Be Prepared for the Problems in Used Car Financing With Solutions Before You Start

Financing properly is more important in financing a used car than when buying a new car. Most problems that occur in buying a used car are due to there being a problem connected with the financing. Getting the used car financing worked out properly is the key to a successful used car purchase.

Most buyers aren’t aware of how important the paper work is to making the deal a successful one or a failure. They view it as paperwork that should be completed as quickly as possible so they can drive away in their new car.

To start with, it’s very important to get the deal agreed upon by the salesman to be put in writing in the contract. This often involves determining monthly auto loan payments based on an interest rate. Sometimes, the interest rate a customer qualifies for is inflated so the dealership can make extra profit.

This headache can easily be avoided by obtaining independent vehicle financing before going to the dealership. This means the consumer can proceed as a “cash buyer” and negotiate only the price of the car. Car salesmen prefer customers to be “monthly payment” buyers because, in this way, it is easier to obscure the total cost of the vehicle.

Independent car financing can be obtained from a bank, credit union or on-line lender. With the popularity of the internet, applying for used car refinance is proving to be simple and very easy to do. Many on line lenders respond very quickly – sometimes as short as 15 minutes by email or telephone. If the application is approved, the borrower is given a credit limit at an established interest rate. Sometimes a blank bank check is issued with no obligation to use it.

“For the majority of consumers, even if you know you have good credit, there is a little apprehension and tension around applying,” one lender said. “So instead of going into a dealership and giving them your information and being sent to the coffee machine to wait for an answer, you can apply on-line, 24/7.”

Most people familiar with how used car dealerships operate confirm that obtaining independent car financing is beneficial to most consumers. .

The most common problems that have a negative impact on a person trying to finance a used car –and their solutions – to ensure that things go smoothly are the following:

Problem #1: Many consumers don’t know what their credit rating is when they apply for an auto loan. The strength of their credit score largely determines what kind of interest rate they will receive. Therefore, it’s critical to make sure your credit report is in the best shape possible before shopping for a car.

SOLUTION: Order a copy of your credit report and look for items that may stand in the way of you getting a good rate. Correct any issues or errors promptly. Are all of your lines of credit in good standing? Are there any signs of identity theft? The credit bureaus will tell you how to correct errors when they send you the report. The following numbers and Web site addresses will assist you in checking your credit.

100 Financing Investment Property

100 financing of investment properties refers to 100% financing from outside for your investment in real estate. Funds that are brought from one’s own savings, on loan from friends or relatives are in a way not much different from capital whereas real debt or Investment property financing comes from financial institutions. These entities – banks, mortgage firms and lending organizations like credit unions — lend funds to the applicant on the trust of a collateral security or based on the income, credit-worthiness and repayment capacity of the individual. Even if these criteria are satisfactory, an investment property financing institution may ask to be shown the business plan of how the applicant means to generate income using the pieces of property he or she means to buy and consequently pay off the loan or conclude the mortgage. The lender has the right to know how the business is going to be conducted because the revenues of this business determine how fast the loan is going to be repaid. With the turn in the economy, 100% financing investment property has almost been done away with.

100 financing investment property

In the United States, there are three credit bureaus, Equifax, Experian and Transunion, that maintain records of the lines of credit extended to each individual and how they are being handled. The credit reports formulated by these bureaus reflect how many credit card accounts a person has, how many times he or she has defaulted in payment or gone over the credit limit; other forms of financing availed by the individual such as home mortgage, auto finance or student loans, are also listed. Lenders and creditors have access to these credit reports and use them to check if an applicant is worth the risk of being given a loan. The exact features that point to an applicant as being risky can be found out after a professional analysis of one’s credit report. A high Debt to Income ratio and loan to value ratio are some of the red-flags. These areas have to be improved so as not be saddled with an exorbitant rate of interest and terms that are not favorable to the borrower. Some unfavorable terms are floating interest rates that send the finance charges through the roof upon a single defaulted payment. To prevent this eventuality, it is better to choose a deal with a fixed (flat) interest rate or a low ceiling rate on the interest rate slab.

