Information Center – News and Articles about Credit Cards
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Bad Credit? You Still Can Buy a Ride of Your Dream
These days you can buy nearly everything using a credit card or a loan. When it comes to some everyday needs or comparatively large purchases, like a TV set, a microwave own, or a dishwasher, a credit card suits perfectly. But when you make up your mind to buy a car or a house, you will need to take a specific loan.
Most people believe that a car loan is easy to get. However, it is available not for everybody. Especially for bad credit owners. But if you are determined to buy a car and you got denied at one of the loan companies, do not rush to give the idea. Check other lenders' requirements, you might qualify.
So, you have a credit that allows you to qualify for only bad credit cards, but you badly want to get a car? You have chances to get approved for a car loan. Today you have even much more grounds to believe that you will qualify for this type of loan having bad credit, than 5 years ago. Banks have loosened the car loan qualifying criteria for bad credit owners since then.
Here are the most important decisive factors that a lender's credit decision depends on.
- Interest Rate. You can get a car loan even with bad credit history. That is a positive aspect. The negative one is that, most probably, your loan will come with a pretty high interest rate. But you can apply for a loan at several lending organizations, so you can choose the terms that will be the most favorable for you.
- Required Information. You will need to give your financial information to lenders. The lenders will need the info about your income, credit card balances, your mortgage payments, if you have any, or your rent payments, as well as your payment history in general. They can even try to find out whether you keep your credit spending under control or not.
And here is what you are to pay your attention to, when applying for a car loan.
- Pre-Payment Penalty Fee. Such a fee is applied in case you pay down your loan before the due date. So, if you think that you might afford paying off the loan before the due date, or you consider a refinancing at some point, watch out for this condition on your loan agreement.
- Consider taking only simple interest loan. It is the type of a loan that requires paying interest only on the original principle of your loan. Search for an offer with lowest possible interest charges, suitable down payment, and allowed time of repayment that will be the most convenient to you.
So, as it was mentioned above, having a bad credit you will not qualify for a low rate car loan. It is just like with credit cards, you are not likely to get approved for a low rate card offer if you have bad credit. However, you can find a loan pretty good terms. The interest rates on car loans for bad credit range from 5% to 26%, depending on your credit score and credit history.
As for the down payment, you can be charge from 20% to 50%, again depending on your credit. Making a larger down payment is a good way to negotiate a lower interest rate on your auto loan. As a rule, bad credit auto loans appear to be short-term loans, from 2 to 5 years. You can find a car loan with longer repayment period, or extend the existing one, but it will be greatly unbeneficial for you, as you will have to pay more due to the interest applied.
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The XXI century is the century of high-speed and nanotechnologies. It seems people strive to speed up all processes to make this already hectic and sometimes chaotic rhythm of life even crazier. They are ready to shrink everything they can lay hands on to make nanotechnologies work. In fact people just want to make their life more convenient.
Contactless credit cards are another product designed to upgrade our life quality through saving customers' time during the checkout process. These new-age credit products are gaining more and more popularity with customers. The so-called wave card makes the checkout process easier and faster. The recent opinion poll proves that contactless plastics won many hearts. According to the survey's result, over 90% of wave cards owners find them to be very convenient and user-friendly. Plus such plastics are accepted nearly everywhere regular credit products are accepted.
The financial economy crisis in the US has been admitted the largest financial shock for America since Great Depression. US banks incur billion-dollar losses. The number of delinquencies keeps rising. Associated Press has announced the results of data processing on 17 trusts dealing with securitization of credit cards.
The results leave much to be desired, to put it mildly. The volume of credit card debt with a delay of 30 or more days has gone up by 26% as compared to October, 2007. Now it makes up $17 billion. It stands for over 4% of credit card debts. The information on card holders debts for Associated Press was provided by the leading US companies.
We are used to see credit cards the way they look today, and it is hard to imagine that they looked different and served for another purpose than paying for goods and services. We call them plastics. In fact, a century ago credit cards had a different shape, size and were not made of plastic.
The appearance of credit cards dates back to the beginning of the XX century. Who were they created for? The target audience was wealthy people. The cards could be used as business certificates and licenses for the so-called "loyalty programs" at some restaurants, gas stations and merchants. Those cards, you can be surprised, were made of cardboard.
Rapidly growing credit card crime rate causes more and more concern of credit consumers and credit providers as well. Credit card fraud is a number one card holders complaint to Federal Trade Commission. According to the statistics, over 85% of credit card owners that fell victims to credit scam discover the fraud only after they get turned down by credit issuers, having applied for a new credit card or loan.
Credit bureaus cannot stay indifferent to the problem of credit fraud and identity theft, in particular. Equifax, one of the three US major credit bureaus has introduced a new ID theft protection service. "ID Patrol" is a multifunctional tool that allows protecting customers from identity theft.
