Let Your Business Thrive With Commercial Bridging Loan
By Eva Baldwyn
Expansion is life- that is what most of the business owner believe and act accordingly. But, sometimes lack of finance may not allow you to expand your business further. With the availability of commercial bridging loan, getting funds is no more a constraint to move ahead.
Commercial bridging loans are usually short term loans with a repayment period up to 2 years. Though it is short term, but it is of great help for the business men, who need instant capital for their business. With the help of commercial bridging loan, you can withdraw an amount up to £10,000,000. You can use the cash to buy new office premises, factory, machines or other tools required for your business.
Another advantage of the commercial bridging loan is its easy and fast approval. And today’s online process has made it more convenient to access it. Hundreds of finance companies are offering commercial bridging loans online. So, no need to shop around in person. According to your convenience, you can apply from anywhere and get your commercial bridging loan within hours. But, without enough research don’t jump for any particular deal. Or else, you may end up with a costly deal.
When it is about the cost of your commercial bridging loan, rate of interest plays a significant role in it. Generally, they are attached with higher rate of interest. But, the secret of achieving a competitive rate lies in online research. Firstly, ask for free online quotes and compare their cost. It will help you choose the right commercial bridging loan as per your requirement and budget.
Commercial bridging loan is a sort of secured loan, which helps the business owners raise finance against the very same property, which is meant to be sold out. So, there is possibility of repossession of your property by the lender, in case of non repayment of the loan amount during the agreed time frame. But, the rightful choosing of a commercial bridging loan can truly build a bridge to overcome all the financial obstacles successfully.
Eva Baldwyn aims to inform common men and women of the several issues involved in personal loans and mortgages through her articles. An MSc in Economics & Finance from the Warwick Business School is proof enough of the knowledge that she possesses in the field of finance. To find bridging loan, Commercial Bridging Loan, residential bridging loan, personal bridging loan, short term bridging loan, development bridging loan visit http://www.easybridgingloansuk.co.uk
Article Source: http://EzineArticles.com/?expert=Eva_Baldwyn
http://EzineArticles.com/?Let-Your-Business-Thrive-With-Commercial-Bridging-Loan&id=461250
Monday, April 30, 2007
Saturday, April 28, 2007
Auto Loan Factory
Getting a Car Loan in New York
By J.A. Hale
Getting a car loan in New York can be tricky if you do not follow the steps in the right order. One thing that you need to be aware of especially is the fact that before you can get a car loan in New York, you will need to show proof of auto insurance. It may seem like putting the cart before the horse, but in New York, you pretty much need the car insured before you can actually buy it. This is because if you purchase a car with a loan, New York law requires the dealer to handle the titling and registration for you. And before you can register your car in New York, you have to have proof of insurance.
Be aware that when the dealer handles all of the necessary steps to getting your registration and titling, many of them will charge you the additional fees above and beyond the amount of your loan. Some will roll these charges into your car loan, and others will allow you to arrange to pay the expenses out of pocket.
Here are some other steps to follow when getting a car loan in New York:
1. Shop around for the best interest rates on your car loan. Dealers usually do not have the best interest rates. You can usually get a better rate from a bank or credit union.
2. If you are responding to a special financing offer in an ad, bring the ad in with you to show the dealer. If you have poor credit, you are not likely to get the advertised rate, but you might be able to negotiate a lower rate than the dealer is initially willing to give you.
3. Don’t pay more for a factory-ordered car than for one already sitting on the premises.
4. If you get a car loan to buy a vehicle from a private seller, be aware of the needed documents you will have to submit to have the car property registered:
· Proof of insurance (New York State Insurance ID Card)
· Proof that you own the car
· Documentation of your identity, and separate documentation of your birthdate
· Damage and odometer disclosure statements
· A special form: Form MV-82
· Enough money to cover all of the fees that will be assessed (title certificate fee, property tax, registration fee, plates, automobile use tax, any transfer fees that may be necessary, sales tax)
· Proof of sales tax paid, sales tax exemption (if already paid) or the purchase price (so that the DMV can assess how much sales tax you owe.
Visit New York Lending Center for a list of Recommended New York Auto Loan Companies, whether you are looking for a new or used car loan, or an auto loan refinance.
Article Source: http://EzineArticles.com/?expert=J.A._Hale
http://EzineArticles.com/?Getting-a-Car-Loan-in-New-York&id=333336
By J.A. Hale
Getting a car loan in New York can be tricky if you do not follow the steps in the right order. One thing that you need to be aware of especially is the fact that before you can get a car loan in New York, you will need to show proof of auto insurance. It may seem like putting the cart before the horse, but in New York, you pretty much need the car insured before you can actually buy it. This is because if you purchase a car with a loan, New York law requires the dealer to handle the titling and registration for you. And before you can register your car in New York, you have to have proof of insurance.
Be aware that when the dealer handles all of the necessary steps to getting your registration and titling, many of them will charge you the additional fees above and beyond the amount of your loan. Some will roll these charges into your car loan, and others will allow you to arrange to pay the expenses out of pocket.
