Bad Credit Car Loans: What You Should Know

With the economy being as bad as it has been in the last decade, it should come as no surprise that many people have less than stellar credit. The good news is that almost anyone can get a car loan, as long as they have income to pay for it.  You should be aware that a bad credit car loan differs greatly from a regular car loan, and there are things that you will need to do if you have bad credit and you wish to finance a car. Companies like Interstate Special Finance can provide you with more information on car financing.

1) You might not be able to get the exact car you want, but you will be able to get a car.

If you are accustomed to buying a new car, if you have found yourself with bad credit, this might not be an option (although it is not totally out of the question). The salesman will try to find you a vehicle that suits your wants and needs, but it will also need to be at a price that you’ll get approved for. There are times that people with bad credit can get a new car, this usually occurs when it is a lower priced new car with a large rebate. The rebate will help with the money down, although depending on your situation, you might be asked to put some money down as well. This brings us to the next point.

2) You’ll need money down.

Most banks that approve car loans require you to have money down.  While cash will always work the best, sometimes money down can be a trade-in vehicle on which you don’t owe any money. Always let the dealer appraise a possible trade no matter what kind of condition it is in. Even if it is not worth a lot of money, a dealer can sometimes take money off the deal and put it towards your trade.  The amount of money down that you need depends on your credit history.

3) You’ll need a lot of references.

It is nothing personal towards the person who is taking out the loan, but the bank may request as many as ten references, complete with addresses and phone numbers. If you have these ready before you go into a dealership, it will save you some time. 

 You will also need things like proof of residence (utility bill) and proof of income (pay stubs).  The good news is that if you have these, some money down and a lot of references, you will be able to buy a car   

A Guide To Accounting Definitions For Small Business Owners

Whether your business has an in-house accountant or you outsource to a contractor like Harris E Fox & Co, it’s important that you understand the major accounting terms and definitions so you understand what is going on with your financial transactions. 

Bookkeeping – the actual recording of the organization’s financial transactions in a timely and systematic manner. Refers to a time period when an accountant actually kept records in a book, as opposed to now when it is (mostly) computerized.

Journal – the main record of transactions where each transaction is recorded in a chronological order. Transactions are initially recorded in the journal, so it is also called the book of original entry.

Ledger – the book of accounts into which journal transactions are separated into categories of income and expenses. This book contains details that can be summarized easily into accounting statements.

Cash Basis – a system of accounting where each transaction is only recorded when the actual money changes hands, regardless of when the exchange of goods or services occurred.

Accrual Basis – a system of accounting where each transaction is recorded when it occurs, regardless of when the actual money changes hands.

Revenue – the total amount of money earned by an organization for goods or services sold to customers.

Capital expenditure – money spent on assets for the organization. May include real estate, equipment, furniture, or improvements to such. These items are recorded on the Balance Sheet and contribute to the assets and liabilities of the company.

Revenue expenditure – money spent on items to be used in the course of producing goods and services for customers. Includes cost of raw materials, labor, and the costs incurred in day-to-day execution of the business. These costs are recorded on the Profit and Loss Statement.

Overhead, also known as Operating Expenses – the ongoing daily expenses of running the organization. Includes things like payroll of employees not directly involved in production, rent, utilities, and advertising.

Cost of Goods Sold, also known as Cost of Sales – the cost of labor and material required to provide products to customers.

Gross Profit – the profit left when cost of goods sold has been deducted from gross revenue. This is before the deduction of overhead and other expenses that cannot be directly attributable to the actual production of goods.

Operating profit – profit after overhead and indirect expenses have been deducted, but before deducting interest and taxes

Net profit, also known as the Bottom Line – after all expenses, including interest and taxes, have been deducted. True, actual profit. 

There are many additional words and principles that are potentially useful to know, and you can learn further at AccountingDictionary.org, a site dedicated to helping non-profit organizations with 20 to 1000 employees. But in the meantime, these basic terms should enable you to speak intelligently with your accountant so that your conversations can be efficient and effective.

Need Cash? Borrow Equity By Refinancing Or Through A Home Equity Loan

Your home is probably the most valuable asset you own. If you have equity built up in it, you may be able to borrow some of it if you need cash. You can do this by refinancing your home, or by taking out a home equity loan. Both options offer ways to get cash, but there are differences with each.

What Is The Difference?

When you refinance, you get a new loan. The lender pays off your original loan with the money from the new loan, and you get a brand new loan. The new loan has new terms, and the old loan no longer exists.

When getting a home equity loan, you keep your original loan, and you get a second loan. This results in having two mortgage payments to make each month.

You can use this money to:

  • Remodel your house.
  • Pay off your credit card debts.
  • Pay for your child’s college tuition.
  • Take a nice vacation.
  • Buy a large asset (car, RV, boat, etc.)

How Much Can You Borrow?

Lenders review several things when approving refinance loans or home equity loans. Each of these factors helps the lender determine how much you can borrow.

