Can I get an Auto Loan with Bad Credit if I am Self Employed?

Self Employment on Bad Credit Auto Loans

In order for you to know how to qualify for approved auto loans with self employment income, you first have to identify the qualification issues. If you’re both credit-challenged and self employed you need to know the issues you’ll be facing when you apply for terrible credit auto loans.

There are poor credit car loan processes that allow potential buyers to avoid a tote the note dealer while reading up on many of the issues that often lead to repossession. Unfortunately, tote the note lots are sometimes the only choice for self employed buyers with bad credit if they either underreport or incorrectly report how much they make.

Self employed individuals are one of the most difficult bad credit auto loan approvals. This usually happens because self employed workers are responsible for keeping their own records and reporting this income on their income tax returns.

It may be possible for self employed individuals to reduce the amount of tax they pay by not declaring the full amount of their incomes. But doing this could prevent them from getting a car loan, especially if their FICO scored fall below 640. If regular banks don’t usually require proof of income, this isn’t the case with bad credit lenders.

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They require the verification of an applicant’s income through a professionally prepared tax return. Whatever isn’t listed or declared in a tax return, even with the availability of supporting bank records makes it invalid as a proof of income. Bad credit lenders require a monthly income of at least $ 1,500 to $ 1,800. Which means that self employed individuals need to report a minimum yearly net profit between $18,000 and $21,600.

Even if the reported net profit meets the above requirements, there is a chance that monthly expenses are out of proportion to the reported income. For example, someone reports an income of $2,000 per month. If this person’s real monthly income is $3,500, reasonable monthly expenses could be $1800. In this case, even though the actual debt to income ratio is acceptable, the difference between the reported income and the expenses would not qualify that person for a bad credit car loan.

If you are self employed, you have to consider the income you report because this will affect your debt to income ratio as it relates to qualifying for a bad credit auto loan. If the income declared on your income tax return is too low or if your monthly debts are not in line with your reported income, a bad credit lender will definitely not approve your loan application.

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In an effort to teach students about handling their finances, the Financial Wellness Peer Educators of the University of Illinois conducted a presentation entitled “Staying on Good Terms: Managing Credit and Debit.”
It was a part of a series of presentations that will happen for three consecutive Thursdays from 5:30 to 6:30 PM at the Activities and Recreation Center of the University’s Wellness Center.

Kathryn Sweedler, the program’s coordinator and an educator for consumer economics, says that the aim of the program is to help students to effectively manage their money with a focus on debts and credit cards.
The program consists of 16 peer educators from different majors. But, most of them are interested in finance. For every presentation, two peer educators are assigned to present.

The idea of having peer educators teach the students makes the dialogue easy because their ages are close to each other.

Sweedler said that there are usual misconceptions about debt and credit card that students are unaware of. For example, holders of credit card have the option to fully pay their debt or make minimum payments. But, with the first option, it will take a very long time to pay off.

Sweedler added that it is important to have a balance between the two. Just by paying more will make a big difference in the debt of the credit card owner.

Sweedler hopes that in the long run, students will know how to effectively use their cards and obtain loans. She remarked that it is difficult to have plenty of debt in this unstable economic condition.

The Financial Wellness Center is planning to conduct a similar series during the spring season. But, schedules have not been made yet. The next presentation will be entitled “the Secrets of Credit Reports Unveiled” and will be held at the Wellness Center.

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Loan Option for Poor Credit Standing

Getting a bad credit loan is one of the options of people who cannot obtain a personal loan in their times of need. A poor credit history is the main reason why people cannot take out a traditional loan. Banks and other traditional lenders do not want to run the risk of approving a loan for borrowers with a history of poor payments. With a bad credit history, an application for cash advance will be denied.

When one seeks a loan from a bank, collateral is usually required. This can be in the form of any valuable and tangible asset that can replace the value of the loan once it is unpaid. But, money advance is one of the types of loan that do not need collateral. The application is easy and the approval is quick. A money advance loan is deposited in the same day the loan is approved.

In the application process, there are certain requirements for the applicant to be eligible. The applicant must be at least 18 years of age and a legal citizen. Also, the applicant must show residency for at least three months in the city or state where the application was submitted. An existing checking account that has been valid for at least three months is also needed. There are other lenders that will request the loan to be paid using an automatic checking account withdrawal on specified dates. Any late payments may incur charges to be added to the principle loan amount.

Bad credit loan is an alternative for people with poor credit standing. This is especially helpful in emergency situations such as car repair, job loss and medical expenses. The main advantage of this type of loan is that it does not consider the credit score as a factor. Moreover, it does not require any form of collateral. Finally, it is a loan that can be easily applied for and can be quickly approved.



