credit card financing strategy uses credit card receivables to determine the amount of a merchant cash advance.
Working Capital Management: Credit Card Financing and Credit Card Processing
This business financing technique is called credit card financing or credit card factoring. Some business owners might have used a business finance technique referred to as receivables factoring to sell future receivables at a discount and receive immediate cash.
Many service and retail businesses cannot document business receivables to obtain a business loan. Businesses such as bars and restaurants do not typically have receivables to use for business financing.
What these businesses do have in many cases is documented sales volume and documented credit card sales activity. It is this documented level of sales volume and credit card sales activity that becomes a financial asset to the business and its business finance strategies. Business cash advances from ,000 to 0,000 can usually be obtained based on a merchant's sales volume and future credit card sales.
A business financing merchant cash advance must usually be paid back in less than 12 months. For business owners that want to renew the working capital cash advance program, it is typically possible to get more working capital after payback of the initial advance.
Limitations and Problems to Avoid with Credit Card Processing and Merchant Cash Advance Programs
As with any successful business finance strategy, there will typically be only a small number of commercial lenders who are effective at implementing this working capital management strategy properly. There are also a number of problems to be avoided with business cash advance programs, so choosing the appropriate provider of this commercial financing service is extremely important to any business owner considering a credit card financing program.
Florida FHA loans, from a Florida FHA lender specializing in FHA Home loan
Florida FHA loans, from a Florida FHA lender specializing in FHA Home loan
FHA mortgage loans, FHA home loans,
FHA is short for Federal Housing Administration. FHA loans were created in 1934 to help stabilize the US economy during the great depression. The FHA mortgage helps Floridians realize the dream of Homing a Florida home. FHA was absorbed into HUD in the 1960s and is now known as FHA/HUD.
There are a great many benefits for those Florida homebuyers seeking an FHA loan that can only be found with an FHA Home loan.. Florida FHA loans are insured by the US government. They provide Florida FHA mortgage lenders with greater security against borrowers defaulting in contract to conventional mortgage programs.. FHA has sets the basic FHA guidelines for FHA mortgage lenders, however FHA approved lenders are able to add on their own specific underwriting requirements. This is why not all FHA lenders are able to offer Florida FHA loans to the same individuals. It is very important that you deal with a strong reputable a company well versed in FHA loans and that knows exactly how to take advantage of all of their great FHA mortgage programs. For the Florida home buyer the FHA program can simplify the purchase of a Florida home, making financing with an FHA loan easier and less expensive than a conventional home loan program. Some highlights of the Florida FHA loan program include:
Minimal Down Payment and Closing costs. Down payment less than 3.5% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs. Easier Credit Qualifying Guidelines such as: No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.
Apply for an FHA loan at www.FHAmortgagePrograms.com
Most Florida banks and other Florida lending institutions require a middle score of 640 to qualify for an FHA Home loan. However at FHAmortgageprograms.com we can provide FHA financing to anyone with a middle credit score of 530 or higher. For those with credit scores lower than 530 we will work with you until your credit is sufficient to qualify for an FHA home loan in Florida.
Here are some of the prime benefits of an FHA loan:
Low down payment of 3.5% Very low mortgage insurance coverage only .55% and is (typically 50%-75% lower than conventional Florida mortgage insurance) Co-signers (including non occupant co-signers) are allowed for FHA qualifying medical collections don't need to be paid or small collection accounts FHA has No income limitations at all Ability to use non tradition trade lines to qualify (phone bills, light bill, electric bill, cell phone bill, etc..) No approved zoning requirements FHA loans on Mobile Homes loans are allowed 97.75% refinance is OK or 85% Cash out No reductions to FHA loan amount for declining markets Not credit score driven Resident aliens are allowed No prepayment penalties EVER Security of a 30 year fixed mortgage 6% seller contribution are OK! High debt to income ratios up to 42% and up to 50% with compensating factors Compensating factors such as length of time on the job or funds in reserves help overlook negative factors No reserves required from buyer Gifts are allowed from family, friends, work, or other interested parties Down Payment Assistance Programs allowed
FHA home loan are very popular right now for Florida first time home buyers and people with challenged credit access to low cost secure fixed rate mortgage.