I am 21 years old with NO(0) credit (which is apparently the same as having bad credit). I work part-time making $10 an hour. And I'm looking for a used car in the range of $5,000-$10,000. I cant find anyone to co-sign with me on a loan from my bank so my only option is to get a loan from the dealership. What kind of interest rate should I expect from a dealership?|||b|||I was in the dealership today with my boyfriend who is also 21 with no credit. We were looking at putting $15,000 down and buying a $21,000 car. He works 60+ hours a week making $18.00 a year.
The interest rate they tried to give us was 15% which meant it would take us 60 months (5 years) to pay off the rest of the car. Not cool. My parents said a good interest rate is 4-6 %|||If you have little or know credit, expect to pay 8%-12% on an autoloan from a dealership. Your best bet is to save your money and cash out a used car. Or get a co-signer and go to your local credit union for a loan.|||One thing to consider is that dealers are going thru banks just as you are, the benefit is that they have buying power to get a lower rate. In my experience, 25% down or more would be required to be considered for financing without a cosigner. Average interest rate is actually between 13% to 18%. Your interest rate does not determine your term. Average terms, depending on the year and miles of the vehicle) are 60 months. If it is a new vehicle than you can qualify for 72 months which would make your payments lower. Also, banks have no desire to finance anything less than $8,000. My advice to you if you truly cannot find a co signer, is save your money for a down payment, about 4 to 5 thousand, and look for a car less than five years old with less than 60k miles running for about 13 to 16 thousand. Good luck!|||0%.
You wont be approved.
Now, if you had a full time job with a year on the job and $2000-3000 down, you might stand a chance.
A buy here pay here dealer is a total ripoff and not because of the rate, 15-29% is not the problem. They double or triple price their cars because their customers have to take what they can get.
Saturday, December 17, 2011
What鈥檚 the best way to request a lower interest rate on a car loan?
We have a car loan that began in 2005 and have never made 1 late payment 鈥?every month the car loan was paid on time.
We鈥檝e recently received offers from various banks/loans proposing a lower interest rate.
We want to stay with our current auto loan provider but want them to lower the interest rate鈥?is that possible? If so, how should we approach this request?|||you can always get a lower intrest rate according to my bank
i can get them to refinance it at a lower rate sooo..
try your bank after buying the car through the dealerships lender. if your bank wont refinance try your insurance company they may refinance it. I know State Farm Insurance refinances vehicles.
it also is based on downpayment,payment history, and your credit score.
then they may possibly fight to keep you as a customer by lowering your current intrest rate.
do your home work first.
Good Luck i hope this helps!!!|||Car Loan Guide: http://carloanguide.automobiledeals.info
|||You signed a contract with a fixed interest rate for a certain period. The lender will reject your request for a lower rate leaving you no option but to continue to pay it. Alternatively, you might be able to get a line of credit with a bank at a lower rate, pay the car loan off and then pay off the bank loan with your former car loan payments. Be aware that many car loans have the interest front loaded. If you pay it off early you may be shocked that you would not have paid much interest going forward than if you simply kept the loan.
In other words getting a lower rate could prove to be more expensive.|||You walk in, tell them you have received offers of a lower interest rate, but you really want to stay with them, so what can they offer?
Their answer will dictate your next move.|||www.creditunion.coop
find your local credit union, and apply there, they have good rates.|||Flyboy is wrong.
Call your lender, tell them you are interested in refinancing the balance at a lower rate. If everything that you say is true, shouldn't be a problem. If they won't do it, go somewhere else. You certainly don't want to continue to give them your money if they don't want to help you.
We鈥檝e recently received offers from various banks/loans proposing a lower interest rate.
We want to stay with our current auto loan provider but want them to lower the interest rate鈥?is that possible? If so, how should we approach this request?|||you can always get a lower intrest rate according to my bank
i can get them to refinance it at a lower rate sooo..
try your bank after buying the car through the dealerships lender. if your bank wont refinance try your insurance company they may refinance it. I know State Farm Insurance refinances vehicles.
it also is based on downpayment,payment history, and your credit score.
then they may possibly fight to keep you as a customer by lowering your current intrest rate.
do your home work first.
