Credit Help 321.com

noreply@blogger.com (Administrator) — Sun, 28 Feb 2010 09:48:00 +0000

Thank You for visiting Credit Help 321.com, please explore our topics and if learn something new please share the information with your peers. For any specific questions, issues or comments please contact us.

Common Credit Misconceptions

noreply@blogger.com (Administrator) — Sun, 28 Feb 2010 06:53:00 +0000

1. A cell phone bill is a great way to build your credit. – The truth is I have been looking at credit reports for the last 5 years and with the amount of people that have cell phones I’ve seen very few people with cell phone bills reported on their bureau. Also it is only reported to trans union not equifax. A cell phone will help to build your credit somewhat but considering the fact that it is not reported to equifax, you will not get much benefit from it.(Don’t listen to those cell salesman in malls.)

2. If you don’t have anything in your name you have good credit... - The truth is if you have had no credit history you are treated almost the same as if you have bad credit simply because lenders/creditors do not know what to expect from you. You will notice that if you fall under this category you will be asked for a co-signer or get a very high interest rate. Cell phone companies and Pay day Loan companies will however offer you an account at this point.. be careful and make sure you can pay back..

3. If I sign or co-sign for someone I am not responsible..- The truth is once you cosign for someone you are both 100% liable for that loan for example if they cant find that person they will find you. when they are making bad report to your history it will state that you were liable and u didn’t pay, this will appear on both of your reports.. My suggestion is don’t do it.. If you have to, make sure the person is stable, make sure you have control, and make sure you are able to pay it incase that person flakes out... You know what just don’t do it not even for a cell phone or an Apartment..

4. If I get taken to court for child support it wont affect my credit..- The truth is that is absolutely one of the worst thing you can have on your credit, it shows up on your report as unpaid family responsibility and most lenders will not give anything to people who wont even pay for their own kids.

By Omari Whyte

Credit Rating in a Nutshell

noreply@blogger.com (Administrator) — Sun, 28 Feb 2010 06:44:00 +0000

A. To put simply credit rating is how you are seen in the eyes of potential lenders/creditors i.e a banks, phone companies, car dealerships.

Credit Scores Range from about 400-850 with 400 hundred being the bad end and 850 on the excellent side. In a nutshell at 400 you will most likely be instantly declined or if not you will get a deal that cost an arm and a leg and require proof of everything else like your stated income.... If you are at 850 banks will basically give you whatever you want a listen to whatever you tell them without proof- instant approvals.

What you qualify for will depend on your where your score stands, and a few other things such as income, time in the same job industry, home stability, repayment history, and even how long you've had your credit accounts.

Feel free to ask any questions you choose about any topic.

By Omari Whyte

The Haitian People Needs Our Help.

noreply@blogger.com (Administrator) — Sat, 30 Jan 2010 23:36:00 +0000

A magnitude 7.0 earthquake hit Haiti Tuesday, January 12, and Haitian Prime Minister Jean Max Bellerive estimates as many as 100,000 people may be dead. The epicenter of the quake was just 10 miles from the capital Port-au-Prince, causing widespread devastation in this island nation. The American Red Cross estimates three million people are affected.

Haiti is the poorest country in the Americas, and the Haitian people desperately need our help now.

The best way for you to help the people of Haiti is to donate to a well-respected charity with experience in medical and disaster relief. Haiti needs immediate assistance, and these organizations already have teams in place to assess the damage and provide the emergency medical care, food, clean water and shelter that people need.

NEW: Click to Help Haiti on Care2 - your free daily click generates donations for earthquake relief through Oxfam. Click today.

The following is an alphabetical list of groups that are working to help Haiti with direct links to their earthquake relief fund donation pages:

Abandoned Children's Fund
Donate directly above or call 1-888-884-0567.

American Red Cross
You can text "Haiti" to 90999 to make a $10 donation to the American Red Cross, call 1-800-REDCROSS or donate directly at the link above.

CARE
Donate online above or call 1-800-521-CARE from the U.S. or +1-404-681-2552 from outside the U.S.

Catholic Relief Services
Donate online by clicking the link above, text RELIEF to 30644, or call 1-800-736-3467.

