Credit Financing CA

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.

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? Pcsforall.com?
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 pcsforall.com 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 bluehippo.com. 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 bestbuy.com 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.

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.

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 [http://www.nocreditcheckcomputerslaptop.com/laptop_financing_no_credit_check.html] No Credit Check Computer Financing visit [http://www.nocreditcheckcomputerslaptop.com]

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: Newegg.com 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.

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.

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? http://www.BuyingCarswithBadCredit.com 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.

People have been using car financing to purchase both new and used vehicles for decades. It is probably one of the easiest ways to get you hands on a new car without having to spend half your life saving up for it. Car finance has made it possible for people that can’t save money but need a car as soon as possible to get the car they want in the shortest possible time period. There are many people who can afford to purchase a car outright but still opt for car finance simply because of the many advantages that auto finance has.

There are various types and kinds of auto finance each has its own perks and downsides however its imperative that you search for a car finance option that offers you the lowest interest rate possible. For people that have the money to purchase a car outright getting car finance means that they can save the money in an interest bearing account or put in an investment which will yield more money for them i.e. which will earn them a high ARP or annual percentage rate that what they are currently paying for their car. This means that they will end up with more money at the end of the month than they otherwise would if they purchased the car outright.

There are many dealerships which also offer car financing however the problem with getting car finance from a dealership is a high interest rate. Dealerships tend to offer the highest interest rate however they may be a good option for people with poor or bad credit since they have fairly lenient lending policies. In many cases it’s not actually the dealership which is extending the vehicle finance but a finance company which is working on the backend and gives the dealership a kickback from the financing business they provide to the company. This in turn benefits both the dealership as well as the person purchasing the car. This is why typically many dealerships will be unwilling to do business with people who are looking to pay for the vehicle in full. This is because this way they don’t make much of a profit and they just make the money which is built into selling the vehicle.

Deciding to opt for car finance is your personal decision but there are more perks associated with good car finance than drawbacks. This is why it’s recommended that if you need a car you start signing up for automobile finance right now.

Robert Worley has been a part of the car loan industry for many years and writes and publishes articles to help consumers better understand the car loans and bad credit car loans. Robert answers common questions consumers have about car credit in his articles and news posts.

Car Finance FAQ:

Question: Is a letter good enough car finance?
I just bought a car privately. With all the paper work was a letter from the finance company saying the final payment had been completed. Is this good enough proof?

Answer: No, the letter would indicate the loan was paid and there was no lien holder, but since cars are transferred from seller to buyer by means of a title, if you didn’t get a signed clear title, you haven’t bought a car yet. Go get either the title or your money back.

Question: Which would be better to do: Finance a car w/the dealership or get an auto loan from a bank?
I live in Texas, and have fair credit. How much do you think my interest rate would be?

Answer: Go to a bank and ask for pre-approval (they give you a blank check that has a maximum amount it can be cashed for). You will NEED a down payment! Then when you go to a dealership you can get a “cash price”. Much easier to negotiate on a price. You may end up paying less then the sticker price.

Question: Is there any chance you could finance a $23,000 car if you have no job?
But I am able to put down $13,000 and have good credit, well as in credit I mean I paid for a $14,000 car fully before and I payout yearly insurance? I’m not sure if that even matters for credit?

Answer: I’m sorry but that is a horrible idea. If you have no job, you must NOT get yourself into debt. You do not need a $23,000 car. You only need a $3,000 car. Get a cheap used car, get a job, and begin to budget your money.

Especially if it’s a NEW car. Never buy a NEW car unless you can truly afford it and really want it. Like, paid off house, fully funded emergency fund, retirement funded, etc.

Question: Buying a car, getting a loan to finance?
I am purchasing a 2010 Chevy Camaro. I am trading in my car for the new one. The dealership has tried getting a bank of theirs to finance me but I have little credit. I am now going through my bank (or at least trying). Since the dealership has already ran my credit about three times, will it effect the decision of the bank?

Answer: Their pulling your credit will affect your score. Generally a dealership pull drops your credit roughly 20 points, (each time). So you do want to be cautious about that. Hopefully you got your application in with your bank before the results show. Don’t give up though, credit is certainly tight but there are avenues to get financing regardless of your credit. Just be sure to compare offers and choose the best. You only really run into difficulty if you make the mistake of accepting the first offer that you get.

