Buying A Car With Your Spouse

Buying a Car with your Better Half: Deal with Bitter Questions

Buying a car involves making several decisions. You have to consider the type of car that you want to buy. But, before saying �I do’ to buying a car with your spouse, you will have to ask each other a few hard questions.

>>What size of car will suit your needs? Also, decide on who will be driving the car most of the time. It will help you to narrow down your options.

>>If you are going to expand your family in the near future, you must consider a kid-friendly car such as a minivan or an SUV.

>>Consider the budget of the car. Will both of you contribute towards the monthly car payments? Are your incomes adequate to manage the car payments along with other debt obligations?

>>Will you be able to manage a down payment? Usually, young couples have hard time getting together money after an extravagant wedding. So, consider your financial situation before visiting a dealership lot.

>>The D-word is often off-the-table for young married couples. However you must remember that in a situation of divorce, a co-buyer will be responsible for the car even if he/she doesn’t use it. Also, division of assets can be a problem when you own a car with your spouse.

A Co-Buyer or a Co-Signer: The Big Auto Loan Question

Discussing the size of the car and the budget are simpler things compared to the big question of auto loan. It is not necessary for your spouse to have a good credit score. A few late payments in the past may have rendered a stain on your credit report as well. You need to discuss your financial situation and credit score before buying a car.

If you are a co-buyer, both of you will be the owners of the car. When you are a co-owner of a property, you and your spouse are responsible for the ownership of the car as well as the auto loan. The lender will review your credit score and your partner’s score to judge your joint auto loan application.

When you become a co-signer for the auto loan, you will only be responsible for the auto loan. You will have no ownership rights. It means the lender will not consider your personal income for approving the loan. But, remember that as a co-signer, the lender will require you to have a good financial standing as you will have to make payments if your spouse is unable to make them.

How to make a Decision?

Who has a Stable Financial Situation?

If your partner earns a good income and has an impeccable credit score, he/she will be able to increase your credit worthiness. The lender will consider his/her income to ascertain the loan amount. It will also help you in lowering the interest rate. With a stellar credit application, the lender may be tempted to provide you with a high LTV. So, when your spouse has a stable financial situation, you can ask him/her to become a co-buyer.

When both of you have average credit scores, sit with a loan officer to make a decision regarding the primary borrower. After considering your incomes, debts and credit scores, you will be able to make a secure decision.

When is going solo the Best Option?

In a real-life scenario, marriage doesn’t always mean being equal. One of you may have significant credit card debt. It is possible that you may still be paying your student loan. There is a possibility that your partner is just starting his/her career and doesn’t possess a good credit score. In such a situation, you have to think twice before making a decision.

If you think that your spouse is not financially responsible, it is best to buy the car on your own. Also, many spouses feel more confident when they have financial autonomy. So, think hard and do not be afraid to ask uncomfortable financial questions. Buying a car is a big responsibility. And, if you are not sure about taking the plunge, it is best that you become the sole owner of the car.

Cosigning Conundrums & Solutions

The common question running through a first time car buyer’s mind: �Is it possible for an eighteen year old to purchase a car when the cosigning parent has a bad credit history?� Bad credit score, zero credit history and inadequate information about auto loans can compel you to think that having a cosigner is the only way out. A cosigner can drastically improve your chances of getting approval for an auto loan. However, purchasing a car is still possible in times when you cannot find a cosigner. Moreover, breaking some common conundrums about cosigning can provide a great deal of clarity in order to obtain the auto loan for your dream car.

Buying a Car without a Cosigner: Unravel the Mysteries

Buying a car without having a cosigner can be a tricky task. Many car buyers are ignorant about what happens when one doesn’t have a cosigner. Do not make an ill-informed buying decision. Learn which cosigning conundrums keep us from buying a car and what are the solutions to break them?

1) Conundrum: Without a cosigner, I am bound to pay high interest rates.

Solution: A huge down payment is the ultimate evidence of your credit worthiness. A lump-sum amount at the beginning of the auto loan term will put you in a good position to bargain for good interest rates. Additionally, putting money down reduces the amount of your monthly payments. Remember that more the down payment, the lower will be your future auto loan payments. Once you put a good amount of down payment, the approval for the auto loan will not require a cosigner.

2) Conundrum: I need an exceptional income record for obtaining auto loan without cosigner.

Solution: If you have suffered from bad credit in the past, your creditworthiness is assessed by your current income. The amount of monthly income along with the stability of the employment plays a huge role in determining your reliability. A minimum monthly income of $1,500 is considered ideal for getting an approval without a cosigner. However, the minimum income requirements vary from lender to lender. Therefore, make sure you keep regular track of your income pay stubs and use it as leverage to obtain an auto loan without a cosigner.

3) Conundrum: If I don’t have a cosigner, I cannot buy a new car.

Solution: When you do not have a cosigner, it may seem that new cars are out of reach. But, it is far from truth. A used car with a low price tag looks less risky to a lender. However, your options do not end there. With a strong FICO score and regular efforts to build a strong credit, you can purchase a new car even without a cosigner. In order to improve your credit score, build a good debt to income ratio, keep your credit utilization low and make timely payments. Once you have a good credit score, you can purchase a new, more reliable and updated car.

It is common to think about all the support you can get while applying for an auto loan, a cosigner being one of them. However, it is possible to obtain an auto loan even without a cosigner. With the rightly calculated moves, your dream of obtaining a new car will not require the pillar of support in the form of a cosigner.