Here are some other steps to follow when getting a car loan in New York:
1. Shop around for the best interest rates on your car loan. Dealers usually do not have the best interest rates. You can usually get a better rate from a bank or credit union.
2. If you are responding to a special financing offer in an ad, bring the ad in with you to show the dealer. If you have poor credit, you are not likely to get the advertised rate, but you might be able to negotiate a lower rate than the dealer is initially willing to give you.
3. Don’t pay more for a factory-ordered car than for one already sitting on the premises.
4. If you get a car loan to buy a vehicle from a private seller, be aware of the needed documents you will have to submit to have the car property registered:
· Proof of insurance (New York State Insurance ID Card)
· Proof that you own the car
· Documentation of your identity, and separate documentation of your birthdate
· Damage and odometer disclosure statements
· A special form: Form MV-82
· Enough money to cover all of the fees that will be assessed (title certificate fee, property tax, registration fee, plates, automobile use tax, any transfer fees that may be necessary, sales tax)
· Proof of sales tax paid, sales tax exemption (if already paid) or the purchase price (so that the DMV can assess how much sales tax you owe.
Visit New York Lending Center for a list of Recommended New York Auto Loan Companies, whether you are looking for a new or used car loan, or an auto loan refinance.
Article Source: http://EzineArticles.com/?expert=J.A._Hale
http://EzineArticles.com/?Getting-a-Car-Loan-in-New-York&id=333336
Friday, April 27, 2007
Auto Loan Factory
Save Hundreds of Dollars with a Pre-approved Auto Loan
By Zenon Olearczuk
With America's Top Three automakers (General Motors, Ford and Chrysler) introducing their new 2007 models at this year's auto shows, consumers are comparing and shopping for the best financing deals online.
While consumer spending is down as a result of high-gas prices, and the average new vehicle loan at $24,000, buyers are financing their vehicle purchases over a longer period of time – from 4 years to 60 and 72 months. Nearly 57% plan to comparison shop through “multiple financing sources” before buying (http://moneycentral.msn.com/loan/loan.aspx?iType=3) according to a recent survey conducted by a leading lender.
What’s driving consumers buying behavior are “loans” and “purchase price.” A difference of a couple of percentage points can save or add about $1,500 in finance charges to a $25,000 loan. That’s why shopping for financing before you purchase your next car can save you hundreds of dollars.
Before visiting your dealer, remember their goal is to move cars off the lot. Having your financing in place, whether from a traditional brick-and-mortar bank or online lender, can give you the competitive edge you need to get those extra features (e.g., moon roof, leather interior, GPS navigation, etc.) at a budget you can afford.
In an effort to encourage consumers to buy on “impulse” many manufacturers have come up with creative financing options like “zero percent” or “factory rebates.” Subsidized by parent companies, these “captive financing companies” usually compete on rates and terms. Even smaller manufacturers have partnered up with national lenders, leaving them vulnerable to absorb finance charges and having to make up profits elsewhere.
This has left many banks and credit unions looking to compete on overall value. For instance, if a consumer has a choice between a 60 month term from an automotive manufacturer at a 2.9% APR or a $5,000 factory cash rebate at a 7.33% APR (the national bank average) on a $25,000 purchase, which should they choose? In this instance, using the Monthly Payment Calculator at MSN Money (http://moneycentral.msn.com/loan/loan.aspx?iType=3), obtaining a bank loan would offer the greatest savings -- nearly $2,400 over the course of the loan.
It’s best to figure out your total payment and understand what you can afford each month before you shop. You should never negotiate financing terms until you’ve agreed on the overall price. Knowing what amount you have pre-approved ahead of time can save you hundreds of dollars off your next purchase.
© 2006 Informa Research Services, Inc.
Zenon Olearczuk is a staff writer at Informa Research Services who writes about trends and investment opportunities in the financial services market. He can be reached at http://www.informars.com.
Article Source: http://EzineArticles.com/?expert=Zenon_Olearczuk
http://EzineArticles.com/?Save-Hundreds-of-Dollars-with-a-Pre-approved-Auto-Loan&id=380614
By Zenon Olearczuk
With America's Top Three automakers (General Motors, Ford and Chrysler) introducing their new 2007 models at this year's auto shows, consumers are comparing and shopping for the best financing deals online.
While consumer spending is down as a result of high-gas prices, and the average new vehicle loan at $24,000, buyers are financing their vehicle purchases over a longer period of time – from 4 years to 60 and 72 months. Nearly 57% plan to comparison shop through “multiple financing sources” before buying (http://moneycentral.msn.com/loan/loan.aspx?iType=3) according to a recent survey conducted by a leading lender.
What’s driving consumers buying behavior are “loans” and “purchase price.” A difference of a couple of percentage points can save or add about $1,500 in finance charges to a $25,000 loan. That’s why shopping for financing before you purchase your next car can save you hundreds of dollars.
