Featured

How to Obtain Finance For Used Cars

Do you desperately need to buy a car but do not have the finances to do so? Well, you can always opt for a loan to buy used cars. A lot of companies have started finance schemes for selling their used cars better. Many people who need to buy a cheap car but cannot afford to do so take up these loans. If you do need financial assistance when you are buying cars, you may take up a loan. However, you must know that the loan for a used car charges higher interest than loan for a brand new car. For example, if you have to pay an interest of 12 percent on a brand new car, then you would have to pay around 15 percent for a used car of the same make and manufacturer. Even though it seems strange, there are quite a few pieces of logic that are applicable here.

1. Financiers are unaware of the true price a used car

When you buy a new car, its value depreciates by almost 50 percent when it rolls out on the road. Judging your drivability, the cost of the car, make and manufacturer, the financier would be able to calculate the true price that your car would command five to seven years later. Therefore, they would know exactly how much they would be able to recover in case you default on your loan and they have to tow your car away to auction and repay the loan.

However, when it comes to used cars, the depreciation value cannot be calculated clearly because the wear and tear on the car cannot be clearly calculated in case of old cars. Therefore, financing companies cannot clearly gauge how much they would earn from selling your old car. In the event of you defaulting on your loan, they would not be able to recover enough money to pay off their loans. Hence, to offset their losses partially, they lend money for old cars at a higher rate of interest.

2. Credit History of Buyers

Bankers usually believe that those people buying used cars with loans would not have good credit history and hence they charge higher loan interests in order to discourage them from taking loans. Moreover, higher interest safeguards them against defaulting habits of customers with low credit scores.

3. Bankers want you to buy new cars

Since most of the financing for used cars are offered by banks rather than the car manufacturers themselves, banks elevate the interest payable on loans for used cars so that buyers opt to buy new cars. New cars are a safer investment for banks and hence banks encourage buyers to take loans for buying new cars

There are however exceptions to this rule especially when buyers opt to buy used luxury cars. Most buyers opting for used luxury cars are C segment car users who want to upgrade to luxury cars. They are judged to be safe customers who have good credit history. The loan rates for luxury used cars are around 11 percent which is almost 4 percent lower than that of used affordable cars. Therefore, those buyers with a budget of Rs 15 to Rs 20 lakhs should opt for a used luxury car instead of a premium sedan of the same price because the drive experience would not be the same for both.

If you are thinking of opting for finance for used cars, then you should prepare at least 6 months before taking out your loan.

Monitoring your credit score

Keep a check on your CIBIL score because it determines the rate of interest payable on your loan for used cars. A score above 75 is considered to be a good one and hence you should aim to have your score above this benchmark. By checking your credit score regularly, you will be able to determine whether everything is in order and in any case of discrepancy, you can contact your bank and get it rectified.

To elevate your credit score, you should have very few uncovered or unsecured loans and more of secured loans. For example, personal loans and credit card loans are considered to be unsecure ones and hence you should pay them off as soon as possible. On the other hand, a house loan or a scooter loan is a secured one and hence it is a sign of good credit. Maintaining the balance of your credit history is the key here. If you believe that by not using your credit card at all, you would be able to have a higher credit score, then you will be mistaken. Non usage of credit card shows that you are too scared of taking on loans and hence cannot handle the pressure of a car loan.

However, do not buy too much of stuffs on your credit card as it would indicate that you are too spendthrift and have little control over your finances. Optimally you should spend less than 60 percent of the credit limit you set to your card. Also, do not let the outstanding loan on your credit card to be rolled over. A lot of credit card companies allow you to pay a part of your loan and then transfer the rest to the next month. This only increases the amount outstanding in your name and it will increase the rate of interest on your outstanding loan and also spoil your credit score.

Once you have secured a loan for used cars, don’t hesitate to log into an online car trading website where you can find good quality second hand cars in the city. You can enter your budget specification along with the model that you want to buy, the fuel variant and the year of manufacture. The website would show you the best options available for your budget. You can directly contact the seller and talk to him or her regarding the sale of the car.

