Examining Your Motorcycle Financing Options When Purchasing a New Ride

Posted by Credit Financing Guru on 6th July 2010

It is normal to experience uncertainty initially when you shop around for and have to settle on a motorcycle financing option. Before just going all over town willy-nilly looking for your new ride, it really is safest to constantly keep a sum in your head regarding the personal loan amount you will not exceed, no matter what. This way, you understand how much you’ll have to bargain with. If you follow this strategy, you will not end up like many who overestimate their ability to truly afford the new motorcycle of their dreams.

Certainly, motorcycle financing is usually a challenging topic, but that is why it’s really essential to accomplish your research and homework before you start shopping for a motorcycle in earnest. Keep in mind it always appears that all loan companies are providing you a great deal. When whittling down the selection of lenders, start by taking a look at the conditions and small print that the financial products always have, and make the lender acknowledge your desires.

Do not ever borrow a lot more principal than is needed, due to the fact when payback time comes, you’ll run into problems as motorcycles depreciate in value very rapidly. Ensure the payment is a fixed quantity unlike personal credit card loans. Many times, when the dealership gives shoppers motorcycle financing direct from the manufacturer, the principal tends to rise over the course of the loan term.

Motorcycle financing is difficult, which can be why it really is important to be familiar with precisely what kind of motorcycle financing the dealership is attempting to market to you. Getting a good deal on motorcycle financing can make or break your ability to buy exactly the motorcycle you’ve always wanted.

Of course, having a poor credit score will hurt your financing ability immensely. In this case, you’ll want to scour your choices of loan providers and find an agent who is willing to work with you and your specific needs in order to mitigate the negative effects of you situation. You can start improving your credit score today by paying back outstanding debts and being consistent in your payback schedule from now on.

Financing a vehicle can be an incredibly convoluted and confusing process. Protect yourself by doing your homework and not being caught off guard when you are offered a myriad of financial choices, many of which can hurt you in the long run. You’ve done your research? Good. Now go out there and find your dream motorcycle so you can ride off into the sunset!

Learn how to ride a motorcycle safely and in control at MotoLearn.com, and launch yourself on a thrilling hobby that will last you a lifetime. And once you get your new ride, keep your motorcycle in tip top shape by always using a battery tender charger when you park it. Ride safe!

Motorcycle Financing FAQ:

Question: If I bought a motorcycle and got financing for it, when my payment is due could I pay double?
Ok, so lets say I buy a 8,000$ motorcycle and I get financing to pay the amount out over 48 months. If my payment is 200$ a month could I pay double and therefore pay off the bike in 24 months instead of 48, or can I only pay the 200$ a month?

Answer: If you have an open end contract, you can pay it down anytime. Just make sure when you make you double payment that you indicate that you’re applying the other $200 as a principal reduction

Question: What documents do I need to get financing for a new motorcycle?
I am thinking about getting a bike, and I can`t seem to find a clear cut answer to my question. When I get my bike, and I finance it, do I need anything else besides proof of insurance and proof of address?

Answer: The dealer doesn’t care if you have a license but the insurance company does.To get financing you need proof of employment and a statement of debt.

Question: If I finance a motorcycle, whats the least amount of coverage i can have in NYS?
I want to finance a bike but I’m looking for cheap insurance. Whats the minimum coverage necessary if your financing?

Answer: 25/50/10 for liability limits, plus collision and comprehensive. Obviously – or maybe not – it’s the collision insurance that’s MOST expensive, when you talk about a bike.

Question: Financing for a motorcycle?
I am 21, going into the USMC in March. I currently have Zero credit and I want a motorcycle. I have a job and will be working until I leave, but I have nothing to save for so I can easily make payments. What do I do? I want to get it before the end of the summer so I can ride all summer. What is my best option? How long would it take me to get enough credit to get a loan? I’m looking at 2,000-3,000 dollar loan.

Answer: You might be able to get a loan for that amount with a job and the fact that you are signed up for the USMC – they do pay you.

For the low amount of the loan, you could try the bank that you have your checking account at or try a local credit union. Sometimes they will take a chance on you.

Otherwise, you may have to have someone like a parent co-sign the loan for you or see if you can borrow the money from your parents.

Question: What does it mean when a credit union will finance maximum 100% of MSRP on my motorcycle loan?

Answer: It means you can get a loan for no more than the Manufacturer’s Suggested Retail Price.

Question: Why are motorcycles so hard to get financed?
I went to 3 different loan companies and they said they will not finance motorcycles.

Answer: Mostly because of the financial crisis that the world is in. Motorcycles are considered a recreational luxury item and they are hard to get financed without perfect credit.

Question: If I buy a motorcycle and I finance do I have to pay anything out of pocket upfront? Like title,registration?

Answer: Unless you get a zero down loan, most finance companies require a down payment. In most states, insurance is required before you can get it registered and tagged. Plus in most states there are taxes that are paid based on the cost when you go to register it. Depending on where you live, these fees vary. The best idea would to be to call whatever agency handles these matters and ask them directly as to what you will have to pay.

Question: How do I get rid of my motorcycle without my credit being affected?
I purchased a motorcycle a little over two years now. I originally financed it for 13,000 brand new out the door, after these two years, I still owe 11,500.. and my monthly payment is 300. I’ve never missed 1 payment and still owe so much money due to all the money I send being interest charges. The interest rate is 16 percent, which is super high. Can someone legaly take over payments, or can I just give the bike back without my credit being affected? I can’t take this anymore, seems like I will never finish paying it. I also tried refinancing it but couldn’t do it, what other choices do I have? Any help would greatly be appreciated.

Answer: Your only choices are to sell it for what you owe or get someone to take over payments. If you get someone to take over the payments, this must be done through a financing company (yours or another one of the buyer’s choosing). Otherwise, the title will remain in your name with your finance company as lienholder and the insurance must remain in your name. That makes you liable should anything unpleasant happen (an accident, the buyer defaulting or taking off with the bike, etc.).


What is a Construction Mortgage?

Posted by Credit Financing Guru on 17th June 2010

In order to save money and design the home of their dreams, many people choose to build their home from the ground up. When building a home, one has to consider how they will finance the big project. One loan option many people choose is the Construction Mortgage.

A Construction Mortgage is a loan that is used to finance the building of a home. The money is normally given to the borrower in set amounts as each stage of the construction process is completed. Most construction mortgages involve paying the interest only during the construction period with full repayment required after the owner obtains a certificate of occupancy.

Before a lender approves a construction mortgage, they have to know all that will be involved in building the home. This includes the blueprint, materials, labor, other costs associated with the construction, and the time it will take to completely build the home. Construction mortgages are normally variable-rate loans which are priced at according to the prime rate. The home builder, lender, and contractor will set the schedule for withdrawal of funds for each stage of the construction process. Interest is applied on the amount of money withdrawn. Having the money released before each stage is complete is often seen as economically beneficial and helps prevent future funding problems.

Many homeowners will often choose to acquire a construction-to-permanent financing plan where the construction loan is switched to a mortgage loan after the certificate of occupancy is given out. You can often get a higher construction loan rate and then get a better mortgage rate when you switch to traditional mortgage financing. It is important to remember that with a variable rate, repayments can fluctuate each month. Generally, construction mortgage rates are quoted on a prime plus basis.

Like a traditional mortgage, how much you can borrow will depend on your financial status such as your credit rating and income. Lending can often range from 75 – 95 percent of the building cost. Some lenders provide a separate loan for the land. Funding for building costs is released when the home building plan has been approved. The best benefit of a construction mortgage is that it is usually cheaper than getting a mortgage for an existing home. The cost of building your own home is much less than buying a new house. As well, new self-built homes are worth more the day the home is finished so it makes for a good investment. When considering a construction mortgage, it is important to comparison shop from a number of different lenders. Many experts recommend consulting with a construction mortgage specialist.

From the size of the rooms and where the rooms are located, building your own home provides you with many more choices than if you were going to buy an existing home. A construction mortgage may be the perfect solution if you are looking to build your dream home at a much less expensive cost. When considering this type of mortgage, it is important to understand how it works, the cost to build, and the repayment terms and conditions. With the right knowledge, it will not be long before you will be living in your dream home.

Obtaining the best mortgage rates can be an important competitive advantage in the housing market. Another important factor to consider is finding the best GIC rates, which may help you in securing a stronger purchase or sale of your home.

Construction Mortgage FAQ:

Question: Can I ask for more money on a home construction/mortgage loan?
I recently built a house and asked for a $140,000 construction loan. I was approved for more than that and only took $140,000. I’ve gone over budget but the house is complete. I put in about $10,000 from my pocket. Is it possible to ask for more money from my lender? I was hoping to finish the house and with left over money pay off a personal loan I have which I took out to buy the acreage I built my house on. The interest rate on the personal loan is about 5.2-5.5 percent, don’t recall the exact number. Would it be wise to ask the lender for more money to pay off the personal loan and pay myself back what I put in from my own pocket. It won’t hurt me to pay my mortgage monthly, but will hurt to pay $10,000 out of my own pocket all at once and not get it back. Any suggestions on what I can do?