Central Emergency Response Fund (CERF)
The UN's Central Emergency Response Fund. Donate directly above.

Children's Hunger Relief Fund
Donate directly above or call 1-888-781-1585 from the U.S. or +1-707-528-8000 from outside the U.S.

Christian Blind Mission
Donate online above - Canadians can donate online to Christian Blind Mission Canada.

Credit Help 321
Donations here will help to send groups of humanatarian and medical volunteers to help with the magnitude of challenges being faced by the haitian people. Donate Now

Doctors Without Borders / Medecins Sans Frontieres
Visit this link to donate from outside the U.S.

Freedom From Hunger
Donate online above or call 1-530-758-6200 x1042

Friends of the Orphans
Donate online above or call 1-888-201-8880

International Medical Corps

International Rescue Committee
Donate directly above or call 1-877-REFUGEE

Mercy Corps
Donate directly above or call 1-888-256-1900

Oxfam
If you are outside of the U.S., you can find the direct link to donate through your Oxfam affiliate here.

Partners in Health
Donate online through the link above, or donate by mail by sending a check with "Haiti Earthquake Relief" in the memo line to:
Partners In Health
P.O. Box 845578
Boston, MA 02284-5578

Save the Children
Donate directly above or make checks out to "Save the Children" and send to:
Save the Children Income Processing Department
54 Wilton Road
Westport, CT 06880

Salesian MissionsHelping children in Haiti since 1936. Donations urgently needed for food, water, medicine and tents. Currently housing 3,500 refugees. 500 students buried in the ruins of the Salesian schools.
UNICEF USA
Donate directly above or call 1-800-4UNICEF. Canadians can donate directly to UNICEF Canada.

World Emergency Relief
Donate directly above or call 1-888-484-4543 from the U.S. or +1-760-930-8001 from outside the U.S.

Yele Haiti
You can text "Yele" to 501501 to make a $5 donation to Wyclef Jean's organization in Haiti, or donate directly here.

Understanding Interest Rates

noreply@blogger.com (Administrator) — Wed, 30 Sep 2009 06:26:00 +0000

1. What is Interest?- Interest is the amount the lender charges to give you the loan.. Interest maybe accompanied by additional administration fees.

2. Ranges?- Interest rates typically ranges between prime(the set minimum rate controlled by federal government) - 32% (legally interest rate can go up to 65% in most areas.)

3. Interest Rates don’t matter.- The truth is they do for example if you have a high rate of lets say 29.9% on a $10,000 loan the fact is you will pay approximately double that or more on a car loan vs someone at 8% interest they will pay about $2000 extra on their $10,000 loan while you pay $10,000 on top of the $10000.00 you borrowed. Now can you see why bad credit people are always broke..

4. Can my rate be changed?- Yes it can be changed and in some cases significantly lowered.. Please contact me for details on these options.

By Omari Whyte

How do I build my Credit?

noreply@blogger.com (Administrator) — Wed, 30 Sep 2009 06:18:00 +0000

The only way to build your credit is to obtain credit account/s and show that you are a responsible individual and are able to repay and stay below your allowable limits.

This means making at least the minimum payment on your accounts every single months, if you are in a tight spot one way to do this is instead of paying a bill cash you can pay the credit card and then use the card to pay the bill, doing it that way you would have effectively satisfied the credit company as well as your bill.

Many people don’t really understand what effect being over limit on their credit accounts have on their score but it is simply too high of a price to pay... for example if a bank give you a credit card with a 500 limit and you have a balance of $501 at the end of the billing cycle, you will lose about ten points off your score just for that.-- stupid eh.. but that’s how it works.. so pay them $2 the dollars get it under limit it wont kill you.

To get started building your credit from scratch on your own without a cosigner in canada join TD bank or CIBC or RBC, In the US join Bank of America these banks are pretty good at giving a 1st shot once they see a steady paycheck being cashed and some money being left over... If you need a kick start and cant wait for those banks to be happy with you there is Capitol One (both Canada and USA) they will give you a secured Credit Card matching the amount of money you put up...TD(in Canada) does the same as well.

Don’t bite off more than you can chew..

