Business Funding – Overcoming Financial Obstacles With Invoice Financing

Posted by Credit Financing Guru on 31st January 2010

Coming up with ideas to grow a small to mid-sized business is the easy part. Coming up with funding ideas is where the challenge lies. There are many obstacles that can prevent small and mid-sized businesses from accessing working capital in a timely manner or at all.

There is an innovative solution that offers an alternative to traditional financing methods that can help owners overcome these obstacles so they can get the cash they need fast in order to compete and grow.

Through an online auction platform, owners can sell their accounts receivable and, for a small fee, receive the funds in as little as 24 hours. By selling your outstanding invoices in this online auction marketplace, here are some of the obstacles you will overcome:

1) One common funding obstacle is credit rating. A small to mid-sized company that has been open for a couple of years, may not have established the appropriate credit rating needed for traditional financing. The receivables auction platform referenced above doesn’t rely solely on credit ratings to determine approval for membership.

It takes into account a variety of factors, including the customers. In fact, when selling your receivables via auction, you can actually leverage the credit rating of your larger, investment-grade customers to obtain the best cost of capital.

2) Another obstacle can be the restrictions placed on the owner by other funding methods. The receivables auction platform does not require an all-asset lien, where the seller is forced to pledge all accounts receivable for sale. The seller has the flexibility to pick and choose which invoices and how many he wants to post to an auction and sell.

Also, there are no restrictive covenants attached that dictate and set limits on the kinds of decisions the owner can make. In this online receivables auction marketplace the seller maintains complete control of the transaction. The Seller has the flexibility to decide when and how he taps into his accounts receivable for working capital and how he conducts business.

3) One of the toughest obstacles for small and mid-sized businesses to overcome is the lengthy amount of time it can take to convert accounts receivable to working capital can have a hard time overcoming. Traditional financing methods can leave small to mid-sized business owners waiting months for approval but, with this type of invoice financing -selling receivable in an auction platform – they control the clock.

They decide when they want to sell invoices and how frequently. For instance, if they know there is a huge sale on bulk inventory next week, they can post the necessary invoices and set the auction length for 3 days. Once the auction closes, funds are electronically deposited into the seller’s account within 24 hours. By selling these outstanding invoices on the real-time auction platform, they receive the cash advance in plenty of time to take advantage of the sale.

It doesn’t always have to be complicated for a small to mid-sized firm to gain quick and efficient access to the funding necessary to grow the business. Auctioning accounts receivable in a real-time, transparent, marketplace helps business owners overcome the obstacles they often encounter with other traditional financing methods.

With invoice financing, business funding becomes easier for businesses as they can quickly sell their accounts receivables to fund their working capital requirements easily and quickly. To know more about this innovative way of fund raising, visit

Business Financing FAQ:

Question: Where can I get financing to purchase a business?
I want to purchase a business but I’m not sure where to go for financing. I need between 50k and 75k to purchase it and I was told that there are not many lenders that will finance that small of amount.

Answer: That’s a reasonably normal size small business loan for any local bank. What they’ll want to see is how much cash equity you and your partners are putting into the deal and how they’ll get their money back if the business fails.

Question: Financing question for small business?
Small business, LLC open for just under 2 years. Looking to refinance our loan we took to start the business and the banks are saying no go, almost seems they want us to go Ch 7 or 13.. Any idea’s on where to turn or what to do, loan was a personal type loan.

Answer: Hire an accountant to organize and update your financial and tax records. Then, consult an attorney specializing in business law as to your options; you may decide to negotiate with your suppliers and landlord before asking to re-negotiate the terms of your loan.

Question: Need a small business loan, can you help?
I am a new business owner and have need of finances upfront to get the building completed, and update equipment to expand our ability to get customers what they want/need. I am a young woman with no significant credit established. I have tried a few options that have proved unsuccessful or I am on a waiting list to be reviewed so I need your help. Do you know where I could possibly get some financial assistance

Answer: Go to your local SBA and ask for help! Talk to them about loans, put together a great business plan to take to banks and get all the tax advice you can get. They are a great resource and may know of some nontraditional financing that may work for you. I’d hate to give you false hope, but with no credit history and having already jumped the gun, you may be in some trouble.

Question: I have very good credit, but no assets. How can I get small business loan, or other type of financing?
I’m interested in purchasing a convenience store for sale that has been in business for many years. I would probably need a loan for about $200K. I have about 20% cash to put down.

Answer: There are SBA(.gov) loan programs in that range, but there are requirements in addition to the profitability of the business (must be verified however, with schedule C’s preferably). I think you need a net worth of a certain amount as well as collateral to cover all or 90%+ of the loan value. You can read more at the SBA’s website. There is a non profit called SCORE that is made up of retired business execs that can help you with a business plan and your loan apps, too. Of course, if you meet the collateral requirement, a home equity line is another option. Remember that the principal of the loan is not subtracted from your net income, so you can write off the interest and take depreciation on most of the assets (tangible and intangible are depreciated at different rates) but the principal of the loan comes out of your paycheck after taxes. This is one reason it is very difficult to make acquisitions with business loans unless there is massive growth potential.

You may be better off looking for something in the $40,000-$60,000 price range than taking out such a risky loan. You also MUST talk to an accountant about depreciation rates on the business’ assets, as this is one of the only ways to make an acquisition profitable post-tax.

Question: Can I take out a loan under my business without my personal credit being checked?
I want to open a business but I have real bad credit and cannot get a loan to finance my business. If I were to open an LLC or Corporation can I apply for bank loans under the company without my personal credit being checked?

Answer: No. After all, how can the lender check to see if it will be repaid?

Question: Do I really need quickbooks for my new small retail business?
I am in the process of putting together my business plan for a new retail business. I have been planning for my initial expenses and am wondering if I really need quickbooks. I am a fairly intelligent person with a college degree. Although the degree is not in finance, I did take accounting courses. Is it necessary to use a program like this or should I be able to do my own basic accounting with a little self training? Of course, I will have an accountant who will do my quarterly reports and tax filing.

Answer: For $140 and a PC its not a big expense for it. It will do all your invoices as well as accounting, keep track of customers, late payments, provide reports for sales tax purposes, etc. etc. It does a lot more than just accounting.

Question: Besides family and friends, how do you get financed for your business?

Answer: A new business is difficult to finance through a bank without real property to put up as collateral. Check with the SBA Small Business Administration to see if your situation has any govt assists available.

Question: What steps are necessary to actually start a small business?
Include education and finances.

Answer: Lets start from the top. You will begin with identifying something that you are interested in, a passion, a hobby that could become a money earner. Having identified that, then you want to learn all you can about it through informal learning, college education, apprenticeship, etc. Before you take the final plunge to hang your shingles and start the business, you will need to come up with some sort of business plan that will do market research on the demand for your product or service; sniff out your competition; address your marketing strategy; analyze your start up costs and operational costs; forecast your revenue; address your staffing needs; where and how your products/services will be produced and delivered; address the legal status and licensing requirements of your business.

The above covers the whole gamut of the overall steps, but depending on your location, other baby steps might be required. As you navigate the process, you will find it necessary to engage other professionals to assist you along the way. Do not make the classic mistake of trying to do it all by yourself.

Categories: Business Financing

Home Mortgage Financing With Bad Credit

Posted by Credit Financing Guru on 31st January 2010

Are you interested in getting home financing with poor credit? Given the recent housing slump that has occurred, a lot of different lenders have made the lending criteria stricter. It is important that you do your homework any time you are going to be applying for a home loan with bad credit.

In order to get your loan approved you will need to make sure you have a down payment for your loan. Most lenders require a down payment from the majority of borrowers. Unless your credit rating is extremely good, there is a good chance that you will have to provide a large enough credit rating to the different borrowers that are available.