Answer: Especially in these times if an appraisal and your income will support the additional debt, your lender will probably go along with it with conditions. If they don’t, there are lots of programs out there that will.

It is very important with all of the housing inventory out there for your lender to have a home with a certificate of occupancy and a completed product. A work in progress is a bad thing for them if they take it back. That is a big incentive to work with you to complete the house.

I was exactly in the same position in terms of having access to more than I thought I needed when I started and then having cost over runs. The bank did an appraisal. There was plenty of equity so they restructured (not refinanced, fewer fees) the loan and we all moved forward.

Just call your loan officer and ask. They may want you to do it when you go from construction to permanent financing. It is in any event in your mutual best interest to have a completed house and you should preserve your own cash reserves.

Question: No comparable sales within the last year, can I go further back?
I am currently disputing an appraisal done at closing on my home construction/mortgage loan that has put me in a bind. The appraisal was super low compared to what it cost to make the house and buy the acreage I made it on. I was given a rebuttal form by the bank financing the loan, only they asked me to find comparable sales. I haven’t found any within the past few months, people mostly build around these parts and not buy. They did not want me to put new construction, but rather sales. Since the nearest sales go months maybe even 2 years back, does this entitle me to put them down as comparables? I am not going to put forclosed homes as comparables because that’s what the appraisal company did to me and got me in this mess. They put homes that are half the size of mine and foreclosed as comparables. If I go a year or two back, there are houses that match mine in square footage and surrounding acreage that are in the price range that it took to build mine and buy the acreage.

Answer: No, you can’t go back 2 years, you would be lucky to go back 6 months.

You have to include foreclosures, they effect the value of property, you can’t disclaimed them, otherwise the appraisal would be incorrect.

Anything more then 6 months old has no bearing on today’s market. You can use smaller properties too, it is not a big deal, as you figure out the value per square foot, not per property.

All appraisals are under construction costs, while property value has gone done, labor and materials has not.

Question: Can I move a construction loan from a mortgage broker to another lender?
I am building a house & it is 85% done. My mortgage broker is withholding money from me to finish my house. He avoids my calls & when I do get a hold of him, he tells me he has no money to give me. Can I go to another lender & take this loan away from him?

Answer: Yes, you could refinance the whole deal with another lender. There are lenders that only deal with construction loans. You just need to find one in your area.

Question: What do you call a loan that covers land and then construction of a building later on under the same mortgage?
I’ve heard of a loan that is given for land and then later on can be extended to cover construction of a building under the same mortgae but I can’t remember what it’s called?

Answer: Sounds like one of the newer ‘One time close’ loans. Usually you have to get a loan for the construction, which you are allowed to use to purchase the land. Once the home is built, you are required to refinance the construction loan with a long term permanent loan. That is why they are called construction to perm loans. Now however, a lot of banks are offering ‘one time close’ loans. You simply have one loan that covers the construction and the permanent financing so you don’t have to close, and pay closing costs, twice. Ask around at your local banks for ‘one time close’ loans and shop around for the lowest rate and terms.

Question: Construction Loan to Mortgage?
I currently have a construction loan on the house that I live in but we can’t qualify for a mortgage. Our bank keeps extending the loan even though the house is completed and we’ve lived in it for over a year. How long can the bank continue to do this? Are there federal regulations that the bank has to follow in this situation or is it at their discretion?

Answer: They are not required to continue to extend it and I am amazed that they are doing that. If you qualified for the construction loan you should qualify for a regular mortgage unless something major has changed. Have you tried for an FHA loan? 620 credit, 2 years income & 3.5% down.

Question: I have a credit score of 676 will I have a problem getting a construction loan or new mortgage loan?

Answer: Construction loans are very difficult these days. Mortgage? Depends on how much you have down payment, debt ratios, etc. If you have 20% down plus closing costs saved up, no debt, you should be able to find a mortgage despite the tight markets these days.

Question: Where is the best place to get a construction loan (mortgage) for a new motel? I have the land already Zoned at approx. $950,0000.

Answer: I would put it out on the Internet. I know its not the same as a home loan but there sure seems to be a lot of money out there. The problem I see is that you will have to be able too prove its a winning proposition

Question: What are the ins and outs of getting a construction loan to build a home?
My husband and I are 1st time homebuyers. We have been preapproved for a house loan, but are not having luck finding what we want. We have toyed with the idea of building our own. What are the differences between getting a preapproved loan and buying a already built house and going through getting a construction loan? Do you have to put money up front for a construction loan? Do you make mortgage payments while the house is being built, or do you wait until the house is completed? Is there a time frame that the house must be built within? If we were preapproved for a certain amount with a homebuyers loan, would we likely be preapproved for the same amount for a construction loan? What other differences should I know about? Since we are first time homebuyers we do not have much collateral (we do have some savings, but not a ton), would that affect our ability to get a construction loan?

Answer: No, you are not automatically approved for a construction loan, it’s a different animal. To get a construction loan you need to already own the property and have a lot of equity.

The “ins” are that the bank loans you a large amount of money for a short term to build your house. The “outs” are that you have to replace the construction loan with long term permanent financing once the home is built and you don’t know what the rate will be when that happens so you are under the gun to finish as soon as possible.

Building is risking and not for 1st timers unless you have lots of cash to gamble. If you want to try it, buy an older house at a good price, fix it up and sell it. Then you will know what you are in for.

Categories: Mortgage Financing

Factors and Variables Influencing Mortgage Finance

Posted by Credit Financing Guru on 8th June 2010

Properties are secured under mortgage to oblige the borrower to make a predetermined succession of loan payments. A borrower can obtain mortgage finance to from a financial institution like banks. Components like loan size, loan maturity, interest rate and loan payment method differs significantly from one creditor to another.

Mortgaged properties levy restrictions on the use or disposal of the property like selling the property before closing outstanding debt payment. In countries where the demand for home ownership is colossal, robust domestic markets have developed. Economies of USA and UK heavily depend on mortgage finance.

In the USA, borrowers obtain the mortgage finance by submitting a Loan application in conjunction with documents related to borrower’s credit or financial history to the bank underwriter. Alternatively, borrower’s can submit the same documents to a mortgage broker, who then assess the information and provides the borrower with best possible options of financing the mortgaged property. Often, unsuspected borrowers fall prey to unscrupulous money- lenders or brokers en-cash on the borrower’s plight and work the situation to their advantage, while eliminating the mortgage responsibility on the property and force the property owners into foreclosures.

Lenders take into account key factors that influence their decisions regarding lending to a borrower. These factors include credit report, outstanding credit, credit card accounts, down payment, income, interest rates, available funds and debt to income ratio. In addition, supply & demand, interest rates, demographics and economic growth relatively influence the mortgage industry.

Mortgage loans are available to borrowers at Fixed and Adjustable interest rates.

Regardless of national interest rate change, fixed interest rates remain unchanged. Used as part of an introductory offer, usually they are replaced by higher fixed rate or variable rates upon successful completion of six months of the loan duration. The alternative to change a fixed interest rate is through refinancing – getting a lower fixed rate or variable rate on the new loan agreement. Fixed interest rate provides a security against elevating national rates, borrowers are an advantage of paying a comparatively lower are, if locked for a lower fixed rate than the current national rate. It makes budgeting easier, if succession of loan payments is unequivocal. However, the disadvantage lies when the national rates have pulled down, borrowers end up paying a higher interest on their mortgage loan.

Variable rates in contrast fluctuate in response to changes in national rates. It is directly proportional to the national rates, hence when national rates pick up; variable rates increase and when they decline so do the variable rates. It’s the most common type of interest rate used for small loans and credit cards. With variable rates prediction of lump sum payment is difficult, it could increase up to several times than the payment that could have been made in matter of few months. However, monthly payments remain fixed and the final payment may be a different amount due to the fluctuating interest that has been accrued over the loan.

Fixed and variable interest rates are popular when dealing with mortgage finance, though there are other types of loans like balloon loans and government backed loans that offer both types of interest as well.

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Mortgage Finance FAQ:

Question: If I just refinanced my home mortgage, can I finance a new investment property soon after?
I just refinanced my home last month and got a much lower rate and payment. Of course, this means my mortgage was paid off and a new loan was initiated. Does this affect my credit in a way that would hamper me being approved for a mortgage on a new investment property?

Answer: Yes it could. Basically the bank is going to review your credit with the house that you just bought taken into consideration. The banks may ask you for a bigger % as a down payment because it is considered an investment property. If you have everything lined up and your debt to income ratio is where it needs to be then you should be fine in buying another home. If you don’t have the $ for your down payment or if your past your ratio then the bank will see that your too much of a risk to lend for a second home.