By: Omari Whyte

Types of Credit Available

noreply@blogger.com (Administrator) — Mon, 28 Sep 2009 04:21:00 +0000

There are 2 main types of credit accounts available the 1st one is revolving this is the type of account enable you to borrow repay it then use it again this group covers , credit cards, store credit cards, and line of credits.

2nd is installment this type is classified by fixed payments- monthly, bi-weekly or weekly. This group covers things like car loans, personal loans etc...

There are other types of credit such as private company account limits and payday loans.

Types of Companies that contributes to Bad Credit.

noreply@blogger.com (Administrator) — Mon, 28 Sep 2009 04:09:00 +0000

Even though there has not been and will not be research to back this up I can confidently base the following on my own personal experience. > Most young people fall in the bad credit trap due to mismanagement (???) of their accounts with following types of companies.
1. Check Cashing Places
2. Pay Day Loan Companies
2. Cell phone and phone companies
3. Property management companies

therefore I believe learning how to manage accounts, or avoid accounts with these companies is part of the solution.

Please leave a comment if you have any specific questions about dealing with these types companies.

What is the best way to Rebuild or Repair bad Credit?

noreply@blogger.com (Administrator) — Mon, 28 Sep 2009 03:54:00 +0000

Ok if you already have bad credit you will first want to know the total amount owed to all the lenders/creditors put together, this will help you determine whether its a better decision to repay or simply file for bankruptcy ( I know what some of you are thinking "no bankruptcy" I am suggesting that you also read the post titled “when is the right time to go bankrupt”).

If you have determined that your total debt is manageable and decide to pay back the companies the best thing you can do is to contact each of you lenders and explain your situation and arrange a payment plan that they are ok with, and more importantly that you will be able to afford . (doing this will stop the negative monthly reports to your credit bureau.)After that the trick is not to acquire any more debt and continue to pay what you agree to pay until the debt is gone. Please note that if your debts are with collection agencies, when your are done paying back it is a good idea to contact Equifax and Trans Union and obtain a copy of your credit report to ensure that the collection item is mark PAID or Removed from your credit bureau.

Lets move on and assume that you have followed what you just read and your debt are now paid down or paid off.. at this point one of 2 things should happen:

1. If the majority of your debt was in third party collections most likely you would not have gain much rebuilding benefit while you were paying back the agencies. Therefore you will now need to kick start the building by obtaining a low limit secure credit card from a company like Capital One. Use it properly, try not to spend more than you can easily payoff within that month, if things get tight please please don’t miss any of the minimum payment not even by 1 day. (1 day late in the loan world is usually considered 30 days late and will report on your credit that way). Continue using that Card for about six months and you may notice an increase or an offer to increase your limit, accept it but continue to use the same principles don’t spend more just because they gave you more.. Continue that for another 6months then go to Citi Financial or Wells Fargo (in Canada in the USA it is usually better to try smaller companies such Credit Unions) and apply for a small loan of $500-$1000 you should be approved as long as your income can support the loan.. Keep that loan for 6 months, the easiest way on a $500 loan is to pay back $400 by the end of the 1st month (don’t even use it just take it out and put it aside), then continue to pay about $20 per month for the next 6months then pay it all off.

It should now be almost 2yrs on your rebuilding journey, don’t apply for anything else that you don’t have to. (not even a cell phone). Continue using the credit card as mentioned earlier until you pass the 2yr mark.

AT THIS POINT LENDERS WILL BE CONTACTING YOU WITH PRE-APPROVAL NOTICES BECAUSE YOU HAVE NOW ARRIVED IN GOOD CREDIT LAND.

p.s. WHEN YOU GET THE OFFERS DONT BE STUPID AND GET BACK IN SAME SITUATION- please read the topic about maintaining your good credit.

by Omari Whyte

What is the best way to reduce the amount of credit I have?

noreply@blogger.com (Administrator) — Mon, 28 Sep 2009 02:39:00 +0000

Ok assuming you have decent to Good Credit and the problem is just reducing the debt, there are two situations I can think of:

1st is you have a lot of credit but you are not using it> This is not necessarily a bad thing it only hurts you if you need to acquire new credit for example a car loan.. The new lender will look at you as if everything you have is maxed out, and will base their decision on whether or not you will be able to afford the monthly payments for all your loans should you max them out..

