Auto Refinance Question

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Auto Refinance Question

By Credit Federal | Published 11/9/2006

Question: "6 Months ago I purchased a new GMC truck. Cost was $23,600.00 I put $18,000.00 down and financed $5,600.00 for 2 years. My current balance is $4,600.00. I realize now I should have put down less because I need a few thousand for other things at this time. Is it possible to refinance the truck and take a little cash? Say refinance for $ 8,000.00, for 3 years, paying off the other loan obviously, and that leaves me with a few thousand in my pocket."

Credit Federal response: "Since the balance owed on your vehicle is less than it's retail and loan value, it is possible to obtain refinancing. First; for simplicity, consider contacting your current lender for refinancing, or contact your local bank. Ask about refinancing the vehicle for an amount up to the vehicle's full loan value. Either sources can quote you the current loan value of your vehicle. Note: Since the vehicle is now considered 'used' (even though the vehicle is only 6 months old), interest rates for a refinance loan are typically much higher, and will be subject to your current credit rating. If you do decide to refinance and the refinance lender is not the current lender, please remember that your auto insurer will need to be updated as to who is the new lien holder (typically the refinance lender will do this for you).

New Question: "I did already contact the current loan holder and they don't refinance. I did contact my bank and they only do new car loans. My credit is bad from a divorce but I am working on it. My current interest rate on the loan I have is about 16.25% so the rates don't scare me. My question is can you help or if I submit my request do you turn me down and just add another inquiry to my credit report?"

Credit Federal response: To apply for refinancing, locate a lender at:
http://creditfederal.com/auto-refinance-loan.html
CreditFederal.com provides financial resources; including tips, to U.S. consumers. On our site, we also offer links to various lenders to assist our visitors. In regards to your question, we cannot guarantee your refinancing acceptance. You would have to apply directly to a lender, and allow the lender to review your credit report so the lender can make a decision and; if accepted, to present you with a quote. We are not aware of any auto refinance lender who will provide a definite 'yes' or 'no' acceptance response without first reviewing a consumer's credit report.

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Auto Refinance Question - by <a href=http://creditfederal.com>CreditFederal.com</a> Question: "6 Months ago I purchased a new GMC truck. Cost was $23,600.00 I put $18,000.00 down and financed $5,600.00 for 2 years. My current balance is $4,600.00. I realize now I should have put down less because I need a few thousand for other things at this time. Is it possible to refinance the truck and take a little cash? Say refinance for $ 8,000.00, for 3 years, paying off the other loan obviously, and that leaves me with a few thousand in my pocket." Credit Federal response: "Since the balance owed on your vehicle is less than it's retail and loan value, it is possible to obtain refinancing. First; for simplicity, consider contacting your current lender for refinancing, or contact your local bank. Ask about refinancing the vehicle for an amount up to the vehicle's full loan value. Either sources can quote you the current loan value of your vehicle. Note: Since the vehicle is now considered 'used' (even though the vehicle is only 6 months old), interest rates for a refinance loan are typically much higher, and will be subject to your current credit rating. If you do decide to refinance and the refinance lender is not the current lender, please remember that your auto insurer will need to be updated as to who is the new lien holder (typically the refinance lender will do this for you). New Question: "I did already contact the current loan holder and they don't refinance. I did contact my bank and they only do new car loans. My credit is bad from a divorce but I am working on it. My current interest rate on the loan I have is about 16.25% so the rates don't scare me. My question is can you help or if I submit my request do you turn me down and just add another inquiry to my credit report?" Credit Federal response: To apply for refinancing, locate a lender at: <a href="http://creditfederal.com/auto-refinance-loan.html">http://creditfederal.com/auto-refinance-loan.html </A>CreditFederal.com provides financial resources; including tips, to U.S. consumers. On our site, we also offer links to various lenders to assist our visitors. In regards to your question, we cannot guarantee your refinancing acceptance. You would have to apply directly to a lender, and allow the lender to review your credit report so the lender can make a decision and; if accepted, to present you with a quote. We are not aware of any auto refinance lender who will provide a definite 'yes' or 'no' acceptance response without first reviewing a consumer's credit report. This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.