Don’t Let Unpaid Taxes Affect Your Credit Score!

Your inability to pay your taxes will not only send the IRS to your doorstep, it will also have an adverse affect your credit score. Credit scores are computed through a delicate balance of how you pay your bills, how you use and pay back credit and loans, and, yes, properly paying your taxes. 

average credit scoreIf you’re a functional, working, tax-paying citizen, you would do yourself and your credit report a favor by just regularly paying your taxes.

Here’s how to encourage yourself to pay your taxes:

Maximize the tax deductions you can avail of. Business expenses or production costs can be factors for tax deductions, but are applicable only for business owners. A bonus for business owners is that meals and company-sponsored entertainment can also be added to the list of tax deductions, but only 50{77e4f13bffff39a77640d2f040ceda7a1e812745d41e2ba69a482d80ad5e3070} of the value of these items would be eligible for deductions. For employees, they can opt to go for job offers wherein their basic salary would be reduced and the rest of their compensation would go to allowances instead.

Give to charities. Charitable giving is a tax-deductible expense, so if you actively give to pet charities or to your church, you could list these items down on your income tax return.

Look forward to your tax refund checks. For those who pay their taxes faithfully, the IRS regularly issues tax credits or tax refunds. It is an incentive for taxpayers to regularly remit their taxes.

In order to maintain a good credit score, you also have to regularly settle your bills, your credit cards and other payables. Do what you need to do in order to maintain your credit in good standing with your credit.
In order to avoid creating a situation where both your taxes and your payables will your affect credit score, you have to regularly consult your friendly neighborhood tax accountant. This way, you will understand your taxes better and know which taxes have become due.

If you own property, you also have to regularly update your tax payments. If that requires you to liquidate your properties in order to reduce the headache of paying taxes on these, then by all means do so.

In addition to consulting your tax accountant for your income taxes, you may also want to consult what other items in your ownership are taxed. Sales and customs taxes are generally levied right where you’re transacting, but still check, just to be sure. If you moonlight, freelance, or have income other than your day job’s salary, also remember to report these sources of income. Remember, good citizens are rewarded by the government. So work on being able to report any and every source of income or taxable property that comes into your hands.

And as you report everything you earn from or own, remember to keep checking the IRS’ Refunds area. It’s located at the “Where’s My Refund – It’s Quick, Easy and Secure” page on the IRS website. As you get your tax refund checks, you’ll certainly be inspired to keep paying your taxes!

Don’t let tax affect credit score! Regularly update your tax payments, regularly check if you have taxes that are due and you will be well on your way to keeping your credit report immaculate!

Improve Your Credit Scores With Poor Credit Car Loans

Out of ideas to finance your car when you credit scores show a very poor performance? Do

not go crazy with tension. Poor credit car loan is just for you! When you have a poor credit, your first aim should be to tidy up your score card rather than purchasing a luxury sedan.Poor Credit Car Loans

Keep your patience, stay focused and go through the entire procedure of improving your credit score. And do not be surprised when I say that availing poor credit car loans can actually help you in this whole process. Shocked as how can taking a loan will help you? Well the trick is to know your financial strength in exact terms. Once you know where you stand and how much you can actually pay for monthly payments for a loan will go a long way because it is the first and the basic step.

Poor credit car loans have both its merits and demerits. A financial institutions or a traditional bank may not be willing to go through your application once they find out that you have poor credit scores. But if you take an effort to look around carefully, you will find many lenders matching your requirements. It might be a credit union or a dealer or a private lender and even sometimes banks too.

It may be difficult to get the dream car of yours with the budget constraints you have. But once you improve your position, it will no longer be a restriction. Generally the down payments asked for poor credit auto loans are a lot more than usual and involves a higher rate of interest. Carefully plan your next step. Go to the lenders and take details of the poor credit auto loan options offered by them. Do not be phased out by the attractive offers and discounts they may give you as most may have hidden costs. Once you have the details in hand, compare them to find the most reasonable rate. Consider that rate and calculate the monthly payment required to check if it is within your range of affordability.

Armed with your budget and your choice of car that fits into the budget, approach a dealer. Be confident and do not let him talk you into something beyond your capability. Check the vehicle thoroughly. Discuss the terms and conditions in details. Make sure your poor credit car loan get approved before you go to discuss the terms and conditions. Once you finalize the details with the dealer regarding rate of interest, terms of payment, period of repayment, get it into written agreement. Handover your check to the dealer only after you have signed the deal. Now you have your own car.