2nd is you have a lot of credit that is already used up> In this situation you will have to do some work, here are some tips:

A. Identify the accounts with the highest interest , see if you can transfer that balance to a lower rate account.

B. Stop or Reduce spending on your revolving/reusable accounts. (Such as Lines of Credit, Store cards and Credit Cards).

C. Contact your Credit Card Companies ask for a low rate option added to your card. (most companies have this option for a small annual fee for example in Canada TD Visa is usually 18-19.9% but if you pay $25 yearly fee you can get a 10-12.5% interest rate. Bank of America also offers a similar option the United States.

D. Try to Increase the monthly payments if possible.

E. If you are interested in Closing out your accounts and making one monthly payment you can speak to your bank about consolidation Loans.

P.S> Stay away from those debt management companies you see on TV they will put you in what is called a CONSUMER PROPOSAL which will ruin your credit for at least 6 years and you will still have to pay the lenders back.

by Omari Whyte

When is Bankruptcy the right option?

noreply@blogger.com (Administrator) — Mon, 28 Sep 2009 02:08:00 +0000

BANKRUPTCY- Can Someone please tell me why so many people are so scared of this word? Why you Prefer to have bad credit for the rest of your life when a bankruptcy can get you back on your feet within 2-7yrs.

All jokes aside let me try to explain bankruptcy the best I can. Bankruptcy was design to give US a fresh new start in the event that our debts becomes overwhelming.

I believe the right time to go bankrupt is when you have exhausted all other sensible options. I say go bankrupt if you meet any of the following criterias:

1. If you are in a situation were you cannot pay your debt in a manner that will maintain your good credit.

2. If your credit is already really really bad and you have no plans to pay it.

3. If you are trying to pay a consumer proposal ( A consumer proposal gives you almost the same penalties as bankruptcy, just with the added stupidity of still paying it back.)

If you are not in one of the above situations send me a message/comment with your specific situation or talk to a professional before you go bankrupt you may have better options.

Facts about bankruptcy:

A. It will give you a clean slate to rebuild on.

B. Most lender will not extend any credit to you until you are discharged.

C. They say you have to wait seven years, but the fact is I’ve seen people discharged in as little as one and able to rebuild by year three.

P.S. - don’t let anyone tell you stuff goes off your credit in 7 years> it is suppose to be true but what happens is the lenders keep your bad account for lets say 2 yrs then they sell it to collection agencies who registers a collection to your file which stays for 6yrs.. So now we're at eight years altogether but wait.. Collection agencies like to break the rules if they notice anything new on your credit or if they think they'll be able to find you, what some of them do is reregister it every year or so therefore your six years keep starting over.. I’ve seen several people with stuff on their credit for 10-11 yrs all thanks to the collection agencies, with bankruptcy they have to come off period.

By Omari Whyte

How banks decide who to lend their money to.

noreply@blogger.com (Administrator) — Mon, 28 Sep 2009 01:48:00 +0000

1st off there are different types of creditors there are the traditional I need ok to good credit lenders and there are the high risk lenders, this answer only applies to the traditional lenders such as banks and credit unions.

A. Banks will 1st look at your credit bureau to review your repayment history as reported by other lenders they look at this to determine if you have repaid or is repaying the amount borrowed in a satisfactory manner. This usuallly means that you've paid or is paying atleast the minimum payment before the due date every month and that you are not over the account limit on the closing date.

B. Banks will also look at your current debt load to make sure that your minimum payments, your basic cost of living and the new loan you are seeking can be comfortably covered by your income.One common misconception is telling the bank that you pay a big monthly rent is a good thing, actually its not if you live with family say that, if you pay nothin for rent say that - the less you pay for things like rent the more the bank believes you have to make monthly loan payments therefore qualifying you for a bigger loan. (If your income falls short they will probably ask for a cosigner to add income strength to the application)

C. Loans are easier to approve when the Lender is in a cant lose or almost cant lose situation for the, therefore the banks are always more willing to lend if you are willing to put up security such as a new model vehicle or a home.