People who are interested in getting a loan application approved should consider getting a cosigner for their loan. The benefits that cosigners offer are the ability to diversify the risk that creditors face. If you default on your loan payments then the lenders can go after your cosigner to cover the payments you missed. Most lenders use direct family members as cosigners for their loans.

Anyone who is interested in getting a loan secured needs to make sure that they take steps to pay off high interest debts. Lenders don’t want to lender to you have you have a large amount of outstanding debts that are available. For this reason it is important that you reduce a lot of your high interest debts before applying.

If you are looking to get home financing with poor credit it is important that you do your research. Saving up for a down payment and finding the right lender are probably the two most important aspects of the loan process. A comprehensive search online for different home lenders will ensure that you find one that can work for you.

If you are looking to get a Poor Credit Mortgage approved you will need to do your homework. A comprehensive search for the different Home Finance Creditors will ensure that you get your loan approved.

Mortgage Financing FAQ:

Question: When is a good time to consider re-financing your mortgage?

Answer: 1. When you can get a fixed mortgage with a lower interest rate than the one you have.
2. Calculate the monthly savings with the new mortgage.
3. Determine the total cost of the refinancing.
4. Calculate how long you would have to keep the mortgage in order to recoup the refinancing expense.
5. Go with the new mortgage if you plan to be in the home long enough to break even.

Question: My Mortgage Insurance was financed with the home and does not appear on 1098, can I still deduct it?

Answer: You can deduct it but you may need proof of payment by the IRS. Contact your lender or provider and get documentation. If you paid it, deduct it.

Question: Are there any 100% financing mortgages left?
Is there any way to get 100% financing for a house today? I know in the past they had the 80%/20% mortgages to obtain 100%. I also know about 3.5% FHA which seems like a decent option.

Answer: No there pretty much aren’t because house values are still declining all across the country so if you financed 100%, you would be underwater in one month.

Question: How do I get out of a mortgage or owner finance with a mortgage?
I am not hurting financially and not going to foreclose, but want to move closer to my work. I have a mortgage but if I sell I won’t get over what is owed or maybe break even. I really would like to make enough to get at least a decent down payment for the new location. It is an older home in need of repairs but a lot of square footage and in town. Someone suggested Owner finance, do mortgage companies allow this, is it feasible to rent considering my mortgage payment and renters insurance prices, and don’t mention maintenance repairs for rental? I’ve never sold a home before but want to know all my options.

Answer: Owner financing is not a real option since you would have to pay off the original mortgage to legally mortgage the house to another party and even then it is a big risk to you. Renting is your best bet, but like you mentioned that idea accompanies a bunch of other issues (repairs) and while you wouldn’t need to pay renters insurance (renters pay that) your homeowners insurance would increase since the property is no longer owner occupied. It really comes down to priorities. How important is moving closer to work? The only way you can get a reliable value to your house is to have it appraised. Realtors providing comparative market analyzes might work, but so often they tend to over inflate the price in hopes of getting the listing because they “think” the property is worth more, when in fact their opinion doesn’t matter, only a buyer’s opinion matters.

Question: Anyone other than FHA offer High DTI Ratios for mortgage loans?
Recently I was pre-approved with a FHA loan with a high DTI between 50-55%, but the guidelines have recently changed and now my pre-approval is gone. I’m curious if anyone knows of any other methods of financing that would have a similar DTI as the FHA loan that recently changed?

Answer: FHA doesn’t have any minimum credit score requirements or debt ratio requirements. Where these requirements come from is the lender making the FHA loan. I currently have lenders that will go to 55% debt ratio with a 660 min. middle credit score. These are known in the industry as credit overlays.

The big 4 put out their loan guidelines, and its up the individual lenders to determine their credit overlays, which are loan guidelines that are requirements beyond the investors guidelines. The big 4 I refer to are FHA, Fannie Mae, Freddie Mac, and VA, this is the modern day source of virtually all “A” grade loans on the market.

Question: Mortgage increase or give up RRSP contributions?
I’m studying finance right now and we have a question that deals with a person who can either increase the size and length of amortization of their mortgage, or decrease/give up their RRSP contributions. I have no idea which is better as I have neither at the moment.

Answer: Giving up their RRSP contributions now would often (but not always) be to their detriment, dependent upon their age and length of time that they will be working. The reason for this is they will miss out on the compounding of the RRSP contributions. The only reason that I can think of to increase the size and length of the amortization of their mortgage is to enhance the existing house in some way, but keep their payments the same.

Personally my choice has been to only go with a shorter term mortgage and lower rate. I’m 2 years into a 15 year mortgage @ 4.625%. And if you look at any amount of mortgage borrowed, that will always show up with the very first payment paying more in principle than in interest. I prefer to minimize interest paid, and the term of the mortgage. While keeping retirement contributions the same, or more.

Question: Why aren’t lenders willing to modify mortgage loans?
I have friends who bought a home in 2006 for $275,000. They obtained conventional financing with 10% down and were making their mortgage payments. The subsequent real estate meltdown from zero-down-pay-what-you-want loans destroyed the value of their property. Their lender refused to even discuss loan modification. They walked away figuring their credit would recover faster than the real estate market. Their old house is now on the market for $95,000. They would have been happy with a mortgage at DOUBLE that valuation with no interruption in revenue or foreclosure costs to the lender. It makes no sense to me. Any insider input?

Answer: Lenders WILL modify their borrowers mortgages. The trick to the situation here is for them to declare a Hardship, and go late on a payment, then the lender will see that they are indeed at risk of losing money on an investment they made (Loaning to your friends for the home). I have yet to come across a lender that would rather foreclose the modify. You / They need to talk with a professional modification company that is backed by an attorney that specializes in this, it’s absolutely free to speak with one. If they determine that you are a candidate for a modification based on the hardship, and their household financial situation, they will want to retain their services.

Question: What are the consequences of having a lien on your mortgage? Will this hurt you financially?
My mom gave me $20,000 to purchase my home. This home she lives in free (I do not have her pay anything). My husband and her do not get a long. She now wants me to take a lien out in her name for what she gave me so that if anything happens to me she can get her money back. But I don’t feel I owe her as long as she lives with me rent free. I told her I would look into it. Just curious on what this will do to my credit and finance.

Answer: It will not have any effect on your credit. The only time it will come into play is, when you sell the home she will be paid back her $20,000 from the proceeds of the sale. It is very much like having a second mortgage on your home.

Categories: Mortgage Financing

Securing Motorcycle Financing With Bad Credit

Posted by Credit Financing Guru on 31st January 2010

Despite the doom and gloom you hear through news reports every day, it is still possible to find a lender willing to extend motorcycle financing with bad credit. If your report is less than impressive, chances are high that you can still get the financing you need.

The biggest piece of advice that I can provide is that you should try to find a cosigner. I understand that this won’t always be an option, but it’s the easiest way to secure this type of financing.

There are companies and programs that are designed to work with people who don’t have the greatest credit rating. The best way to find them and take advantage is to look online. This is where you can find out about the best lenders and how to put in your application fast.

It is not only faster to go through online lenders, but it will save you a lot of time and humiliation as well. There is nothing like the hassle of sitting in a bank trying to explain away your credit flaws, but luckily yo won’t necessarily have to do that.

There may be some little things you can do to clean up your credit and improve your chances of finding a good loan, so get a copy of your report. If you have smaller items such as doctors bills try to pay them off. Also, leave open any lines of credit you do have, even if you never use them. That open credit will build confidence with other lenders.

Also, it is common sense that the more you are willing to invest in your bike the more willing someone else may be to front you the money needed. If you can come up with a down payment of some sort your chances are greatly increased.