Before visiting your dealer, remember their goal is to move cars off the lot. Having your financing in place, whether from a traditional brick-and-mortar bank or online lender, can give you the competitive edge you need to get those extra features (e.g., moon roof, leather interior, GPS navigation, etc.) at a budget you can afford.
In an effort to encourage consumers to buy on “impulse” many manufacturers have come up with creative financing options like “zero percent” or “factory rebates.” Subsidized by parent companies, these “captive financing companies” usually compete on rates and terms. Even smaller manufacturers have partnered up with national lenders, leaving them vulnerable to absorb finance charges and having to make up profits elsewhere.
This has left many banks and credit unions looking to compete on overall value. For instance, if a consumer has a choice between a 60 month term from an automotive manufacturer at a 2.9% APR or a $5,000 factory cash rebate at a 7.33% APR (the national bank average) on a $25,000 purchase, which should they choose? In this instance, using the Monthly Payment Calculator at MSN Money (http://moneycentral.msn.com/loan/loan.aspx?iType=3), obtaining a bank loan would offer the greatest savings -- nearly $2,400 over the course of the loan.
It’s best to figure out your total payment and understand what you can afford each month before you shop. You should never negotiate financing terms until you’ve agreed on the overall price. Knowing what amount you have pre-approved ahead of time can save you hundreds of dollars off your next purchase.
© 2006 Informa Research Services, Inc.
Zenon Olearczuk is a staff writer at Informa Research Services who writes about trends and investment opportunities in the financial services market. He can be reached at http://www.informars.com.
Article Source: http://EzineArticles.com/?expert=Zenon_Olearczuk
http://EzineArticles.com/?Save-Hundreds-of-Dollars-with-a-Pre-approved-Auto-Loan&id=380614
Thursday, April 26, 2007
Auto Loan Factory
Run Your Business Hassle Free with Bad Credit Unsecured Business Loans
By Peter Taylor
When a borrower fails to pay his previous loans he suffers from Bad credit history. People with bad credit history usually find it difficult to get loans of any kind in future. Lenders normally don’t provide loan to borrower who has got bad credit, because lenders are suspicious of getting their return, as borrower has not been managing his finance properly in past. And people aspiring to run business or already in any venture, who have bad credit find it cumbersome to get any loan to give a better move to his business.
To deal with such arduous financial difficulties of borrower, bad credit unsecured business loans are of great use. It allows those borrowers who want to run a business, and have bad credit. It also enables borrower to take loan even if he has nothing to offer as collateral to lender against his loan amount. The reason of this loan being best is that it is easily accessible by everybody, not only by homeowners or person with assets, as there is no need to offer collateral.
Absence of collateral in bad credit unsecured business loans allows borrower to get the loan faster, as there is no need of property evaluation. It also saves problem of documentation. Plus, in some cases, you might get the loan amount according to your need, and can choose repayment plan as well.
You can easily find several borrowers willing to lend you bad credit unsecured loans at agreeable terms and conditions. Many financial websites will give you various information on locating a good lender. Through online, you can compare different bad credit business loans available in market, and chose the best one suited to your need.
On the one hand, bad credit unsecured business loans make borrower free of risk of losing his property, on the another, borrowers are charged higher interest rate, as they also have bad credit, besides offering no collateral. But this loan help borrower in improving his credit score, as, if he repays back the loan on time, it automatically will improve his credit score. Bad credit unsecured business loan can be used for buying factory land or business premises, buying raw materials or to cater to other requirements, improving the office premises, purchasing of any other machine or tools, etc.
Running a business contains several risks in itself. You might be in dire need to renovate and standardize the level of your business in order to meet the competition. In such cases, bad credit unsecured business loans don’t only ignore your credit score and collateral, but also it also relieves you of financial crisis in fulfilling all your business goals.
Peter Taylor is a senior financial analyst at BadCreditUnsecuredLoan with an acumen for finance and insurance.To find bad credit unsecured business loans, unsecured personal loan,adverse credit personal loan, new car loan, home improvement loan that best suits your need visit http://www.bad-credit-unsecured-loan.net
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
http://EzineArticles.com/?Run-Your-Business-Hassle-Free-with-Bad-Credit-Unsecured-Business-Loans&id=269917
By Peter Taylor
When a borrower fails to pay his previous loans he suffers from Bad credit history. People with bad credit history usually find it difficult to get loans of any kind in future. Lenders normally don’t provide loan to borrower who has got bad credit, because lenders are suspicious of getting their return, as borrower has not been managing his finance properly in past. And people aspiring to run business or already in any venture, who have bad credit find it cumbersome to get any loan to give a better move to his business.
To deal with such arduous financial difficulties of borrower, bad credit unsecured business loans are of great use. It allows those borrowers who want to run a business, and have bad credit. It also enables borrower to take loan even if he has nothing to offer as collateral to lender against his loan amount. The reason of this loan being best is that it is easily accessible by everybody, not only by homeowners or person with assets, as there is no need to offer collateral.