Usually if the above 3 things look good to them you will be approved the application.. Keep in mind things such as market conditions and the economy will affect these decisions and you may find times when the bank will need you to over qualify before giving you a loan.

Please dont hesistate to contact us if you have specific questions or need help making your loan application look more attractive.

by Omari Whyte

How to deal with collection agencies.

noreply@blogger.com (Administrator) — Sun, 27 Sep 2009 16:53:00 +0000

Regardless of how people acquire their debt, it's important to communicate with the person or company with whom the money is owed. When creditors understand the problem, chances are they will work out a reasonable, manageable way for the consumers to repay debts.

What is a collection agency?

A collection agency is an organization that obtains or arranges for payment of money owed to a third party; this could be a person or a company.

How do I deal with collection agencies?

If you've been notified in writing that an account has been turned over to a collection agency, don't panic. The agency isn't in business to make life unbearable for you — its management just wants to collect the money you owe its client.

What should I do?
•If possible, pay the money you owe. You won't have to deal with the agency once the account has been cleared.
•If it's impossible for you to pay the full amount at once, contact the agency, explaining why. Offer some alternative method of repayment, either in a lump-sum or a series of monthly payments. Follow up in writing and, if possible, enclose a good-faith payment.
•Never send cash. Always make payments in such a way that you have a receipt — either a cancelled cheque from your own bank or a receipt from the agency.
•Once the account has been officially turned over to a collection agency, you'll be dealing only with that agency when making arrangements for payment. Don't contact the original creditor — this just creates confusion — unless there's an error in the account. If that's the case, advise both the creditor and the collection agency.
Remember:
•Your attitude towards paying the debt has a lot to do with how co-operative the agency will be. For example, when making payments to the agency, be sure not to bounce cheques and miss payments. However, if your financial circumstances change, contact the collection agency and explain your current status and follow up in writing.

•Debts should not be treated lightly. They can result in court action, which could lead to money being taken from your paycheque (garnisheed) or seizure of your assets.

If I feel I'm being treated unfairly by a collection agency, what can I do?

The Collection Agencies Laws in most states and ponvinces prohibits collection agencies from doing certain things.

The Ontario Ministry of Government Services consulted the collection industry to develop a standard to be followed by all collectors. Having a standard also allows the public to have a better understanding of what collection agencies can and can't do. The regulations forbid collection agencies from:

•contacting you until six days have passed from sending you written notice of the following:

• the name of the creditor

• the balance owing

• the name of the agency and its authority to demand payment

•continuing to contact you if you did not receive the notice unless a second copy of the written notice is sent to an address provided by you, and then contact may only be made six days after sending notice;

•contacting you if you send a registered letter to the agency saying that you dispute the debt and suggest the matter be taken to court;

•contacting you if you or your lawyer notify the agency by registered mail to communicate only with your lawyer, and you provide the lawyer's name, address and telephone number;

•contacting you on Sunday, except between the hours of 1 p.m. and 5 p.m., and on a holiday;

•contacting you other than by ordinary mail more than three times in a seven-day period without your consent, once the agency has actually spoken with you;

•using threatening, profane, intimidating or coercive language, or using undue, excessive or unreasonable pressure;

•continuing to contact you if you have told them that you are not the person they are looking for unless they take reasonable precautions to ensure you are that person;

•giving false or misleading information to any person;

•recommending to a creditor that a legal action be commenced against you without first sending you notice;

•contacting your employer except on one occasion to obtain your employment information, unless your employer has guaranteed the debt, the call is in respect of a court order or wage assignment or if you have provided written authorization to contact your employer;
•contacting your spouse, a member of your family or household, or a relative, neighbour or acquaintance except to obtain your address and telephone number unless the person contacted has guaranteed the debt or you have given permission for the person to be contacted.

Financial problems?

If your financial problems are getting out of hand, you should consider contacting a credit counselling service for help.