Question: When financing a car do you pay back the interest from the loan everytime you make a payment?
I plan to finance a car and I want to know whether I will be paying back the interest every month or only when I’m late or miss a payment like with a credit card.

Answer: Every time you make a monthly payment, some of your payment goes to interest, some goes to principle (which is the amt of the loan you originally took out). The monthly payment they give you factors in interest ALREADY. If you pay more than the monthly balance, it will eat at your principle more, essentially allowing you to pay off the loan quicker with less interest.

Question: When getting a car on finance do I need to get vri on it or is the dealer trying to rip me off?

Answer: No you don’t have to have VRi. You don’t have to have anything you don’t want. Just tell them, simple. Every Dealer has a duty of care to tell you about every benefit that is available to you so they are not trying to rip you off.

Question: Should I finance my first car?
I want to buy a car the summer before I start college but will not have saved but $2500 by then. I figured since I will have $750 a month after that if a dealership can let me pay a low monthly rate then I can afford it but everyone tells me no. Especially if I do it on a cheap car like a 2006 kia rio or 2003 Honda Civic, but Should I?

Answer: I did…but then again I didn’t have $2500 either. I think if you have that type of money you should buy your first car cash only, not financing. Not sure if you have to pay for college or not but save your money for other expenses you may have. $2500 can get you a pretty decent car.

Question: What happens to the car after it is written off by insurance?
My car was in an accident and the insurance company is telling me that the car will be a write off. It is still being financed but I have purchased GAP insurance through my bank when I re-financed the car. I am just curious as to who owns the car or gets possession of it if the GAP is covering the remaining balance of the loan? I would like to get the car back to sell for scrap in order to raise some money for a down payment towards another car.

Answer: You do not own the car as you financed it and still have outstanding payments, therefore you will have to pay the outstanding balance even if you no longer own the car, because it is a write off it will go to the scrapyard, don’t think you can buy it back, sorry for the bad news.

What may come as quite a surprise is the simple fact that there is no minimum credit score that you need in order to buy a car with bad credit. There are requirements that you must be able to meet and there are good companies online that can help you to get into a vehicle, without regard for your actual credit or “beacon” score.

What are the requirements in order to be able to qualify for a car loan with bad credit through these types of companies?

First of all, you must be at a minimum, 18 years old. That’s going to be anywhere that you try to get a loan because of simple laws regarding contracts. You can’t enter into a legal contract until you are of “legal age”.

Secondly, you must have a minimum monthly income of at least $1500.00 per month. At least $1700.00 per month is ideal, although $1500 is acceptable. To calculate your monthly income, multiply your weekly gross pay (before taxes) and multiply that number by 4.2 as there are slightly more than exactly 4 weeks in a month.

Third, you have to have a steady income. Whether it is from a job, disability or retirement income. If you are self-employed, you’ll have to be able to substantiate your income by providing previous year tax returns.

Finally, the issue of repossessions and bankruptcies are always important. If you have had a bankruptcy of any type, whether Chapter 7 or 13, it must be discharged. The only exception to this rule is if you are in a Chapter 13 and have written permission from the court to incur debt. Cars are necessities so that is frequently allowed.

On the subject of repossessions, if you’ve had one there are two conditions. One is that it has to be at least 12 months ago that the repo took place. Or, if it’s been within the last 12 months, then it must have been included in a bankruptcy. If you’ve had a repo recently and it wasn’t included in a bankruptcy proceeding, then you won’t be able to obtain financing.

You don’t have to use buy here, pay here financing to get a car loan if you have bad credit. There are companies that provide financing services to people that have had any number of credit problems. Many of these companies help people without taking into account their actual credit score. Credit scores are nothing but a computer generated estimate of your credit worthiness. Companies that work with bad credit on a regular basis look beyond that number and see you as a person, taking into account your situation.

Here’s a place you may want to visit to see what you can get approved for. http://www.BuyingCarswithBadCredit.com has helped thousands of people to obtain auto loans with low credit scores.

I’m Jason Lanier and thank you for reading.

Credit Score FAQ:

Question: Does taking a loan out for a used car improve your credit score?
Right now my score from experian is 636; and that’s only because I’m paying off an old debt. I need to buy a car, but I don’t know if getting a loan for a used car would be a good idea.

Answer: It’ll improve if you pay on time. Your score will go up based on credit line available to you… again as long as you pay on time.

