Getting Car Finance With Bad Credit - What Are The Real Options? (money market news)

February 26th, 2010 admin Posted in finance |

By William Penworthy

As far as car finance bad credit arrangements are concerned, what are your options? It’s absolutely vital that you stop for a moment and realise that you do in fact have options. It’s very easy to think that if you have bad credit, car finance is not an option, or at best, you’re limited to accepting whatever you’re offered, even if it’s not what you’d ideally choose.

Certainly if you have bad credit it’s likely that you’ve given up on the idea of cheap car finance, and that you’ll be paying through the nose for your car loan, but is this really true? What options do you have, how can you spot a car finance option that’s not a good deal, and is there any good news as far as getting car credit finance is concerned if your credit history has more negative numbers than positive ones, and a generous helping of arrears, defaults and perhaps even CCJs?

Alternatively, you may be looking for car finance but not have bad credit - but no credit history at all. After all, we all had to start somewhere with getting credit, and if you’ve never had any form of credit before, many lending institutions won’t touch you because you’re an unknown risk. Perhaps a few years ago you’d have been all right, but thanks to the recession making life somewhat uncomfortable, the majority of banks and credit companies are now much less willing to take risks on people with poor credit, and an unknown risk is simply not acceptable anymore.

So whether your credit history is poor, or empty, you may be looking to get cars on finance, but feel you’ve run out of options. Let’s consider those options people tend to think about, what the risks are, what the benefits might be, and what is the best course of action both in terms of getting a new car, and helping to boost your credit profile in the future.

The first option for many people is to approach the bank for a car loan, but this is rarely successful. Banks rely solely on your credit rating, and they tend to be fairly conservative when it comes to parting with money.

If you have a weak credit rating you may find this very hard, and this may have been the first step towards being convinced that getting car finance is not possible. However, what you must realise is that banks lend cash, and don’t arrange car finance agreements - and here’s the crucial difference.

Yes, banks might have a lower rate of interest compared to some lending institutions, but what’s the point of a low interest rate if you can’t get the car loan in the first place?

So you may next try a garage or car salesroom which offers cars on finance. These were often a good bet, but unfortunately many have suffered badly throughout the recession.

The fact that cars tend to lose their value quite quickly once they leave the forecourt, coupled with the fact that many people have experienced problems with keeping up repayments through the recession, many car dealers have hung up their keys for good, with the rest now offering either much higher rates of interest or car credit finance only to those with great credit records.

Where does this leave you if you have no credit record, or a very weak one? Either paying extortionate rates of interest or taking the bus.

The next option you may consider is a guaranteed car finance package, and these can certainly be great news. Having a guaranteed car finance package can not only give you the chance to own a car again, but as long as you keep up on the repayments you’ll be boosting your credit rating every month.

However - a word of warning, because not all guarantee car finance packages are the same. Some won’t be anything close to a cheap car finance package, offering only high levels of interest, whilst some others may seem a good deal, but have a hidden catch.

You could find yourself being offered a very generous car loan only to find that you’re only allowed to use it to buy one of the overpriced cars owned by the car finance company itself.

This takes away any real choice, and forces you into overpaying for the vehicle. However, don’t give up, because there are some companies who not only offer guaranteed car finance deals, but at rates of interest that won’t break the bank, and what’s more, you’ll be free to use the cash to buy any car you like from any dealer you like anywhere in the UK.

Have a look at the links at the bottom of this article for more information about a guaranteed car finance package which could help you say goodbye to the bus!

Car Finance Bad Credit http://www.carloan4u.co.uk/ Car Finance

Top 5 most important terms used in the insurance business

By Shah Rizvi

Top 5 most important terms used in the insurance business

Insurance is defined like a financial operation which occurs after an insurance contract or through law statements. The insurance company or institution is obliged to compensate a person or another company in exchange for a periodical paid amount of money. Insurances are paid services that take over the obligation of paying for a broken or damaged object or property that takes place from independent reasons of the person which benefits from the insurance.
Terms used in the insurance business
The insurer is the insurance company or institution that sells the insurance, meaning that it takes responsibility for damaged goods or other insured services in exchange for a certain amount of money.
The insured is the person, company or institution buying the insurance. The insured is buying the insurance in order to prevent losses due to unexpected events that can happen. He contracts the insurance from the insurer through which he protects certain goods, properties, objects, services or damages that can be provoked to other people.
The insurance beneficiary is the designated person that can collect the compensation amount or insured sum, without having any obligations or involvement in the contract.
The insurance contract is a legal document through which are settled legal clauses between involved parties. This document comprises other legal documents like the insurance request, the insurance policy and contract conditions for basic insurance together with other possible contractual clauses.
The insured risk is an unexpected event that causes certain damages and that obliges the insurer to pay to either the insured or beneficiary the compensation amount settled within the insurance contract.
Legal issues of indemnity and damage
The indemnity, compensation or reparation is defined, in legal terms, as a process through which one party that contracted the insurance receives money for any loss covered within contract terms. Sometimes, an indemnity can also be a part of a rescission integrated in a program. In this case, the property is exchanged for an amount of money, while the indemnity is requested only by the innocent party. On the other hand, damages are different because of the law of obligations and should not be mistaken for indemnity.
What prevention measures to take with insurance companies?
If you want to avoid any unpleasant surprises the ones who buy insurance policies should make sure that they read the contract many times before signing it and understand completely all their conditions and clauses. For example, when you want to buy an insurance policy for your vehicle, you should make sure to check all available options. Not all companies have the same price, nor do they sell the same product. There are major differences between insurances sold by different companies. Some of them don’t cover all loss risks that might be necessary for the future policy holder, thus, make sure you carefully read all covered and uncovered risks before signing your new contract. If you don’t pay attention to this step, you’ll soon find yourself in an unpleasant situation. You should also know that you have the option to ask for the insurance to be extended beyond your country. You can have your vehicle insured when you go away for a trip to a foreign country. You also need to make sure that you can get compensated fast enough if an unfortunate event occurs. Some companies give you your money back 15 days after all necessary documents have been handed over to the insurer.

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