Remember to way your options carefully one big thing most people seem to not be aware of is the difference between filing for bankruptcy and going into a consumer proposal through a credit counselling agency. A snapshot answer is a consumer proposal will require you to pay back all of the money less some interest/ penalty savings versus bankrupcy where you will only be required to pay some or in many cases nothing towards balances owed. ( depending on your current financial situation i.e incom) I will write a future post detailing the two..

by Omari Whyte

Sub Prime Auto Loan

noreply@blogger.com (Administrator) — Thu, 24 Sep 2009 16:35:00 +0000

Tips for Subprime Borrowers
Getting a Car Loan with Bad Credit

You've just learned that your request for an auto loan with XYZ Bank has been denied. The loan officer explains that the decision has to do with your credit score. XYZ lends only to prime borrowers; your credit score, she continues, places you squarely in subprime territory.Subprime. You're not sure exactly what it means, but it sounds like a condemnation that will forever brand you as being somehow deficient to lenders.However, being deemed subprime doesn't necessarily mean that your borrowing days are over. It may still be possible for you to get that sought-after car loan (albeit from a different lender).But first you need to understand the term that defines you. A subprime borrower is one with bad credit. Each lender has its own definition of what constitutes a subprime borrower, but typically, a credit score of less than 620 lands you in this less-than-desirable category. For more information on credit scores, and what sort of factors cause them to suffer, please see Credit Scores Demystified and Understanding Your Credit Report.There are plenty of credit grantors specializing in subprime lending who are eager and willing to loan money to those with bad credit. Naturally, though, there's a catch. The interest rates for subprime borrowers are frequently quite steep — significantly steeper than those paid by their more credit-worthy brethren.So, now that you understand what your playing field looks like, how can you finesse the game in a way that gets you a reasonably priced car loan? Here are a few tips:

Check your credit report. Make sure that everything on your report is accurate; it could be that information has been entered in error, and that your credit history is a lot less blemished than you've been led to believe. If you do find information on your report that is inaccurate, you need to address it right away. Contact the credit bureaus in writing, listing your name and address and clearly detailing the nature of the error.
Access your credit score. For a long time, credit scores were available only to prospective lenders, who used them to evaluate those seeking loans. That has changed; it's now possible for consumers to access this all-important number. Your score is available online from each of the three credit bureaus: Trans Union, Experian and Equifax. If you've got bad credit, it's helpful to know it beforehand. Knowing your credit score will help give you a sense of exactly where you stand in your search for an auto loan.
Don't rely on the dealer. Dealers take a cut of all car financing deals they land; as a result, any loan that they're able to get you with a bank or financing company is likely to wind up being more costly to you than if you had contacted the bank on your own. Ideally, you'll want to secure your auto loan before setting foot inside the dealership.
Shop around. Rates will vary from lender to lender; take the time to look around and see what deals are available or apply for your loan on the companies website and let them do the shoping around for you . Lenders typically define their business according to credit tiers (A, A- and so on.); speak with loan officers regarding how each tier is linked to credit score and interest rate. Ask for a matrix detailing the tiers and their implications; having something in writing from each lender will make it easier to compare your options effectively and that is what a broker will obtain on your behalf. If you have a checking account, the broker may include your bank in your search for a loan. Many banks have entire departments dedicated to providing loans to those with flawed credit, and they tend to look more favorably upon applicants who are current clients. Credit unions are also a good places to turn. For years, credit unions have had a reputation of lending only to members with good credit, but that's begun to change. Many are now beginning to expand their business to include those with less-than-perfect credit.
Remember that your credit score is malleable and ever-changing. When it comes to your credit history, the ball is entirely in your court. You can improve your bad credit by paying your bills on time, and not overextending yourself when it comes to loans and credit cards. With proper attention paid to the state of your credit, you could conceivably hoist yourself out of subprime territory in as few as two or three years. Going forward, check your credit score at least once annually. You may have to pay more than you'd like for the auto loan you're about to receive, but in a year or two, if your credit score has improved, a broker may be able to refinance your loan at a much lower rate.

Third Party Warranty

noreply@blogger.com (Administrator) — Thu, 24 Sep 2009 16:32:00 +0000

Auto Repair Costs are on the Rise - Are You Protected?