Absence of collateral in bad credit unsecured business loans allows borrower to get the loan faster, as there is no need of property evaluation. It also saves problem of documentation. Plus, in some cases, you might get the loan amount according to your need, and can choose repayment plan as well.
You can easily find several borrowers willing to lend you bad credit unsecured loans at agreeable terms and conditions. Many financial websites will give you various information on locating a good lender. Through online, you can compare different bad credit business loans available in market, and chose the best one suited to your need.
On the one hand, bad credit unsecured business loans make borrower free of risk of losing his property, on the another, borrowers are charged higher interest rate, as they also have bad credit, besides offering no collateral. But this loan help borrower in improving his credit score, as, if he repays back the loan on time, it automatically will improve his credit score. Bad credit unsecured business loan can be used for buying factory land or business premises, buying raw materials or to cater to other requirements, improving the office premises, purchasing of any other machine or tools, etc.
Running a business contains several risks in itself. You might be in dire need to renovate and standardize the level of your business in order to meet the competition. In such cases, bad credit unsecured business loans don’t only ignore your credit score and collateral, but also it also relieves you of financial crisis in fulfilling all your business goals.
Peter Taylor is a senior financial analyst at BadCreditUnsecuredLoan with an acumen for finance and insurance.To find bad credit unsecured business loans, unsecured personal loan,adverse credit personal loan, new car loan, home improvement loan that best suits your need visit http://www.bad-credit-unsecured-loan.net
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
http://EzineArticles.com/?Run-Your-Business-Hassle-Free-with-Bad-Credit-Unsecured-Business-Loans&id=269917
Wednesday, April 25, 2007
Auto Loan Factory
Getting a Car Loan in New York
By J.A. Hale
Getting a car loan in New York can be tricky if you do not follow the steps in the right order. One thing that you need to be aware of especially is the fact that before you can get a car loan in New York, you will need to show proof of auto insurance. It may seem like putting the cart before the horse, but in New York, you pretty much need the car insured before you can actually buy it. This is because if you purchase a car with a loan, New York law requires the dealer to handle the titling and registration for you. And before you can register your car in New York, you have to have proof of insurance.
Be aware that when the dealer handles all of the necessary steps to getting your registration and titling, many of them will charge you the additional fees above and beyond the amount of your loan. Some will roll these charges into your car loan, and others will allow you to arrange to pay the expenses out of pocket.
Here are some other steps to follow when getting a car loan in New York:
1. Shop around for the best interest rates on your car loan. Dealers usually do not have the best interest rates. You can usually get a better rate from a bank or credit union.
2. If you are responding to a special financing offer in an ad, bring the ad in with you to show the dealer. If you have poor credit, you are not likely to get the advertised rate, but you might be able to negotiate a lower rate than the dealer is initially willing to give you.
3. Don’t pay more for a factory-ordered car than for one already sitting on the premises.
4. If you get a car loan to buy a vehicle from a private seller, be aware of the needed documents you will have to submit to have the car property registered:
· Proof of insurance (New York State Insurance ID Card)
· Proof that you own the car
· Documentation of your identity, and separate documentation of your birthdate
· Damage and odometer disclosure statements
· A special form: Form MV-82
· Enough money to cover all of the fees that will be assessed (title certificate fee, property tax, registration fee, plates, automobile use tax, any transfer fees that may be necessary, sales tax)
· Proof of sales tax paid, sales tax exemption (if already paid) or the purchase price (so that the DMV can assess how much sales tax you owe.
Visit New York Lending Center for a list of Recommended New York Auto Loan Companies, whether you are looking for a new or used car loan, or an auto loan refinance.
Article Source: http://EzineArticles.com/?expert=J.A._Hale
http://EzineArticles.com/?Getting-a-Car-Loan-in-New-York&id=333336
By J.A. Hale
Getting a car loan in New York can be tricky if you do not follow the steps in the right order. One thing that you need to be aware of especially is the fact that before you can get a car loan in New York, you will need to show proof of auto insurance. It may seem like putting the cart before the horse, but in New York, you pretty much need the car insured before you can actually buy it. This is because if you purchase a car with a loan, New York law requires the dealer to handle the titling and registration for you. And before you can register your car in New York, you have to have proof of insurance.
Be aware that when the dealer handles all of the necessary steps to getting your registration and titling, many of them will charge you the additional fees above and beyond the amount of your loan. Some will roll these charges into your car loan, and others will allow you to arrange to pay the expenses out of pocket.
Here are some other steps to follow when getting a car loan in New York:
1. Shop around for the best interest rates on your car loan. Dealers usually do not have the best interest rates. You can usually get a better rate from a bank or credit union.
2. If you are responding to a special financing offer in an ad, bring the ad in with you to show the dealer. If you have poor credit, you are not likely to get the advertised rate, but you might be able to negotiate a lower rate than the dealer is initially willing to give you.