So, what if you cannot clean up your report right now and cannot afford a big down payment? You still have a lot of hope of finding a lender who is prepared to work with you. You just have to put in some time looking around and be open to a higher interest rate. The terms on a loan for someone with bad credit are slightly different from a bank loan for someone with stellar credit, but that doesn’t mean the deal will be bad for you. In fact, it could turn out to be a great thing for your credit score.

Finding motorcycle financing with bad credit could turn out to improve your rating. You will then be able to take out other types of loans like poor credit signature loans.

Motorcycle Financing FAQ:

Question: Where is the best place to get motorcycle financing?
I am 18yrs old and I’m trying to make my first big purchase and buy a motorcycle but no one wants to give me a loan because I have no credit. Is there anywhere I can for sure get financing?

Answer: The only places you can ‘for sure’ get financing are exactly the places you want to steer away from since they will charge outrageous interest rates, and hurt you more than help. If you can’t afford it the first time on your own you will have to do what everyone else had to do. Find a co-signer, or just put the money away on your own, and buy it outright instead of using a loan. It won’t help you gain credit, but you will be riding.

Question: Any tips on how to avoid paying full coverage insurance on a motorcycle while financing it?
My friend has been financing a motorcycle and he just did his policy online and put down that he owned the motorcycle and only put liability on it. Is this a good way to get around the system?

Answer: Your finance contract requires that you maintain full insurance coverage. If you do not, you are in default of the contract, the same as if you did not pay your payments.

When the finance company finds out about the lack of insurance, they can put insurance on the vehicle, that will cover them. They can add the premium to your loan balance, and the cost of their insurance is a whole lot more that it would cost you to buy the correct coverage yourself.

They also can repossess the vehicle if you do not provide proof of insurance, and require that the entire loan be paid off.

When you signed the finance contract, you agreed to the terms. Keep the coverage on the vehicle and live up to your word!

Question: Any ideas on a reliable site for bad credit motorcycle financing?
I have been divorced twice. Due to that and foolish decisions from my youth, I am left with a beacon (more like a flashlight) score of 570. Yamaha credit declined me. I purchased a car in March through Capital One, I have two credit cards with them (all are paid on time, ahead of schedule and way more than the minimum when I have a balance) but they do not finance bikes. Any reliable sites out there to finance someone like me?

Answer: You might want to look into “Greentree”. I had not so good credit a few years back. I ended up going to my Credit Union Bank, and just asking “If I was gonna buy a bike, what could I get approved for?” They came back with around 6k. So I went and bought an 03′ Vstar 1100 Custom for 6k with 3200 miles on it. If your one of those that’s gotta have a Harley, trust me, I’ve owned them and your not missing much.

Question: Is financing a motorcycle bad for insurance?
I was going to get the Yamaha R6S, but I heard that if you don’t have the pink slip for the bike and you get insurance, that they will charge you double for insurance or a lot more money. If thats the case then I’ll just get a Kawasaki Ninja 250R, but I would really like a R6S. I just wanted to know if financing a motorcycle would cause insurance to go up?

Answer: The financing itself doesn’t add a dime to the cost. But, if you finance it, they will insist that you carry collision insurance on it. Collision insurance on a motorcycle is extremely expensive. If you’re under 25, it’s going to be at least half the cost of the bike. So, if you’re going to pay cash for a bike, and carry collision insurance, well, it’s still going to cost a lot. If you don’t carry collision or theft, it won’t cost much. Oh, and collision and theft are way more than 2X the cost of liability.

Question: Where is the best place to look for motorcycle financing after filing bankruptcy?
I’m looking for a 600 VLX thru Honda and have a co-signer.

Answer: Your best bet is to try your local credit union or bank. If your bankruptcy is recent then the lenders that the manufacturers use will most likely not finance you. The same is true about credit unions and banks. However, I have seen credit unions take a chance and finance a person with a bankruptcy.

Question: Financing a motorcycle but I need a truck?
Last year my husband decided to buy a motorcycle. Brand new $6,000 ninja. Because of interest and low monthly payments we have only knocked that down to 5,700. The problem is we are planning to move to a colder climate and a motorcycle will not do well there. We are financing through the kawasaki credit card company. What are our options to either sell it or trade it in? We do not have the title yet since were still paying. Credit scores are around 650. If there becomes a private buyer how can we sell to them without having the title?

Answer: Sell it privately, and work with someone who is willing to wait a week to get the title transferred to him.

Question: Do you have to carry insurance on a motorcycle if you are financing it?
I know in WA state where I live you aren’t required to carry motorcycle insurance, but I am curious if you need to have insurance if you are financing a bike?

Answer: Yes. When you finance, the bank owns the bike, not you. It’s an investment on their part, trusting that you’ll pay the bike off with interest before destroying it. That said, they want to make sure their investment stays safe, which means that they will require FULL coverage on any financed motorcycle

Question: No Credit Check Motorcycle Financing in Florida?
I’m in a hurry to hop on a bike. Had my endorsement for almost a year now and don’t have enough to throw down cash full. I am 20, have no credit yet, and can’t finance a new bike because of that reason, any ideas? I live in central Florida, is there anywhere that will finance you a used or new bike with no credit?

Answer: I doubt there are but if you happened across someone who would finance you your interest rates would be astronomical. You’d be better off to get a cosigner if you can.


How to Find Cosmetic Surgery Financing?

Posted by Credit Financing Guru on 31st January 2010

All of us know that cosmetic surgery is expensive and some procedures are more expensive from the complexities involved. Some procedures may be an amount more than that of a small car! But the best part is that it is easy to attain financing for you cosmetic surgery procedure. There are many ways to get cosmetic surgery financing. Some people treat cosmetic surgery like how they purchase household items like a TV or a washer. You can have the cosmetic surgery financing by using your credit card and there are many cosmetic surgeons who accept credit cards for almost all of the procedures. This is good news for those who want to change their appearance or loose some pounds from their body.

Credit cards are really expensive in the sense that the interest rates for the amounts used for purchase are quite high and hence it will add up to the already expensive surgery to make it more expensive. In this situation generally people will try to repay the amount back as early as possible to avoid the higher interests. Also there are cases that some cosmetic surgeons do not accept the credit cards. In this case, you have to make some cash withdrawal from the credit card to meet the cosmetic surgery financing. This also will attract more expenses in the way of higher interest on cash advances.

Cosmetic Surgery Financing by Surgeons

As we have seen the interest rates on credit cards are very high and mostly people will find it very difficult to afford such hefty interests. There are other avenues for cosmetic surgery financing. You can take the home equity loans for the purpose of financing. Banks will be extremely happy to issue loan over the home equity. Home equity loans carry less interest rates compared to any other loans and are much less than the credit card interest. You can check up with the officers of your bank about the low interest rate options. In fact, banks are eager to issue loans to genuine customers, even without asking the purpose of the loans. Really this is a viable option.

If you cannot work out a bank loan, there are some other options as well. Many cosmetic surgeons have their own modes of financing. They are ready to offer their services with long-term payments with interests. The system is good for the patients as well as surgeons. The patients can do the surgery without much worry about financing and doctors get this opportunity as a deposit with more interest rates. Some doctor collaborate with private financial lenders to provide financing to patients with good credit records. Some companies offer cheaper interest rates than credit card financing companies.

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Surgery Financing FAQ:

Question: What is the best type of financing for cosmetic surgery?

Answer: Most will offer a free consultation. The best type of financing is cash, but if you really need to use credit, there is a card service called Care Credit. It’s good for any type of medical, surgical, prescriptions and even animal care.