Question: My husband is trying to buy a car and is telling me my bad credit is affecting his ability to buy a car. True?
I have been trying to pay off my credit card debt for a few years now. This was all attained before I even met him. I have paid off about 6 creditors and am down to the last 4. I’m expecting to pay them off all next month. Hubby is telling me that my credit is affecting his credit score and he’s having trouble buying a new car. Is this true? He keeps trying to get my bank statements and trying to run a credit report on me.

Answer: If your credit card debt is in your name only and was acquired before you were married there is no possible way for it to be affecting his credit even if you live in a community property State. Why is he using your credit for a car? I was married, bought a car, and never did I need my husband’s credit to get a car. Something is wrong. Perhaps he is having trouble getting credit on his own, so they asked for your credit.

Question: What can I do with a credit score of 629?
I’m 19 and have a credit score of 629. I use to be up to like 720, but my credit card went over the limit. (Paid it off, but it seems it hasn’t updated yet on the credit score.) Anyways, I make money on my own at the house by selling items online. If I were to buy a car for 2-5k, would I be able to get financed? Like get a loan from the bank or something, and just pay them back month by month?

Answer: The short answer is no way without a parent co-signing. You have not been in the credit bureaus long enough, you can not prove your income, you don’t the number of established trade lines required, you can’t have the payment history required, your self employed and not for long enough, the amount your looking to borrow is well below every major lenders minimum. Your only chance is your own local bank or credit union with one of your parents to co-sign.

Question: How to get a car loan if you have low credit score or no credit at all?
I want buy my own car but I don’t have cash.

Answer: Most people that have no or bad credit go to “Buy here, Pay here” car lots where they will do their own financing. You will have to have a down payment, and it’s usually the amount that the car is really worth. Then they will finance weekly payments for the rest of the over inflated price of the car.
If you have not so bad credit, but a low credit score, you may be able to get a car at a regular car lot with a co-signer who will be responsible for the loan if you default on it. You will pay higher than normal interest on that loan. You could get a family member or good friend to get the loan in their name if they have good credit and the payments will be lower, and let you make the payments, and when it’s paid off, have them sign it over to you.

Question: Does checking your credit score really lower your credit?
People keep saying this but it makes no sense, You obviously need to know what your credit score is. Like when they run your credit so you can buy a phone or a car, does this ruin it? I havent had my credit card for 6 months yet but when I do get a credit score can I check it?

Answer: Although it varies slightly depending on where you are (Country, province/state, etc), usually it does not directly affect your score, but your report does show how many times certain kinds of checks have been performed on your credit. (As I understand it, there are two basic kinds of checks – one where the company name is revealed on your report, and the other is a ‘soft check’ that is only indicated on your report by being included in the total number of soft checks requested.) As I mentioned, this doesn’t directly affect your score, but I’m sure how you can see that a company might be concerned if there are a high number of requests to view your credit – this could indicate that you have applied for a lot of credit lately, and that can make you a higher risk. You can, however, request to see your own credit, and this does not show up on your report.

Question: What is the best and/or faster way to build a credit score?
I am 18 years old. I have a no credit score. How would I go about starting and building my credit score? I’m the kind of guy that if its anything short of a car or house save up to buy it, but seeing as how my attempt to get said car failed miserably due to my parents not having a good credit score. I am lost in how I am supposed to start getting a good credit score if no one is willing to give me a chance due to my parents lack of discipline with their money.

Answer: The fastest way to build credit is to get a credit card, spend a little and always pay it on time.

Question: When paying off a car, what is the best way to improve my credit?
I don’t want to make payments on my car anymore, and pretty soon I will have saved enough to pay it off. The thing is, I want to do whatever will best reflect on my credit score. Is there a minimum amount of time you should make payments for? In March it will be 2 years since I bought it.

Answer: It really doesn’t matter. The account will show that it was paid as agreed on your credit report. There is no minimum amount of time you need to make payments for. Paying it off early may help your score by lowering your total debt, but it may not make a difference over paying it over the full term of the loan. It just depends on your situation. I’m sure it will feel good to have it paid off. Congrats!

Question: Buy a car outright or get a loan?
I can afford a new car and just pay for it myself. However, I have no credit and looking to buy a house as well. So to help me get some, I was gonna take out a loan for the car instead and pay the loan off. But again, with no credit, it was hard for me even to get approved for a loan. I applied for a vehicle loan for the price of the truck I was looking at and the maximum I was willing to spend on it, through a credit union finally and it looks like I got approved.