3. Don’t pay more for a factory-ordered car than for one already sitting on the premises.
4. If you get a car loan to buy a vehicle from a private seller, be aware of the needed documents you will have to submit to have the car property registered:
· Proof of insurance (New York State Insurance ID Card)
· Proof that you own the car
· Documentation of your identity, and separate documentation of your birthdate
· Damage and odometer disclosure statements
· A special form: Form MV-82
· Enough money to cover all of the fees that will be assessed (title certificate fee, property tax, registration fee, plates, automobile use tax, any transfer fees that may be necessary, sales tax)
· Proof of sales tax paid, sales tax exemption (if already paid) or the purchase price (so that the DMV can assess how much sales tax you owe.
Visit New York Lending Center for a list of Recommended New York Auto Loan Companies, whether you are looking for a new or used car loan, or an auto loan refinance.
Article Source: http://EzineArticles.com/?expert=J.A._Hale
http://EzineArticles.com/?Getting-a-Car-Loan-in-New-York&id=333336
Tuesday, April 24, 2007
Auto Loan Factory
Strike The Best Deal With Online Quotes on Auto Loans by Sam D'Costa
Most people do not know the process of getting an auto loan at low interest rates. They also do not know the factors, which influence the interest rate of an auto loan. Ignorant of market statistics, most people seek auto loans that do not suit their financial requirements. Online help for getting an auto loan is now the smartest way of getting the best rates. However to get best financing options available in the market, one has to take into consideration the financing companies, the down payment factor and the negotiable terms with the company to get best desired interest rate.
Financing Companies
One has to request for quotes from the financing companies and then comparing the lowest auto loan interest rate, which will suit your desired financial condition. But nowadays with the availability of Internet, one can easily make side-by-side comparisons of the interest rates. Other companies also might email their other financing offers to help you in getting the best. In order to get the most accurate quotes, one should fill out the online form as completely as possible.
Down Payment Factor
Zero down payment is definitely an option for saving money for that period of time, but large down payment is all the more better if one is thinking of saving money in the long run. Down payment of 20% or more will definitely make a person eligible for a lower interest rate. Also one will save money by not paying interest on that portion (down payment) of the car's price.
Negotiable Terms
One should balance the interest rates and the length of the loan according to one's financial condition. Shorter loans offer low interest rates. One should calculate his monthly budget to see the best option suited for the situation.
A person eligible for a pre-qualified auto loan can reduce the cost of the vehicle by demanding a better deal from the dealership. Dealers see you as a cash buyer and they want your cash. One can then surely negotiate for more rebates and other extra features.
To conclude, one should do proper homework since looking for the best financial deal for your car is as important as the make and model of the car one is going to purchase.
About the Author
Sam D'Costa is well known professional in Online Marketing and web promotions. Bad credit car loan-Bad credit auto loan
Most people do not know the process of getting an auto loan at low interest rates. They also do not know the factors, which influence the interest rate of an auto loan. Ignorant of market statistics, most people seek auto loans that do not suit their financial requirements. Online help for getting an auto loan is now the smartest way of getting the best rates. However to get best financing options available in the market, one has to take into consideration the financing companies, the down payment factor and the negotiable terms with the company to get best desired interest rate.
Financing Companies
One has to request for quotes from the financing companies and then comparing the lowest auto loan interest rate, which will suit your desired financial condition. But nowadays with the availability of Internet, one can easily make side-by-side comparisons of the interest rates. Other companies also might email their other financing offers to help you in getting the best. In order to get the most accurate quotes, one should fill out the online form as completely as possible.
Down Payment Factor
Zero down payment is definitely an option for saving money for that period of time, but large down payment is all the more better if one is thinking of saving money in the long run. Down payment of 20% or more will definitely make a person eligible for a lower interest rate. Also one will save money by not paying interest on that portion (down payment) of the car's price.
Negotiable Terms
One should balance the interest rates and the length of the loan according to one's financial condition. Shorter loans offer low interest rates. One should calculate his monthly budget to see the best option suited for the situation.
A person eligible for a pre-qualified auto loan can reduce the cost of the vehicle by demanding a better deal from the dealership. Dealers see you as a cash buyer and they want your cash. One can then surely negotiate for more rebates and other extra features.
To conclude, one should do proper homework since looking for the best financial deal for your car is as important as the make and model of the car one is going to purchase.
About the Author
Sam D'Costa is well known professional in Online Marketing and web promotions. Bad credit car loan-Bad credit auto loan
Monday, April 23, 2007
Auto Loan Factory
A Secret Credit Score Your Car Dealer Won't Tell You About by Stephen Snyder
You're ready to buy a new car.
You've done all your homework.
You know your three FICO credit scores.
You determine that your highest FICO credit score is from Equifax (also known as your BEACON score).
So, you find a car dealer who uses your highest score (which increases your opportunity to get approved at a good rate).
You get to the dealership and ignore all the salespeople by going directly to the finance director's office.
But as the finance director reviews your credit file in front of you...you can't help but think something is wrong.
Sure enough...the dealer says your Equifax/BEACON score isn't high enough for their lowest interest rate.