Question: Plastic surgery financing?
I broke my nose (and also for cosmetic reasons) and need a reliable company to finance my surgery so I can pay before having it. I will pay it off within one month of having it done. Does anyone know any good companies with a low down payment, lenient approval rate (I hate having a credit check, as I have no credit history, and I’m just trying to build credit). I need a company that preferably offers a 100% approval rate or is lenient.

Answer: It makes absolutely no sense for you to borrow money for this reason. You state yourself that you can pay it back in one month. All you need to do is make your appointment with your plastic surgeon and schedule your surgery for one month from now. save your money for the one month and then pay it all cash.

Question: Elective Surgery Financing?
I have to have surgery that is not covered by insurance. I was going to finance it, but have really bad credit. I can’t go much longer without the surgery but am not sure what to do. My husband filed for BK over a year ago, but because of his debt, and because we are married I have the BK on my credit too. Has anyone gotten financing for health reasons with bad credit?

Answer: You might want to try Capital One Healthcare Finance. You never know, the worst thing that could happen if they approved you is that you’ll be obligated to repay the loan at 23.99%.

Question: What is the best financing company for cosmetic surgery?
Any experiences with CareCredit?

Answer: I haven’t had experience with them but I would pay with any of the different types of payments that are flexible for you. I personally would use a cashiers check.

Question: I am needing to find a good cosmetic surgery finance company?
Looking for anyone with personal experience to help me find a good cosmetic surgery finance company.

Answer: Talk to your surgeon. They often have agreements with finance companies.

Question: Is there a doctor offices in NY/NJ that offers their own cosmetic surgery financing?

Answer: Since cosmetic surgery is not usually a covered insurance benefit, most physicians offer payment plans. The only way to know is to make a phone call to the office and ask. If they are listed in the Yellow Pages, it may also be stated there.

Question: Where can I get plastic surgery financing with bad credit?

Answer: There are very few companies who would be willing to finance plastic surgery, anyway. I would suggest that if your credit is that bad, you should wait until you can afford the surgery.

Question: What are the best financing options for cosmetic surgery?
I have no credit cards. The only thing that can build my credit is my cell phone bill. Have any experiences using Care Credit? Capital One?

Answer: The BEST financing option for ANYTHING is CASH. If you can’t pay cash, you can’t afford it. This is a general rule. Unless your cosmetic surgery is reconstructive surgery following an accident, your don’t need it at all. If it is, your medical insurance should pay for it.

Categories: Surgery Financing

Cosmetic Surgery Loans – Is Finance Still Obtainable?

Posted by Credit Financing Guru on 31st January 2010

Cosmetic surgery is as popular as ever as more women, and even men, seek to improve their physique. Is the recession making it more difficult to arrange finance for cosmetic surgery procedures?

Advances in surgery present more ways for men and women to improve their bodies and boost self esteem. There are now very few external parts of a person that cannot be altered, improved and tweaked to bring the physique in line with expectations and the desire for the perfect physique.

Whilst this may present a wonderful opportunity for the person to delay the visible effects of age or correct a “feature” of their physique, the costs of cosmetic surgery can be prohibitive for many.

Procedures involving a general anesthetic, generally start at £2000 and can extend to £10,000 and beyond, depending on the nature of the procedure and the costs of the surgeon and other medical staff.

This may mean that a loan or other finance is required to pay for the desired surgery. Whereas a year ago, cosmetic surgery loans were readily available, the credit crunch has forced lenders to tighten their lending criteria significantly.

This means that finance is harder to obtain, however it is not impossible to secure a loan if you have a clean credit history, can demonstrate the ability to repay the loan, as determined by employment status and family circumstances.

Personal loan rates are actually starting to fall slightly in the UK. One of the biggest Building Societies, for example, is now charging below 8% for unsecured loans. This finance can be for any purpose, including plastic surgery.

So if you are tempted by the many cosmetic surgery procedures available now, and you have a suitable credit rating and financial well being, then you will be pleased to hear that arranging finance for your surgery is still possible, even after the credit crunch.

If you are considering a boob job then you may well be interested in our article about how to arrange cosmetic surgery loans.

Surgery Financing FAQ:

Question: What are some good plastic surgery financing companies, and why?
I am planning on financing a breast enhancement and a tummy tuck sometime soon and I would like to know if anyone has any opinions some of the financing companies out there.

Answer: CareCredit is a very good financing company for medical procedures. I work in ophthalmology and our patients often use it to finance LASIK procedures or cataract extractions with premium lenses. The first 12 months are at 0% interest, and at the moment they may be offering 0% for 18 months.

Question: What happened to Doctors Say Yes plastic surgery financing?
There used to be a company called Doctors Say Yes that guaranteed plastic surgery financing regardless of one’s credit. They still have a website but there is no way to contact them, and the old number for them says something different. Anyone know what happened to this company or if there are anymore companies like them out there?

Answer: I wouldn’t doubt it if they are out of business. I used them for my breast implants. The process was fast but their customer service for doctorssayyes was horrible. I hated the financing company but my doctor was awesome! The cool thing was I was able to use them for my surgery in Mexico so instead of paying $6,500-$7,000 through one of the local doctors they had. I only had to pay $3.500 including hospital fees and stuff in Cancun. It was a awesome experience.

Question: Know anything about plastic surgery financing?
With the economy and financing so hard right now, is plastic surgery financing the same? I don’t have great credit. I am currently financing a car though but my mom cosigned. Please if you know anything about financing cosmetic surgery please tell me.

Answer: Last year my step mom got cosmetic surgery and the results look really good so far. Where I live there are certain surgeons that are better than others. I’d consult cosmetic surgeons in your area and see what they have to offer. They should be able to answer your questions.

Question: Are there any cosmetic surgery financing companies with 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.

Question: What does financing mean when you pay for surgery?
Financing means paying little by little until you’re done paying for it right? Is that what it means? I’m planning to have surgery on my nose, and my parents said that they’re not gonna pay for the whole thing in one day cuz they don’t have enough money to afford it but they can pay little by little, though, until they are done paying for it. So I was wondering if that’s what financing means?

Answer: Financing means you are going to go through a bank or another entity to BORROW the money and then pay it off in payments (usually monthly but sometimes once a week or every other week). When you finance something the bank will charge the person interest for borrowing the money.

The interest is extra money the borrower pays for getting the money. For example. When you finance a car, you may only BORROW 20,000 but over the length of time you pay off the loan, you actually pay closer to 25,000 because of the interest. When you make a payment, only part of the payment goes towards what you borrowed, the rest goes towards interest.

So if your car payment is 1000 a month, then it could be that only 800 of it goes towards paying off the 20,000. The extra 200 is payment towards the bank for letting you borrow the money.

Question: Where can I find financing for plastic surgery?
I am wanting to have some cosmetic surgery done but my credit is not the best, does anyone know of a good company to go through?

Answer: Medicredit is pretty good. My wife got her credit card through them for a breast augmentation. The interest rate will be high, but that’s just a given.

Question: I have no credit and am trying to get financing for cosmetic surgery is it impossible without a cosigner?
I am currently living in a guest house with no rent, and have no other bills to pay. My job doesn’t pay bad, and I could easily afford the payments. Perhaps there is a place you know about that will work with me even though I have no credit at all. I’m only trying to finance $5100.00

Answer: Why don’t you just save up the $5,100? It shouldn’t take long considering you don’t have to pay rent and have no other bills. If that’s not an option you could get a personal loan from a credit union or check with the surgeon to see if they offer a financing plan.

Question: Financing for Cosmetic Surgery in Canada?
I live in Canada and I am trying to obtain financing for my cosmetic surgery. I have a poor credit rating.

Answer: Sorry. Cosmetic surgery isn’t covered under Medicare, unless it is for something non-elective, such as burn victims. So you would have to pay the full shot yourself. If you have a poor credit rating, you may have to postpone your surgery until you have the money to pay for it.