Question: Is it possible to get the mortgage company to finance the remaining balance of the sale price?
I would like to know if I sell my house for less than I owe ,would my mortgage company accept that I payoff the remaining balance over the years,without hurting my credit? I have 80/20 mortgage.

Answer: You can not sell a property until the mortgages against it are settled, that’s how the loan is secured & trying to do so can constitute fraud. In today’s economy however, settling a mortgage for less than what is owed, or a “Short Sale” is entirely possible. Talk to your lender and see what they are willing to do; if you’ve never been late on payments, etc. then they should be more than willing to work with you. As far as paying off the remaining balance over the years, not likely to happen. Banks generally to do not loan without collateral, especially with the foreclosure rate as high as it is.

Question: Does anyone know of any mortgage companies that will finance someone with a low credit score?
I keep looking but I can only find sites or companies who seem like they might be a scam.

Answer: Be careful of scams. You need to stay away from anything online since the scams are rampant. You don’t want to give any of these sites your personal information. You could easily have your id stolen years down the road – when they figure you’ll have better credit. Or they will charge you upfront then turn you down, keeping the fee.

Visit every single bank and credit union in your area. No fee for this. If they are turning you down then everyone else will. Stay away from the big banks as they are not lending as much.

Question: Question about an owner finance mortgage.?
Let’s say that you owner finance your home. At the time of closing, the house is deeded into your name, listing you as the owner.

You later find out that the person you are owner financing this through actually has his own mortgage on the house. Basically, you are paying your mortgage to him, who is paying his mortgage to a lender.

This doesn’t sound legal to me. Does anyone know the laws regarding this?

Answer: Wow. Your Title Search, Title Insurance and the closing agent would have picked this up. So, I am guessing you skipped those protections? The seller is committing mortgage fraud. You can sue him, but you don’t own the house, his mortgage company will probably end up with it. You need a lawyer with real estate experience. Call a local Title/Abstract Company and ask for a couple references to lawyers. The seller’s mortgage would have been paid off at Closing had you gone through a proper closing.

Question: My father died and left me the house, and their is a mortgage on the house should I get in financed in my name?

Answer: It is more important to make sure the title deed is in your name. If you would have to go through probate to make sure the property is placed in your name then you should do this as soon as possible, even if their is only one heir and that being you.

Even if there is a will, the will would have to be probated. If there is some type of trust then you might be in a different situation. If there is a trust you might avoid probate.

Some states do not require probate if the entire estate is less than a certain amount. You would have to find out the probate laws in your state and if there is a limit on going through probate. A probate attorney would be able to assist you in telling if you would have to go through probate.

Normally you would be required to transfer the mortgage to your name through an assumption of the with current mortgage company or refinance the entire mortgage by paying off the current mortgage.

Now saying that I have not known a single mortgage that has ever foreclosed on a property as long as the monthly mortgage is being paid on time.

Question: Do you think a family with an income of $95,000 could finance a mortgage for a house worth $2,400,000?

Answer: Not unless you had a HUGE down payment. Your income wouldn’t be enough to make the payments with 20% down.

Question: Which type of lending institution is better for a home mortgage; a mortgage company or traditional bank?
I’m not a first time home buyer. What are the pros and cons of using bank financing versus mortgage company financing to find the most competitive interest rates? This is for a home purchase, not refinance and my credit is excellent.

Answer: In terms of competitive rates, your bank is limited to the loans that are in the bank, as opposed to a mortgage company who will have thousands of options to fund your loan.

The pro’s of a local bank are the personal contact and you can build a relationship with them, which will encourage repeat business and you will then be able to get better rates from them

As an investor I want to keep my funding as local as possible, find the banks that have very few branches and the want to give me business, as opposed to national banks or brokers that I am only a number too.

Question: How can I report a seller financed mortgage to a credit bureau?

Answer: The seller would have to be a subscriber to the credit bureaus. This costs money, and so, unless you are paying the monthly fee, I doubt they would do this on their own.

Now, if you are doing a rent to own type of deal, what you can do is have the seller keep records or you can of how you paid your rent. You can show this to the lender when you go to get a mortgage on the place.

Categories: Mortgage Financing

Find the Best Financing Solutions, Merchant Banking Services, and Business Support

Posted by Credit Financing Guru on 8th June 2010

Financing Solutions, Merchant Banking Services, and business support are three key things that you will need to help you start your new business. You will need advice and you will need the financial services that they can provide to help you succeed. You must know why are these things crucial to your new business in order to prosper.

As a new business, you will need to have the ability to provide as many payment options to your customers as possible. You will want to be able to accept checks, credit and debit cards, and gift or smart cards to increase your revenue. But, you will also want to be able to accept these payment methods safely and securely. You must also benefit from the financial advice that merchant banks can give you.

The industry your business is in will determine the kind of merchant you will choose. You will want to check potential merchant websites to see what they offer in terms of specialized services for your industry. Many do offer a wide range of payment processing options tailored to the industries they serve. Match your own business needs to the merchant that offers the most for your industry for the best start possible.

Each of the standard industry specializations needs a different kind of merchant services. Industries such as restaurants, retails stores, hair salons, mail order businesses and online retailers each take payments in different ways. They need to find the most ways to take payments securely in the most ways possible to help grow their business.

Your business will most likely be included in one of the standard industries. You can check for merchant services that offer the most help with common payment solutions for your particular business. You may need point of sale payment terminals to accept credit or debit cards. You may want to be able to accept gift and incentive cards. You may need to process mobile commerce or Internet payments. Good merchant services will allow you to find what you need at competitive pricing, and will keep you educated and current with the newest technology and products for your industry.

Not only will you need a wide range of payment processing options, but much benefit will come from financial activity reporting for the methods you choose. Your merchant services should provide these things. You should also expect good advice for lowering your overall costs of acceptance for the payment types you use.

You may find that your merchant service will provide a client manager assigned to you to help manage your accounts. You may be able to consolidate accounts from several banks into one merchant bank. Having the financial expertise that comes with this is very valuable and may be a path you should consider.

Education concerning risk reduction and data security is a crucial part of what merchant services will offer you. As businesses expand from local to global markets, the latest news and data security alerts become essential. It will be helpful to find the service that includes ongoing information about how to conduct financial transactions securely. You should also want to learn as much as possible about data security standards. These are key components to any excellent merchant service that you should consider as your financial partner.

Financing Solutions, Merchant Banking Services, and business support are crucial elements to your new business. Look for the most resources offered when considering which merchant will become your financial partner to ensure success. You want to have expert financial advice and experienced merchant services to help you succeed.

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Business Financing FAQ:

Question: How do I get financing to start a business?
I want to open a nightclub but don’t have the cash to get started. What’s the best way to get financing without collateral or good personal credit?

Answer: You need to go talk to a bank about getting a business loan. To get one, you need to show them that your idea will work, that it will be profitable and that you know what you’re doing. You need to prepare a business plan to show staff, layout, possible expenses etc. They don’t want to give money to someone who’s going to go bankrupt right away, so be as prepared as possible.

Question: Where can I find a business article about long term financing?
It needs to be recent. I have looked on every business website but have found no good articles.

Answer: Try the Wall Street Journal.

Question: Where is a great place to get alternative financing for a business?

Answer: You have a few options. You can try: a bank, family and friends, loan shark, investors in exchange for a share or interest for the money (search websites online), venture capital, government loan if your business is small, and obviously your own cash by selling your assets.

Question: How to obtain small business financing from bank?
I currently run a small web-based business as an LLC registered in the state of FL. Up until now I have financed my business with money I’ve saved from working as a waiter and the profit it makes, but now I’m looking to expand and need about $5000. Currently my business takes in anywhere from $1500 – $2500 a month and has about a 45% profit margin.

I’m young (a student in college) and have no credit, have never had a credit card and have never taken out a loan for anything. How do I approach the bank to try to get a loan for my business? What is a realistic interest rate and how likely am I to get a loan?

Answer: Any lender will require a business plan that shows that you can pay the loan back. Go to sba.gov , score.org or bplan.com for instructions on how to write a business plan and sample business plans.

Question: What do I categorize business credit card finance charges as?
Are these finance charge on my business credit card tax deductible? Where should I file these charges?

Answer: Credit card finance charges is interest charged for loaned money, so you can categorize it along with other interest payments, such as mortgage interest. In theory you could lump them together in the same ledger, but your accountant might prefer you keep the two separate, i.e., interest paid on short term loans from interest paid on long term loans, even though both are tax deducible.

This is assuming that the credit card is being used for legitimate business expenses, of course.

Question: If buying a laptop for my business, but am financing it for 18 months, is it still tax deductable?
So I’ve read the fine details about using a business laptop as a business expense, and that is fine as this will be 100% used for my business. My question, though, is how do you treat the purchase if it is being financed through a business-owned credit card (say, Best Buy business card), over 18 months? Does it still count as a “purchase” in the same year you start the process of buying it, or only at the 18th month when you actually have paid the entire amount off?

