It is common knowledge that motorcycle financing companies'
base high importance on your FICO credit scores when approving
motorcycle loans. However, what many people overlook is that
their FICO credit score can dramatically impact the term on
their motorcycle loan along with the interest rate that is
assigned to the motorcycle loan.
In order to gain better motorcycle loan rates, it is highly
important that you think of your FICO credit score as a picture
of how risky you are to the lender. Your FICO credit score is
essentially a benchmark which motorcycle financing companies
use to grade you and assign a risk to you when applying for a
motorcycle loan. Since factors about your credit change on a
daily basis so can your FICO credit score.
The below 5 tips are designed to help ensure you improve your
creditworthiness as your credit score changes. Ultimately these
tips should help you obtain better motorcycle loan rates and
loan terms in the future.
Watch Your Debt- Keep your account balances below 25%-30% of
your available credit limit. This is especially true with your
revolving credit card because many motorcycle financing
companies see credit card debt as more risky. If you have a
credit card with a $500 limit, you should try to keep the
balance owed below $150 when you apply for a motorcycle loan.
Check Your Credit Regularly - In today's age it is easy to get
online to check your credit report. Checking your free credit
report regularly is very important because it can help you
uncover inaccuracies that are affecting your FICO credit score.
Don't let your credit health suffer due to inaccurate
information or errors on your credit report. If you find an
inaccuracy on your credit report contact the creditor
associated with the account or the credit reporting agencies to
correct it immediately.
Avoid Excessive Credit Inquiries - A credit inquiry normally
happens when you apply for credit. If you have a large number
of credit inquiries in a short time period many motorcycle
finance companies see this as a negative since it affects your
FICO credit score. Therefore, when you are applying for credit
or shopping for motorcycle loans it is very important you
consider how many times your credit is accessed. Be advised
that sometimes motorcycle dealerships will pre-screen you for a
loan by asking you for your driver licenses and social security
number. Normally this results in a credit inquiry on your
credit report. Be prudent in shopping for credit and motorcycle
financing.
Establish Credit Early - Time is very important part of
improving your FICO credit score. Therefore, it is recommended
that you start building credit early in life. Getting one or
two credit cards can significantly help build your credit.
However, the key to this strategy is keeping your purchases
small and frequent and paying off the balance every month on
time. When establishing credit you should also keep the oldest
account on your credit report open in order to lengthen your
period of active credit use. The length of your credit history
can make a big difference in getting approved for a motorcycle
loan.
Make Your Payment On-time - Paying your current credit bills
on-time is one of the biggest factors that contributes to a
higher FICO score. Typically when motorcycle finance companies
see potential customers that do not pay their bills on-time
then they either decline them or issue a motorcycle loan at a
much higher interest rate. Late payments, collections and
bankruptcies have the greatest negative effect on your credit
score and how lenders rate you when getting a motorcycle loan.
Copyright (c) 2005, by Jay Fran.
About The Author: Jay Fran is a successful author at
http://www.motorcycle-financing-guide.com - A comprehensive
resource to compare online motorcycle financing, motorcycle
loans and online motorcycle buying tips for Polaris, Honda,
Suzuki, Harley-Davidson, Yamaha and more.
Tuesday, September 27, 2005
Monday, September 26, 2005
Home Equity Credit Lines Provide Quick Access To Cash In Times Of Need
If you need to borrow money, Home Equity Credit Lines can be
one of the options available to you. This Line of Credit Home
Equity is a loan granted to the borrower with his home as
collateral. Home Equity per say is the difference between the
worth of your property and the amount you owe on your mortgage.
Of late many people are opting for Home Equity Lines of Credit
because of its ease of acquisition and flexibility. If you use
the equity of your home as collateral in a loan, you have
access to a large pool of funds which you can use to expand
existing business or undertake a new one whilst still owing
your home. If you negotiate well, you can obtain Line of Credit
Home Equity far exceeding the current price of your home. Again,
you have the advantage over other kinds of borrowed funds
because you enjoy low interest here. The biggest advantage for
Home Equity for small businesses owners especially is that the
interest on Home Equity Credit Lines is treated as tax
deductible. This simply means you can take out the interest
payments as an expense before you declare profits, thus leaving
you with more money as net income.
Line of Credit Home Equity is the best option for a business
with homes which needs long term capital. As the homes increase
in value, the loan interest decreases in value with the effect
that businesses gain over the long term.
Home Equity loans need to be contracted with great care. Look
around for the best plan or terms so you don't risk defaulting
on the loan. If you default on the loan, your home may be
foreclosed. Foreclosure is the process of offsetting a debt
with the sale of a borrower's home. The forced sale comes about
because you have irreversibly used the home as collateral in the
agreement and have authorized the lender to take over the house
in the event you are unable to pay up on the interests.
When it comes to using your home as collateral for a loan,
there are two major options: Home Equity Line of Credit and a
Home Equity loan.