Categories: Surgery Financing

Laptops and Desktops With Bad Credit

Posted by Credit Financing Guru on 31st January 2010

Are you seeking a way to get your computer financed without having a credit check? Are you interested in finding a loan for your laptop that requires no down payments and features 0% financing? If you’ve been looking all over for an answer to these questions, read this article.

Computers are an integral part of the everyday lives of people across the world. They are used for just about everything–from shopping and ordering pizza, to reading the morning news and finding out about the latest technology. Once you’ve bought a computer, its almost impossible to live without one. If your old desktop or laptop is running too slow or has finally “given up the ghost”, it may be time to get yourself a new computer. But how can get you get a new, good computer without getting into big debt? Well, you have some easy options available.

One way to safely get a new computer without risk to your personal finances, is through layaway. Many retail stores features layaway programs where you can get a computer through easy, affordable weekly or monthly payments that require no credit check and also don’t require you to pay interest. The only problem with layaway is you have to wait until you’ve paid the computer completely off before you can take it home to play.

Another option for people interested in getting a new PC is through a credit card. Credit cards enable you to make purchases on credit without running to the bank for cash. While credit cards do have interest, they can offer you a solution if you’re looking for low monthly payments. With credit card payments, you can choose to pay the amount that you’re most comfortable with. If you would prefer to make only minimum payments, you can do that, if you want to pay the computer off with 2 or 3 payments of $200 or more, you can do that too. Credit cards are completely flexible and work into your life.

You can also get financing from the computer manufacturers themselves. Sony, HP, and Dell all feature financing programs for customers. While these programs are typically reserved for people with above average credit, anyone can apply for them. Once you’ve filled out the application for their credit line on their website, you can find out if you’re approved or not within a couple minutes. Once approved, you can buy whatever you want from their website (within your approved limits). If you do choose to get financed through the laptop or desktop manufacturer, make sure you’re careful to not get yourself into debt or monthly payments you can’t afford.

Do you want to learn more about laptop financing? Find out more about similar topics from the author’s website that has all the information you need to know about getting a bad credit notebook.

Computer Financing FAQ:

Question: I financed a computer for my aunt. She made my credit go from excellent to fair. What can I do to fix it?
I have an aunt with an inability to handle money. My credit was excellent (score around 760). My aunt’s husband had a business he ran out of their home and their computer died, so they needed a new one. They asked me to finance one for them and they would make the payments. Against my better judgment, I did it. Earlier this year I got a call asking why my payment was late. I called my aunt and she insisted it wouldn’t happen again. Then just recently, I found out they were FOUR payments behind, the balance was 3 dollars and some change less than the original balance was two years earlier, her last check of $25 bounced, and the account was closed and sent to collections. My credit has dropped over 100 points and gone from excellent to fair. I have transferred the balance to one of my own credit cards and am handling it myself, and hopefully my aunt will pay me. Is there anything I can do to get my excellent credit back?

Answer: Mistake #1. Co-signing for someone and not keeping track to make sure they were keeping up payments.

Mistake #2. Paying off the debt by transferring it to another card. Now that they have their money, you are going to find it extremely difficult to get them to help fix your credit.

The only way to remove the negative item from your credit report is for the creditor to do it. The only option you now have is call them up and explain what happened, and ask if they will remove the negative item from you history. Very little chance of that happening, but it’s your only hope.

The only other thing to do is keep up your good credit habits. Eventually it will improve, but it will be a few years.

Question: Financing a computer…I don’t have great credit but fair credit and need suggestions on where to go to finance a laptop.

Answer: I would suggest applying for a Best Buy card. You can use it for any kind of laptop and anything else, and it’s supposed to be fairly easy to get. Plus, you can get 0% financing for 18 months a lot of times.

But, if it’s your credit that’s messing you up, try cleaning your credit first. It takes 30 days and you would have a much better chance of getting a card anywhere.

Question: Is there a place or way to finance a computer with poor credit?
I’ve been looking all over the internet to find a way to finance a computer but have been rejected by a few companies due to my student loans on my credit. Then I ran across and read how they can give you a computer for just 3 months of payment before shipping out your product. I may try it, but I’m skeptical. Does this truly work or are there alternatives?

Answer: You could try They finance without a credit check. All you need is a checking account!

Question: Financing with a computer?
I’m considering buying/financing a new computer. Now I’m more interested in how the financing works more than getting the computer itself. The computer would cost 1175.93$ now it says interest does not occur for 18 months. The payments are 10$ or 1%, now I know at that rate I would be paying off forever. Over the 18 months paying at a rate of instead 2% would leave me with 744$ to pay off. Now interest occurs. I need to know how it works.

Answer: If you save up and pay cash for it, you don’t have to worry about the financing rates. You will also get it at cheaper. People spend between 12 – 18% more when financing studies show. Forget the financing. Pay cash. You’ll be much better off in life if you avoid debt and use money you already have. However the math indicates that if you want to pay it before 18 months you have to pay 65.33/month for 18 months. If you wait until interest starts you will be hit with every penny of interest from the date of purchase and end up paying a lot more than $1175.

Question: Where can I finance a computer with no credit?
I have no credit and want to buy a computer that I can make payments on. Anyone know of a site I can get one at?

Answer: Dell Computers offers a credit line. Low minimum payments – high interest. Easy to quality if you go on-line to the dell site and click “apply for dell preferred account’ (DPA).

Question: How often does Best Buy offer zero percent financing on computers?
I’m looking to get a mac laptop from bestbuy, but want to wait until one of their zero percent interest deals. Let me know what you know on this matter.

Answer: Everytime I have bought something over $200 they ask if I want the zero% interest for so many months, so I’m pretty sure it happens very often. Just call your local Best Buy and ask them. Go to and at the top of the page there will be a store locator button, press it, punch in your zip code and they’ll give you the stores near you and the number.

Question: I want to buy a computer. What is the best route?
My credit pretty much bites. I am trying to make it better. I want to buy a computer and make payments but no one will finance me. Has anyone used Bluehippo, pc direct or computer financing? Whats my best route to go, and no I can’t pay cash.

Answer: Save up your money and buy from Costco (most brands are available) which have a 6 month return policy for any reason.

Question: Is it unwise to finance a computer?
I am looking into buying a Macbook Pro, but at $2500, its quite a bit of money to save for when there are financing options.

Answer: Other than a house you should never finance anything. Easy said but life will be very easy also if you do this. Get what you can afford, if you can not afford what you want then work harder, spend less and buy one with cash.

If not, then you can be all your friends with car loans, furniture loans, computer loans, vacation loans, school loans, and live the american dream with somebody elses money and your promise to pay it back.

Categories: Computer Financing

Computer Financing – Information For Beginners

Posted by Credit Financing Guru on 30th January 2010

Computers are now a part of everyday life, and with computer financing they can be an affordable and useful part of your life as well.

Thanks to increasing demand, as well as competition from wholesalers, which allow consumers to purchase separate components and build customized computers themselves, retail prices for computers have come down significantly over the years, making a computer an affordable investment for virtually anyone who wants one. What was exclusively a tool for businesses or governments only a generation ago can now have a place in every home. However, even the relatively low prices of today’s electronics market are beyond the reach of some. That is where computer financing comes in.

Think of the way we buy our cars, our homes, anything we need which carries a high price tag. With computer financing, you can buy your desktop or laptop computer the same way. A wide variety of programs are available, placing the power of computers – word processing, email, the world wide web, streaming video, and more – within the reach of almost anyone.

