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Tracey Espinoza remembers the day in 2013 when she had to leave the home she loved due to foreclosure. As she was packing up her bedding, she thought, “Well, at least they can’t take my pillows. At least I don’t think they can.”
Like many Americans, Tracy and her family got caught up in the aftermath of the economic downturn of 2008 to 2011. By 2012 neither her nor her husband’s salary had increased and getting another job at higher pay wasn’t panning out.
Complicating matters, they’d had two children in the previous four years, and Tracy cut back work to part-time to care for them. When Tracy could not find full time work in her field, they were unable to keep up with mortgage payments and fell into foreclosure, ruining their credit. When her husband’s 8-year-old Toyota Acura needed a new transmission, they turned to a “bad credit” credit card to pay for it. He needed to get to work reliably—without missing a day—after all.
Even now in 2020, wages have not caught up with the stock market rebound. A Wall Street Journal article quoted the senior human resources manager of Ohio’s First Solar manufacturing saying, “Wage pressure? I don’t think we’ve necessarily seen that.” After all, at their last job call, 700 people showed up for 120 positions. They had their pick.
Surmounting the “Bad Credit” Stigma
“Bad credit” loans and credit cards suffer from a somewhat undeserved reputation. Where “good credit” typically starts at the 700 score and above, “fair,” “poor” and “bad credit” make up the tiers beneath. With over 50% of Americans now in these “subprime” categories, many turn to higher rate loans to keep their computers, cars and even bodies working so they can earn a living.
Where “Bad Credit” Loans Do the Most Good
These three situations prompt borrowers to gather their courage and get a “bad credit” loan to keep going.
Building Credit: If you’re in the subprime credit category, most likely you’ve learned that every credit card you apply for checks or “dings” your credit record. Every “ding” drops your credit score by 10 points or more. Ironically, those with the best credit use credit cards the least. They have the most “available” credit. Of the $30,000 that their banks, mortgage holders and auto lenders feel they can afford to borrow, they may currently be using $3,000 of it. We all should be there someday! Borrowers working to build their credit rating, on the other hand, can avoid incurring a credit check and subsequent credit “ding” by getting a bad or low credit loan. Typically, the lender requires no collateral and will not contact Experian, TransUnion or EquiFax, the three largest credit reporting agencies. It simply needs bank statements, pay stubs, proof of residency and limited other documents.
Keeping Income Earning Tools Functioning: Many Americans today are abandoning corporate careers for freelance work. In fact, software giant Intuit performed a study of thousands of American workers and found an interesting draw to an independent lifestyle. Their findings prompted them to declare that by the year 2020, 40% of the American workforce will be freelance. While the freedom and the endless pajama-wearing is great, freelancers have to pay for lots of things that don’t even cross the corporate employee’s mind. These items include: computer repair, subscriptions to SaaS services, and transportation. When any one of these breaks down, the time and the repair budget fall on the freelancer. With work mounting, rectifying issues as quickly as possible becomes paramount. If clients have not paid but bills are due, freelancers and other entrepreneurs often have to resort to credit cards. The start-up business may not even have a credit line established. Therefore, they fall into the “subprime” category. Should they give up on their business? Is THAT the American Way? The most successful freelancers work back channels and creative pathways to reach their goals. Many businesses have resorted to “bad credit” loans and even credit cards to stay in business until their breakthrough.
When Fees and Penalties Are Burdensome: A 5% late payment on a $2,500 rent runs to $125 of money-for-nothing. A bad credit loan, on the other hand, comes in handy when big payments come due. When an unavoidable fee or penalty comes within just a few days of a paycheck or accounts receivable avalanche of past due payments from clients, it makes sense to pay the expense and then quickly pay off the short-term loan.
First Financial Welcomes Bad Credit Borrowers
First Financial can find the right loan instrument, even for those with poor, fair or bad credit. Because more than 50% of Americans fall into the subprime category, enterprising alternative banks (with all the security the big, bricks and mortar banks offer) deliver affordable loans. Apply for a bad credit or low credit score in minutes here. Follow us on Facebook to get smart about building your fin
Explore your auto loan options and apply SAFELY while waiting for meetings, watching television or in the doctor’s office!
We’re excited here at First Financial to offer you top-of-the-line mobile bad credit auto loans you can apply for completely through your iPhone or android device. Our “bank-level” 128-bit encryption is just as safe if not safer than going into your local branch, filling out forms and handing them to a teller. In fact, it’s highest level of security currently allowed by U.S. law.
Don’t let one or two banks ruin your excitement about trading in or buying a car. It’s more than likely that they WILL turn you down. . . along with over 50% of your American neighbors who also have “subprime” credit. Most banks are not specialists in bad credit auto loans. We’ve closed 1 million bad credit auto loans in the past 15 years!