But I’m thinking I may be moving to fast… is this a good idea or should I just pay for the car myself? I need to build up credit cause I have absolutely zero but is this the best way? I’d like to have a decent credit score in 6 months so I can buy a house then.

Answer: Get the loan and in 24 months you can pay it off at that time if you wish. You should also be able to get a secured credit card from a bank. Just put up $500 Use it for gas and small items and always pay the balance the following month. Make sure they belong to the credit bureau.

There is a form of business financing that is debt-free, with no loss of ownership or control. It is very quick and still readily available. It is the only form of finance that grows as fast as invoices. There is no minimum time in business or collateral requirement. The client’s personal or company credit is usually not important. Prior liens are usually not a problem, so long as they’re disclosed up front. (Factors don’t like surprises. A deal that could have worked will probably die if the factor’s due diligence turns up undisclosed liens.)

This form of finance is called factoring. Say your company (the client) provides a product or service to a customer, then issues an invoice for those goods or services. The customer frequently takes 30-90 days to pay the invoice. Rather than wait, the client can sell the invoice to a third party, called a factor. The factor will verify that the invoice is valid and that the customer has the willingness and the ability to pay.

The factor will pay for the invoice in two parts. Initially, he will pay the client an advance of typically 70-80% of the face value of the invoice. This usually takes less than 48 hours. When the customer pays, the factor will deduct a fee, and refund the balance to the client. This fee is mostly affected by the time the invoice is outstanding.

There are numerous advantages to factoring for a client company. The most obvious one is that cash flow improves immediately. Factors also provide other benefits as part of their normal business, such as handling collections and tracking accounts receivable. A factor can provide quality assurance when they verify that the customer received the product. Another benefit is that a factor will verify a customers’ credit before advancing funds. If you’re looking to do business with a new customer, but the factor won’t fund their invoices, you will want to be very careful about the terms you offer them.

Factoring rates tend to be higher than bank rates, but when considering costs it’s important to consider the benefits as well. Having cash on hand to bid more work or take advantage of supplier discounts can make a huge difference. The objective is to make more money by factoring than you would if you didn’t factor.

Factoring has changed a great deal over the last ten years. There are 5-10 times as many funding sources now as there were then, so rates and terms are much more competitive. There are factors for invoice volumes of $500/month to over $10 million/month. There are factors of all sizes who specialize in the construction and medical industries.

Because there are so many funding sources, your best bet is to use an independent broker. Most brokers don’t charge any client fees. They are paid referral fees by the funding sources because the funding sources are wonderful people (many of them are very nice, actually) and because it’s less expensive for them than advertising. There is very little difference in referral fee rates between different funding sources, so finding the best match between the needs of the client and the funding source is the primary concern.

Mike Curtin, Owner, MSC Funding

Business Financing FAQ:

Question: What are some alternative forms of financing for a small business?
During these tough times, it’s getting harder and harder to achieve traditional funding from banks. As a small business owner myself (a janitorial and cleaning service) I wanted to know what alternative funding sources are available for us?

Answer: There are many sources of alternative funding for small business. They all vary, depending on who your clients are, but I will list a few with a description for each.

The first option, factoring, is a practice wherein one company purchases a debt or invoice from another company. It refers to the acquisition of accounts receivable, which are discounted in order to allow the buyer to make a profit upon collection of monies owed.

PO Funding covers the supplier expenses associated with a specific purchase order. It enables you to make sales that exceed your current financial capabilities and provides a solid platform for growth. When used properly, purchase order financing can help you grow your company by enabling you to accept larger orders.

A Merchant Cash Advance, otherwise known as credit-card-receivable funding, is an increasingly popular solution for small businesses looking for a flexible form of business capital. As use of credit cards grows as a form of payment at a greater variety of businesses, more small business operators are able to tap into a previously unrecognized form of capital: their credit card receipts.

Question: Rental Business: Re-financing a 4-Plex.?
I am a landlord. I have two 4-plexes and one triplex in Ontario, Canada. I wanted to ask about re-financing a residential 4-Plex: Is it reasonable to expect to be able to refinance it up to 75% or 65%? Right now mortgage is about 50% of value. Please note: I only bought it 12 months ago. Also, although I am an engineer, I do NOT have a regular day job, just the income properties and being a landlord. Also my credit score is very good – above 750.