Computer or laptop financing works the same as car or home financing: You, the consumer, promise to pay the full price in monthly installments over a period of time agreed upon by both you and the seller. This way, you need not worry about finding money to pay the full price of your computer right away; you need only concern yourself with making the monthly payment, which, depending on how your financing deal is structured, can be as much or a little as you could reasonably afford to pay per month.

In addition, like financing for a home or a car, computer financing can even be secured for those of you with bad credit, or no credit. Many organizations exist which specialize in providing financing for buyers with bad or no credit, though the interest you are asked to pay in addition to the initial cost of the computer may be higher than for someone with better credit, due to the higher risk on the part of the lender.

The internet is filled with websites offering computer financing, and most retailers will also allow you to take home the computer of your choice in exchange for regular monthly payments. Thanks to computer financing, the world of computers, with its opportunities for commerce, communication and creativity, is now open and accessible to virtually anyone!

Shawn loves all things technology. It has a site that helps people learn about computer financing. Check out his website and learn everything you need to know about financing and even buy now pay later programs.

Computer Financing FAQ:

Question: Financing a computer or rent to owning it (in Canada)?
I am looking into getting a new computer but cannot afford the cost all at once. Just wondering if anyone knows what you need, like a credit card or drivers license or what?

Answer: It’s the same as anywhere else. Buying a PC can be only $600 which is great and not too expensive, just save up. Most financers (MDG is a Canadian PC financer) are like “pay 99c a day” but end up costing more than it was worth. Just save up.

Question: I would like to know the easiest place to get financing on a computer?
I live on a fixed income and really have no credit rating.

Answer: It would probably be easier to save up and buy one from a store. I doubt if you could get good financing with no credit.

Question: I have bad credit and need a new computer?
I have terrible credit and I need a new computer. I know I’ll take a beating if I go through a computer finance company but I need a new system NOW! Does anyone have any experience dealing with these type of companies and if so what is the best and most honest one?

Answer: Since your credit is really bad my opinion is for you to find a used hardware shop and pick yourself up a machine cheap ($100 – $200) that will WORK to cover your needs for right now. Then get your credit straightened out and don’t be a bad steward of your finances. Then get a computer that you’ve either saved for or pay low interest for. You NEED to have good credit as having bad credit not only effects you paying more for a computer but more for insurance, cellphones, credit cards, etc.

Question: Where can I get approved no matter what my credit is for a computer?
I heard you can get a dell or gateway computer financed no matter what your credit is. If so where or how do I get one?

Answer: You might be better off saving a few hundred bucks to $500 and buying a very good used one, instead of buying a new one that will only we worth that much in a few years. If that is not an option you might try one of those places like Rent A Center. You can rent to own.

Question: Our family just filed bankruptcy. Would we still be able to get a computer financed through best buy?
It’s a very long story. But we’re not bad off. Its just our credit card bills were taking up a good half of our income. I always see ads in best buy’s paper about 0% interest for 18 months, low payments blah blah blah. Would we still be eligible for that?

Answer: For the time being, do not even apply for any kind of credit. You won’t get it, and your credit application will further keep you from getting credit in the future.
1. Pay cash for everything. If you can’t afford it, then do without it.
2. Open a savings account. Savings accounts can be opened by anybody. Use the savings account to deposit pay checks, etc. Withdraw the money you need for living expenses. Always keep a balance in the account.
3. Stay away from credit card offers you receive in the mail. They charge very high interest which will land you in hot water again.
4. Rebuild your credit by taking out very very small CO-SIGNED loans. Ask a relative or understanding friend to co-sign. Pay back these loans as soon as possible.

Question: Where can I finance an apple computer with out a credit card?
I want to finance an apple computer to boost my credit score but I don’t want to open a credit card.

Answer: Best Buy sells Apple products now, and getting financing from a department store is usually easy for someone who is building credit.

Question: Can I finance a computer at 17 years old if I have an adult co-sign it?

Answer: Probably not. You need to be 18 in order to be legally liable or enter into a contract. Rather than go into debt perhaps you should consider finding a job and save the money so that you can pay cash. It will save a lot of money in interest and you will not need to worry about missing payments. If you work hard and save your money it won’t take long to pay cash.

Question: Financing a computer?
I got a job making on average 2000 a month. I went to HP’s website and custom built a computer and then applied for e-financing. I was denied for having no credit or how they put it: limited account activity or debt. Any ideas how can go about doing this? I cant buy this computer outright.

Answer: There is no way to go about getting financing for this computer. You would be declined anywhere you apply because you have no credit for them to base their decision on. You probably built a pretty expensive computer (that really doesn’t matter though, they would have denied you for a $500 computer)

Only thing you can do is see if someone will cosign for you. And, that would actually not be smart for someone to do for a piece of machinery that depreciates and you aren’t in dire need of.

I would take as much of that $2000 you make a month and put it aside to buy this computer by a certain date.

Don’t go to a rent a center type place for a computer, you will pay through the nose, and they don’t report to the credit bureaus to increase your score, they only report if you don’t pay or take off with the merchandise.

Categories: Computer Financing

No Credit Check Computer Financing – Computer Financing at the Click of a Button

Posted by Credit Financing Guru on 30th January 2010

With the advancement of technology, the world has become a small village whereby you can interact with anybody at the click of a button. There is a catch in all this, you must own a computer for you to be able to interact successfully with other people. Now, to own a computer calls for money and you may be lacking it. To resolve this particular issue, the financial market and the sellers, and the manufacturers of computers came up with an option in which everybody in the UK can be able to own their own desktop computer. This option caters for those people who lack the finances required in the purchase of computers. It also takes care of the population who bears the bad credit tag on their shoulders. This option is known as no credit check computer financing and is available for everybody in the United Kingdom.

The no check computer financing is especially helpful to those people who find themselves with the bad credit score and they want to own their own computer. All they are required to do is provide proof of some regular employment and salary for them to get the financing being done. The lenders do not mind as long as they can be able to repay the advanced amount. The catch here lies with the interest changed on their loan amount, it is slightly higher than what is charged for a normal loan. The good thing with these loans is that, if the holder of a poor or credit record repays their loan installments regularly, their bad credit image is mended. The computer financing company’s go by many names in the UK for instance, computer financing option, computer finance UK, easy computer finance, no credit check and guaranteed computer, laptop finance. The bottom line is that they all do the same thing, and that is advancing loans for the purchase of new or re-conditioned computers.

The loan advanced for no credit check computer financing is in two forms. There is unsecured form and secured form. For unsecured financing, the borrower is not asked to pledge any type of a security. While in the secured form, the borrower pledges an asset in order for the lender to avail the loan to them while the opposite is true. In the unsecured form, the borrower’s salary is the collateral. All in all, no credits check computer financing is the best option for every Briton who feels the need to own a computer. But before you settle on any financing agent do a thorough research so that you get yourselves the best deal.

Peter Thomsan is Financial Advisor of No Credit Check Computers laptop.For more information on Laptops financing [] No Credit Check Computer Financing visit []

Computer Financing FAQ:

Question: Do any Computer manufacturers do their own financing for personal computers?
I want to get a new desktop computer for my home. Do you know of any manufacturers that actually offer financing through their own company?

Answer: Dell does. In addition to Dell, normally best buy runs 6 months same as cash.

Question: Financing a Computer with a Low Credit Score?
I’m currently 19 almost 20. I have a Credit score of about 540-560. I have one credit card and another one I just got approved for 2 days ago on its way. I want to buy a computer from Bestbuy or Frys electronics because I need it and want to raise my credit score. I’m not worried about the interest rate or anything but will I need a cosign or will I manage to get it financed on my own. I’m looking at about a $700-$1100 PC. Will it be a hit or miss for me most likely if I try by myself.

Answer: Rather than financing a computer for $700, you should buy a computer for closer to $400 (yes, basic computers do exist for that amount, and still let you do basic necessary computer functions), and wait until you have saved this money up rather than financing it.