Best Credit Card Processing Rates

Everyone goes into business to make money, so why spend more of your profits on expensive transaction fees, Website maintenance, service agreements and high credit card processing rates? When you take time to shop for the best deals, you can save quite a bit of money that can be used to good purpose in other parts of your business. Start shopping for the best credit card processing rates and open a merchant account.

You will first need to find a reputable bank or credit union that will agree to extend a merchant account to you for this purpose. To get approved, you will need a solid credit history, a reasonable business plan, and documentation to show that you are able to manage the costs associated with credit card processing rates. Typically, these include an installation fee for credit card processing equipment, a monthly gateway fee for your financial host, a transaction fee of a few cents per each or an overall percentage total each month. You also may be offered Website service that will entail a hosting fee, a service contract cost, and a designers or updating service fee. Be sure to carefully read the terms of any contract that you receive. Never sign something that you dont understand or with which you cannot completely agree. Your company may have to pay for a monthly minimum up to a certain number of transactions, after which the balance for that month do not require additional fees.

Credit card processing rates can vary by company or by processor program. Some companies charge no installation fee, while others require a one-time cost of a few hundred dollars, depending on the programs complexity. You may have to pay between 15 and 25 cents per transaction, or you could opt to pay a monthly percentage for the entire amount of business generated by your credit card processing unit; this amount often falls below 2%.

It is always a good idea to compare rates among competing financial institutions. If you really like the services offered by one merchant account company but prefer the lower rates of a second company, tell the first one about the competitors lower rates, and perhaps the first company will meet or beat the lower cost in order to get your business. At first, you may want to keep the customers interests in mind when shopping for credit card processing rates. In other words, passing on the savings of a particular program to your customers will keep them coming back to do business with you. If your rates are too high or not competitive enough, they may decide to take their business elsewhere.

As you plan to set up your new credit card processing service rates, it may help to let them know in advance that this program is coming so they can prepare and perhaps even help to get the word out to other potential customers. Then, after installing your new credit card processor, you should not hear complaints that anyone was blindsided or treated unfairly. If someone does complain, politely remind them of the earlier notices.

When you are ready to start processing credit card payments, dont be tempted to go for the option with the most features or the most sophisticated set-up. Opt for a system that will best suit your company needs and your customers interests, as well as offering the best credit card processing rates.

Store Cards, Credit Cards And Loans How To Borrow

Store Cards, Credit Cards And Loans How To Borrow Money Effectively.

You dont have to have the lifestyle demands of Paris Hilton to need extra money these days. According to Credit Action, the total UK personal debt was 1,122 billion, a growth of about 10.5% over the previous year and in the UK and each adult in the UK has an average of 4.1 credit cards in their wallet.

In their most recent report, Credit Action also recorded 2.3 million personal loan agreements in the second quarter of 2005. Interesting, the national money education charity discovered a gap between the interest rates advertised for loans and the actual interest rates paid by the borrowers.

So, with such volumes of debt, what is the best way forward in managing your money?

1) Prioritise your spending

Decide what you need to buy and when you need it. If its not a necessity, put it to the bottom of the list. With Christmas approaching, its important that you have an awareness of your budget. Make a list of things you need to buy including Christmas presents. Once you have a list, shop around for the cheapest deal including some internet research. Thirty minutes of surfing the internet could result in significant savings, which will either reduce outstanding debt or contribute to savings.

2) Prioritise your borrowing

If you borrow money, when do you think youd be able to pay it back? For example, for smaller amounts of money that could be paid within a shorter period of time a credit card might be the most flexible way of borrowing money. Alternatively, if you need to borrow a larger sum of money and wish to make the repayments over a longer period of time then a personal loan could be more effective. Do some homework online, sites such as moneynet and moneyfacts provide online financial product guides and price comparison information.