Answer: You should be able to with 50% equity and a 750 credit score.

Question: How can I finance a small business with proven profit potential in today’s credit market with no credit score?
I have no credit score because I have never borrowed money. I had struggled many years because of my obligations to my terminally child. My home is paid for and because of my age it will stay that way. I am in a “green” business with a good market for my product which involves turning a waste product into a marketable product.

Answer: There are two really manageable options that I can think of right off:
1. family and friends. To make the financing more palpable to them, go look at the website for virgin money. They make up loan papers and even emails to potential lenders from your list of friends and family, and make everything upfront and legal. the money is electronically transferred from your account and deposited into theirs so that you only have to make your payment and there are no hurt feelings.
2. there are a couple of websites available where you ask for private loans from strangers. You put up your information and the amount you need to finance your business, and anywhere from one to thousands of people bid for parcels of your loan. one person can fund 1000 dollars while another person can fund 100. It’s the same as above, the website takes a monthly payment from you’re account, and distributes it.

Question: Why is it important to separate business and personal finances?

Answer: If you do not separate than if your business owes money then they can come after your personal finances and property. You don’t want your house to be taken because your business is in trouble.

Question: Are banks still giving loans to start a small business?
I am thinking of going into business for myself but I don’t want to go through the whole process of putting together a business plan if I cannot get financing.

Answer: As an aspiring entrepreneur you have to realize the road ahead is going to be tough. While one of the hardest things that you have to do to start your small business is to get the funding that you need to start up. Most small-business owners are lucky enough to have enough resources such as surplus funds in their savings accounts to start their businesses. But for the majority of those business owners just like you and I, we require some help and assistance.

With the recent recession and the economy heading towards a downward spiral, getting the loan that you need to start your small business is going to be a very difficult road for you. But thanks to Uncle Sam there is a better choice out there for you. Look into applying for a small business loan grant from the government. The benefits of getting a grant from the government is the fact that it never has to be paid back unlike a normal loan from major banks such as Bank of America Wells Fargo etc.

Question: What is the purpose and usefulness of accounting and finance professional bodies to small business owners?

Answer: Accounting professionals can help small business owners to set up accounting systems that can help make their financial information more organized and readable by outside entities. This can be useful if a small business owner needs to create financial statements to get a loan at a bank. Accounting professionals can also help small business owners complete their tax returns.

Question: How do I get large finance to buy a business?
I want to purchase a skip business and need to know how to raise the finances.

Answer: With great difficulty nowadays. Banks don’t want to lend even to good companies! As a start up you will not appeal to them. You may get finance as long as you are making a size-able financial contribution yourself. No lender will risk their money unless you risk yours too.

Question: What do I need to start a small business?
A coworker and I are thinking about opening up a small clothing store but don’t exactly know where to start or what it takes. We know it takes finances and are currently working on finding grants and other means but what else would we need?

Answer: It totally depends on what you are starting with. If you have product but not a lot of finances and you really want to get established as a clothing line, then you need to start small. You can sell your product on the internet, but you will be able to build a reputation for the product quicker if you sell locally. To actually start a store you are going to need a minimum of $200,000 start-up, that’s just what it usually comes out to after all the expenses are paid. There are very few grants for “stores.” There are grants available for clothing designers, training, etc., but the statistics of a store crashing and burning within the first five years is so high that there just aren’t many companies that are willing to give grants to start-up stores unless it is a franchise. Your best bet if you have a product is to partner with a local store or boutique that you can pay a commission for allowing you to park your product in their store. The commission is based on sales so you don’t lose anything. Then, as you get a reputation and following for the clothing you’ll have more availability for expanding.

You’ve got a good job, steady income, pay your bills on time, yet can’t even get financing for a candy bar. Many people find themselves in this very situation after unexpected unemployment, divorce, or bankruptcy. Maybe you haven’t been able to establish a line of credit at all, good or bad. So how can you finance a new computer with bad credit?

One way to finance a computer would be to get a small personal loan from a bank or credit union. Personal loans are probably the easiest to secure, especially if you have some form of collateral. This of course is not going to be an option for everyone, but it’s worth a shot and will be the cheapest way to get your computer financed with bad credit.

Financing a computer with bad credit through a rent to own store is something just about anyone with an income can do. Though you’ll likely be able to get a computer this way, it isn’t highly recommended since you could end up paying up to three times the retail value of a most likely used computer. Rent to own should be a last resort.