How can this be? You just checked your FICO credit scores through www.myfico.com/12 a few hours ago. It's possible--although unlikely--the information on your credit report has changed and that your scores have decreased since you last checked them. Remember, your credit scores are dynamic and will change whenever information on your credit reports changes.
Your credit reports can change several times each month as new information is added or updated by your lenders. But more than likely, your scores wouldn't change in this situation (especially if there were only a few hours between when you checked your scores and when the dealership reviewed your credit reports).
So, if your credit reports didn't change, why is the finance director staring at your scores with such a discouraging face?
Car Dealers Can Use "Different" FICO Scores Than The Ones You See
The car dealer is probably using what is known as the FICO Auto Industry Option score instead of a traditional FICO credit score. You see, car dealers not only get to select the credit reporting agency they receive FICO credit scores from...they also get to decide if they will use a traditional FICO credit score or a variation of a FICO score called an Auto Industry Option score.
What's the difference between these two types of scores?
Not a whole lot to most people...but there's enough variation to make the majority of auto lenders use the Auto Industry Option score. The real difference between the two scores is that the Auto Industry Option score pays a lot more attention to how you handled previous auto credit.
- Have you made late payments on a current or previous auto loan or lease?
- Have you ever settled an auto loan or lease for less than you owed?
- Have you had a car repossessed?
- Have you had an auto account sent to collections?
- Did you include your car loan or lease in your bankruptcy?
Those actions will affect your Auto Industry Option score more than they'll affect your traditional FICO score. Bottom line, if you handled your previous auto credit perfectly, you should have a high FICO Auto Industry Option score--that's a good thing.
But what if you've had a few bumps in the auto credit road in the past? You guessed it...your Auto Industry Option score will be lower. You'll be perceived as a greater credit risk and the auto lender may either deny you or use your lower score to justify charging you a higher interest rate.
You see, auto lenders are different than other types of lenders. And I'm not talking about their slimy ways, leisure suits, short ties, manly hairy chests, or gold bling.
A lot of other lenders look at your whole credit picture to determine whether or not to give you a loan. But many auto lenders care about only one thing...how you handled your past AUTO credit. That's what a FICO Auto Industry Option Score gives car dealers--a way to pinpoint how you've handled what matters to them the most.
So, even if everything else on your credit reports went down the toilet after your bankruptcy, if you didn't include your auto loan in your bankruptcy and never defaulted or missed a car payment, your Auto Industry scores will probably be better than your traditional FICO scores!
What a Former Auto Finance Director Revealed to Me
I recently spoke with a former finance director, and this is what she told me...
"So many people I have helped couldn't believe their scores were so high with the FICO Auto Industry Option score. They had included all their credit card debt and their mortgage in their bankruptcy, but they reaffirmed their auto loan. What's good about the auto score is that it truly helps the auto lender concentrate on what is important--how the customer handles his/her auto loans.
By our dealership having the auto enhanced FICO, it helped 30% or more of our customers get better rates."
I don't believe I'm going to say this, but I think I may actually have found something good to say about car dealers! Well, some of them, anyway...
As you can see, the FICO auto scores can work in your favor, if they are used correctly.
OK, I just wouldn't be able to live with myself if I only said good things about car dealers.
So, in the interest of fair and balanced reporting, here's how to protect yourself against slimy car dealers that can use your FICO Auto Industry Option
scores against you...
A Dirty Trick Car Dealers Can Play with Your FICO Scores
Let's imagine your Equifax/Beacon FICO score is 585. Not too good. With a score that low, if you do get approved for a car loan, you'll probably wind up with a high interest rate and high monthly payment.
So you go to a dealership and talk with the finance director and tell him your Equifax FICO score is 585. The finance director then reviews your FICO Auto Industry Option score. And, unknown to you, this score is actually higher than the Equifax/Beacon FICO score you pulled.
With this higher score, you'll get approved at a better rate...right?
Not necessarily!
Here's what unscrupulous car dealers can do. They won't tell you that your auto score is higher than your traditional score!
They figure they have a sucker sitting in front of them. So they'll try to get you financed at a higher rate based on the lower FICO score (thus making more profit for themselves).
How Some Car Dealers "Play the Spread" to Get You to Pay More
Now check this out...
It's possible that a car dealer has the ability to pull your traditional FICO scores AND your FICO auto scores. That means they'll have six scores on you. It's a guarantee that some of those scores are going to be higher than the others. So which ones will they use when trying to get you financed?
It depends.
Are you familiar with the term "spread"? It's how car dealers make money when they finance you. If they can quote you a higher interest rate than you deserve--then they stand to make a nice chunk of change from the bank that finances you.
The only way to make a killer "spread" is to make you think that you have lower scores.
So, what can you do?
Don't despair...I can help you.
How to Use Your FICO Scores to Your Advantage when Buying a Car
Fortunately, you don't have to fall for their dirty tricks. Now that you know all about FICO Auto Industry Option scores, you can protect yourself. Here's what I suggest...
1. When you first walk into the finance director's office, don't tell him what your FICO scores are. Wait until he reviews the scores himself. Then ask him what your scores are.