But your work is not finished yet. You are likely to enjoy your car more if your credit scores improve simultaneously. To make sure that happens, you will have to make the timely payments of the poor credit auto loan, without any default. And with time your score will improve. Later on you can avail an auto loan from a bank to purchase that dream car of yours with low rates.

Cosigning Can Make Your No Credit Car Loan Approval Easy

no credit car loanAll first-timers want to know whether it is easy to get a no credit car loan. The answer is both yes and no. Yes, because a person with a no credit history has a higher chance than a person with bad credit to make timely payments. A person with bad credit already has made late or missed payments. But a young college graduate who wants to buy his or her own first car has a better chance of not defaulting on payments. And no because, a person with no credit history needs to convince the lender that he is a responsible and will make regular payments. One way of easing the approval process is by finding a cosigner.

What is a cosigner? A cosigner is a person who will guarantee to the lender that you will make timely payments and in case you default, he will be responsible for them. Here are some tips on who can be the perfect cosigner.

* Requesting a family member, a relative or a close friend to cosign with you is a very god idea. In case you do default on payments you can openly ask him or her to make the payment on your behalf.

* Find a cosigner with an excellent credit history. The lender will be more comfortable in giving you the loan when he is sure that your cosigner makes credit payments on time. So in case you default on your payments, they have the cosigner to go to.

* Make sure that your cosigner has the financial condition to bear the responsibility of making your payments in case you default. Because if either you or your cosigner do not make payments, the lender can take you to court.

Asking a person to cosign with you for your no credit car loan is a huge responsibility. You need to protect that person from liability as much as possible. Just getting the loan with the help of a cosigner is not enough. Make sure that you follow a few things to protect yourself and your cosigner.

* Your cosigner must be aware of his responsibilities and liabilities before he signs.
* If due to unexpected circumstances you won’t be able to submit your monthly payment, you should first call him up and request for an extension. If your lender refuses, you should talk to your cosigner as soon as possible and explain the situation. Request him to make the payment for you that particular month and promise to pay it back.

* Since your cosigner has helped you, make sure that your payments are consistent so that his credit account is not tarnished. As much as possible, try to reduce his liabilities.

* Once you start making regular payments for a few months, you will have your own credit history. For your next loan, you will not need to take the help of a cosigner.

Taking a no credit auto loan with the help of a cosigner is a responsibility you need to shoulder.

New Car Auto Loan – How to Finance Your New Car

Having sleepless nights thinking about how to finance your purchase of dream car? Is your dealer giving you very high rates of interest? Do you have low credit scores? Well time toworry is over. You can get a new auto loan without much problem to handle. Follow the simple steps and get your car financed.

Car FinanceFind a lender: It is one of the primary steps in the whole process. If you have very good credit rating, go and talk to a financial institutions or bank. They will be pleased to help you out. If you do not have a very satisfying credit score, it is better not to approach a traditional financial institution. The reason is they might reject your application after seeing your credit score. They are not willing to take the risk. But do not be disheartened because there are others lenders waiting for you. There are credit unions, private lenders, and even some banks also. They are more than willing to cater to your needs.

Discussion with lenders: Once you have found out the lender, it is time to talk about the auto loan program they might have. Discuss about every detail of the program like rate of interest, down payment amount, loan term, discount offers, fees or charges, pre payment penalty involved. Get these details from as many lenders as possible. Find time to go online and check the online auto loan lenders. Compare the rates of interest because most of the other factors depend on it. If you have low score in your credit report, be prepared to pay a little high rate of interest. These lenders may be willing to ignore your scores while considering the application for auto loan if you agree to their rates. You can definitely lower the rates if you can negotiate your way in.
Know your limits: When you have got the details in your hand and have finished comparing the rates. You are likely to have arrived at the best rates you can get in the market for the auto loan. However, you work does not stop here. There is another important activity left for you to perform. Check your limits. Calculate your income, savings, and expenses. See how much you can afford to spend in excess of your present expenditures. If you are not very good with numbers, seek the help of the professionals or car loan calculator available online. They will help your know your condition in exact terms. This step is important because your expenses including your expected ones cannot be more than your income or must not exact your income. If it is equal, you run into risk of default payments. And it will not be good for your credit scores.

Now the last step is talking to the dealer. As soon as you know that you can afford the payment of a loan, choose your car. Visit a dealer who has the car and talk to him. Many times dealer will also have a loan program for you. Hear it out and compare with that of your choice of loan. Then choose the one which suits you best.

How Car Loan Refinance Program Works?

