Car Finance

Owning a new car is almost everybody’s dream. But only a few people can afford to buy a new car on a cash basis. Fortunately, car financing is readily available these days. As a result, more and more individuals have the privilege of owning a new car.

However, it is not easy to select a car, make a purchase, and then obtain car financing. Before you head to the local car dealer to buy the car of your dreams, you have to consider a lot of things with regards to car financing. You have to look into your credit score, compare car financing rates, and get pre-approval for your car financing application.

Your credit score has a lot to do with getting approved car financing because it reflects your credit worthiness. The lender will also look into this when determining your interest rates and down payment requirements. A credit score ranges from 300 to 600. If your credit score is above 600, you have a very good chance of getting car financing. However, if it is lower than 600, you need to spend several months paying your bills and increasing your credit score so you can qualify for financing.

After determining your credit score, you need to compare rates such as interest fees, fee structures, and down payment rates. Different lending institutions offer different rates. You should take your time evaluating each financing option so you can get the best deal.

After you have compared rates and picked your financing option, you can get a pre-approval for car financing. It is better that you have a pre-approved application before you go to the dealership so you can negotiate if you have cash in hand. This way, you may be qualified to receive rebates and discounts.

All these steps can help you to get the best car financing–and eventually, the best car–available.

Understanding Basic Finance Terms

If your like many, you don’t always understand what people are talking about when it comes to loans. Without understanding the basic terminology when it comes to loans you just aren’t setting yourself up right to make an educated decision when it comes to applying for a loan. There are hundreds of terms; Below are some of the most important:

Assets

Assets can be described as anything that holds value. Assets can be all types of things from cars to houses. Assets can be used in helping to build credit. For example if you are applying for a house loan, you might use your car as an asset, to show that if you default on a payment, that you have assets to fall back upon such as your car.

Capital

Capital can be a bit of tricky term as it can be used in several different situations to do with finances. Capital can be described as the assets that are available for use towards creating further assets; it can also apply to the cash in reserve, savings, property, or goods.

Debt

Debt is amount of money or something of value that is borrowed from a person referred to as a debtor. Usually a debt that is borrowed will carry some type of penalty along with the payback such as an interest, or service.

Debt Consolidation

Debt Consolidation is replacing multiple loans with a single loan that is normally secured on property. This can often reduce your (the borrowers) monthly outgoing interest payments by paying only one loan which is secured on the property sometimes over a longer term. Because the loan is secured, the interest rate will generally be considerably lower.

Equity

Equity is the difference between the value of a product (for example a house) and the amount that is owed on it.

Liabilities

Liabilities refers to the sum of all outstanding debts in which a company or individual owes to it’s debtors.

Principal

Principal is used to describe the amount of money that is borrowed without including any interest or additional fee’s.

Term

Term refers to the length of a debt agreement. For example if you were to take out a loan for a house over 10 years. 10 years would be the term.

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5 Cons of Entry-Level Banking and Finance Jobs

Having a banking job is the best way to start out a career in the finance industry. Once you get in, it’s not difficult to keep your job. When you start out as a bank teller, you are considered as a student of the bank. There, you learn the ins and outs of the industry, preparing you for your venture into the bigger world of corporate finance.

Alas, with all the advantages come the disadvantages as well.

1. Fixed Schedule

If you enter the banking industry as a teller, you’ll find that you have no control whatsoever of your schedule. This is in sharp contrast to other financial career paths such as a financial consultant who works whenever he wants. At entry level banking jobs, you work the standard day shift. Even if you want to work overtime for a little bump in your pay, you can’t do so unless there’s a directive from the higher ups.

2. Salary Expectations

If you’re drawn into the world of finance because of the promise of financial freedom, prepare to be disappointed. If you’re just starting out, don’t expect to be paid as much as the veterans are. Instead, use your current situation as a starting position. Work your way up diligently from there. As long as you’re in the banking business, you’re pretty much set if you’re hardworking.

3. Employment Difficulty

As mentioned above, it’s easy to keep your position in a bank once you get in. Getting in is another matter. You may find that it is a little difficult to get employed with a bank. When applying for a teller, a background in customer service is smiled upon although not a requirement. When you do get in, however, the training you receive and the skills you develop can be applied in other career paths.

4. You’re in the Front Line

Entry level banking jobs mean you’re going to be doing the talking to customers. As anyone with customer service experience can tell you, this can be stressful. There will be customers that just can’t be reasoned with. You’re going to need to do a lot of mental preparation to survive it.

5. Potential Hazards

Banks are prone to robbery. It may not happen as frequently as the cliché goes, but it is still a possibility. Most banks offer training on how to handle robberies so you need only follow protocol if such an event happens; God forbid.

If you want to be in the finance industry, there’s no better way to enter than through a bank.