3) Prioritise your requirements

In addition to thinking about how much money you need to borrow and how you want to repay it, you may wish to look at other ways in which your financial products could work for you. Examples include cash-back, reward points, charity donations etc.

4) Never, ever, take out a store card

Whatever the discount the store offers you on the day, remember, it wont be as a gesture of goodwill. Nearly all store cards carry a vastly inflated rate of interest and they rely on you not being able to pay off the balance in full straight away. There is a strong chance that what you ultimately end up paying is far greater than the discount on the actual day.

5) Do you really need it?

As Christmas approaches, its easy to spend a little extra on clothes, food and drink and presents. However, if you make a list of what you need and stick to it, youre likely to save yourself more money this way than if you went out impulse shopping.

Resources:

What Is A Chase Credit Card?

Have you ever been in trouble of finding your credit card in your wallet? Because you cannot see the differences between credit card and other cards. However, there is one credit card that aims to be above the rest. This is the chase credit cards.

Chase credit cards may look just like the other credit cards, works like the others, and has the basic features of a typical credit card. But what people still dont know about chase credit cards is that what it has basically more than meets the eye.

Here are some facts about chase credit cards in order to guide those who are contemplating to get hold of it:

1. Chase credit cards have free alerts.

These are the notifications that a chase credit card holder receives through e-mail or phone.
If the consumer chooses e-mail alerts, notifications shall be sent to the users e-mail address, wap-enabled mobile phone, pager, or even a PDA device. In this way, the consumer can be updated about his or her account at any time of the day.
Free alerts can even jog your memory whenever there is a due payment. It will also ring a bell in the event that your balance is about to reach its limit. Best of all, it is free so people dont have to worry about additional charges just for this service.

2. Chase credit cards are easily accessible online.

Just like the other credit cards, chase credit cards are also available online. But the fact that people can do transactions online is a remarkable modification in credit cards.
In fact, consumers who want to get a chase credit card can easily apply online, and once approved they can continuously track their balances, statements, and details of their transactions all in just one click.

3. Chase credit cards offers versatility when paying bills.

Chase credit cards can be used automatically to pay all the bills on due. The consumer has to arrange for the specific requirements needed before they can get their chase credit card start paying bills.

Therefore, chase credit cards are certainly the best of its kind with a unique way of managing the consumers accounts.

Internet Banking – Which Web Bank is Right For You

Internet Banking – Which Web Bank is Right For You

Finding information online seems like the proverbial search for the needle in the haystack with so many sites and adverts vying for attention just thinking about searching for an internet bank is enough to bring on a headache. However, it might well be worth the effort out of the five best-paying current accounts today, four are provided by internet banks. With a difference of two or three percent, the benefits could be substantial.

Enter online banking into your search browser, and youll pull up several independent sites comparing different banks and accounts. While the special offers can change day to day, there are a few banks that have been performing consistently well the big three being Cahoot, Egg and Smile. Cahoot is the online arm of Abbey National, and the Co-operative Group runs Smile, but both currently offer better deals than their high street counterparts. Intelligent Finance is also a contender. Shop around to find what suits you best whether its a low rate loan or a high performance current account, the right choice will depend on your individual needs and situation.

Take into account things like customer service as well as the terms offered its important that you can contact your bank easily when you need to, and that dealings with them are not an unpleasant ordeal. Even if you conduct most of your business online, there are still likely to be occasions when you need to speak to a human being, and friendly, well-informed staff can make a vast difference to your banking experience. First Direct is now planning to introduce a virtual bank clerk to make online banking more customer friendly.

Ease of use is another factor a bank with a website that is easy to navigate will help you plan your finances with the least amount of hassle. Online banking has now come a long way from the days you could only view your account online you can now pay bills, set up direct debits and transfer money between accounts at the click of your mouse. Egg have recently introduced a service called Egg Pay that lets you securely send money to friends and family via email, and in future we can expect account aggregation an overview of all your financial dealings on one web site that will help make your transactions more efficient.
.
Moneywise and Which magazines are good sources of information to compare banks with check out their websites.