I lost my bank’s passbook a few months ago so I went to my bank and asked for a new one. When the teller saw my bank account’s cash flow, she asked me if I am willing to apply for a credit card. I asked her about the benefits that I could get if ever I get one. I got enticed when I found out some advantages of having a credit card such as no need in carrying huge amount of cash.
It is convenient plus the fact that credit companies offer consumers a flexible rewards in which points earned by purchasing goods with the card which can be redeemed for further goods and services. Using credit cards can also help you build a positive credit history. No wonder why my mom has a lot of credit cards. Having a good credit history is very important specially when the credit card owner is applying for loans, rental or even jobs.
However, the disadvantage of having a credit card is that they are inviting cardholders to spend more money that they don’t have yet. Credit cards also issues a monthly spending limit. If you exceed it, you may face even bigger charges which will lead into debt or even bankruptcy. Oh well, I think I have to think carefully before applying for a credit card. There are many benefits that I can obtain by using a credit card as long as I pay off my balance at the end of each month.
Before heading towards the showroom to finalize a deal, you need to understand certain terms. Even if you are earning well, paying full amount for a car can burn a hole in your pocket. Therefore you need to think about the second option which will help you to get the car of your choice. Lenders generally prefer to lend those with good credit history but do not feel dejected because there is way out for people with bad credit.
To start with loan is made up of these components:
Loan term: Term is the length of time when you will be required to pay back the loan amount. One thing should be kept in mind that the longer you take , the more will be the rate of interest.
Rate of interest: Rate of interest which you are charged at the time of borrowing the loan amount. Your rate of interest will be charged according to your credit history. You can compare lenders through annual percentage rate (APR). This way you can express the financial charge that you owe on yearly basis including fees and rate of interest.
Down payments: It is what you can afford to pay? The larger the down payment you make the smaller will be your break up loan. If you pay higher then you can settle for lower rate of interest. One thing should be kept in mind that there are various financial deals for cars that do not require any sort of down payment. It is recommended that you pay 20 % of the car’s price.
Next thing is to calculate car loan so that you get a clear picture of what you owe? For instance if you take an amount of $18000 as loan at an interest of 7.5 APR which has to be paid in period of 4 years then you owe $433 every month. The loan terms can vary according to the lender. Therefore you need to know the down payment as well as pay heed to credit history. This is important to know because significantly you end up paying more than the price of the car.
Today it is quite easy to get bad credit auto loan quotes. Online websites like bmacfinance to find some of the best deals. You can also get in touch with local banks and other financial websites that allows you to compare auto loan interest across you place. Once you have settled for a credit union or bank to finance for your car purchase, figure out certain important things like rate of interest, loan term and other details.
After you get the best rate, you become pre-qualified for the loan amount. This way you can establish the loan rate and size of the loan that financial institution and credit unions are willing to give you. Some institutions also give bank check which can be filled out with the negotiated price of the car. This is first step towards getting into the driver’s seat and allows you to negotiate for a better deal.
If you have already secured financing from a reputed lender then you are better position because in this way you will be considered as a prospective buyer and become eligible for some special discounts too. For more information you can also log in to bmacfinance.
If you’re like us who really needs a new set of musical instruments for our church, financing some of the instruments and equipment needed can be a good solution when the money is just not there up front. There’s just a right way to go about financing anything that includes the musical instruments, Hal Leonard and other related gear.
You just need to figure out the equipment needs then make a down payment as big as possible so it will help you cut down on the amount that you have to finance and help you buy more with less money. You also need to know how much you can afford to pay each month in order to arrange a successful financing deal.
I noticed that there are many people who are using credit card nowadays. But for others, they find it dangerous specially if it is used too much. Well in my own opinion, if we can manage our credit card the right way, there are far more advantages than disadvantages.
One of its advantages is that it offers cash back or some type of reward program just for using the credit card. I also find credit cards convenient because it can help you in your purchase since its easier to hand the cashier using your credit card.
Christmas is just around the corner and I do believe that holiday shopping using credit cards is perfect this holiday season. As long you can pay your monthly bills within the due date, then you can do your shopping spree easily and conveniently.
I’m thinking of getting a credit card soon since I find the ease and benefits in it. But before anything else, I need to check the factors to consider before applying for a credit card so I could decide what credit card is the best for me.