Car loan refinanceA car loan refinance is a new loan that is taken to repay back the already taken auto loan. The newer loan will be at a lower interest rate and with a flexible pay package. The process is very simple and will not take more than half an hour if you have the proper documents. Car refinancing is the best way to stabilize your financial position when mounting financial pressure forces you to do so. There are 2 important reasons on why people prefer auto refinance.

The first reason is to save some money by getting lowered interest rates. The monthly payment is reduced and individuals can use this money for the other expenditures. Secondly, for redefining the loan terms such as extending loan terms, eliminate prepayment penalties to pay the loan quicker. The longer period of loan will let you pay lesser amount every month. Thus, the borrowers will not feel the pinch of debt and get adjusted easily.

Minimum requirements:

A borrower must fulfill the following criteria to be eligible for the car loan refinancing.

* Must have completed 18 years of old

* Must have a valid driving license

* Must be a US Citizen

* The value of the car must be greater than the loan amount you owe

* Must have valid proof of current auto insurance

Most of the leading companies do not charge to apply for a car refinance. Avoid the lenders those who charge a hefty amount for the application itself. The lenders will take a notice of your application and start processing it. This is the first step involved in auto loan refinancing. The lender will analyze your financial position and other holdings. Your credit proves to be a vital factor here. It is good to provide the details of assets that you have. This will give assurance to the lenders on your repaying ability. At times, the officers from the lending institutions might walk out to say that you have a bad credit rate. However, that will not halt you from getting your vehicle refinance.

On analyzing all the documents, the lenders also usually check the status and working condition of the vehicle. It is not preferred to go for refinancing option for a car that is more than 4 years and has traveled 1000’s of kilometers. If the vehicle is in a proper condition and satisfies all the minimum eligibility criteria, then the lenders would be happy to lend the loan. However, the borrower must have a thorough knowledge on the current market interest rates to save some money.

Once all the formal procedures get over, the borrower will have to pay some fees to the lender for various transactions. In addition to that you would also have to pay fees imposed by your state for title transfer/administrative fee to handle transfer of lien holder/name which varies from $5 to $75. The fees would be altered depending upon the lenders. Upon paying all the fees and completing the procedure, the new refinancing lender will pay off the current auto loan payment to the old lender, while you continue paying on the new car loan. This is how auto loan refinancing works exactly.

Auto Loan Refinancing – FAQs

Refinancing of car loans has become the new trend in the current fiscal situation. There are millions of people who are left toiled and moiled by the recent recession in the economy. One would even call it as a depression as most of the millionaires were almost bankrupted. People who have obtained auto loans found it very difficult to repay the loans. Here is a new way to reduce your monthly payments towards the auto loans by getting cheaper interest rates. However, there are lots of doubts and queries residing in the hearts of borrowers. I have tried to clear most of your queries here.

auto loan refinanceAn auto refinance loan is a loan with lower interest rate that is taken to pay back the older loans that had a higher rate of interest and higher monthly payments. The borrowers might decide to go with the same old lenders or might look out for a new lender to get better terms and conditions for the loans.

Working: The new lender will pay off the existing loan debt with the old lender and the title will be now transferred to the new lender.

Reason to refinance: The ultimate aim of refinancing car loans is to obtain lower interest rates. The period of loan can be extended and can have flexible loan terms by which huge amount of money can be saved.

Time to refinance the loan: The exact time to refinance the auto loan really depends on the financial situation of the borrower. This will vary according to the needs of the individual. If you are not able to bear the brunt of paying lump sum amounts as monthly installments, then you can very well opt for the refinancing. The early you refinance the more you will be able to save.

Fees: There are exactly 2 kinds of fees that are standard for the refinancing of car loans. One is associated with the transfer of lien holder fees that is usually around $5 to $10 and a state re-registration/administration fee of $5.

How much can I save? The amount of savings depends on the remaining amount of the existing loan. If you had not repaid most of the old loan, probably you could gain. The difference in both the amount holds the key. Similarly the different in the interest rate of the new loan and old loan plays a vital role in deciding the amount.

Popularity of auto refinancing loans: This is increasing in its rate of popularity as people are able to get it at lower interest rates and is also hassle free. The entire process could be finished within an hour.

How to approach the financial institutions? Every lending institution has got websites for their company. It is enough to fill out their online application request forms and the responsible officials will get back to you in a shorter duration.

What knowledge does a borrower has to have while refinancing? The borrowers must have done a thorough research on various lending institutions and analyze their lending rates. This will help them to choose the better one to save money.