Lending fees, high interest rates, discount points (another form of lending fees paid upfront to prevent the interest from racing up) can actually break the bank. In fact, there are many cases in which discount points have been deceptive and one ends up paying more for them, than the actual interest (finance charges) that would have been paid if the interest rates did go up. To prevent such goof ups, it is a good idea to take estimates from two or three lending organizations, compare their offerings and then choose the one that appeals most to one.

The worst pitfall to guard against is when some lender tells you that you are eligible for 100% financing of investment property. Those idyllic days are over. In fact, they are past their sell by date because there were not so idyllic. There may be such plans available on subsidy from the government for the exclusive use of first time homeowners who belong to the low income group. But this does not include investment property dealers. Traditional methods of 100% financing are now called owner financing and are still available but they are not an attractive option. It is not surprising that requests for owner financing are viewed with suspicion of default by lenders and therefore, that avenue is best avoided.

What Stands Behind Capital One Credit Cards and Savings Products?

In the times since the global financial crisis, it has increasingly become a concern as to what the backing of the financial institution that issues your credit card or holds your saving account is. There are a number of laws which regulate the financial system and try to ensure that customers can rely on banks to honour their obligations which can be a particular concern in relation to savings products. Title 12 of the United States Code in part 325 specifies a number of ‘capital adequacy requirements’ in relation to all banks. The aim of these requirements is to force banks to adequately provision of a crisis and ensure that they will remain solvent even if there is a large crisis. Banks must report periodically on their arrangements to show regulators that they are meeting the capital adequacy requirements.

Capital One at the moment is, when measured by asset pool, the 8th largest bank in the United States with balance sheet assets of approximately USD$286bn in 2012. Amongst other distinctions, the company is also one of the largest customers of the United States postal service. Its head office is in Fairfax County Virginia and the current chairman, CEO and President of the company is Richard Fairbank. It is one of the fastest growing banks in American history having been founded in 1988 by the current CEO. Like many banks in the American financial system, Capital One was the recipient of a bail out during the sub prime mortgage crisis of 2007 when it received $3.56bn from the United States Government in exchange for 3,555,199 shares in the company. By the end of 2009, the company had managed to buy the government out of the business.

As well as being involved in credit cards, Capital One has an Auto Finance Division which is a substantial part of the company. An entity known as Capital One 360 is also now in existence having formerly been known as ING Direct on the idea that a bank could perform retail services entirely on the basis of an online model. This division of the company has no branches and only maintains a physical presence in the form of call centres and online processing maintenance facilities. The online bank model seems to achieved some success given that the lower overheads from rent and staff result in lower costs to consumers and therefore a better outcome.

One of the notable characteristic of Capital One is that it appears to have retained an ability to ride out the periodic financial storms which emerge in the world of consumer credit. It has grown consistently throughout good and bad times in consumer finance and continues to grow based on the analysis of its most recent financial data. This history of growth and the ability to ride out financial storms appears to bode well for the credit and savings products of Capital One.

Top 5 iPad Finance Apps for Business

The past two years have been a whirlwind in mobile computing and people are embracing these new devices, like the iPad, at breakneck speeds. Apple’s Fourth Quarter revenues jumped 21 percent from a year ago, including the sale of over 11 million iPads. It’s clear that the huge advances in mobile devices are not only changing how we live our personal lives but also how we do business. For business, especially small business, some of the biggest advantages are coming from the app world. If you want to make your business finances a breeze, check out these apps:

1. Square: Credit card transactions have never been easier. The developers of this free app will send you an actual credit card reader that plugs into your iPad. It’s secure, easy, mobile, and even has built in analytics to track sales, collect tips and tax, and send electronic receipts via email or text. There is no need to delay the payment process anymore. Oh, and they only charge a 2.75% transaction fee: no contracts, fees, or merchant accounts necessary.

2. Expensify has the traveling business world in an uproar. The features of this app are impressive at the least: sync banking information to track purchases in real time, digitize receipts to reduce the chance of losing them (just snap a picture and the app will discern and note the necessary info), customize and email reports for approval, and be reimbursed to your checking account. You’ll be your accountant’s best friend with the organization and ease provided by this app.