2. If the scores he reviewed are higher than the ones you have, don't say anything and just go by his scores.
3. However, if your scores are higher, then pull them out and show him. If he has a choice in the type of scores he can use, there's a possibility that he'll be able to use your highest score. And, it will let him know that he doesn't have a fool sitting in front of him. He can't take advantage of you!
How do you find out what your FICO Auto Industry Option scores are before you walk into a car dealership?
You can't.
Sorry. They're not for sale--at any price. Only lenders have access to them.
FICO would like to sell them...but there just isn't enough demand. I mean seriously, up until you read this article, had you ever heard of the FICO Auto Industry Option score?
Exactly.
Remember, we were just given access to purchase all three of our traditional FICO credit scores on June 11, 2003 at 8:00 a.m. (I actually got misty that day...what a geek I am.)
Only a very small percentage of the population even knows they have three FICO credit scores...let alone three Auto Industry Option scores.
So How Can You Use This Information to Help You Get Your Next New Car Financed at the Best Interest Rate
1. First, get your three credit reports. If you handled your previous auto credit well--your FICO Auto Industry Option scores will be higher than your traditional FICO scores. So expect more from the lender.
2. You can also ask the lender to show you their tier levels. Tiers are basically charts lenders use that have different interest rates based on your scores. You want to see which tier your fall in. To see an example of an auto lender's tier schedule, click here.
3. If they won't show you...at least have them break it down verbally for you. (Personally, I like to see it with my own eyes, as I never believe a word that comes out of most car dealers' mouths.)
4. If you've handled your auto credit poorly...then you should simply try to find an auto lender that uses just the traditional FICO credit scores. When you find a lender that uses a traditional FICO credit score, you'll have your best chance to get the lowest interest rate.
5. Start by calling dealerships and asking the finance director if they use a traditional FICO credit score to make their lending decision or if they use the FICO Auto Industry Option score.
These steps will get you headed in the right direction. This won't be easy, as a lot of car dealers use the FICO Auto Industry Option score.
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy recovery information He has helped thousands of people get a car loan after bankruptcy by showing them how to increase their credit score.
About the Author
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy recovery information He has helped thousands of people get a car loan after bankruptcy by sho
You're ready to buy a new car.
You've done all your homework.
You know your three FICO credit scores.
You determine that your highest FICO credit score is from Equifax (also known as your BEACON score).
So, you find a car dealer who uses your highest score (which increases your opportunity to get approved at a good rate).
You get to the dealership and ignore all the salespeople by going directly to the finance director's office.
But as the finance director reviews your credit file in front of you...you can't help but think something is wrong.
Sure enough...the dealer says your Equifax/BEACON score isn't high enough for their lowest interest rate.
How can this be? You just checked your FICO credit scores through www.myfico.com/12 a few hours ago. It's possible--although unlikely--the information on your credit report has changed and that your scores have decreased since you last checked them. Remember, your credit scores are dynamic and will change whenever information on your credit reports changes.
Your credit reports can change several times each month as new information is added or updated by your lenders. But more than likely, your scores wouldn't change in this situation (especially if there were only a few hours between when you checked your scores and when the dealership reviewed your credit reports).
So, if your credit reports didn't change, why is the finance director staring at your scores with such a discouraging face?
Car Dealers Can Use "Different" FICO Scores Than The Ones You See
The car dealer is probably using what is known as the FICO Auto Industry Option score instead of a traditional FICO credit score. You see, car dealers not only get to select the credit reporting agency they receive FICO credit scores from...they also get to decide if they will use a traditional FICO credit score or a variation of a FICO score called an Auto Industry Option score.
What's the difference between these two types of scores?
Not a whole lot to most people...but there's enough variation to make the majority of auto lenders use the Auto Industry Option score. The real difference between the two scores is that the Auto Industry Option score pays a lot more attention to how you handled previous auto credit.
- Have you made late payments on a current or previous auto loan or lease?
- Have you ever settled an auto loan or lease for less than you owed?
- Have you had a car repossessed?
- Have you had an auto account sent to collections?
- Did you include your car loan or lease in your bankruptcy?
Those actions will affect your Auto Industry Option score more than they'll affect your traditional FICO score. Bottom line, if you handled your previous auto credit perfectly, you should have a high FICO Auto Industry Option score--that's a good thing.
But what if you've had a few bumps in the auto credit road in the past? You guessed it...your Auto Industry Option score will be lower. You'll be perceived as a greater credit risk and the auto lender may either deny you or use your lower score to justify charging you a higher interest rate.
You see, auto lenders are different than other types of lenders. And I'm not talking about their slimy ways, leisure suits, short ties, manly hairy chests, or gold bling.
A lot of other lenders look at your whole credit picture to determine whether or not to give you a loan. But many auto lenders care about only one thing...how you handled your past AUTO credit. That's what a FICO Auto Industry Option Score gives car dealers--a way to pinpoint how you've handled what matters to them the most.