Answer: Even though you are financing it, you can write it all off at the time of purchase, so deduct it all now.

Question: Small business start up financing?
I was wondering if anyone knows of funding sources for women starting a small business. I have heard there are grants and loans available for women but don’t know how or where to access them. Also, any info on small business loans is appreciated.

Answer: I can think of a few resources for you to look at. There is a Yahoo Group with grants and loan programs especially suited for small businesses and real estate. I’m not sure what kind of business you want to do but you could “double dip” by taking advantage of women’s grants/loans as well as real estate grants/loans. If you are getting into commercial real estate, there is also a program to purchase commercial properties with only 1% of the purchase price as down payment instead of the usual 20% or so, which greatly reduces the demands on your cash reserves. Just google 99% financing for commercial real estate.

Question: Where can I license my micro financing business?

Answer: Are you a broker? For commercial loans? In most states, that requires a license. Go to your corporate commissioner or banking superintendent for licensing regulations. Make sure you are bonded, unless you are solely a referral agency and then why should anyone trust giving you confidential data?

Categories: Business Financing

Is Weight Loss Surgery Too Expensive?

Posted by Credit Financing Guru on 7th June 2010

Weight loss is perhaps one of the biggest issues in today’s society. Since obesity is now a prominent epidemic in North America, we must seek drastic measures in order to lose weight.

Out of all the different weight loss surgeries available, the adjustable gastric band stands out among the rest. Commonly known as ‘lapband surgery’, this procedure is safe, effective, and minimally invasive.

What are the benefits of choosing lapband surgery over the other options? First of all, this is a procedure that has been performed worldwide. With over 400,000 surgeries performed, numerous of clinic studies have proven its safety and efficiency.

Second, the band is designed to be adjustable. So you don’t need to have surgery again in order to adjust it; you can easily adjust the degree you want in your weight loss, depending on your circumstances. For example, if you get pregnant, it is quite simple to loosen the band until you are ready to start your weight loss again.

Third, this procedure is quite affordable. Depending on the clinic that you go to, there are a wide variety of financing programs. They may have an in-house financing program that is designed to keep the procedure as affordable as possible. With monthly payments less than a car, and a decent down payment, as long as you keep in mind that you are investing in your own long term health, financing the procedure is easy.

One major advantage over other surgeries with the lapband is it is completely reversible. If for some reason, you want to remove it, it is just another simple procedure. As no real alteration has been done on your stomach, your stomach would soon return to its original form, as if nothing happened. However, keep in mind that the band is intended to stay in there forever.

For some, the cost of weight loss surgery seems prohibitive. But that is not true; weight loss surgery in many ways can be very important to your life. You just need to truly see it as that, and in fact, as an investment in yourself. Then you will see that it is not that expensive after all; this surgery has huge potential of changing your life completely.

You must remember one thing, and that is you are investing in yourself. If buying a car or a house is an investment, then this surgery is also. Those two things have monthly financing plans; it is fact that weight loss surgery also has such a plan. You only really need to make a down payment (the higher, the lower the monthly fees), and pay a monthly fee. If you happen to have a windfall, you can always make extra payments and reduce your monthly fees.

Shop around, as you should to find the best rates; some clinics may offer better monthly payments than others. Match it with the services that you want, some services you may want to cut out (such as extra seminars), and that may help reduce the cost. Ultimately though, remember that this is not a waste of money; you are investing in your self-esteem, your health, and your future. This investment will help you on your way to a new journey, and potentially a new life, a much higher quality of life.

The success behind healthy living is the willingness to make necessary changes to your lifestyle choices. Whether you have to modify your dietary plans or reduce any bad habits, every action you take has a reaction to your overall health. Eat healthy. Live healthy. Be healthy.

Weight Loss Surgery FAQ:

Question: Why is weight loss surgery so controversial?
I work with weight loss surgery patients. The decision to have weight loss surgery is a personal one. Why is there such a stigma on people who have surgery. Obesity is a disease. It is proven that weight loss surgery improves health. Why do people ridicule those who have surgery?

Answer: I have mixed feelings about the surgery. I have heard of a few stories where the surgery the person had caused more health problems than they had before they were obese. Also after seeing the biggest loser show and watching people shed 50% of their body weight when they were clearly obese at 300-400 lbs.; it makes it hard for me to believe that it is impossible for someone to lose weight without surgery. I also think that the surgery all depends on the person, look at some of the celebrates that have had the surgery, they look great.
You are correct though that it is a personal decision. I think as long as they know all the risks and make a life change it will all work out. I don’t agree with people who get the surgery and not change there life and then gain it all back, that just isn’t healthy.

Question: What is the best weight loss surgery to get?
I am 16 years old and extremely over weight. I have tried for years to loose weight but with minimum success. I want to get weight loss surgery to help the process. I know I can find a doctor to get this because I have called around and the doctors said they have operated on patients as young as 12. I am wondering which is the safest and most affective weight loss surgery for me?

Answer: If you are willing to spend that much money – try hiring a personal trainer to teach you how to properly work out, and a dietitian to teach you how to eat right. Give that a year and if you don’t lose at least 1-2 pounds per week, go with a gastric bypass. but remember – the surgery wont work if you don’t learn to eat right and work out.

Question: How to get pregnant after weight loss surgery?
I just had weight loss surgery 5 months ago and seem to be having problems becoming pregnant. Can anyone tell me what I could do to better my chances of becoming pregnant?

Answer: You should not be even trying to get pregnant five months after gastric bypass surgery. It’s not recommended to even TRY until 12-18 months when your weight has stabilized. Your surgeon would flip out if you told him that you are already trying!

Between your rapid weight loss, limited capacity, and still healing from MAJOR surgery, your body IS NOT READY for pregnancy.

I’m not trying to be rude, but didn’t they go over this in detail before surgery?!? I had to sign a form specifically detailing that this was discussed.

Question: How do you not shrink down to nothing after having a weight loss surgery?
I was just wondering how you do not go to severely underweight after having a weight loss surgery. Because my moms friend got one and has become really skinny, so how do you stop losing weight once you have reached your goal weight?

Answer: Weight-loss surgery changes the anatomy of your digestive system to limit the amount of food you can eat and digest. With her stomach pouch reduced to the size of a walnut, she has eat very small meals during the day. This alone can help a person loose weight. During the first year you are retraining your body and because you are eating different than you have been for the past 10-20-30 years your body looses so much weight very fast because it is burning off much of the fat and converting it to energy. After a year or 2 like most diets and weight loss attempts your body reaches its limit, it gets accustomed to the things you are doing and you will then stop loosing weight. At that point its all about working to keep it off and maintaining the new life style.

So the short answer to your question is the body will reach a plateau and stop loosing weight after about 2 years. At first everything is new and your body is burning the fat for energy because you are eating so much less than you normally do.

Question: What can you tell me about Weight Loss Surgery?
I am meeting with a doctor next week about weight loss surgery and I was wondering if anyone went through this and can give me some pointers.I have a BMI of 40 and really need this surgery. Any tips?

Answer: Please let your doctor answer this for you. I have a father who is a doctor and a sister too, I would only let my doctor answer this. But my good friend was 400lbs plus, and had the band done about one year ago, it has changed her life. So think about it, but use your Doctors info.

Question: Are there college scholarships available for teens who have had weight-loss surgery?
I had weight loss surgery in October 2008, I was wondering if there were any scholarships available to me, and others like me for a 4 year college education.

Answer: Why on earth would there be? Did the surgery make you any smarter or more suitable for any particular degree program?

Question: What Do you think of plastic Surgery for weight Loss?
I have tried Diets and weight loss programs and private trainers and I have lost weight however I have a problem area in my lower stomach (maybe because I had 3 kids and 1 was a c-section). So do you have any other suggestions? If not my only other option is weight loss surgery what surgey would you recommend? Lipo? tummy tuck? I have heard awful stories about tummy tuck.

Answer: If you’d like my honest opinion, would say tummy tuck. There will always be scary stories for everything, but this kind of surgery is ideal for what you’re describing. Because it’s not really “fat” that you’re trying to get rid of, right? It’s that skin that’s been stretched beyond natural repair, so lipo won’t do it, nor will weight loss surgery. And tummy tucks don’t cost an arm and a leg either!! I’d speak with a professional in each of the areas (lipo, tuck, weight loss surgery…) to see what makes sense to you.

Question: Does weight watchers has different plans for folks who have had weight loss surgery?
I am curious about the nutritional impact and the focus on protein first that weight loss surgery places on it’s patients. I am 5 years out and just want to drop 20 lbs.

Answer: They don’t have one certain plan for that. But you can use the plans that they have. The people at weight watchers are so nice and want to help you. I have been going there and I have lost 30 lbs. It works. And you can do it! Good Luck!

Categories: Surgery Financing

Zero Percent Financing – A Consumer Benefit Or a Marketing Trick?