Put a computer on layaway at a retail outlet like Wall Mart. If you have a sizeable income, but just don’t have good credit, this may be a viable option for you. The only draw back with putting a computer on layaway through a retail outlet is that it will be a shelf computer meaning “as is” and you’ll need to pay in full in about 90 days.

In recent years there have been computer financing companies willing to take payments via check by phone provided you have a valid checking account. If you have poor credit and want to get guaranteed computer financing, and need to break up the payments, plus pay what the computer is worth, this is going to be a very good option for you.

Computer financing with bad credit isn’t always easy, but it is possible. Ironically, you are likely going to pay slightly more for financing with bad credit than you would have if your credit was good. On the bright side, you may be able to boost your credit rating a little bit if you keep up on your computer payments.

Daymon Hoag is the founder of Cheapest Service where you can shop for Bad Credit Computers – Laptop – Desktop – Computer Financing

Computer Financing FAQ:

Question: Is it legal for a company to charge you $3000 for a $1000 computer?
My son is a marine, he is only 18 and got suckerd into buying this laptop from a kiosk that is only worth $1000. They “financed” it for $4000. Is this legal?

Answer: In general, yes they can. There are special protections available to servicemen, he needs to ask if they can help. This is why a credit card is so important, he would have had ten days to change his mind under any circumstances.

Question: Why the heck do you need to get financed just to buy a computer?
I hate those dumb commercials. They have people on there saying, “I couldn’t get financed, so I couldn’t get a computer.” I’m thinking, “You don’t need good credit to get a computer. I got my laptop and I don’t even HAVE credit.” Man! People are so naive.

Answer: When you buy a mac you need credit..unless you have $2500 cash to just throw into a laptop..which actually you probably would have money to throw away if you had good enough credit to get the Juniper card needed to purchase a mac…those cards are like impossible to get.

Question: Does anyone know any good bad credit financing websites for Computers and laptops?

Answer: The only company that I know finances for computers and laptops is Blue Rhino. I’m not sure if they’re still in business. You can also try the Home Shopping Network. They do their own kind of financing. But since laptops are so cheap nowadays, people just pay with a credit card or cash.

Question: Dell computer loan help?
A really good friend of mine asked me to finance a dell computer in my name last year and i did it for him. At the time he said he would have it payed off in no time. Well a year later almost the full balance remains. What can I do? Can I get the loan transfered to his name?

Answer: Nope and don’t do things like this anymore. It’s just bad practice.

Question: Is it possible to finance a laptop at bestbuy?
I’m looking for a computer and I don’t have that kind of money to spend at once and best buy seems like the best store.

Answer: Depends. Financing plans are available but you have to have a BB Credit Card first. If you are under 18 this might be a problem.

Alternatively, work out something with your parents where they purchase/finance the laptop and you pay them back.

Question: How come I can’t get approved for credit?
Ok, my computer that I’ve had for the past 3 years is about to go belly up on me, and it’s vital that I have a computer because I do most all my bill paying and banking on-line. My credit score is 720 and I’ve tried using bill me later with tigerdirect.com and getting an alienware credit line, but I can’t get approved for a few hundred dollars in credit to buy a decent computer. Can someone tell me why even with a score of 720 I can’t get financing for a computer? I know this is a stupid question but it irritates me how the system works.

Answer: Your score really is not much of a factor in getting credit approved. It’s what shows on your actual credit report. You probably have a limited credit history — too few accounts and/or too new. Or your debt to income ratio may be too high.

Question: This is about HP computer financing?
Is it worth getting HP computer financing where you pay 20 dollars every month? I want to get a new computer because my dell laptop sucks and does not work right but i don’t have 400 dollars to just blow on a computer. If it is worth it how much more to the normal price of the computer do you pay and how long does it take to pay off?

Answer: It depends on how many months you have to pay 20 bucks! Just make sure you calculate the total payable, and then minus the 400 to see how much of a premium you are paying. If you think it’s reasonable then go ahead and get it.

Question: Financing on apple computers Canada?
Last year I broke my MacBook and it’ll take me a few years to have enough money to buy a new one. I was wondering if there were financing options for apple products in Canada.

Answer: I’m pretty sure they will finance it for you, if you qualify. Why don’t you go to apple.com/ca, and try to buy one. When you go to check out there should be a link right under the total price for financing.