You may be surprised to learn that you need to verify just $1500 in monthly income, that you are a U.S. or Canadian resident and have had no repossessions in the past 12 months. Those with bankruptcies that have been discharged or are in possession of Authorization to Incur Debt from the bankruptcy trustee still qualify.
Our mobile bad credit auto loans mobile application gives you all the information you need in easy-to-read, smart phone format. You can:
Our fast and simple online auto loan application and mobile auto loan application can get you driving within days. Want to keep an eye on lots of low cost online auto, mortgage, personal loans as well as the loan industry?
Where achieving a healthy weight depends on limiting food (energy) intake and increasing energy expenditure, healthy financial profiles spring from a similar balance of limiting expenses and maximizing income over time. Personal loans support both sides of this balance, optimizing wealth if not in the next year, at least in the next five or 10.
Personal loans often serve to:
Even if your credit score is under 640 (currently considered the lower end of “good credit”), you can get a personal loan. Here are some tips for becoming proactive and getting the personal loan that balance your cash flow in your direction, bad credit or not.
Consumers often find that once they begin their new financial habits (reducing expenses and increasing income), the process becomes addictive. Just taking charge of your finances will help you feel more confident and happy. Even if you’ve spent yourself into the “bad credit” category, having a plan and acting on it provides the reassurance that you won’t be there forever!
According to reports by the Federal Reserve Bank of New York, 107 million Americans have auto loan debts. This data shows more Americans have car loans than mortgages.
Borrowers able to get auto financing at reasonable rates access larger and amounts than before. This sounds appealing to individuals with a solid credit history, but what if you are just starting off in the world of credit and have no history at all? The good news is that even with poor credit you can still get car financing by opting for a No Credit Auto Loan with First Financial.
But how can this happen? Read on to find out.
First, you need to understand the meaning of a No Credit Auto Loan. As the name suggests, this is a car loan extended to an individual with either no credit history, poor credit or limited history. Therefore, you can get an auto loan even without having a credit history, or with a bad credit history.
Below are the reasons why you need to take a No Credit Auto Loan with First Financial.
Can you get a car loan with bad credit? This is a question asked by many people and you might be surprised to find out that of nearly 50% of American borrowers have a tarnished or limited credit history.
In other words, their credit scores lie in the subprime category, which means they have limited options for accessing loans. This category of people will find First Financial their best option since they can place their application regardless of their situation, whether its bankruptcy, poor credit, or no credit.
If you want to make a major purchase like a car or a truck and your credit history is not appealing, then this is the best website to turn to. You will be able to access the loan in the convenience of your laptop at the lowest possible rates you can ever imagine. The process is easy and confidential and you are sure to get a quick email response to update you on the progress of your application
First Financial is an online lender which means it is accessible 24/7 anytime, anywhere. Some of the conveniences you are certain to enjoy:
First Financial believes that obtaining a No Credit Auto Loan should be hassle-free because this is a long-term financial decision you are making. You should not be under duress by auto-dealers whose main concern is the interest they get for every client they bring on board.
Working on your car loan from home will give you the freedom to check on different prices and options available so that you are sure to make an informed decision.
The requirements of getting an auto loan without credit on this website are so easy you may think it’s too good to be true. While the requirements are stringent enough to avoid liability to the borrower, they are also “loose” to ensure that most of the applicants get approved. The following are the only qualifications for auto financing:
Even if you have been declared bankrupt, you have a reason to smile because First Financial will sort you out. Such financial hurdles will no longer deter you from obtaining a loan for your vehicle or truck.
Members of the armed forces both on active duty or retired and struggling with bad credit may wonder how they may qualify for a car loan. First Financial has tailored made auto financing programs that helps them to obtain auto loans in spite of their poor credit scores.
First Financial understand the difficulties encountered by these military men and women in their effort to maintain safety and that is why they have specialized programs dedicated to them. Military auto loans are different from normal civilian loans because they are often offered on lower interest rates, require lower down payments and come with special discounts.
The rate of approval is high mainly because of the stability of their income. Military workers should not put off buying a car because of the demand of their duties but should embrace this enticing opportunity
As mentioned earlier, First Financial is an online provider of bad credit car loan that partners with hundreds of authorized and licensed car dealers. This site will allow you to shop for dealers while comparing prices and interest rates.
To crown it all, you will be able to get several preapprovals using only one application. So don’t allow yourself to be limited by the car dealers or the financial institutions in your area, browse through our website for an array of choices.
It may seem daunting at first but it is not impossible. A few tips will help you navigate the murky waters of credit even with no credit history to back you up.