Good Luck i hope this helps!!!|||Car Loan Guide: http://carloanguide.automobiledeals.info
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|||You signed a contract with a fixed interest rate for a certain period. The lender will reject your request for a lower rate leaving you no option but to continue to pay it. Alternatively, you might be able to get a line of credit with a bank at a lower rate, pay the car loan off and then pay off the bank loan with your former car loan payments. Be aware that many car loans have the interest front loaded. If you pay it off early you may be shocked that you would not have paid much interest going forward than if you simply kept the loan.
In other words getting a lower rate could prove to be more expensive.|||You walk in, tell them you have received offers of a lower interest rate, but you really want to stay with them, so what can they offer?
Their answer will dictate your next move.|||www.creditunion.coop
find your local credit union, and apply there, they have good rates.|||Flyboy is wrong.
Call your lender, tell them you are interested in refinancing the balance at a lower rate. If everything that you say is true, shouldn't be a problem. If they won't do it, go somewhere else. You certainly don't want to continue to give them your money if they don't want to help you.
What number is considered a high interest rate for a credit card?
Also, if you have a high interest rate does that mean you have bad credit?|||All credit card interest is considered high..lol. If you have great credit, you may qualify for 9.99%. If you have bad credit, you can go up to 20%. It's not all related to credit though. Some of the premium rewards cards will have higher interest rates. It helps pay for the rewards.|||Who cares what the interest rate is because you are going to pay off the balance every single month. Yes nd no on the bad credit with high interest rates.
Go here for your FREE annual credit reports http://www.annualcreditreport.com and you can see what your credit looks like|||If you pay the credit card liability by installments you will have to pay interest at 2% or even more per month. If one installment is not paid your will get reminders and charges will be added in addition to the interest. It is not advisable to opt for payment of the credit card dues in installment. Further, if the installments are not properly paid, your credit rating will be damaged.
Go here for your FREE annual credit reports http://www.annualcreditreport.com and you can see what your credit looks like|||If you pay the credit card liability by installments you will have to pay interest at 2% or even more per month. If one installment is not paid your will get reminders and charges will be added in addition to the interest. It is not advisable to opt for payment of the credit card dues in installment. Further, if the installments are not properly paid, your credit rating will be damaged.
How can we beat the banks and their greedy interest rate hikes?
Banks make massive profits and dream up justification for more and more interest rate rises to make their greedy shareholders and CEO's happy.
Everyone says there is nothing we can do about it.
Why don't we all black one bank say the cba and withdraw our money and switch our mortgages to another bank. If we could organise ourselves we could bring the greedy buggers down unless they offered fair interest rates. The shareholders (probably you lot) would have to take a hit for the good of first time home buyers.
How do we get organised?|||Because people are self-interested. Assume you get 3 million people to join up and start pulling their assets out of a bank. As this starts happening, the bank isn't going to just sit there idly. Instead they're going to start offering short-term incentives to get people to move assets to their bank like new account signing bonuses or 1 year low rates, etc. and either some of your 3 million or some of the other members of the population are going to take them up on it.
Once they're back to target numbers, its business as usual.
Money speaks louder than principles for most people.|||It isn't just the banks that cause this problem, it's also the gov't and their endless amount of bureaucracy.
For example, in theory a person living on an acreage property could accommodate a number of people living in a tent, caravan or simple shack.
If these people have an average income, combined they could save up enough money to buy another property/house, probably in a year or so, completely bypassing the need for banks.
Then start saving for the next one, and so on, until each one of them has their own home.
Gov't bureaucracy, red tape, the gazillion rules and regulations hinders that.
Gov't protect the rich. They make the rich richer and consequently, the poor poorer, because that money has to come from somewhere.
Everyone says there is nothing we can do about it.
