Shopping For A Car? Don’t Get Taken For A Ride!

Written by James H. Dimmitt


Continued from page 1

Here's what can happen behindrepparttar scenes: a bank approves an interest rate,repparttar 112577 dealer tacks on additional percentage points as a kind of service fee and thenrepparttar 112578 dealer and lender splitrepparttar 112579 difference.

To be fair, not every dealer is guilty of this markup. However, enough are involved that many states are now considering new "truth in advertising" lending laws. New laws would require auto dealers to inform customers ofrepparttar 112580 original rate offered byrepparttar 112581 bank and whatrepparttar 112582 dealer is offering torepparttar 112583 customer, after tacking on their additional finance fee.

Shopping around with your bank, credit union orrepparttar 112584 internet can help you to findrepparttar 112585 interest rate that you qualify for in a loan. Remember,repparttar 112586 auto dealer is in business to sell cars, not to offer loans.

The next time you're inrepparttar 112587 market for a car, don't just researchrepparttar 112588 model, make, and add-ons. Research fair interest rates as well so that you'll know if you're gettingrepparttar 112589 best rate possible fromrepparttar 112590 auto dealer or if you're being "taken for a ride."

Author: James H. Dimmitt James is editor of "TO YOUR CREDIT", a weekly free newsletter. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com. He is also author of “Identity Theft - How to Avoid Becoming the Next Victim!” available at http://tinyurl.com/bc45


Why Bad Credit People Pay Higher Rates

Written by Dave Czach


Continued from page 1
Now let's fliprepparttar perspective back to lending. Inrepparttar 112576 above investor example, replacerepparttar 112577 words investor with lender, yield with interest rate and annuity with mortgage loan. Now we see a more clear picture. Borrower A who pays in full and on time every month is a low risk and receivesrepparttar 112578 lower interest rate becauserepparttar 112579 lender is relatively assured of receiving their money. Borrower B is a much higher risk and paysrepparttar 112580 higher interest rate becauserepparttar 112581 lender is acceptingrepparttar 112582 chance they may not be repaid all their money. Now let's take it a step further. Imagine you had $100,000 to invest and had to choose between Borrower A and Borrower B. Which one would get your money? Moreover, why not loan $100,000 to Borrower B atrepparttar 112583 same rate as Borrower A? Afterall, "B" borrowers often claim they no longer haverepparttar 112584 same problems that caused their delinquency. "They turned a new leaf." Yet, they haven't proven it. They still pay their bills late. Would you take them at their word and give themrepparttar 112585 same rate as Borrower A? A true investor would not. In conclusion, it's as simple as risk and opportunity. Contrary torepparttar 112586 divisive manipulation of data fromrepparttar 112587 media and organizations with an agenda, people with credit problems pay higher rates because they are a higher investment risk - period. It has nothing to do with race, religion, ethnicity or national origin. From my experience inrepparttar 112588 mortgage business, loan officers only care about one color - green! © 2003 SonicPoint.com

Dave Czach has 12 years experience in the mortgage business plus a Bachelor's Degree in Real Estate.

This article may be reprinted without compensation provided there are no changes whatsoever to the article, the copyright notice and the complete Editor's Note. Any reprinting or duplication without these conditions is copyright infringement.


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