Home Equity Lines of Credit are used for any kind of expense at
all such as home improvements, educational and medical expenses
and small business expenses. You make monthly payments at
varied interest rates. If you are not the type that worries
about changing payments and interest rates, then you may go for
this option.
On the contrary, Home Equity loans gives you access to funds
which need to be expended in a lump sum such as the expenses in
connection with buying a new car or starting a new business. In
this type of loan, interest payments are fixed. If you want a
predictable payment, then this is the option for you.
In Summary...
Home Equity Credit Lines have helped many businesses and
individuals get access to large pools of funds for business
expansion or acquisition of another home. This ease of access
must be balanced with the fact that persistent default in
payments can result in the loss of your home.
For more free-reprint articles by Colin P please visit:
http://www.isnare.com/?s=author&a=Colin+P
one of the options available to you. This Line of Credit Home
Equity is a loan granted to the borrower with his home as
collateral. Home Equity per say is the difference between the
worth of your property and the amount you owe on your mortgage.
Of late many people are opting for Home Equity Lines of Credit
because of its ease of acquisition and flexibility. If you use
the equity of your home as collateral in a loan, you have
access to a large pool of funds which you can use to expand
existing business or undertake a new one whilst still owing
your home. If you negotiate well, you can obtain Line of Credit
Home Equity far exceeding the current price of your home. Again,
you have the advantage over other kinds of borrowed funds
because you enjoy low interest here. The biggest advantage for
Home Equity for small businesses owners especially is that the
interest on Home Equity Credit Lines is treated as tax
deductible. This simply means you can take out the interest
payments as an expense before you declare profits, thus leaving
you with more money as net income.
Line of Credit Home Equity is the best option for a business
with homes which needs long term capital. As the homes increase
in value, the loan interest decreases in value with the effect
that businesses gain over the long term.
Home Equity loans need to be contracted with great care. Look
around for the best plan or terms so you don't risk defaulting
on the loan. If you default on the loan, your home may be
foreclosed. Foreclosure is the process of offsetting a debt
with the sale of a borrower's home. The forced sale comes about
because you have irreversibly used the home as collateral in the
agreement and have authorized the lender to take over the house
in the event you are unable to pay up on the interests.
When it comes to using your home as collateral for a loan,
there are two major options: Home Equity Line of Credit and a
Home Equity loan.
Home Equity Lines of Credit are used for any kind of expense at
all such as home improvements, educational and medical expenses
and small business expenses. You make monthly payments at
varied interest rates. If you are not the type that worries
about changing payments and interest rates, then you may go for
this option.
On the contrary, Home Equity loans gives you access to funds
which need to be expended in a lump sum such as the expenses in
connection with buying a new car or starting a new business. In
this type of loan, interest payments are fixed. If you want a
predictable payment, then this is the option for you.
In Summary...
Home Equity Credit Lines have helped many businesses and
individuals get access to large pools of funds for business
expansion or acquisition of another home. This ease of access
must be balanced with the fact that persistent default in
payments can result in the loss of your home.
For more free-reprint articles by Colin P please visit:
http://www.isnare.com/?s=author&a=Colin+P
Sunday, September 25, 2005
Mortgage Research Good News For House Buyers
Figures from the Council of Mortgage Lenders show that in July
gross lending in totalled £25.2 billion, with fixed rate deal
mortgages are at their most popular for nearly six years.
Nonetheless, "July's growth in lending to individuals slowed
from the recent trend," said British Bankers Association (BBA)
spokesman David Dooks, "this could have reflected consumers
waiting for the widely anticipated cut in interest rates."
Miles Shipside, Commercial Director of Rightmove (
http://www.rightmove.co.uk/ ), comments, "The belated but
welcome drop in interest rates will be a real boost for
sentiment in the market and a springboard for a better 2006."
However, more than half of all mortgage lenders have failed to
pass on the full Bank of England interest rate cut to
borrowers, and those that haven't done so already look unlikely
to do so in the future.
"How these things usually work is that if the lender is going
to pass on the full cut they announce so fairly quickly", Ray
Boulger of John Charcol mortgage advisers.
Several lenders stated the rates on fixed mortgage deals from
some providers had already started to drop in anticipation of
the cut in interest rates earlier this month, while others
argued that replicating the rate cut is not necessary because
they did not pass on past increases.
A few lenders, including the Halifax, the UK's largest mortgage
lender, immediately reduced its rates, but others have held off
cutting borrowing costs or have trimmed them by less than the
bank's quarter of a percent.
Despite the rate cut anticipation and the increases in the
take-up of fixed rate deals, the British Bankers Association
(BBA) said that net mortgage lending by its own members slowed
down last month.
Rightmove in its latest house price index has indicated that
house sales have slowed down. The numbers of completed sales
for the three months from April to June are the lowest since
1998. To improve the chances of achieving sales, many new
sellers are adjusting their prices in an attempt to undercut
the competition. Asking prices have now dropped by an average
of 1.2% over the past two consecutive months.