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Real Estate…The Long Term Investment.

Have you heard these “bits of advice”????This is not a good time to look at property investment? Now is not a good time to invest in the stock market? Now is not a good time to buy oil futures? We have heard this from every “GURU” on the nightly news. Just because everyone is screaming it…does not make it true. Now is the time to go against the flow of popular opinion and buy an investment. The risk must, however, be a reasoned one and never spend the rent money on risky things.

If you are willing to move against the flow you must seek out deals and only buy bargains. Property investment is great because you can feel the permanence of your investment and over time real estate has proved itself to be a solid money maker. Contrary to all the latter day negative gearing you need to make sure of a positive cash flow. Rents must give a return on investment. Simply put…. you do not buy at silly prices you buy only when the figures give you a return. You don’t have to love the investment…just enjoy the cash flow it brings in.

Current feelings of uncertainty in the real estate market makes buying bargains not very difficult. The foreclosure process is not nice for anyone to deal with and being a buyer at a foreclosure or mortgagee sale can make you feel very uncomfortable. These properties do have to be sold though and foreclosures will work to an investor’s advantage. Its just bargain shopping on a bigger scale.

You don’t have to work with just foreclosures. Many people got into the property investment business over the last few years with the promise of easy profits and now feel worried and insecure with mortgages over their family homes or repayment bills that will not lessen in the near future. They just want to quit the game no matter what and will take a loss to set themselves out. Just do not make the same mistake they made. Do the math!! Get a return on your investment. Lastly have the right mind set which is to buy for the long term. Property investment is a long term game and very lucrative over a long period. Just make certain that you are happy and secure with a long term investment and you will really cash in when the next real estate price surge hits. Whenever that might be.

Real estate has always been a long ” self life” type of investment. Just because the market in the last few years has offered fast profits to some…don’t consider that to be the normal exit for this type of investment.[I:]

Doc Schmyz has done real estate deals all over the US and Canada. His free website shares Real estate investing information for all over the US. Find real estate information by state

3 Easy Ways To Increase Your Credit Score

It used to be that “people” made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number – your FICO score – determines your credit worthiness.

Several credit models can be used for this article, however we are going to focus on the Fair, Isaac Company model. Better known as FICO.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.

Getting and improving your credit score is not hard at all, just takes time. Here is a tip or two that will help you improve and increase your score.

FIRST: You need to get a copy of your credit history

There are many reasons you may have no credit history. Maybe you’re just starting out, maybe you pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score is likely to be low.

The easiest way to raise your score is acquire a loan, and pay it off on time. In general, installment loans are weighted more heavily than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

Another option is to take a $1000 and open a 6 month CD at a bank. Now turn around and get an installment loan using the CD as the collateral. You then take that $1000 loan and do it again at another bank. Do this for a total of 3 times.

Let the CD’s mature, paying only the minimum for the 6 months. Once they mature you cash them out and pay off all three loans. Congratulations…you now have a credit history.

SECOND: Maintain Your Good Credit History

Good job – you have paid your bills on time, and do not have high credit card debt. Here’s some ideas to keep your FICO score as high as possible.

Don’t close your old accounts. One part of your credit score is based on the amount of credit available verses amount of credit used. Closing old accounts can lower this part of your score.

Something to think about. The day of the month you pay off your credit card may have a lot to do with your FICO score. Let?s say you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here’s what happens – your credit card company reports your credit information monthly to FICO, but they report it on the 10th of the month…and you pay on the 15th. This would cause the credit agency to see you carry forward a balance every month. Try changing the payment times…just is sure NEVER to pay late.

THIRD: Fix your bad credit

For whatever reason, if you have a poor credit history, there are things you can do to improve your score. Some of them take time, and you will probably be best served by talking to a credit counselor to be sure that you not only repair your credit history, but also eliminate what caused that poor credit history in the first place.

The FICO score is most affected by your credit history. To repair a low credit score start paying your bills onetime. In order of value you need to pay your Mortgage, Installment loans, and last your credit cards.

The next largest portion of your FICO score is based on how you use credit. The fastest way to improve this is to pay down your credit cards.

When you?re all done with the rest of things…review your credit report. Get one from all the credit agencies. Look for errors and mistakes. Contact them to see if they can remove them or correct the errors.

A good FICO score is a huge part of your financial life. Keep it healthy. Use these tips and watch your score climb.

Doc Schmyz has done real estate deals all over the US and Canada. He built a free free website shares Real estate investing information for all over the US. Find real estate information by state

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