Payday loans have been in the news as of late because a group of Senators have introduced a bill that would return the cutthroat industry back to a practice of predatory lending. With so many Americans struggling to make ends meet, these credit vultures are aggressively lobbying the congress to overturn restrictions set in place to prevent increased poverty. With the U.S. economy increasingly showing signs of growth and sustained recovery, this bill would likely give payday loan institutions a license to once again pillage the poor. This distressing news comes at a time banks are once again targeting borrowers for business loans, Real Estate loans and especially car loans. Consequently, families and individuals can now say no to the aggressive predator-like tactics deployed by payday loans institutions. In fact, it is because our economy is poised to come roaring back that payday lenders are afraid their market share will diminish. As a consequence they won’t be able to prey on the state’s poorest and most vulnerable citizens. Its as if they are not presently strong-arming American’s under current legal protections.
One of the bill’s strongest critics, Sen. Sharon Nelson, says, “As a former banker, I view this legislation as a return to the dark days of predatory payday lending, and a money machine for those who profit on other’s indebtedness.”
Some of the nation’s largest banks offer these dubious payday loans, pitched as advances on direct-deposit paychecks, despite growing regulatory scrutiny and mounting criticism about the short-term, high-cost loans.
The aggressive tactics of these payday institutions have another powerful foe that seems to possess the means to help many victors that have fallen prey to the greedy, rapacious and excessive rates of interest employed by these companies. One place you can seek relief is with the Car Loan Expert.
Most of us had our woes with the economic downturn lately; some worse than others. Whether you have lost a home, been downsized at work, been paying more at the grocery store for fewer groceries, or know someone who has lost their home or their job, we have all been impacted in some way by the recession of the last few years.
For some, that means their credit has been impacted in a negative way and they have had challenges purchasing some big-ticket items such as homes and vehicles. Some businesses have begun to specialize in helping people obtain loans specifically when they have bad credit.
One company, CarLoanExpert.com acts as a liaison between customers with bad credit and loan companies to help them secure financing for new and used automobiles. They claim to be the “bad credit auto loan specialists”.
CarLoanExpert.com describes a bad credit auto loan as being “specifically designed for people who have been turned down by financial institutions because of their less than perfect credit due to recent bankruptcy, tax liens, low income, vehicle repossession or failure to come up with the required down payment. (carloanexpert.com)
The CarLoanExpert.com site touts such conveniences as a 30-second approval on your application, an auto loan calculator, and tips and advice with links to all of the credit reporting agencies. There are also testimonials given by satisfied customers if you are so inclined to believe such postings.
At first glance, it is easy to be lured in by CarLoanExpert.com’s advertisement for rates as low as 2.99% APR. However, if you are shopping a bad credit site, the likelihood of you obtaining a 2.99% APR is slim to none.
Experts all agree there are a few things you can do to protect yourself when purchasing a car and being prepared is number one.
- Know your credit score, and ensure your credit report is accurate
- Check your report yearly to clean up any unreliable information
- Shop around and know what interest rate you should be paying for your credit score
- The lower your credit score, the more you should save for a down payment
- Try to secure financing before you go to a dealer
- Purchase a reliable used car instead of new
There are some positives for using a bad credit auto loan company such as CarLoanExpert.com.
- You are only dealing with one company, instead of multiple lending institutions running your credit continuously
- They know multiple lenders and have seen your situation before, thus have a greater chance of securing financing
Regardless of how you acquire financing to purchase a vehicle, perform your due diligence; you will have your best interest at heart. According to Bankrate.com, the National Auto Loan Rates for the week ending March 13, 2013, were 4.08% for a 60-month loan for a new car, and 4.68% for a 36-month loan on a used car. Granted, those figures are simply averages and your loan could vary greatly depending on your credit history, your down payment, and your geographical location.
Caveat Emptor, let the buyer beware.