If you want to improve your credit score, taking out a loan to pay for a computer is not the way to do it.

Question: Is this computer, which I intend to finance, a good gaming machine?
Specifications: HP Compaq 6005 Pro – SFF – 1 x Phenom II X4 B95 / 3 GHz – RAM 4 GB – HDD 1 x 320 GB , 1 x 64 GB – DVD±RW (±R DL) / DVD-RAM – Radeon HD 4200 – Gigabit Ethernet

Answer: The HD4200 is integrated graphics on the AMD 785G chipset, so you’re not getting great gaming graphics. You’ll want to buy a newer add on graphics card. In my opinion financing a computer is a waste of money. You’ll end up paying much more than the pc is worth in interest, and it’ll be obsolete by the time you pay it off.

Question: Computer Financing?
I have a friend who needs to get a computer but has terrible credit. Is there a website that finances computers for bad credit individuals?

Answer: You can get a decent used one fairly cheap. No need to take on more credit especially when your friends is already bad. If you could get financed you would have to pay a very high interest rate.

Question: Does anyone know anything about coast2coastpc? This a computer financing company I am looking for information.
This is a computer financing company and not a show or video.

Answer: Go to the Better Business Bureau. On this site you can find out about any company, if it is a legitimate company. Contact BBB for a BBB Reliability Report. A summary of activity reflected in a company’s BBB file. Includes basic business background, BBB Accreditation information, and BBB complaint activity over the previous three years. Also reports may include any known government actions, advertising issues or other information that results from activity conducted by the BBB.

Question: What is a good website for ordering a computer online with financing?
I want to buy a bigger, better and faster computer with LCD screen. But I am needing online financing but not with DELL.

Answer: is by far the best place to buy computers and components and they now offer financing. They deliver real fast and have an absolute over-the-top customer service.

Question: I ordered a computer from Financing Alternatives,INC. I haven’t been able to get through to them.
It has been six months sense I ordered a computer from Financing Alternatives, INC. I have not been able to get through to them by email or phone. They have been getting payments from me and I don’t have a computer yet. Is there anything that you can help me find out how I can get my money back or the computer I ordered.

Answer: Its possible you have been scammed. I would cancel the recurring payments and talk to your bank about contact information.

Question: Stores or EStores that allow computer financing?
Are there any reputable stores or estores that allow you to purchase a laptop/computer and make payments on it – instead of paying in full at the time of purchase?

Answer: Yes, Dell and Apple both allow you to purchase and make payments. Dell allows you to do this via their web site or by phone and you can order what you want. Apple allows you to purchase via their web site or at their store. I am not sure if you can order over the phone. And both will open an account for you.

Categories: Computer Financing

Six Steps on How to Refinance Your Car Loan

Posted by Credit Financing Guru on 30th January 2010

Many people go on living with high interest rates and expensive car loans since they are unsure on how to go about the process of refinancing a car loan. Car loan refinancing can save you a great deal of money if implemented at the right time in the most appropriate manner. This article outlines six steps that will not only enable you to successfully refinance but to also manage your auto loan.

Step 1: Get organized – Before starting the process of refinancing your auto loan, you will need to be armed with detailed information about the vehicle. This means, you will need a duplicate of your current auto loan, the owner’s names and the VIN. VIN can be found on your registration paperwork or dashboard. In addition, you will need the model of your car, any modification performed on the car as well as the age of the car.

Step 2: Contact your current lender – The next thing is to contact the lender currently servicing your car loan and request for a pay off amount. The payoff amount is different from the outstanding balance and you should therefore be specific when asking for the accurate amount to pay off. You should also note how long till the quote expires. Many quotes run for four to ten days. Be sure to request a longer payoff period if you need more time to pay.

Step 3: Check your Credit Score – The new lender will base new interest rates on your credit rating in addition to other factors. It is therefore important to ensure that you have a better credit score than when you first applied for a car loan. A good credit score attracts better interest rates. Make sure your credit is up to date and free of any errors. Also offset any outstanding credit card debts.

Step 4: Comparison Buying - You can run online comparison of automobile loan refinancing. The process is simple and takes less than one hour. From the results you can get quotes and any other auto loan refinancing relevant information. While doing online comparison, it is necessary to take precautions and avoid refinancing scammers.

Step 5: Update lien, insurance and Bank information – After you decide to refinance your car loan, it is necessary to update lien, insurance and bank information to avoid problems later.

Step 6: Ensure the lien was paid – Before refinancing you should verify that the existing lien is paid in full and the paper work was processed properly.

In summary, vehicle loan refinancing should not be considered a daunting task as the process is simple and easy. Car refinancing saves you a lot of money.

Robert Worley has been entrenched in the car loan industry for numerous years and writes articles to help consumers understand the upsides and drawbacks of getting car loans and bad credit car loans. Robert is amazing at answering common, everyday questions in his articles and news posts.

Car Finance FAQ:

Question: What are my options for financing a high mileage vehicle?
Will a bank finance a car with over 100,000 miles on it? The car will cost under $5,000 and is a Pontiac Grand Prix, no older than a 2004.

Answer: When determining whether or not to approve a car loan, lenders take certain things into consideration, none the least of which is YOUR credit background. The better your credit score, the more likely they will be to approve your loan, regardless of the mileage.

If your credit score is lower, they will certainly consider the value of the car you intend to purchase, and the car’s mileage certainly plays a factor in it’s value. Most lenders will probably NOT want to get involved with a vehicle with over 100k miles.

The question is basically “will the banks lend for a vehicle that isn’t worth much”, and the answer is basically “no”, and honestly, the lenders who would, are probably lenders you want to stay away from.

Question: What is a formula for calculating how much my monthly payments would be on a car loan?
Isn’t there a formula for calculating how much your monthly payments are on a fixed-rate loan where you know the term, the amount financed, and the interest rate? Here are the numbers: $22,870 over 72 months @ 3.9%

Answer: It’s so much easier to just find an online loan calculator. They are everywhere.

The better question is why would anybody finance a car for 72 months? That’s at least 12 months too long and probably 24 months longer than it should be. If you can’t afford the car payments, buy a cheaper car. Don’t drag the payments out to 6 years. You have no idea what you’ll be doing 6 years from now, why obligate yourself to a debt for that long a period.

Question: I want to give up my car that the repo people have been looking for.. HOW? HELP?!?
I lived in Michigan and financed a car, paid on it for awhile and then lost my job. Instead of giving the car back I decided to move outta state with the car. Its now been like a year and a half and I’m afraid of what’s gonna happen and I just wanna give it back. How do I? I can’t take it back to Michigan.

Answer: Call the finance company and give them your address. They will come to your residence and pick it up.

Question: Buying a car with a cash down payment?
I recently bought a car, I traded in my car and put a downpayment. I have a contract of sale that has the total price minus the trade in value minus the cash down payment plus taxes, fees, etc. and equaling the amount being financed. I got a couple other papers as well. Does that contract count as my proof/receipt that I made a cash down payment? Or should I have gotten anything else? Just want to make sure I have everything in order, these clowns have caused me issues before.

Answer: As long as it is clearly stated on the bill of sale, then that is sufficient as a receipt. Make sure the tax is calculated based on the net amount AFTER your cash down payment was made. Depending on the state you live in, your trade-in may decrease the amount you are being taxed on, as well. Rebates are subtracted after tax is added, based on the net amount of your financing.

Question: Can I get financed for a car with $4500 down payment and bad credit?
I’m 22 I have bad credit, but I have a steady job where I make $3000 a month. I have been at my job for almost a year. I have saved $4500 as a down payment. I can easily make monthly payments on a car $15,000 or less being that my rent and utilities are $500 and and my phone bill is $65. These are my only bills. Do you think someone will finance me. I need good advice from someone who knows something about this stuff.