Engaging a co-signer with an excellent credit history in your auto loan will increase your chances of approval. Also, a reasonable down payment will show the potential buyer that you are serious about buying a car despite your bad credit history and may serve to reduce the total cost of your loan. Finally, shop around to explore the options available in the market and compare various interest rates and the payment plans that suit your budget.
Remember, First Financial will offer you the best financial support irrespective of your credit history. Apply for your No Credit Auto Loan today in less than three minutes.
43 million Americans have bad credit, with the bulk of these being young consumers.
While student loans and tough economic times can be blamed for this, poor planning and a low comprehension of credit facilities are partly to blame as well.
Cash advance loans are very convenient and can be hard to resist, but they can also put you in trouble.
How do these loans work, and how can you ensure to get the most out of them?
Here is an in-depth cash advance guide.
Your credit card lets you use your credit card to get a short term loan at an ATM or a bank. This is then paid back in the same way you pay for anything you put on your credit card.
In a way, this is like using your credit card to ‘purchase’ hard cash, which you then use to buy goods and services. In this way, you get to borrow cash against your credit card limit.
The same way you use your debit card to get cash from an ATM, you get cash from a credit card to be repaid with interest.
The difference between a credit card advance and a payday advance loan is that the latter is not dependent on your credit card.
If you typically do not carry paper money for your day to day spending, you might run into trouble when you need to pay for something at a business that only accepts cash payments.
In such cases, being allowed to convert your credit card limit into cash becomes very convenient.
Most credit card companies allow their clients to convert a percentage of their credit limit into cash, as opposed to the entire amount.
For most people, this translates into a couple of hundred dollars. This is therefore useful for smaller emergencies purchases and should not be dependent on for larger purchases.
While getting a credit card advance is easy, the interest rates can be a bit high.
Here are some of the associated costs that make it so:
These are determined by the financial institution that processes a transaction. This can be a bank or an ATM where you get your cash advance from.
If you use a bank outside your card issuer’s network, expect the fees to be higher.
These are determined by the company that issues your credit card.
These are charged in three different ways.
The first is by charging a percentage of the amount advanced. This can be as high as 5%.
The second way is by charging a flat fee per cash advance. For example, you can be charged $5 to $10 per advance, irrespective of the amount.
The third one is by charging the higher figure between the percentage or the minimum amount. An example of this is $5 or 10% of the withdrawal amount; whichever amount is higher.
To begin with, the interest charged on credit card loans is always higher than that charged on a credit card purchase.
Secondly, while you get a grace period with credit cash purchases, interest on cash advances starts accruing immediately.
It might be impossible to avoid this loan facility altogether.
For this reason, it’s key to know how to keep the costs low and avoid getting into unmanageable debt.
Here are a few tips.
The amount available for you to convert to cash is lower than your credit card limit. Exceeding this amount can result in higher interest rates and other over-limit charges.
Ensure to find out your card limit when you get a new card so you can adhere to a safe limit.
The key information to look out for is the one-off payable cash advance fee and the applicable APR as well.
If you are unclear on any terms of your contract, ensure to engage your service provider’s customer care representative.
Limit the use of this facility to emergencies you cannot use your credit cards on. It’s also important to create an emergency fund to draw from when needed.
If used without caution, credit card advances can spiral out of control making it difficult for you to make timely repayments. Consequently, this has the potential to lower your credit score.
Aside from only using this facility as a last result, limit your withdrawals to only what you need.
Resist the temptation to take out more because the higher you take, the higher the interest you will pay.
While this might seem like much, these amounts add up to a significant figure over time.
Taking out this facility does not directly impact your credit score, but it might have some indirect consequences.
The first one is that it raises your credit utilization ratio. This is among the benchmarks used to calculate your credit scoring. A high utilization ratio positions you as a high-risk borrower and may lower your scoring.
The other one is tied in with the costs of repaying a credit card advance. If you are not able to afford the high-interest rate, you may resort to late payments or even default.
When this information makes its way into the credit bureaus, it can negatively affect your scoring as well. As a rule of thumb, avoid making payments 30 days past the due date. Timely payment could help improve your credit score.
Ensure you understand all processing costs, the applicable APR and your ability to repay before taking out the loan.
“It comes as a surprise to some that you have the ability to remove negative credit issues from your credit report. If you have been subject to identity theft or involved in late payments, bankruptcy, repossessions, or foreclosures from over 7 years ago, you may be able to remove these credit dings from your history to improve your score. Should you find any information in your credit report that is simply wrong, you also have the ability to contest the issue using the Fair Credit Reporting Act (FRCA) ”
Until April of 2021, the three major credit bureaus are allowing you to check your credit score on a weekly basis (rather than yearly). This is a great opportunity for you to see how making healthy financial decisions can quickly raise your credit score — and in real time.”