Rightmove believe that the housing market is gradually
recovering, but "there is currently too much unsold property
still available to expect anything other than a continuation of
static asking prices this year".
Miles Shipside adds, "Sellers are finally becoming more
realistic on their asking prices, which when combined with
cheaper mortgages and rising wages, means that more buyers can
now afford to enter the market." He went on to point out that,
"We still need more first time buyers for the long term health
of the property market."
Financial comparison site, Moneynet (
http://www.moneynet.co.uk/ ), puts the current first time
buyers' average joint salary at £39,382, with an average
mortgage amount required of £135,239 constituting a 66%
borrowing on the cost of a property. This means that with
sellers asking prices remaining static, or even falling, and
wages gradually rising, for many potential first time buyers,
there is an increase in the realistic prospect of getting onto
the property ladder.
Halifax hoped that the interest rate reduction by the Bank of
England would, "reduce mortgage payments as a proportion of
gross income for the average new borrower from 20% to 19%, the
average for the past 20 years and well below the 34% peak in
1990".
With the mortgage market especially competitive at present and
rate comparison sources easily accessible, lenders who do not
offer reasonable rates are liable to lose out. All this appears
to be good news for buyers as Rightmove states, "there are now
clear signs that the market is making sensible adjustments in
prices to improve buyers' affordability."
About The Author: Richard lives in Edinburgh, occasionally
writing for the personal finance blog Cashzilla (
http://cashzilla.blogspot.com/ ), and thinks "Half Man Half
Biscuit" were a good band.
gross lending in totalled £25.2 billion, with fixed rate deal
mortgages are at their most popular for nearly six years.
Nonetheless, "July's growth in lending to individuals slowed
from the recent trend," said British Bankers Association (BBA)
spokesman David Dooks, "this could have reflected consumers
waiting for the widely anticipated cut in interest rates."
Miles Shipside, Commercial Director of Rightmove (
http://www.rightmove.co.uk/ ), comments, "The belated but
welcome drop in interest rates will be a real boost for
sentiment in the market and a springboard for a better 2006."
However, more than half of all mortgage lenders have failed to
pass on the full Bank of England interest rate cut to
borrowers, and those that haven't done so already look unlikely
to do so in the future.
"How these things usually work is that if the lender is going
to pass on the full cut they announce so fairly quickly", Ray
Boulger of John Charcol mortgage advisers.
Several lenders stated the rates on fixed mortgage deals from
some providers had already started to drop in anticipation of
the cut in interest rates earlier this month, while others
argued that replicating the rate cut is not necessary because
they did not pass on past increases.
A few lenders, including the Halifax, the UK's largest mortgage
lender, immediately reduced its rates, but others have held off
cutting borrowing costs or have trimmed them by less than the
bank's quarter of a percent.
Despite the rate cut anticipation and the increases in the
take-up of fixed rate deals, the British Bankers Association
(BBA) said that net mortgage lending by its own members slowed
down last month.
Rightmove in its latest house price index has indicated that
house sales have slowed down. The numbers of completed sales
for the three months from April to June are the lowest since
1998. To improve the chances of achieving sales, many new
sellers are adjusting their prices in an attempt to undercut
the competition. Asking prices have now dropped by an average
of 1.2% over the past two consecutive months.
Rightmove believe that the housing market is gradually
recovering, but "there is currently too much unsold property
still available to expect anything other than a continuation of
static asking prices this year".
Miles Shipside adds, "Sellers are finally becoming more
realistic on their asking prices, which when combined with
cheaper mortgages and rising wages, means that more buyers can
now afford to enter the market." He went on to point out that,
"We still need more first time buyers for the long term health
of the property market."
Financial comparison site, Moneynet (
http://www.moneynet.co.uk/ ), puts the current first time
buyers' average joint salary at £39,382, with an average
mortgage amount required of £135,239 constituting a 66%
borrowing on the cost of a property. This means that with
sellers asking prices remaining static, or even falling, and
wages gradually rising, for many potential first time buyers,
there is an increase in the realistic prospect of getting onto
the property ladder.
Halifax hoped that the interest rate reduction by the Bank of
England would, "reduce mortgage payments as a proportion of
gross income for the average new borrower from 20% to 19%, the
average for the past 20 years and well below the 34% peak in
1990".
With the mortgage market especially competitive at present and
rate comparison sources easily accessible, lenders who do not
offer reasonable rates are liable to lose out. All this appears
to be good news for buyers as Rightmove states, "there are now
clear signs that the market is making sensible adjustments in
prices to improve buyers' affordability."
About The Author: Richard lives in Edinburgh, occasionally
writing for the personal finance blog Cashzilla (
http://cashzilla.blogspot.com/ ), and thinks "Half Man Half
Biscuit" were a good band.
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