Why don't we all black one bank say the cba and withdraw our money and switch our mortgages to another bank. If we could organise ourselves we could bring the greedy buggers down unless they offered fair interest rates. The shareholders (probably you lot) would have to take a hit for the good of first time home buyers.
How do we get organised?|||Because people are self-interested. Assume you get 3 million people to join up and start pulling their assets out of a bank. As this starts happening, the bank isn't going to just sit there idly. Instead they're going to start offering short-term incentives to get people to move assets to their bank like new account signing bonuses or 1 year low rates, etc. and either some of your 3 million or some of the other members of the population are going to take them up on it.
Once they're back to target numbers, its business as usual.
Money speaks louder than principles for most people.|||It isn't just the banks that cause this problem, it's also the gov't and their endless amount of bureaucracy.
For example, in theory a person living on an acreage property could accommodate a number of people living in a tent, caravan or simple shack.
If these people have an average income, combined they could save up enough money to buy another property/house, probably in a year or so, completely bypassing the need for banks.
Then start saving for the next one, and so on, until each one of them has their own home.
Gov't bureaucracy, red tape, the gazillion rules and regulations hinders that.
Gov't protect the rich. They make the rich richer and consequently, the poor poorer, because that money has to come from somewhere.
What is the variable student loan interest rate forecast for the foreseeable future during a depression?
What is the variable student loan interest rate forecast for the foreseeable future during a depression WITH high inflation?
Currently it is 1%-3%|||You can expect something in the neighborhood of 5%.
And - nobody said anything about a Depression.
Currently it is 1%-3%|||You can expect something in the neighborhood of 5%.
And - nobody said anything about a Depression.
The Fed lowers interest rates to 2 percent the 18th of March, what will the interest rate be for a mortgage?
Actually the interest rate for a 15y mortgage is about 5.5%. What is the interest going to be after March 18th.|||We don't expect the fed to drop it to 2%, may be lowering .5 or .75 is more likey.
The fed rate isn't relate to mortgage interest rates.
In fact, mortgage rates can and do often rise when the fed cuts rates.
We can never predict mortgage interest rates, they can change multiple times in a day.
Here's a good explanation from
Barry Habid, contributer to CNBC
So the Federal Reserve cut rates again. Many mortgage applicants are calling their mortgage representative
and expecting a lower interest rate. Others who have been waiting to refinance are puzzled as to why mortgage
rates have not moved lower during recent 5 Fed rate cuts. In fact mortgage rates are now higher than they
were before the Fed began cutting rates by in January. This is difficult to explain to many consumers who have
watched a 2.5% reduction by the Fed with no benefit in mortgage rates.
Is a Fed rate cut really good news for mortgage rates? The facts may be surprising. The Fed can only control
the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be
in effect for 30-years, a rate that is set by the Fed can change from one day to another.
Another common mistake is in thinking that 30-year Treasury bonds or 10-year Treasury notes are directly
pegged to mortgage rates.
Those are government securities that are backed by the full faith and credit of the U.S. government and have
no direct effect on mortgage rates.
So what are mortgage rates based on? As it turns out the answer is mortgage-backed bonds known as
Mortgage Backed Securities (MBS). Bonds issued by Fannie Mae and Freddie Mac (MBS) and the trading
performance of those bonds will determine the direction of mortgage rates. Finding the catalyst that causes
mortgage bonds to move will give you the keys to finding out what makes mortgage rates rise or fall.
We know that inflation will always be a negative for any long-term bond because it eats away at the future
returns. Since the bond will pay a set amount over a long period of time, that amount will be less valuable if
inflation is high. Over the past several years, one catalyst that seems to be working in the opposite direction of
MBS prices is the Nasdaq and broader stock market.