3. Time Master + Billing: With a 4 star rating in the app store, this app sets the bar for time and expense tracking. The overall best feature is flexibility to be customized to fit how you work – rounding minutes, multiple running timers, billing rates, expenses, client project/tasks, and so many more options. There are even additional modules available to include invoicing, QuickBooks export, and wireless sync between mobile devices.

4. Intuit GoPayment Credit Card Terminal: Similar to Square but a little bit more involved. It’s also a free app, but you have to jump through a few more hoops (AKA a 15 minute application process) to be approved to use this service. However, if you’re looking for a proven brand name, this may be for you.

5. QuickBooks Connect: This is a great supplement to your QuickBooks Online subscription (QuickBooks 2011 users you’ll have to get a paid subscription to use this app past 30 days). Manage customer information and balances; create invoices and sales receipts; convert estimates to invoices; email estimates, invoices, and sales receipts and more with this handy app.

Mobile computing can make all the difference in the efficiency of your business. Look for the bottlenecks in your financial administration and ask yourself, is there an app for that?

Kristi Daeda is an online marketing strategist that works with companies nationwide to define and execute powerful online marketing strategies. Read more about her thoughts on online marketing at her website [http://www.powerhousestrategy.com] or as featured on Mobile Apps Designers.

The Best Free Android Finance Apps

Obviously many people will be skeptical as to how good free apps actually are, with many consumers actually purposefully not downloading free apps due to fears that they will crash or being infected with various ways of stealing your money. However these fears are totally unfounded and without evidence so do not let this put you off. Now to the apps:

PayPal

If you have been on the internet at some point then you will have undoubtedly heard of PayPal. The service facilitates payments between people via a simple email address, avoiding the complexities usually associated with bank transfers and the like. The PayPal Android app allows users to manage their PayPal account just as they would through the official website. The app is totally secure and allows you to make purchases or deposits also amongst other activities on the move, a very useful addition to the marketplace.

Quote Pro

Quote Pro is also an incredibly useful app, used by many on a daily basis it has fast become one of the most downloaded in its range. Not only can you obtain extremely detailed and accurate information about the range of stocks you have an interest in, but you can also keep an eye on your portfolio of stocks and shares.

Tip Calculator by TradeFields

Tip Calculator is perhaps one of the most imaginative apps I have personally seen on the app marketplace. It is incredibly useful for an aspect you will have probably have struggled with every time you’ve been out for a meal, the tip. Not only will the app inform you of the total tip you should be leaving behind, but will also divide the total tip amount between the number of people at the dinner, saving much embarrassment, delays and napkin calculations!

Currency Converter

How many times have you been in a foreign country or at the airport and have been wondering how much you will actually get in return for your dollars? Numerous times in all probability. The currency converter provided by Pocketools will enable you to be provided with an accurate, up to date and independent currency exchange valuation allowing you to shop around to find the best exchange rate. Not only does this app provide you with the current exchange rate, it will also give you data on the currency of your choice over the last 5 year period through the use of many easy to read graphs.

Mileage

This is without doubt one of the best apps I have personally seen. With the rising prices of gas which look set to continue for the foreseeable future it is a great way of ensuring that you are driving as economically as possible and therefore saving as much gas as possible. I haven’t an idea about how it works but it does, the interface is also extremely slick, simple to navigate through and to understand.

Finance

Finance, whilst the name of the app may not excite you or conjure up ideas that this app is going to change the world it certainly fills a gap in the market which needed a simple app. It’s similar to Google search in many aspects, it provides a very basic user interface, but one that is incredibly effective and performs its job excellently. If you already use Google Finance or are considering starting to use it then this app is vital, it synchronizes everything meaning it’s like being on your main PC.

Financisto

Financisto is another great money manager. The ability to create long and short term budgets for holidays, short breaks or just a simple shopping trip is a real plus point for this app and one which has seen it rocket in terms of popularity. In addition to this the app has the capability to check your recurring payments amongst many other essential financial activities; this has left many users of the marketplace wondering why there is no charge.