Posted by Credit Financing Guru on 31st May 2010

In recent years, zero percent financing has become an increasingly popular financing option offered by most car manufacturers on new cars and trucks. While it does sound great and is extremely appealing to many car buyers, there are few things attached to it that may diminish the benefits.

Commonly, car dealers offer an alternative of a zero percent financing or a cash rebate on the vehicle purchase price. Let us say, that you are confronted with an offer of getting a cash rebate of $3,000 or a zero percent financing. While you are going to have no interest to pay, you will end up paying $3,000 more for a vehicle that you may have saved otherwise. Should you pay off your loan early, the advantage of taking zero percent financing would become null.

It is important to keep in mind that any car is a quickly depreciating asset. Taking a rebate instead of a zero percent financing incentive may help you to reduce the gap between the loan balance and the vehicle fair market value. Since your car depreciates most in the first year of use, having it totaled or stolen may leave you upside down on your zero percent auto loan since your insurance company would not cover extra $3,000 you paid for your vehicle. That means that you would have to come up with the difference to cover the remaining loan balance.

It is important to remember that nothing is truly free in this life. Financing incentives, typically coming from the corporate offices of car manufacturers, are most commonly hidden in the vehicle selling price. Car dealers, sometimes offering zero percent financing on their own, follow the same strategy.

How Does It Work?

While it is somewhat understandable how financing incentives offered by auto manufacturers work, zero percent financing offered solely by a dealer may raise your eyebrows. Obviously, banks are not going to finance you at no interest, no matter how good your credit is, since they have to make money off you to stay in business.

What usually happens is that auto dealers rebate the bank upfront for the interest charges that a customer would accrue and pay to the bank otherwise. In simple terms, your dealer pays your interest for you. Since they are not going to make it a money-losing proposition, they have to compensate these expenses somehow. That is why these costs are built into the vehicle purchase price.

Typically they are offset by a rebate that a car manufacturer would give you on a new car purchase and/or an incentive that an automaker gives a dealer for higher volume sales. What this also means to you that there is less negotiation power on your side, since a dealer would be less eager to go down on a vehicle price in this case.

Financing Incentive or a Cash Rebate?

What this means to you is that a simple mathematical equation needs to be solved. When approached with a choice between the rebate and a zero percent financing, calculate how much interest you would normally pay on a car loan and compare it to the amount of rebate. If your interest charges are going to be greater, it may be time to consider zero percent financing. Should they be not, take the rebate and run away from the zero interest deal!

Mary Wise is a personal loan consultant who has been associated with Bad Credit Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Fast Unsecured Loans, and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at BadCreditLoanServices.com

Zero Percent Financing FAQ:

Question: Is it better to take the zero percent financing or the cash rebate on a car loan and pay the interest rate?
My payments will be less with the zero percent on a 60 month loan, only by $22

Answer: Financed cars is more expensive to insurance cause it requires full coverage. If you plan to pay the car off early, like many people do, take the cash rebate.

Question: Should I use low financing or home equity to buy a car?
I could probably get low or even zero interest on a car loan or use my home equity at 4 percent.

Answer: With home values falling these days, I wouldn’t use home equity, or you’ll be upside down on your mortgage like most of us. Get the car loan at low interest, check credit unions, they are typically better than dealerships.

Question: Zero percent financing good for buying car?
I’m very skeptical on these zero percent financing. I say the interest is built into the price. Any thoughts?

Answer: They are only offered to those with stellar credit, a rating of 720 or better, and are for a limited time. You might have zero percent for the first year for example.

Question: What is zero percent financing?
I’m not a expert on interest rates but I’m in the market for a vehicle and I keep hearing zero percent financing at dealerships. Is it a good thing or will it end up screwing you over in the long run?

Answer: In most cases, the “no interest financing’ is offered in lieu of a substantial cash rebate at the time of purchase. Read the proffered agreement very carefully. While I do not have experience with such arrangements, I have heard horror stories about your ‘zero interest’ disappearing if you are so much as late on ONE payment. Check ALL the fine print before you sign.

Question: Are there any hidden charges with zero percent auto financing?
We are in the market for a new car, and would like to wait until at least September or October, when the dealers will be trying to clear their showrooms/lots of old models. We’d like to take advantage of any zero percent financing offers available, so I’d like to hear from someone who has experience with these offers.

Answer: I bought a 2006 Chevy Cobalt over the 4th of July weekend in 2006. I took advantage of the 0% financing for 72 mos. It was straightforward and there were no surprises or hidden fees. My monthly payment was the price of the car, divided by 72 mos. Just because you are getting 0% financing, don’t think you have to pay MSRP. They will try to pull this crap on you, but it’s crap. Do you have a system for figuring out how much to pay for a car? You really need to have your ducks in order. I recently got a deal accepted for a GMC Sierra which I ultimately changed my mind on. But it was also a 0% financing deal for 72 mos, and they agreed to sell it to me for invoice (invoice is what the dealer pays for the car, as you probably know) in addition to the 72 mos 0%. I don’t know why you would wait til Sept or Oct, there might not be 0% financing during that period. 0% financing seems to be a summer promotion, mostly. Plus you won’t have the availability in the fall that you have right now. (smaller selection, that is).

Question: Who’s offering zero percent financing on new cars?

Answer: Go directly to the dealers web site and the deals will be advertised. Example, Ford.com… and so on. The bad news is unfortunately most people do not qualify for the Zero percent interest unless you have an absolute perfect credit rating, then it seems they can also come up with something to not be able to offer the Zero Percent. Beware and good luck!

Question: What is zero percent financing? is this a good way to get a car?

Answer: You would have to run the numbers and compare the zero percent loan against an interest rate car loan to see which is better if the choice is between a zero percent loan and cash back. The cash back is better in virtually every case.

Question: What can I do to buy a Chevrolet suburban 2010 at a good deal?
I am in the market to buy a suburban 2010 texas edition. I have a down payment of 5k and I want to finance the rest. I know the MSRP is around 41k and the invoice price is 38k but I want a lower price and zero percent financing for 5 years AND new car. If anyone has good tips please do let me know.

Answer: Are you aware that invoice does not represent what the dealer pays for the car? Dealers will be happy to sell you a vehicle at invoice. You can only get 0% financing when it is being offered by the factory. If that offer is on the table the dealer must participate which raises the cost or cuts into the profit.

Categories: Auto Financing

Computer Financing Versus Leasing Computers

Posted by Credit Financing Guru on 26th March 2010

The difference between Computer Financing and Leasing Computer, is in a nutshell, with one you own the computer and the other one you don’t.

Computer Financing

This option is the one where you own the computer. Companies can help customize a financing plan where you can pay an affordable amount. At a predetermined point the computer is shipped directly from the factory to you. You own the computer upon receipt, not the company, AND in some cases no one has owned or touched the computer prior to you.

Leasing Computers

Computer leasing is where you are shipped the computer after applying for credit. You must have good credit and be able to prove that you have the ability to make monthly payments until the computer is paid in full. During the time that you are making the payments, you DO NOT own the computer. The leasing company owns the computer.

Computer Credit Benefits

The benefits of computer financing is that not only do you own the computer, but that the computer you receive is one of the best computers on the market at the time the computer is shipped. Meaning, if the company goes to order the computer and the quoted hard drive is obsolete then you get the newer (most likely bigger) hard drive with no extra fees or hidden costs.

Companies usually offer several different flexible payment plans, but should there be a disruption in your income, you can usually contact the company and they can make arrangements to help you through the rough times. Most companies are there to make this a win-win situation for everyone. After all, if you’re not happy you won’t recommend them.

Credit repair

This is a big thing to a lot of people. Some computer credit companies have created a credit repair program that works hand-in-hand with their financing plans. They all work slightly differently. A couple scenarios are:

(1) the company will report you payments (on time or not) to the credit bureaus or

(2) upon successful completion of the agreement, you will receive a letter that states that you met the payment agreement for X amount of months which you send to all the credit bureaus.

In either case, as long as you make your payments on time your score should improve.

Be Aware

Computer Financing Companies strive to make it affordable for you so that you have more than one option. Remember to ask questions like “Is this a used computer?” “Does it come with software?” “What happens if I can’t make a payment?”

One size does not fit all. If the company does not offer several computer financing options are they really flexible enough to help you? Choose a company that may work “outside the box” and will create a financing plan that fits you.

Computer Financing Today is a computer credit company that wants to help you purchase your next computer on your terms. CFT customizes a finance program that you can afford. We have been in the financing industry for over 10 years and have partnered with an IT company in order to offer you the best products on the market that will fit your budget.

We have even created a credit repair program that will help you establish or fix your credit. We offer a flat interest rate of 5.99% for ALL our clients.. All computers are NEW (not used or refurbished). We can offer several different brands so that you not only get the hardware and software you need, but at a price you can afford. Visit our site for products, deals, and program information. We are currently running a special for this month: purchase a computer with us and receive a FREE color printer.