As bond prices rise, interest rates fall. As bond prices fall, interest rates rise.|||The two are NOT directly linked.|||These two actions are not necessarily tied together. Fed lowering may not result in mortgage rate lowering. The risk of making mortgages has gone up and the rates could even rise. The 15-year may go down another .50 if the fed lowers .50 or .75. Capital is very tight now and lenders are very nervous.|||Claudio-
They are not directly related, but based on levels of unemployment, debt and inflation, most likely it will hurt the mortgages, for the next couple of days until the 18th investors will be more likely to put money on mortgage backed securities since they feel a little safe with the feds cutting another 0.50% so I would get pre-qualified now because rates will more likely to go down before, but after the 18th top economists and analysts feel that it will hurt the mortgage rates and in return they will go up. Now my company has also analyzed mortgage trends data over the last 26 years and we actually agree with it too.
Hope this helps
The fed rate isn't relate to mortgage interest rates.
In fact, mortgage rates can and do often rise when the fed cuts rates.
We can never predict mortgage interest rates, they can change multiple times in a day.
Here's a good explanation from
Barry Habid, contributer to CNBC
So the Federal Reserve cut rates again. Many mortgage applicants are calling their mortgage representative
and expecting a lower interest rate. Others who have been waiting to refinance are puzzled as to why mortgage
rates have not moved lower during recent 5 Fed rate cuts. In fact mortgage rates are now higher than they
were before the Fed began cutting rates by in January. This is difficult to explain to many consumers who have
watched a 2.5% reduction by the Fed with no benefit in mortgage rates.
Is a Fed rate cut really good news for mortgage rates? The facts may be surprising. The Fed can only control
the Discount Rate and the Fed Funds Rate. This is very different from mortgage rates. A mortgage rate can be
in effect for 30-years, a rate that is set by the Fed can change from one day to another.
Another common mistake is in thinking that 30-year Treasury bonds or 10-year Treasury notes are directly
pegged to mortgage rates.
Those are government securities that are backed by the full faith and credit of the U.S. government and have
no direct effect on mortgage rates.
So what are mortgage rates based on? As it turns out the answer is mortgage-backed bonds known as
Mortgage Backed Securities (MBS). Bonds issued by Fannie Mae and Freddie Mac (MBS) and the trading
performance of those bonds will determine the direction of mortgage rates. Finding the catalyst that causes
mortgage bonds to move will give you the keys to finding out what makes mortgage rates rise or fall.
We know that inflation will always be a negative for any long-term bond because it eats away at the future
returns. Since the bond will pay a set amount over a long period of time, that amount will be less valuable if
inflation is high. Over the past several years, one catalyst that seems to be working in the opposite direction of
MBS prices is the Nasdaq and broader stock market.
As bond prices rise, interest rates fall. As bond prices fall, interest rates rise.|||The two are NOT directly linked.|||These two actions are not necessarily tied together. Fed lowering may not result in mortgage rate lowering. The risk of making mortgages has gone up and the rates could even rise. The 15-year may go down another .50 if the fed lowers .50 or .75. Capital is very tight now and lenders are very nervous.|||Claudio-
They are not directly related, but based on levels of unemployment, debt and inflation, most likely it will hurt the mortgages, for the next couple of days until the 18th investors will be more likely to put money on mortgage backed securities since they feel a little safe with the feds cutting another 0.50% so I would get pre-qualified now because rates will more likely to go down before, but after the 18th top economists and analysts feel that it will hurt the mortgage rates and in return they will go up. Now my company has also analyzed mortgage trends data over the last 26 years and we actually agree with it too.
Hope this helps
How does credit card interest rate work?
I have always paid off my credit card balances in full every month, but on the next billing statement I won't be able to. My current balance is $1,413. My credit card interest rate is 14.49%. Is it true that I will be charged interest on my full balance even if I pay half the balance? I called my credit card company and the rep said yes, but I don't think she was very knowledgeable.|||The cc will charge you interest next month (i.e. after they learn you did not send in the full payment) for each purchase from the day of purchase until you paid them some money. Then they will charge you interest on the balance [ $706.50 ] for the whole month until the next billing cycle, plus interest on each new purchase from time of purchase until cut-off date (and then go to first line). They usually use a daily balance average and charge interest daily. So your answer is sort of yes, sort of no.|||That is an excellent question - I hope someone answers this!|||it works in the banks favor
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