Answer: That is not an unreasonable loan request, given that you are putting down (smartly may I add) a 20% down payment. Because of your credit, your interest rate will suck, but you should be able to still find a loan.

Question: Does anyone know what the law is in IL if you put money down on a new car and do not take delivery of it?
I put down money but have not signed any of the financing paperwork. I am having second thoughts of the buy. Can I get out of it without losing money?

Answer: Its up to the dealer. The money you put down is considered a “good faith deposit” and many if not most dealers would keep that money if you back out. Now, if they are unable to get you financed then you will get your money back.

Question: I bought a car from dealer but only put a 1000 deposit. What happens if I don’t bring the rest like I promised?
I signed the deal and agreed on a price, put down a $1000 non-refundable deposit and said that I will be there with the rest in 5 days when I pick up the car. I didn’t finance. What happens if don’t bring the rest and not take the car at this time. Besides losing $1k what will happen. Can they come after me and make me pay the rest?

Answer: They can’t come after you and force you to pay for a car you don’t want. But they will keep your $1000 because you agreed to let them have it if you backed out.

Dealers love guys like you because it’s the easiest grand they’ll make this week for sure. I wish my customers would come in and give me $1000 for merchandise they don’t take home.

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

Auto Financing For People With Bad Credit – 3 Tips That Will Help You to Save Real Money

Posted by Credit Financing Guru on 29th January 2010

Here are a few tips that are sure to save you thousands of dollars on your next auto purchase and if you have bad credit, will help you to get approved easier. Saving money is very important when you have a low credit score, and in particular you should be aware of a few things that can make that happen for you.

1) Don’t put the “cart before the horse”. When you have good credit, you can just go pick out whatever vehicle that you want and then see what the lowest interest rate is going to be. When you have bad credit, you’re going to have challenges with getting your loan approved. So rather than picking out a vehicle, submitting a credit application and hoping for the best, you should do the opposite. Getting your financing arranged prior to your purchase will make a big difference. By knowing exactly how much of a loan you are approved for, as well as, what interest rate you’ll be able to get that loan at, you can then shop smart. You’ll be able to make a better decision, save yourself a lot of headaches and also be in a better position to negotiate the price on a vehicle.

2) Don’t act desperate. This is so simple, yet so profound when it comes to saving money on a car purchase. Car dealers deal with thousands of customers every year and they can tell when you’re excited about buying a car. When they see this excitement, they know that you’re less apt to walk away from the deal over a thousand dollars or more. So keep your emotions in check, act relaxed and certainly don’t act you can’t live without buying the vehicle.

3) Negotiate price before payments. It’s a common tactic in car dealerships to get customers negotiating on payments rather than price. This is because when payments are the focus, you don’t have any real idea of what the price of the car is and the interest rate that you’re paying. Sometimes, people agree to payments simply based on perception. They assume that a nice car is going to be $400.00 per month and agree to those payments. When in reality, the dealer may have to add on additional finance products such as extended warranties and gap insurance to be able to raise the total amount financed enough to be that high.

Do your homework, make an educated decision and think about what you’re doing, without letting your emotions get the best of you. You’ll save hundreds if not thousands by focusing on price rather than payments initially. Keeping a cool head will keep more negotiating power in your hands. Getting preapproved for your auto loan will not only help you to save yourself from aggravation, it may provide a better deal for you.

Would you like to see what you can get approved for? can point you in the right direction for legitimate online lending sources. I’m Jason Lanier and thank you for reading.

Car Finance FAQ:

Question: What is down side of retail financing for a car?
Say you want to buy a car is there a down side from retail financing for say 84 months instead of 12 months?

Answer: The dealer will SAY he will get you a low interest rate on a 84 month financing loan but in the long run your paying way more then you would if you just got the 12 month. What people look for is small monthly payments, so dealers will give a long finance like 7 yrs and something high like a 13% interest rate, compared to a 5yr and something lower like a 9% rate. The 5 yr will have higher payments but in the long run your not paying as much. Trust me don’t get long financing on a vehicle, get the shortest possible.

Question: What is a normal rate for interest on financing a car with a credit union?

Answer: Mine’s offering 3.9 percent these days, if you put 20 percent down. Otherwise, their regular rate is 4.9 percent.

Question: Can I add my son’s girlfriends car to my auto insurance policy?
My son’s girlfriend is 18 and she is purchasing a new car. She is financing part of it. The insurance for her is very expensive so I thought maybe I could add her to my policy. I figure if the car was in my name it wouldn’t be a problem, but since it is going to be in her name and since she’s not actually related to me I may not be able to do it.

Answer: Yes, you can as long as she lives with you in the same household. One thing to keep in mind that people don’t realize when adding young drivers is that your policy premium will go up and at any time they get into an accident or get a ticket your premium will go up due to their negligence but as soon as they get their own insurance the incident will follow them and not effect your policy anymore. The reason the insurance may be cheaper with adding her onto your policy opposed to her having her own policy is because the risk is spread over however many people are on the policy instead of just her. For example, if you have a solid clear driving history the chance of you getting involved in an incident is a lot less then her, so the insurance company won’t have to charge as much because there is a chance you might drive the vehicle since it is at your residence and she lives with you. If she doesn’t live with you, it might be an issue. You will have to check with your insurance company about garaging locations if that’s the case. Hope it helps.

Question: Can my insurance deny the option to have a second opinion (shop) on my car?
My insurance is taking the steps to declare my car a total loss, I asked the insurance for a second opinion and they said is not possible, I think my car is not a total loss. I went today to see it, and doesn’t seem as bad as the report says. Now my car is still on financing, does that affect the fact that they don’t allow me to do that?

Answer: You can buy the car from the insurance company and have it restored. The financing status has nothing to do with it other than who they pay for the loss. GAP insurance is supposed to cover the difference between what you owe and what the car is worth. Some people buy it, some don’t.

Question: I want to buy a new car. What are the documents needed to buy it in bank finance?

Answer: You go to a dealers and when you see a car that you like you ask for a Purchase & Sales and then you take it to the bank (credit unions usually have lower interest rates) and they will tell you if you are approved for a loan.

Question: Is there a way to get out of a financed car without damaging my credit?

Answer: If you can sell it for the amount you owe the bank or have someone refinance it at the same bank that is carrying the loan then it will not damage your credit. If you can’t do any of these options then give it back. Don’t make them come after you, that will make the credit report look even worse.

Question: Do I need to enter a finance agreement to qualify for scrappage allowance?
I want to get a new car but will the car companies expect me to take up their finance deals or can I try and secure myself a better loan deal and pay cash? Plus what are the best scrappage schemes out there, who has the best deal? I am looking to replace my daughters car that she crashed recently.

Answer: Arrange a private loan. That puts you in the position of cash buyer, then shop around. A lot of dealers will give you a healthy discount (haggle for a good one – they have a bigger negotiating margin than they let on!) which will be worth more than the scrappage scheme allowance. And if you go for that scheme, dealers will not give any discounts from list price.

Plus a bank loan will almost certainly charge you less interest than a dealer’s finance scheme.

Question: I bought a car for my in-laws that I financed. It is registered to me. Can I add them to the registration?
I need to figure out how to get my in-laws names on a registration of a vehicle that I own so that they can insure the vehicle. Any ideas?

Answer: It’s never a good idea to put things under your name for someone else. Yes, you can add them to the registration and you can stay on the title. The title holder does not have to be listed as one of the registrants. However, keep in mind that if the car is financed under your name you will be responsible for any payments to the car until the loan is paid in full.

Categories: Auto Financing