  • Equity – this is the main factor. The lender compares the market value of the home to the amount you owe. This is your equity. A lender may loan up to 80% (or more) of the value of the home.
  • Credit – lenders never issue loans without thorough evaluations of a borrower’s credit. If your credit is good, you should not have trouble getting extra money out of the loan.
  • Debt-to-Income ratio – lenders always compare the amount of money you make to the amount you owe. This ratio helps determine how much you can afford to repay.
  • Purpose – lenders may only allow people to tap into the equity if it is for a good purpose. A home addition adds value to a home, while a vacation does not.  

What Are The Benefits of Each Option?

Pros Of Refinancing:

  • Refinancing usually offers a lower interest rate.
  • The interest paid on the loan is tax deductible.
  • You have only one monthly payment to make.

Pros Of A Home Equity Loan

  • Home equity loans are more flexible because they are usually considered lines of credit. You can draw money from the credit line as you pay it off.
  • The closing fees are cheaper than the fees for refinancing.
  • You can close on the loan faster than with refinancing.

Borrowing some of the equity in your home is an ideal solution if you need cash for something. To find out if you qualify, talk to your lender. The lender will give you instructions about applying, and you should have your answer within a few weeks. 

What Is Bail And How Does It Work?

If you find yourself needing to bail somebody out for the first time, it can be very confusing. Not only is it something you do not face in your everyday life, it is usually something that happens unexpectedly. Knowing what bail is, how it works and the options you have can help you navigate the situation as smoothly as possible.

Understanding Bail

After a person is arrested they may be eligible for release. Eligibility is usually based on the severity of the charges and their past history with court appearances. A bail hearing will be set after they have been booked into jail. If the judge sees fit, the defendant can be set free one of two ways:

  1. Released on their Own Recognizance (O.R.) – meaning the judge is confident they will return on their own accord. They generally have ties to the community and/or family that will motivate them to show up to their court hearings voluntarily and without issue.
  2. Released on Bail – Financial assurance paid to the court to motivate the defendant to appear for their court dates. Failing to appear will forfeit money and/or property used as collateral for their release and they will be re-arrested.

Once the judge has set bail it is the defendant’s responsibility to secure it. If the defendant does not have the money necessary they can contact a relative or bail bondsman.  These people can post bail on their behalf.

Securing Bail

If bail can’t be posted out of pocket or by an acquaintance, a bail bonds company can be contacted. A bail bonds company will normally ask for two things: an upfront fee to secure the bail and a co-signer. It isn’t uncommon for the fee to be 10% of the bail requested. This fee is generally non-refundable, even if the case is dismissed.

Bond companies usually require a qualified co-signer. This will ensure that if the defendant misses a court date, the bail money lost to the courts will be paid in full by the co-signer. If the defendant fails to appear the bond company reserves the right to hire bounty hunters to find him. 

Posting Bail

Fortunately it doesn’t take long to draw up the agreement between the defendant, co-signer and bond company. Once the agreement is in place and the non-refundable fee is collected, the bondsman can post the defendants bail. They know the system well and can complete the process quickly.

Getting a call from a loved one that has been arrested is enough to overwhelm anybody. Knowing where to turn to secure their release will help all parties involved.  Educate yourself now so you are prepared if and when that time comes. For more information, you can refer to the professionals at companies like Absolute Bail Bonds.

5 Benefits Of Cash Loans

Cash loans are short term loans that are given to borrowers who need money before their scheduled pay day that can be re-payed once the borrower’s pay check comes in. Cash loan transactions are often done in cash advance store fronts, but online applications and direct deposits are becoming more and more popular due to the convenience.  If you find yourself worrying about how you are going to be able to pay your bills or buy groceries before your next pay check arrives, cash loans are the perfect solution. There are many benefits to getting a cash loan, outlined below. 

1. Cash loans are easy to apply for. Within minutes of deciding to apply for a cash loan, you can have your application complete and be approved for the loan without a lengthy background check or paperwork to fill out. 

2. Good credit is not a requirement. Most cash loan businesses do not run credit checks, so even if you have bad credit, you may still be approved for a cash loan. 

3. Cash loans are convenient and safe. Cash loan businesses are legal businesses who offer short term loans without compromising your privacy or personal information. 

4. Low interest rates. As with any loan, cash loans do require the borrower to pay back the loan as well as a small percentage for interest.  As long as the money borrowed is paid back within the time frame agreed to at the time of approval, interest rates are usually very competitive and reasonable.  If the borrower neglects paying back their loan, interest rates may increase and a fee may be charged.

5. Customer Service. There are many cash loan companies popping up all over the place, including online, so customer service is very important to keep their borrowers happy and coming back. Companies want your business, so the employees will be trained to work with you to meet all of your needs as well as make the cash loan process a pleasant experience. 

If you ever find yourself face to face with an unexpected expense that you won’t have the money for until your next pay check arrives, or you find that you have spent more than you had in your budget and need money right away, a cash loan is probably the answer. Even if you don’t have enough credit built up for a long term loan, a cash loan will help until your employer pays you your next check. Speak with an expert, such as Koster’s Cash Loans, for more information on cash loans.