Finance Info – Establishing Good Credit

Do you know the importance of establishing a good credit rating? If you are looking to buy a new home, or car you need to have a better understanding of how you finance your purchases and how you manage your money.

Companies want to know they are investing in someone who will pay them back and pay on time. Before any company will finance you they will review your credit rating and credit score. They want to know if you constantly have late payments, accounts in collections, or ever filed bankruptcy. Any of these and your attempts to finance your purchase may very well be impossible.

If you work at establishing good credit before you actually need it you will have a much better chance of getting the finance you need, somewhere down the road! You don’t want red flags on your credit score, learn these basic credit habits and improve their peace of mind and your credit score.

Practice these tips to get lower interest rates and better deals the next time you finance a purchase:

1.) On Time All the Time!

This one sounds so simple, yet so many people neglect to pay their bills when their due. Potential lenders are going to have a hard time believing you will pay them on time if your credit report shows you constantly miss payment deadlines. Why would lenders finance your purchase when you present a credit risk? Get into the habit of paying at least the minimum that’s due and pay it early!

2) Credit Cards Balance is the Key!

To appear in the best light the next time you apply for assistance to finance your purchase use credit cards wisely. Two to four is the recommended amount Too many credit cards and you won’t be able to pay them off, too little and you might not have enough credit history.

3) Check your Credit Report Yourself!

Credit reports are issued from three major credit bureaus: Experian, TransUnion, and Equifax. To make sure when you finance your next purchase that they are accurate, you should be keeping a constant watch on your finances. To make sure your finance report is accurate check every three months. If there are any mistakes inform them immediately.

Remember having good credit is about much more than bragging rights. If your finances are not in order your dream home may stay just that…..a dream. Establish good credit habits now. As you finance your purchases work on using the tips above and repairing any bad credit you already have. You will reap the rewards!

Achieve 100% Financing By Following This Proven Step By Step System

Real estate knowledge and experience to most philosophers is probably limited to home ownership or renting an apartment. Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for the other 80%? That’s not the case anymore. Real estate can actually be purchased without any money out of your pocket -the “100% Financing Report”, by Durante’ Parks, shows you how. Real Estate investing can be an emotional process and one needs a level head when making a large monetary decision. Real estate investment can provide you income for the rest of your life, but Commercial Real Estate can provide you a much higher level of income because the scale is so much larger. If you are hoping to purchase commercial real estate property, then you are most likely going to need financing in order to do this. Financing commercial real estate is actually much easier than most new investors think, especially those who are accustomed to financing single family homes, condominiums, or other types of personal use residential property investments. The truth is that commercial real estate does not necessarily require more money than residential real estate and in some cases, less.

Commercial real estate financing loans are underwritten by lenders on a case by case basis and can be provided for the long and short term. Commercial real estate lenders understand the diverse needs of business professionals and the variety of reasons for needing financing, including: Loans to purchase commercial real estate; Loans that are collateralized with commercial real estate; Loans to Expand or improve your existing business; Loans to refinance existing debt; Loans to take advantage of an opportunity that wouldn’t fit traditional criteria. The diversity in the commercial real estate arena means that lenders typically have more flexibility when lending in this arena than in the residential market. In other words, they are more open to negotiation.

Commercial real estate loans are available on all types of income producing and commercial properties. Lenders typically qualify the PROPERTY first, then the borrower using the following metric: Income and Expense (Net Operating Income,{NOI}) of the building.

Investing in commercial real estate can be approached from a number of different ways as in the residential market; one can choose to buy and hold, flip, rehab, etc. The 100% Financing Report is useful no matter which angle you approach the investing game from.

Buying and selling real estate is a major financial transaction and should be treated as such. Great care must be taken when executing transactions of the magnitude that exists in commercial real estate. The author of the report, Durante’ Parks, speaks from experience in owning apartments, single-family homes, mobile homes, land development, buying discount mortgages, and making mortgage loans. He lays out step by step instructions on how to approach the bank and what to say to achieve the goal of obtaining 100% financing for all of your deals.

Before embarking on investing in the commercial real estate market, I strongly recommend that you take a look at this report and read it thoroughly. It is important that you fully grasp the powerful principles laid out in the report so that you can competently and efficiently navigate the complex world of commercial real estate financing.

Six Words to Describe Business Financing

This report was produced in a direct effort to provide more understandable insights about some of the most critical business finance issues effecting commercial borrowers. Our approach in this report is to describe current commercial loan circumstances in six words. We have adopted a similar model in other commercial finance reports such as “seven words to describe commercial property loans”. The “simpler is better” perspective reflects the belief that after hearing an almost endless number of reports about commercial lending difficulties, what small business owners might really need is a more concise explanation about these problems and the resulting impact on their business financing options.

Before proceeding, it is important to emphasize that small business finance options are often more complicated than anticipated by many business borrowers. We are definitely not attempting to characterize business loans and working capital financing as either straightforward or simple. In fact, quite the opposite is the case. The unfortunate reality that most business financing processes have always been excessively complicated and that meaningful improvements are not on the way is one of our ongoing observations. We nevertheless feel that it is critical for each small business owner to have an absolute and total understanding of the entire commercial finance process in the face of the prevailing commercial lending complexity. To help in providing more understandable insights about commercial loans and business banking problems, this particular report is one of several thorough efforts on our part.