With newer, better and more technologically advanced vehicles in the market today, auto repair costs continually rise. For example, if a previously-owned car that you bought three years ago suddenly breaks down and it requires an engine replacement, you would need to shell out as much as $3000 if the manufacturer's warranty has already expired and you do not have an extended warranty. Repairs for a fuel pump or water pump would cost, on the average, $500. If you are short on cash and you decide to delay the much-needed repairs, your car's condition might even get worse. These are the reasons why it is a must for you to ensure that you are protected from the rising auto repair costs. You never know when your car will break down so it will give you absolute peace of mind knowing that you have ample coverage for future repair costs.One of the ways to ensure that you are protected against rising auto repair costs is to get an extended warranty. Take a look at some of the important reasons why you need to invest in an extended warranty for your vehicle.

Extended warranties serve as your financial security blanket for future auto repair costs.
Having an extended warranty increases the resale value of the vehicle if you decide to sell it in the years to come.
An extended warranty offers benefits such as Free Roadside assistance, rental car allowance, towing and trip interuption.
Whether you have purchased a brand new or previously owned vehicle, getting an extended warranty serves two purposes: First, it will ensure that there is a minimal impact to your finances if there is a need for major repairs in the future. Second, it will serve as a protection for your investment and mental state.

Remember, the more that you drive your vehicle, the more that it becomes subject to failure. Purchasing an extended warranty can save you both financially and mentally. Knowing that you are covered from the rising auto repair costs will give you absolute peace of mind while driving down the road – and it will serve not just as a protection for your vehicle, but for your finances as well.

Car Insurance avoid the steep premiums.

noreply@blogger.com (Administrator) — Thu, 24 Sep 2009 16:24:00 +0000

How to Save on Car Insurance
by: Jason Williams

Are You Still Paying Too Much for Car Insurance?
Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.

1. Shop Around

Go to http://www.creditlinxcanada.ca/insurance-quote.html. Fill out one simple quote form, You will be asked basic information about yourself, your driving history, and your car\'s make, model, and year. You will then get instant quotes from at least five car insurance companies. It just takes a couple of minutes, and shortly thereafter, they may email you a no obligation quote. Write down the your reference number, their toll free number, and customer service email address.

Each insurance company ll ask you generally the same questions, and will give you options about how much coverage you will want. Find your current policy, if you have one, and take note of the coverage you currently have. Always provide the same information and ask for the same coverage at each company so you will be comparing apples to apples. Read the fine print and make sure nothing is excluded from the quote like Rental car coverage, towing, medical, etc...

For the purposes of the quote, the insurance company will not ask you your social security number, but keep in mind your actual cost maybe higher or lower depending on your credit history. If you\'re not sure about some of the terminology or coverage, take notes so that you can ask the insurance company about them directly.

Once you have at least five quotes emailed to you, take the lowest two or three quotes and see if they are less than what you are paying now. Most likely at least one of them is much lower. At this point you will want to call them directly to get the most accurate quote by providing additional personal information. For additional discounts, here is a checklist of things you should ask about.

$500 deductible
$1,000 deductible
Paying monthly, semi-annually, or annually
More than 1 car
No Accidents in 3 Years
No Moving Violations in 3 Years
Driver Training Courses
Defensive Driving Courses
Anti-Theft Devices
Low Annual Mileage
Air Bags
Anti-Lock Brakes
Daytime Running Lights
Student Drivers with Good Grades
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Long-Time Customer
Other Discounts
2. Saving Insurance Premium on cars you own outright.

If you own a clear title to your car, meaning there is no bank loan on it, then you may want to consider dropping the collision/comprehensive coverage. As a rule of thumb, if the cars value is less than $3000, it may not make sense for you to pay for this additional coverage. Over time, the cost of the additional insurance premium will exceed the value of the car. It\'s pretty simple math.

Check the fair market value of your car either through Edmunds.com or even your local newspaper. See what other people are trying to get for the same car. Keep in mind your cars mileage, condition, and age. Has it been in an accident before? Does it have unusually high mileage in excess of 15,000 miles per year? Does it need new tires? You get the idea. Be realistic, because in the event that this car is in an accident and is damaged beyond repair, it is unlikely you will get the full value of the car.

3. Ask About Insurance Rates in Different Areas

Rates can vary widely even in the same state. Different locals have different accident rates, population, and crime. These all factor in to the final cost. If you are moving to a different area, ask about what the rates are for that town.