Swim Through Negative Equity

�Being able to breathe underwater would be sweet.’ – Cameron Bright

It is exciting to be able to breathe underwater, but when you actually go below the water surface, you will develop breathing issues. Similarly, when your auto loan situation is underwater, you will face myriad problems. In financial terms, being �underwater’ means to have negative equity on your asset such as a car. In simpler words, it is to owe more money to the lender than the actual worth of the car. It means being in an upside down auto loan situation.

How to deal with Negative Equity on your car?

Life may not be always beautiful underwater!

Negative equity occurs when you try to get out of the auto loan before it is paid off. The reason may be you bought a Sedan and now you need a SUV for transportation or you can’t afford the current monthly payments. Nowadays, people need change and variety in driving a car and so they think of buying a new car before pay off the current auto loan.

When you have unpaid balance on your current loan, the situation of upside down auto loan arises. Let us understand the reason behind negative equity in detail:

>>You bought an expensive car that you could not afford because of the high monthly payments.

>>You did not pay a large down payment in the first place which caused a rise in your auto loan balance. As a result, you are stuck with unaffordable monthly payments.

>>You have an upside down auto loan because you are paying high rate of interest. The reason can be your bad credit score.

>>Your auto loan term is too long resulting in slower repayment of the debt.

>>You rolled an old auto loan into your current auto loan which led to a rise in the total debt amount.

Negative equity and Upside Down Auto Loan: Let’s swim to the shore

Accept the fact that you are upside down on your current auto loan. You will have to deal with the difference between the car’s current value and what you still owe on the auto loan. Save yourself from going underwater with these helpful tips and swim to the shore!

>>The outstanding balance isn’t going away so you will have to pay the difference before buying a new car. If you cannot afford to pay now, keep making payments on your current auto loan. It will improve your upside down auto loan situation.

>>You can roll over the difference into your new auto loan. When you opt for it, the balance on the current auto loan amount will be included in the new one. You will have to make higher payments if you choose the option.

>>If lowering down the monthly payments is your top priority, consider refinancing your auto loan and get an extended loan term. It will provide you instant relief from high monthly payments.

>>Work overtime and earn extra bucks to pay off the outstanding loan amount. Working a few additional shifts might be the easiest way to get more cash in your pocket. Also, it will help you to lower the negative equity.

>>Sell your old car. You can get instant cash and it will help in repaying the current auto loan. When it is paid off, you can begin another journey with your new car and a new auto loan.

When you are driving your old car and see a new model of a car passing by, it will give you goose bumps. If you need the luxury of a latest car, you will have to consider your current outstanding auto loan balance. Before making any decision, consider how negative equity on your current car will affect your financial situation. Think about the upside down auto loan and prepare a detailed plan to tackle the plan. Only then, you will have the best chance to swim though the problem of negative equity and reach the shore.

A Boon For People Who Need Instant Money

Loans have gradually become an important aspect of our lives. A few decades ago, an individual who would want to borrow a personal loan would have to go through a complicated procedure to avail it. However, with a host of financial companies which came into existence about a decade ago, the concept of borrowing a personal loan has been revolutionised. The financial institutions have explored the possibilities and have come up with much more flexible loans to help cater the needs of people.

What are Personal Loans?

Personal loans are an unsecured form of loans which involve quick sanctioning and easy payout. However, the most intriguing part about a personal loan is that a collateral is not required. Personal loans often include borrowing of an amount to fulfil the needs pertaining to medical, education, gadgets, travel, vehicles, etc. However, you are free to utilise a personal loan the way you want.

What Must you Consider While Borrowing a Personal Loan?

When talking about a personal loan, it is essential that you take three factors into consideration – personal loan amount, tenor and the rate of interest. These three aspects go hand in hand. The amount that you borrow, the tenor that you choose and the rate of interest that you are provided with determines the EMI that you will pay

A personal loan is a great way to overcome shortcomings. It is a boon if you are falling short of the required amount to fulfil your need. There are several ways in which you can utilise a personal loan to its fullest. Here are a few requirements in which you can optimally use personal loans: Financing home renovation: There are many people who want to remodel their home. However, la

Financing Home Renovation: There are many people who want to remodel their home. However, lack of funds is the major obstacle that comes their way. There might be a special occasion where renovating a house is pretty much in culture, under such a scenario you can opt for a personal loan for house renovation. Apart from that even if you wish to add details, put a new roof, or build an extra room; a personal loan will come in handy.

Payment for a wedding ceremony: Almost every individual dreams of a perfect wedding. Especially women, who plan and think about it a lot. Not just the kids but even their parents are keen on the occasion. Most of the parents start saving from the early days. However, such is the cost of marriage in today’s time that savings cannot fulfil the requirements. Thus, borrowing a personal loan does a lot of good under this scenario.

Credit score: A personal loan helps in improving a credit score tremendously. There are various bodies, most prominently, CIBIL which calculates a credit score. A good credit score will help you avail tremendous amount of benefits whereas a bad credit score can hurt your chances of availing any form of a loan. In a personal loan, when you repay your loan on time, your financial credibility with the lender improves significantly.

Paying debts endured on cards: A personal loan is usually borrowed to pay off debts on credit and debit cards. A personal loan might require you to pay a high rate of interest as the nature of the loan is unsecured. However, it is much less than the one you are being charged on your credit/debit cards. Borrowing of a personal loan to clear debts is a very good idea.

These are few options regarding how you can make the optimal use of a personal loan. Apart from these options, you can even use it for investment purpose to make a considerable profit.