An average new car in America will set you back $32,000. This amount is too steep for many to pay for in cash.
For most people, taking a car or a personal loan is the most viable option but which should you go for between the two?
To answer that question, it’s important to understand what each of these options entail. In this article, we shall make an analysis of personal loan vs. car loan to help you make the right choice.
A personal loan is an unsecured facility that provides the borrower with funds from the lending institution. The institution is most often a bank.
The funds are advanced in a lump sum, and the borrower can channel their loan funds towards any venture they see fit. These loans typically range from $1,000 to $ 50,000.
A personal loan can also be secured, meaning you attach an asset of value to your loan. On default or inability to repay your loan, the lending institution can seize the property to recoup their funds.
However, most borrowers opt for the unsecured loan.
Because of the risk involved, unsecured loans attract higher interest rates than secured ones.
Their requirements are also more stringent, with the borrower’s ability to repay and previous credit history being scrutinized.
It does not end there, the amount you qualify for, and the interest rate at which a lender advances your loan are both dependent on your credit rating.
Even though there are things you can do to improve your credit rating, you will have to contend with high interest rates if your rating is less than stellar.
Personal loans have a repayment period attached. The longer the repayment period, the higher the interest you will pay by the time the loan comes to term.
The reverse is also true; you pay less interest with shorter loan terms. However, you should go for these only when you are absolutely confident that you can comfortably pay the higher amounts.
These loans are considered a secured loan.
The security, in this case, is the car you intend to buy. If you default on your payments, the dealer repossesses the vehicle to recoup his money.
The borrower makes fixed payments over the duration of the loan. As the borrower, you take physical ownership of the vehicle, but the financier owns the asset until you make your final payment.
Because the car you buy is also collateral for your loan, a car loan is deemed to be low-risk financing.
It, therefore, attracts lower interest as compared to a personal unsecured loan.
The interest rate is also fixed from the onset, cushioning borrowers from increases experienced with personal loans.
Most car repayment terms are under 36, 48, or 60 months. Again, the monthly payments are higher for shorter repayment terms and lower with longer repayment terms.
Conversely, the interest paid is higher for more extended repayment periods than for shorter ones.
Unlike a personal loan where your credit history features prominently, your credit rating does not significantly affect your car loan application.
Similarly, an unfavorable credit rating does not significantly impact your borrowing amount nor interest rate.
This means you can still go for a pricey car with a poor credit rating.
As already discussed, these loans have their similarities and differences. They also have their advantages and disadvantages.
The merits or personal loans are two-fold.
The first is that you can use your personal loan for a car, or channel it to other uses, partially or wholly. As such, a personal loan also offers more flexibility in repayments.
Personal loans do have a downside, however.
Due to their unsecured nature, personal loans employ stricter eligibility criteria and requirements. Upon qualification, you also pay higher interest rates.
Personal loans also lock out people with poor credit scores.
Car loan applicants enjoy lower interest rates, with faster approval processes. If you need a car and have a poor credit history, a car loan might be the only financing option available to you.
This notwithstanding, you need to put up a deposit to get a car loan. The amount will be dictated by the total cost of the car. This can be limiting.
In addition to this, you do not fully own the car until you have made your last payment.
Whether you go for a personal or a car loan, there are tips to help you find a good financing option.
Determine how much you can afford to spend. A rule of thumb is that you should be able to repay the loan within three years.
This cuts down the amount of interest and prevents you from paying more than the real value of the car.
Contact your local banks and credit unions to see if you can be pre-approved for a loan, and what the interest rates are.
Compare bank rates with dealership rates, and do your research on any discounts that can be offered to you.
Find out if setting up automatic loan repayments or switching banks will lower your interest rate as well.
All this information will point you towards the most affordable option.
The pre-approval process may include producing proof of income documents.
Be ready with this information, as well as any other financial information that can help your loan be approved and disbursed faster.
When you reach advanced stages of loan approval, you can get to the fun part, which is shopping for and test driving different cars.
A personal loan offers more leverage in terms of bargaining power on your car of choice.
Do not shy away from negotiating with a dealer either. Shop around and find out the going rate for the car you want.
If you have an older car, it might seem easier to trade it in. While this is one way to go about it, selling your old car independently will give you a better return than trading it in.
The key take away on the personal loan vs. car loan question is to understand the differences and measure either type of loan against your circumstances to find the best fit.
First Financial is a leading financial solution provider to people with a poor credit score. Contact us today if you are in need of a personal or a car loan.
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