Computer Leasing FAQ:

Question: Are lease payments for computer equipment tax deductible?

Answer: If it is an operating lease, then the full amount of each payment is deductible. If it is a capital lease, then only the amount related to interest would be deductible and the equipment would be depreciated.

Question: Can I walk away from the lease on my computer?
I’m a student and I’m currently leasing a computer from Dell. Its a 4 year thing where I pay like $30 a month. If I don’t need the computer any more, do I still have to pay the 30$ a month? Or can you pay a lump sum or whatever?

Answer: You could walk away, but your credit history will be screwed. You need to pay for it; that’s the deal you made. A nice machine for a low monthly payment. Consider it a learning experience – if you learn from it, it will save you much money down the road.

If you truly don’t need it any more, I suggest trying to see if you can get someone else to take over the payments; they’ll get a machine, you might lose some money invested, but you won’t be on the hook for a lot more. Perhaps you can call Dell to see if you can pay out the rest of what you owe in one lump sum.

Question: Alternatives to leasing computers?
The value of computer equipment deprecates rapidly. A solution to this is leasing the computers. Are there any other options apart from buying the computers?

Answer: What about renting a computer? Some may consider it leasing but it can be different.

Question: What is a lease? Why would you choose to lease instead of buy a capital item? What steps would you follow to decide whether to lease or buy a computer system?

Answer: Leasing is to reduce out of pocket costs, especially for those permitted to write off the costs of the lease.

Question: A leased computer broke down and needed to be replaced at no cost to the business. The man who brought the replacement said that the new machine was a $2500 model. Why is this considered a transaction? I thought it was “replaced at no cost to the business”.

Answer: It is not a transaction. Either it was under warranty or a service agreement. Since the company paid nothing, there is no entry to record.

Question: Can you be charged with ‘theft’ if you do not give someone back a gift (even if money is owed on it)?
My ex-fiance gave me a laptop as my Christmas present. He recently broke up with me and is now demanding to have it back to get out of making payments on it. He is apparently leasing the computer and still owes $500 on it. To get out of the payments he quit paying on the computer and told the company that I took it and to call the police!! Someone from the company came by my house today to take the computer back. My mom talked to them and told them it was a Christmas gift and that we have photos to prove that, but the guy said it didn’t matter and that it was considered “stolen”.

Is there any way my ex or the company can charge me with anything when I had nothing to do with it? It is my ex that signed the papers and has an agreement with them.

Answer: Because it was a gift, you would have rights to it.

However, because he failed to make payments, the company has rights to it also.

Under those circumstances, it would not be considered stolen and there would be no criminal charge of theft. The matter would be handled through small claims court. My guess is the judge will rule in favor of the company, unless you agreed to pay the balance.

Question: What Information Can A Rental Company Disclose, In Regards To One’s Account?
I rented a computer from Aaron’s Sales & Lease. I owe them $250.00 on an item that is almost paid off. However, they continuously come to my house at night causing a scene in the neighborhood. The General Manager went as far as kicking my door, scaring my little brother.

Now, the company is calling my house, and has spoken to my roommate. They disclosed information such as the Date of Purchase, Amount in which the computer was, how much my payments are, and how many payments I’ve made. Is this legal? or does it fall under the Privacy Protection Act of 1970?

I understand that I owe them – and I will pay them – however, I am upset that they are disclosing my account information to people in which I would NOT like to know my spending or financial habits/history.

Answer: You clearly are avoiding them if they are at the point of kicking your door and coming to the house, and sorry but $250.00 at the rates they charge is still a fairly big amount to owe, so how about you pay them or give the computer back and the matter will be over with.

As for them telling others about your personal details that is wrong BUT had you been up to date then this again would be a moot point.

Question: How can I break a imac lease? It turns off ALL the time!?
My Imac leased through Rentsmart has been back to the shop and had its guts – at least three things replaced. But the crumby thing turns itself off all the time in applications, in games, using the computer drive. The only thing that works is the internet. So I am paying megabucks for three years for a big net book.

Answer: Unfortunately for you, I know that they have actually taken some of their customers to Court for breaching their contracts. Not every company does because of the legal fees entailed – but Rentsmart is not one of the one’s who will let it slide.

Categories: Computer Financing

What Are The Cost Benefits To Financing Plastic Surgery Loans vs Using A Credit Card?

Posted by Credit Financing Guru on 1st March 2010

If you’re looking into cosmetic surgery, the biggest obstacle is most likely financial. Plastic surgery for procedures such as breast augmentation, tummy tuck, rhinoplasty and facelift are quite costly and not easily afforded by many. There are many fees involved that can include the surgeon’s fee, hospital and facility fees, anesthesia and medications that are all out of pocket expenses not covered by medical insurance. These fees may total between $7000 and $10,000 and in some cases can even add up to much more.

Two of the most popular and easiest ways to finance cosmetic procedures are with the use of credit cards and plastic surgery loans. Plastic surgery loans are loans tailored specifically for potential cosmetic patients seeking plastic process. Often these companies will work directly with physicians and plastic surgery clinics to help patients in getting approval for this kind of financing. There is often a much more personal touch involved in dealing with a company financial representative, and you’re also likely to get quick and easy approval. Many times you can even be approved before leaving from your initial cosmetic consultation visit.

It is usually easier to quality for plastic surgery loans than for other forms of credit, including credit cards, and these types of loans will often qualify you for much larger amounts in comparison to credit card limits. Interest rates are often very similar ranging from an average of 14% to 20%, with some cosmetic surgery financial companies offering rates as low as 8 or 9% for those with excellent credit. You should also look to see if any companies are offering a no interest grace period. You can sometimes find plastic surgery loans at 0% interest for up to 12 months.

Another advantage to surgery loans are the specific repayment terms. These are often set up for periods of 12, 24, 36, 48 or 60 months. In this way, you have a set schedule of minimum payments due until the loan is paid. Credit cards may let you pay less per month, but this will end up costing you much more money in the long run due to extended period of time that interest will keep adding up and will keep you burdened with your cosmetic surgery debt much longer.

If you’re looking to have a surgery, loans are an option to consider for financing your operation. Be sure you are able to take on the amount of debt you are borrowing without it becoming a large financial burden to you. You’ll also need to make sure you are well informed on all terms and conditions of the loan you take out and any additional loan fees that may be attached to the original loan amount. You need to make a well informed decision with the right loan for you and your particular financial situation. If you do, plastic surgery loans are a great financing option and can make your dream of a better body a reality through the innovation of plastic surgery.

Elective surgery financing services for plastic surgery loans, cosmetic surgery financing, hair restoration, laser vision. Finance your medical procedures through low monthly plans with no down payment or collateral.

Cosmetic Surgery Loans FAQ:

Question: Is there a way of getting free cosmetic surgery?
TV progs, advertisements, anything? I want some but I’d need a bank loan. Any ideas?

Answer: You could try 10 years younger. But are you sure you need it that badly? If something affects your mental or physical health then your doctor can refer you.

Question: What’s the best way to pay for cosmetic surgery?
The procedure I NEED done is 6500 dollars. I’m 18 and have new credit and no cosigner. I have a job and I would be able to pay quite a bit every month, but I can’t wait to have this done. Would it be possible to get a bunch of credit cards and just take the money out? Or what financing companies would give me a loan?

Answer: You have “new” credit or no credit? – either way, you can borrow a cash advance from each different credit card you have depending on the limit of each card.

Question: Cosmetic surgery during credit crunch?
I want a nose job and breast augmentation. Given the current economic state, will cosmetic surgery be cheaper, in say 6 months, than say a year ago? And will it be harder to get a loan for it?

Answer: Think many many times before you lay down on that plastic surgery bed. You might regret it for the rest of your life. Even if you have endless source of money, it will not worth anymore when things gone wrong. Think twice, triple, quadruple before you do that.

Question: How can I afford cosmetic surgery??
My monthly income is like £240 a month because I only work part time as I go to college. I really want a breast enlargement but I can’t afford it and I can’t get financial ways to pay because you have to be working full time. Does anyone know how I could pay for it? Also I don’t think I have enough credit history for a big loan because I’m only 19.

Answer: Put a little aside every week. Insurance will not cover cosmetic surgery, sorry to say. And I urge you to reconsider, there are so many health risks involved with surgery, especially boob jobs. I have heard some real horror stories.

Question: Apply for a personal loan?
I’m trying to look for a loan for a cosmetic surgery that I’m planning to have. Problem is I have way less than perfect credit. Who would possibly give me a loan at this point?

Answer: Realistically, no one. No bank will give you a loan when they’ll get absolutely no collateral for the loan. In the case of a car or home loan they can take the product back if you don’t pay. With you they’d have no recourse if you were to fail.

If it’s cosmetic and not necessary you should save up and pay for it all at once.