Our first example of six words describing business financing options is “banks are saying no more often”. For any small business owner still unaware of this harsh reality and who might doubt this observation, a series of candid conversations with other business borrowers will probably remove all doubts. The failure of banks to provide an adequate level of business loans on a widespread basis is the primary point to remember. It is important for small businesses to realize that they are not alone when they hear their bank say no to routine requests for commercial financing.

“Commercial property values have decreased dramatically” is a second observation. There are very few exceptions. The biggest business financing impact is likely to occur with commercial refinancing situations. Many banks are aggressively recalling existing commercial real estate loans and this literally forces a borrower to seek business refinancing even if a business owner has no interest in refinancing their commercial mortgage. With decreasing commercial real estate values, business refinancing will be a challenge for most small businesses.

“Lines of credit are disappearing fast” is another six-word description of commercial financing. Even the most successful businesses need a reliable source of working capital financing, so this situation is especially serious if a business cannot replace bank financing when it suddenly disappears. Even if a business still has an adequate line of credit, it is important to realize that on a widespread basis banks are reducing and eliminating business credit lines with almost no advance notice.

As our final observation in this report, “business financing is in intensive care”. Extreme measures such as firing their banker and finding alternative commercial funding sources will need to be anticipated by small business owners in many cases. Bankers have not been sufficiently candid about commercial lending problems in the past, and nobody should expect that they will publicly announce that they are in any kind of financial trouble. On the contrary, a prevailing outlook from most banks is they are lending normally to small businesses. When dealing with any commercial lender, commercial borrowers will need a healthy amount of skepticism.

As we noted, this article is one of several efforts to help small business owners survive an extremely challenging commercial lending environment. This report was intentionally designed to produce a concise overview of several complex small business finance issues by describing commercial loan difficulties in six words. A better understanding of practical business financing options for commercial borrowers should also be realized by reviewing related reports such as “six words describing working capital management” and “seven words to describe merchant cash advances”.

Money for a Car: A Guide to Auto Financing

Nobody wants to be the dumb buyer in a car buying deal. You have to be smart or you end up losing more money than you ought to. It is a very common scheme among car buyers to first get money in order to buy a new car.

The term is called “auto financing” and it simply means how you pay for a vehicle. You can finance a car by taking out an auto loan to own a car, in which case, you have two options: You either use the money from the loan to buy the car, or use it for lease.

If this isn’t your first time buying a car, you might already know that the salesman or your car dealer will be checking your credit report before starting with the negotiations. But this is not the only way you can go to get that new car of yours. The seller will try to sweeten the deal and offer you special car finance situations in exchange for throwing yourself totally at his mercy. That is not a path you have to choose.

The key is preparation. Knowing what auto financing options you have before you get to the dealership will mean that you can take charge of your credit and take charge of your car loan.

Just remember, when you negotiate with the salesman for the most favorable auto loan, nothing is permanent until you have it in writing. So haggle and then haggle some more. Once negotiations seem to be over, that’s when the sales contract is prepared.

Inflated Interest Rates

To have the deal agreed upon by you and the salesman be put in writing in a binding contract is top on the list of the things you must do involving auto financing. Often involved at this part of the procedure is to determine monthly auto loan payments based on an interest rate. Now, as you well know, the interest rate varies from car buyer to car buyer. Your credit is only one of the factors and if the interest rate a car buyer qualifies for is inflated, then the dealership can make extra profit off your loan. That’s just one of the pitfalls in auto financing.

Independent Auto Financing

When you have the approved auto financing option on hand, you can then proceed with the deal as a “cash buyer” so to speak as you already have the cash in hand from the loan and you are just buying the car from the dealer with that money. Car salesmen prefer customers to be “monthly payment” buyers as this makes it easier for them to obscure the total cost of the vehicle, to the detriment of your savings. So wizen up and take that independent auto financing option available.

Set a Price Range

Having a budget is the sensible thing to do. If you set a sensible price range for yourself, then you have less reason to go beyond that range and succumb to the temptation of overspending. If you’re really firm on that budget, no amount of sales talk can sway you. One good tip is to ensure that your monthly car payments and related expenses do not exceed about 20% of your monthly net income.

Discounted Financing vs. Rebate

Here’s the dilemma to car buying: Many dealers offer an option between discounted financing or a rebate, but not both. Discounted financing means that you get zero-percent financing while rebate means that you get a certain amount of cash some time after purchase. The common error many car buyers make is that the zero-percent loan will deliver the most savings. But will it really?

Get the Cash Rebate

In most cases, it’s better to get the cash rebate and apply it against the purchase price of the vehicle. If you already have a pre-approved car loan, then that’s even better because you have positively no need of extra financing from your dealer. Just use your car loan to finance the car and let the rebate handle some of the charges.

You will have to choose how long you want your lease to be and how much you’re willing to pay upfront. The obvious choice, of course, would be to pay as little as possible, but be sure to weigh other options as well. After that, the car is yours for the period stipulated in the lease contract.

There are several other different plans those car buyers like you can adopt in order to make the most out of your money and reduce costs at the dealership. Understanding the credit process is just one way of being a smart buyer.