So, even if everything else on your credit reports went down the toilet after your bankruptcy, if you didn't include your auto loan in your bankruptcy and never defaulted or missed a car payment, your Auto Industry scores will probably be better than your traditional FICO scores!
What a Former Auto Finance Director Revealed to Me
I recently spoke with a former finance director, and this is what she told me...
"So many people I have helped couldn't believe their scores were so high with the FICO Auto Industry Option score. They had included all their credit card debt and their mortgage in their bankruptcy, but they reaffirmed their auto loan. What's good about the auto score is that it truly helps the auto lender concentrate on what is important--how the customer handles his/her auto loans.
By our dealership having the auto enhanced FICO, it helped 30% or more of our customers get better rates."
I don't believe I'm going to say this, but I think I may actually have found something good to say about car dealers! Well, some of them, anyway...
As you can see, the FICO auto scores can work in your favor, if they are used correctly.
OK, I just wouldn't be able to live with myself if I only said good things about car dealers.
So, in the interest of fair and balanced reporting, here's how to protect yourself against slimy car dealers that can use your FICO Auto Industry Option
scores against you...
A Dirty Trick Car Dealers Can Play with Your FICO Scores
Let's imagine your Equifax/Beacon FICO score is 585. Not too good. With a score that low, if you do get approved for a car loan, you'll probably wind up with a high interest rate and high monthly payment.
So you go to a dealership and talk with the finance director and tell him your Equifax FICO score is 585. The finance director then reviews your FICO Auto Industry Option score. And, unknown to you, this score is actually higher than the Equifax/Beacon FICO score you pulled.
With this higher score, you'll get approved at a better rate...right?
Not necessarily!
Here's what unscrupulous car dealers can do. They won't tell you that your auto score is higher than your traditional score!
They figure they have a sucker sitting in front of them. So they'll try to get you financed at a higher rate based on the lower FICO score (thus making more profit for themselves).
How Some Car Dealers "Play the Spread" to Get You to Pay More
Now check this out...
It's possible that a car dealer has the ability to pull your traditional FICO scores AND your FICO auto scores. That means they'll have six scores on you. It's a guarantee that some of those scores are going to be higher than the others. So which ones will they use when trying to get you financed?
It depends.
Are you familiar with the term "spread"? It's how car dealers make money when they finance you. If they can quote you a higher interest rate than you deserve--then they stand to make a nice chunk of change from the bank that finances you.
The only way to make a killer "spread" is to make you think that you have lower scores.
So, what can you do?
Don't despair...I can help you.
How to Use Your FICO Scores to Your Advantage when Buying a Car
Fortunately, you don't have to fall for their dirty tricks. Now that you know all about FICO Auto Industry Option scores, you can protect yourself. Here's what I suggest...
1. When you first walk into the finance director's office, don't tell him what your FICO scores are. Wait until he reviews the scores himself. Then ask him what your scores are.
2. If the scores he reviewed are higher than the ones you have, don't say anything and just go by his scores.
3. However, if your scores are higher, then pull them out and show him. If he has a choice in the type of scores he can use, there's a possibility that he'll be able to use your highest score. And, it will let him know that he doesn't have a fool sitting in front of him. He can't take advantage of you!
How do you find out what your FICO Auto Industry Option scores are before you walk into a car dealership?
You can't.
Sorry. They're not for sale--at any price. Only lenders have access to them.
FICO would like to sell them...but there just isn't enough demand. I mean seriously, up until you read this article, had you ever heard of the FICO Auto Industry Option score?
Exactly.
Remember, we were just given access to purchase all three of our traditional FICO credit scores on June 11, 2003 at 8:00 a.m. (I actually got misty that day...what a geek I am.)
Only a very small percentage of the population even knows they have three FICO credit scores...let alone three Auto Industry Option scores.
So How Can You Use This Information to Help You Get Your Next New Car Financed at the Best Interest Rate
1. First, get your three credit reports. If you handled your previous auto credit well--your FICO Auto Industry Option scores will be higher than your traditional FICO scores. So expect more from the lender.
2. You can also ask the lender to show you their tier levels. Tiers are basically charts lenders use that have different interest rates based on your scores. You want to see which tier your fall in. To see an example of an auto lender's tier schedule, click here.
3. If they won't show you...at least have them break it down verbally for you. (Personally, I like to see it with my own eyes, as I never believe a word that comes out of most car dealers' mouths.)
4. If you've handled your auto credit poorly...then you should simply try to find an auto lender that uses just the traditional FICO credit scores. When you find a lender that uses a traditional FICO credit score, you'll have your best chance to get the lowest interest rate.
5. Start by calling dealerships and asking the finance director if they use a traditional FICO credit score to make their lending decision or if they use the FICO Auto Industry Option score.
These steps will get you headed in the right direction. This won't be easy, as a lot of car dealers use the FICO Auto Industry Option score.
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy recovery information He has helped thousands of people get a car loan after bankruptcy by showing them how to increase their credit score.
About the Author
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy recovery information He has helped thousands of people get a car loan after bankruptcy by sho
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