Question: Surgery Loans?
My sister asked me to look for surgery loans on the internet. She needs $5,000.00 for cosmetic surgery. Although she doesn’t have that great of credit. Does any one have any suggestions? She has already been to her own bank and the minimum personal loan that they give is $10,000.00; of course she didn’t qualify for this one.

Answer: She can go to the Doctors office and get on a payment plan and she can pay small amounts.

Question: I live in SYDNEY, AUSTRALIA how can I get personal loan with bad credit?
I entered a Part IX agreement 2 and half years ago and now discharged and fully paid my loan. How can I get a loan for $10,000 for my cosmetic surgery overseas? What are my chances?

Answer: Talk with your bank. With a co-signer all is possible.

Question: How much credit card money do I need to spend in order to build sufficient credit for a loan?
I’ve never had a credit card, never had a car loan, etc., so my credit score is zero, not enough to apply for a loan for cosmetic surgery. I’m considering getting a credit card and using it to spend the several thousand dollars in my savings. After spending all this money with my credit card, what would my credit score be? And, will it be enough to qualify for a medical loan for cosmetic surgery?

Answer: It’s not the spending that matters, it’s the paying back. Just make sure you make your payments on time.

Categories: Surgery Financing

Ways to Fund Your Cosmetic Surgery

Posted by Credit Financing Guru on 1st March 2010

When your insurance company doesn’t pay for cosmetic surgery because it’s elective, and you don’t have the money in the bank to pay up front, what are your options? Do you have to wait until you save up enough money before you can have the facelift, tummy tuck, or breast uplift that you want? That, of course, depends on your personal financial situation. You do, however, need to check into the options before you even go for your first evaluation.

Depending on the surgeon you choose, it’s possible you may find one who offers a payment plan right in the office. In most cases, this means you pay a certain amount down, and the doctor will agree to accept a set amount in payments each month thereafter. You want to be careful when using this option, because in many cases, the down payment is smaller in order to encourage patients to take advantage of it. However, the monthly payments may be short term, and thus much higher than what you can afford. Although this is not true all the time, it is in many cases. The reason is doctors want their money right away, and as such, they really don’t want to be stuck financing patient bills. Therefore, what they do is make it somewhat attractive by offering a payment plan, but at the same time, discouraging patients from using onsite financing because of the future high payments.

Another option is using your credit card, if you have enough available to finance your cosmetic surgery. Financing this way means you don’t have to pay a down payment, and you have low minimum payments. On the down side, cosmetic surgery is expensive, so you will tie up a good portion of your credit line. Of course, if you are financially sound and have a substantial credit line, it may not have a detrimental effect, especially if you have a card with a lower than average interest rate. If you had planned to pay a down payment, you can also do that and put the balance on your credit card. This will reduce the amount of your credit line that you tie up with your surgery.

A third option is applying for a personal loan at your bank. Of course, for those who have less than perfect credit, they may need to obtain some collateral such as real estate or a motor vehicle, but it’s always possible. If you already have an equity line of credit, you can use that as well, by just writing out a check against your available balance. There are always ways you can come up with the funds you need for different things, including that of cosmetic surgery. You may even choose to take a loan against your 401K plan if you have one, or take a loan against your savings account or other assets you may own. Make certain you know you can obtain the funding before you go any farther than the initial consultation. Make sure you can pay for the surgery before you schedule it and tie up the surgeon’s schedule.

Credit Medical offers elective surgery financing services for cosmetic surgery loans, plastic surgery financing, hair restoration, laser vision. Finance your medical procedures through low monthly plans. http://www.creditmedical.com/

Cosmetic Surgery Funding FAQ:

Question: Are there any organizations that help fund cosmetic surgery after losing a large amount of weight?
I just wanted to know because a lot of people who lose 100lbs or more have a lot of extra skin left on their bodies and they can’t afford to get it removed.

Answer: Certain medical insurances will pay for tummy tucks, IF the skin is causing other health problems by being there. Otherwise your skin has a natural elasticity that will most likely shrink back with time and muscle toning. If you had weight loss surgery, whatever insurance (if any) paid for it, will most likely pay for a tummy tuck, if your doctor recommends it for health reasons ie: Skin irritation, Pain, Rashes, etc.

Question: Is it good law to raid Medicare to fund cosmetic surgery, sex change operations, and abortion?
Under the present free market on medical care, people are free to insure themselves for cosmetic surgery, sex change operations, or abortion, or to choose not to be covered for these procedures. Democrats propose a one-policy-fits-all insurance under a government monopoly, and to pay much of the cost by raiding Medicare. Would this make medical care better or worse for most Americans?

Answer: I don’t know what kind of awesome insurance you have that pays for cosmetic surgery and sex change operations, but tell me where to get it! I have never, ever heard of regular health insurance that pays for these things, and I challenge you to find one that does. Further, there will be no specialized policies to pay for this stuff, because the only reason people would ever buy it would be because they were already planning on having the surgery. People don’t buy insurance to have this done, they save their pennies and pay for it out of pocket. No form of government insurance would prevent a person from continuing to do that.

You are probably right about the abortions. I think most plans do pay for abortions, probably because it’s a lot cheaper to pay for abortions than it is to pay for a baby. No government plan would cover them because it’s too controversial. People will just have to save up the 500 bucks themselves, or find a charity that will do it for free.

If the government did take over the health insurance industry, we know the plan wouldn’t pay for cosmetic surgery, etc. Nobody is raiding medicare to pay for this stuff. Ever.

Please don’t take this as support for a government plan, because it absolutely isn’t. I just think your assumptions about raiding medicare to pay for stuff that will never be covered by the government, in lieu of insurance which doesn’t exist now, are flawed. If you want to be afraid of government-run health care, be afraid for the right reasons.

Question: Anonymous Cosmetic Surgery?
I’d like to know if undergoing a cosmetic surgery anonymously is possible in US, if not any other countries? I’m thinking just use an assumed name when I visit the hospital, but I’m not sure if they would obligate me to show the identification in order to proceed with the surgery. I’m using my own funds, not insurance, so it shouldn’t be a problem, but I would like to know for sure.

Answer: You could try but in order for someone to undergo any major surgery in the U.S. it is mandatory that their identification is sufficient. However, your information is 100% protected by doctor patient confidentiality, meaning it is illegal for the hospital to give out your information. So if you had surgery, the only people that would know is the doctor that preformed the surgery and anyone involved with your case, and it is illegal for them to talk about it to anyone else.

Question: How do you get some anonymous person to pay for your plastic surgery?
I watched a story on a local TV news program the other night about women who got 50,000 in plastic surgery done by going on the internet requesting people to send her money for the plastic surgery/cosmetic enhancements! and people funded her surgery no strings attached! This woman wanted the surgery for vanity reasons only she did not have any birth defect etc. I’m intrigued to know why people would send money to a stranger simply to help them to look aesthetically pleasing. Is this practice common?

Answer: Yes people really do this. The website myfreeimplants.com is totally dedicated to this sort of thing, but only for breast implants. Read through the website, people can’t just collect the money and use it for something else. The money HAS to go towards the surgery or else it is returned to the person who donated it. And no, I haven’t used the site, but looked it up after hearing about it on the radio because it is fascinating.

Question: Taxing elective cosmetic surgery to help fund health care?
“Senate Democrats are proposing a 5% excise tax on elective cosmetic procedures… that includes things like Botox injections, breast implants, tummy tucks, face lifts, liposuction, teeth whitening, eyelid repairs, etc.”

I can not believe democrats actually think this is a great idea. Do you think it is ok to tax people who do this, just because they have the extra money to have procedures done?

Answer: Of course it makes sense.

The only effective way to change people’s practices is to make it an economic choice. Making elective/no life threatening medical procedures taxable will cut demand for them, thereby contributing to reducing health care costs. Sure, those with the money will still choose them … but at least the tax will help pay for other procedures. Not taxing them means some other form of tax to raise the money. The other option is a tax on the middle class and rich. The money has to come from somewhere and the best choice is from those most directly benefiting and also choosing to have an optional procedure.

While at it, the value of employer paid heath insurance benefits accruing to workers should also be taxed as income; something that for some strange reason doesn’t happen in the US (unlike most countries).

In Canada we have universal health care, but cosmetic surgery is not covered. If you want it, you pay and pay taxes on the services. Makes perfect sense to any rational individual.

Question: Which medical funds cover breast reduction?
I’m looking to get a breast reduction for backpain, shoulder indentations and headaches. Does anyone know which private health funds cover this procedure? Most of them say that only Some cosmetic surgery is covered.

Answer: Have you had a doctor’s consultation yet? My HMO paid for mine. They had an equation they used. They weigh your breasts, see how the weight is distributed (saggy or perky), and take lots of measurements, these are factored with your weight, height, and BMI and if you score within a particular range, they’ll pay for either part or all of the procedure. I ranked so that they paid for everything. Try to see a doctor and find out how you score in the equation and ask them.