4. Ask About Getting Other Insurance Policies Together With Your Auto Insurance

Combining insurance policies with the same company can often give you additional discounts. If you own a home, ask about combining your homeowners insurance with your auto insurance. Also ask about other polices, such as life, health, and business insurance. Most insurance companies cover a wide range of policies and will give substantial discounts when you do business exclusively with them.

5. A Clean Credit History Can Reduce Car Premiums:

Having good credit can also lower your insurance costs. Many insurance companies will use credit information to price auto insurance policies. Drivers with good credit and a clean driving record may qualify as a "preferred" customer with lower risk and will be rewarded with lower premiums.

6. Low Mileage Discounts

Some companies offer discounts to drivers who drive a lower than average number of miles per year. If you car pool, take public transportation like the subway, or work from home, you will most likely drive few miles per year than the average driver.

7. Group Insurance

Some insurers offer discounts to drivers who work for certain companies or belong to professional associations, and alumni groups. Ask your employer, group or clubs that you belong to if they have any special arrangements with different insurance companies.

Using all of these tips can save you hundreds of dollars per year, especially when you have multiple cars and multiple drivers in the same household.

Used Cars are still a better Financial Options!

noreply@blogger.com (Administrator) — Thu, 24 Sep 2009 15:38:00 +0000

Used cars make good sense!

Many years ago, buying a used car was compared to buying "someone else's troubles". With cars being built to last longer, that's no longer the case! It's a matter of knowing how to take advantage of the resources available to car consumers today. You may need to work a little harder, but you'll save money. And used cars don't depreciate as much as new cars; you lose 20 to 30 percent of the purchase price when you drive a new car off the dealer's lot. There are some great bargains to be found!

TAKE ADVANTAGE OF YOUR RESOURCES
Your first stop should be to consult one of the publications such as www.creditlinxcanada.ca that list retail and wholesale values for cars in Canada. This will give you an idea of what cars are available in your price range.

Take a look at newspaper advertisements and magazines that sell used cars to determine what cars are readily available, and which are not. You'll find imports generally command a higher price than domestics, since imports tend to hold their value longer. However, if you can find a domestic car "loaded" with options and low mileage, it can be a good investment as well.

You may even want to join an organization like the Automobile Protection Association (APA) or the Automobile Consumer Coalition (ACC) or the Canadian Automobile Association (CAA). These offer a number of services, from the repair records for certain vehicles to dealer referral networks and recall information.

Check the history. Some provinces, like Ontario, require that you get a Used Car Vehicle Information Package (UVIP) or similar document when buying a used car. This gives you the vehicle history and other information.
Publication and Financing companies such as auto finance brokers will provide you with a free carfas report upon request.
Check for liens. You want to ensure that there are no outstanding liens on a vehicle!
Does the mileage match the car's condition? Low mileage and lots of wear and tear on the car may mean the odometer has been tampered with.
DEALER VS. PRIVATE
Companies like CreditLinXCanada.ca will only finance a car that come from a dealer. Therefore if you choose to go private you may have to have the entire value of the car handy, and also be prepared to pay registration fees and taxes at your local MTO.

Although it's tempting to buy privately at a lower price, you may be better off purchasing a used car from a dealer. These days, car manufacturers have used-car programs that offer special warranties and other extras associated with new car programs, like roadside assistance.

Since the used car industry is booming, most car manufacturers like to keep their finger in the pot, often selling vehicles that have come off lease. Since they want to maintain their reputation, you'll be more likely to get a sound vehicle.

In some provinces, such as Ontario, you may have recourse through government organizations should your transaction with a dealer go wrong. This recourse does not extend to private sales.

When you buy privately, you could be buying from a "curbsider". These individuals pose as private sellers, but in fact, are dealers who are operating outside the law. They may try to sell you cars that are stolen, or scrap vehicles that have been welded together.

1.Take a road test. It should last for about 30 minutes and approximate your own driving circumstances.

2.Have a private mechanic do an inspection. Although inspections are mandatory in most jurisdictions, nothing can beat your own trustworthy mechanic conducting a thorough private inspection.

3.Be prepared to walk away. If you don't like the answers to your questions, or feel you are being pressured, just leave.