Question: How will Single Payer health care deal with elective Procedures?
Fake Boobs, unnecessary eye surgeries, and cosmetic procedures…Liposuction…the list goes on. Who decides if the tax payers get to fund a Hollywood elite’s 15th face job?

Answer: The current proposal is not for a single payer system. Just like with any other insurance, elective procedures like plastic surgery are not covered for treatment. Procedures like that are paid privately just like in single payer countries like Canada and Great Britain.

Question: Will Insurance Companies Cover My Expensive Surgery?
I have a condition called “Pectus Excavotum” which is an inward curvature of my chest wall. This condition causes me to have trouble breathing and performing under stressful athletic activities. I just turned 21 years old and I work at a job making under 15k per year. The job has no insurance or benefits.

This surgery to fix my condition is NOT considered cosmetic but costs an average of 30,000 dollars. I obviously cannot afford this but I am in need of this surgery. Is insurance or State Funded Health Aid better for my particular case? I hear insurance may deny my claim and thus is risky. Is there any other way I can get this surgery without being in debt for years and years? What will insurance companies do if I claim it as a pre-existing condition.

Answer: First, you would have to find a carrier that would insure you knowing that you have this condition. You would be required to tell them when applying. If you did not and had the surgery, they could come back and cancel the coverage for non-disclosure. And you would have to pay for the surgery yourself. If you did find a company willing to accept you, and your condition, the surgery would have to be considered medically necessary to be covered. I’m not saying it isn’t but THEY would have to say it is necessary. They may also have a pre-existing waiting period that you would have to meet before it would be covered.

Generally, medicaid is for pregnant women, children or blind, aged (over 65) or disabled (federal guidelines). If you do not fall into one of these categories, you would not qualify for medicaid.

Your best option is to find a job with benefits, That way, usually, there is no pre-existing exclusions.

You may be able to qualify for care at a county or teaching medical facility. They would base what you owe on your ability to pay.

Categories: Surgery Financing

Over-Extended Credit – Can You Still Qualify For a Cosmetic Surgery Loan?

Posted by Credit Financing Guru on 1st March 2010

With beauty being within reach for so many, no one can blame someone for wanting to look their best. Look at how society treats people who look good. They land the best jobs, have the best looking boyfriends and girlfriends, and they also seem to get the most attention. It isn’t wrong for someone to have those things if they believe they can acquire them. However, there is one thing that can stand in the way and that one thing is money.

Through the years, there have been new ways of financing such things as cosmetic surgery so that people can look their best. It helps their self-image and the way that other people perceive them. However, the procedures can be quite expensive depending on what the person wants done, but there is a way to fix this financial issue when it comes to looking good, and that is financing.

But there are some things to keep in mind when it comes to financing cosmetic surgery and that is the fact that many lenders look for a credit score over 700, which in this day and age is not as common as it used to be. That is why there are some lenders that will go ahead and finance cosmetic surgery for those who may not have the credit history that some lenders look for.

About the cosmetic surgery loan

When cosmetic surgery started growing in popularity beyond the rich and the famous, doctors began developing a fee that covered everything such as the procedure, the hospitalization cost, the medication, materials used in post-op, and the various other expenses incurred due to cosmetic surgery. This is when cosmetic surgery loans were created in order to help people cover the entire cost of their surgical procedure and everything associated with it.

However, because cosmetic surgery cannot be repossessed like a house or a car, the lenders had to make sure that those applying for the loans had an excellent credit records. Even with excellent credit, those applying for cosmetic surgery loans incurred an interest rate of up to 10%. However, with cosmetic surgery being used on people needing it for medical reasons, some lenders relaxed their requirements and are allowing borrowers with less than perfect credit to acquire cosmetic surgery loans. Even if the procedure is not medical, they are still allowing financing for the procedures. But it is very likely that the interest rates can be anywhere between 14% and 24%, which really does not stop many from going ahead and achieving their dream of looking wonderful. The lender also reports to the credit reporting agencies, which can improve the borrower’s credit with timely payments.

To take the loan or not to take the loan

If someone really wants the procedure done, then they will take the medical financing and not let the interest rates deter them. The truth is, if they make their payments on time, they are going to be able to improve their credit rating more than if they had never taken out the loan. Taking the loan can be the difference between being able to get lower interest loans or not getting lower interest loans in the future. But it is not a bad idea to be picky about the interest rate even if credit is not so great. It is good to investigate the options and find out who is best to loan the money. Just because a person has a few negative marks on their credit report doesn’t mean they have to settle for what interest rate comes their way. In the end, they not only look great, but they are also improving their financial future.

Credit Medical provides innovative patient financing services such as cosmetic dentistry financing that allow clients and practitioners the freedom to focus on the treatment, not the payment.

Cosmetic Surgery Loan FAQ:

Question: Are there any cosmetic surgery financing companies w/ loans, credit to those wanting cosmetic procedures?
Loans/Lines of credit for those wanting cosmetic procedures? Taking down payments, as collateral, or special circumstances such as these?

Answer: First a down payment is not collateral. If you qualify for a personal loan or line of credit, the lender is not going to care what you plan to use the money for, only that you will be able to make your payments.

The cosmetic surgeon may be willing and able to accept monthly payment over a period of time or to assist you in arranging financing. Another option you should consider is making the payments first (saving up the cost) and then having the procedure.

If you suffer from a serious deformity you may be able to find a cosmetic surgeon that will do the surgery at a reduced fee or even at cost depending on your ability to pay. Many cosmetic surgeons do a considerable amount of this type of work feeling, in part that supporting such work justifies the time they spend on elective procedures.

Question: Cosmetic loan fever?
I’m 19 years old and I don’t have a credit card but I am thinking of getting one. For a cosmetic surgery loan I need a good credit history to get one but as a new credit card, it won’t have any history. Can I buy things on credit cards for about a year and a half so that my credit score increases so I can get a loan? What should I do except to have a co-signer?

Answer: Yes, one and half years is enough to get you a good credit score. But, be prompt on your credit card repayments.

Question: When getting a bank loan for cosmetic surgery, can you use the implants as collateral?

Answer: No. Collateral would be something the bank can physically take from you and turn a profit on, such as your house.

Question: How can I get my cosmetic surgery for free or alot cheaper?
I have excess skin and need cosmetic surgery. Is thier a way to get a loan or get the price reduced or even free?

Answer: If it’s making you really depressed and you can prove it then you can get it done on the NHS (if you live in the UK), or if you have medical insurance then they may cover it, or if there is some reason that could prove it could be a risk to your health then they will do it for free. The only alternatives I can think of is you take out a loan or pay for it out of your savings.

Cosmetic surgeons are skilled, highly trained people, they are also generally very rich. I doubt very much that they would give their service free of charge. As for `cut-price` or `cheap deals`; they will be in this category for a reason, usually because their standard is not high, and hardly worth the risk I would think. If you want to under go such radical surgery, you presumably want it done to improve the way you look. So why chance it with a not-so-good-surgeon?

Question: I’m looking for information on cosmetic surgery loans?

Answer: Contact the plastic surgeons office. They usually have info on programs available. Also, Capital One has a lot of health care loan options. Give them a call and ask. They might not do cosmetic stuff though.

Question: Best way to go about getting money (loan or credit) for a cosmetic surgery with a credit score of 750?
I have a credit score of 750, and am looking to borrow about $6000.00. Where is the best place for me to look and also would it be best for me to look into a credit card or a loan. If a credit card would be a better option, would I look for a credit card that blatantly states “high balance” or something like that before I apply? Or do I just apply and see what sort of balance I get?

Answer: It would be difficult for you to walk into a bank and get an unsecured loan for that amount unless you have a relationship with one already. (a community bank not a large bank like Chase or wells fargo). AMEX has no limit cards and with your credit score depending on income you might be able to get one but beware interest rates. If you have some sort of collateral to pledge it would save you a good amount of money on interest. The best advice I can give is to wait until you can almost pay cash for the whole surgery. It will be way cheaper in the long run. Plastic surgery for personal gain in my opinion isn’t something I would finance. Now if it is for a scar or an accident then yes.

Question: Can I take out a loan without any credit?
I’m 18 and want to take out a cosmetic surgery loan. But it says you need to have at least decent credit. Can I still do it if I don’t have any credit at all? I’ve never had a credit card or anything before so I’m pretty sure I have no credit. Can I still take out a loan?

Answer: The only way you will be given a loan is if you have a co-signer. Which is someone that has good credit and is willing to sign the loan as a secondary person saying that they will pay off the loan if you do not.

Question: Are there any grants out there that pay for cosmetic surgery needs? I know loans will, but I don’t want that!

Answer: You could try to get on a TV program but other than that, you’re either going to have to convince your insurance company that it’s necessary, or you’ll have to pay for it, with a loan or without. No such thing as a grant.

Categories: Surgery Financing