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Buying a car is not an easy job. It involves a lot of money to be paid. According to a survey, it is the second-largest expenditure after the mortgage that people finance. When it comes to financing a car, there are various funding sources, and all of them work differently.

Depending on your financial condition, needs, and down payment size, you arrange that which deal will suit best. Although car dealers and online lenders do not mind entertaining applications from bad credit borrowers, you should still have a good credit rating.

If you have a good credit report, you will likely have a car finance deal at better and attractive interest rates. If your credit score is less than fair, you are still eligible to buy your dream car, but you may be asked to deposit larger down payment, and the deal you get will carry slightly higher interest rates.

However, the lending policy varies from lender to lender; you may or may not be approved for a particular car finance deal. There are chances that the lender turns down your bad credit car finance application. Well, you do not worry about that because there is still a way to buy your car. Here is what you can do:

Arrange a guarantor

You may not be aware of that, but guarantor car finance exists. These loans work like a standard car loan under which you are supposed to make fixed monthly payments, and you own the car after making the final payment.

The only difference is that it will involve a guarantor. The guarantor must have a good credit score because this will improve the chances of borrowing money.

You can get a deal at an attractive interest rate because the lender can ask the grantor to make the payment if you fail to do so.

Who can be a guarantor?

A guarantor can be anyone like your family member or friend provided they have come of age and have a good credit rating.
Some lenders strictly want the guarantor to be a homeowner while some can allow a tenant to enter into the agreement.
Likewise, some lenders will never accept your spouse as a guarantor. They will want it someone who is your close friend or relative.
If you are expecting senior members in your family, it may weaken your application. This is because the guarantor is deemed to bear the responsibility of paying off the debt if you fail to pay off.

Apply for a joint application

It is not easy to arrange a guarantor. The Internet is flooding with information that tells the consequences guarantors can bear if the borrower fails to pay off the debt. This is why it is quite difficult to ask someone to act as a guarantor.

In this situation, you have an option of applying for a joint car loan. If you have a bad credit rating, you can still secure an attractive deal provided your spouse, or another family member has a good credit rating.

Note that the lender will consider income and bank statement of both parties to find the repaying capacity. You both will be responsible for making monthly fixed payments.

Joint car finance can help you secure a deal at better interest rates if your co-applicant has a good credit rating.

Look for a secondhand car

When you have a bad credit rating, a lender can ask you to put down a larger deposit. Even if you are applying for a joint car loan or with a guarantor, some lender may ask you to do so. In this situation, you should drop the idea of buying a new car.

Secondhand cars are cheaper than new cars and this is why you will not need to arrange a bigger deposit. If you finance a secondhand car with a bad credit rating, the lender may sign off on the application without asking for a guarantor. This is because the lending money will be low.

If you cannot finance a car with bad credit rating, you should arrange a guarantor or consider applying for a joint car loan. However, if you still face some complications, you should look for a secondhand car.

The Complete Guide to Personal Loans for Bad Credit People

By admin

On February 17, 2021

In Loan

Do you need money? Is it a big or small expense? Is it a personal or business expense? You may plan to look for a personal loan. These are unsecured loans that you can take out for a variety of reasons from your personal needs to business needs.

Applying for these loans is not that easy. A lender must check your affordability because you do not mitigate their risk in any form. Collateral is not required because these loans are not unsecured, nor do you need to arrange a guarantor.

However, note that you can qualify for these loans only if you have good credit rating. However, there are many people who need to borrow funds but they have bad credit. If you are one of them, you may not be able to qualify for these loans.

Does that mean personal loans in Ireland for bad credit do not exist? No, not at all; these loans do exist. Just because you have bad credit does not mean that you cannot borrow money. Here is what you need to know about personal loans with bad credit.

Do personal loans carry high interest rates for bad credit borrowers?

Personal loans are expensive because they involve high risk on part of the lender and they can be more expensive if you have a bad credit rating. If you are applying for these loans, make sure that you are borrowing money that you can afford to pay back.

Since you will have to pay down the debt in instalments, it will be easier to make payments. Estimate the total cost of the loan using online calculators and find out if you can afford to make the payments.

How can you borrow these loans at lower interest rates?

Even if you have a bad credit rating, you can apply for these loans at lower interest rates. Try to put security. Collateral lowers down the risk of a lender and hence they can offer you money at more affordable interest rates.

Note that the amount of security you put toward the lender will be much more than the amount of the loan. This is because the lender could recoup the money by liquidating your asset in case you fail to keep up with payments.

How much can you borrow if you have poor credit history?

Undoubtedly, you may not be able to borrow the same money as you would if you had at least a fair credit score. Most of the lenders will not entertain your application in case you have a poor credit rating.

There are a few direct lenders who can consider your application. If they believe that you will be able to pay down the debt and put collateral, they may sign off on your loan. However, you will still be not able to borrow a large amount of money. It varies from lender to lender that how much you could borrow.

Will these loans affect your credit score?

Whether you apply for a cash loan or a personal loan, a lender will make inquiry to know your credit score and this will leave search footprints on your credit file, which means you will lose five points from your current credit score. The more the hard searches made, the lower the score will be.

However, there are a few online lenders that make soft credit search. This does not leave hard footprints on your credit file and therefore you will not lose your credit score.

Can personal loans with bad credit improve your credit rating?

Personal loans do not work like small cash loans that require you to pay off the debt in a lump sum. However, personal loans are paid in an extended period of time.

Since you will be paying down each fixed instalment every month on the due date, the lender will inform credit reference agencies of your each timely repayment and your score will automatically grow.

Personal loans in Ireland for bad credit people do exist, but you will have to put security to get money at lower interest rates. Further, they may not allow you to borrow a large amount of money because of your credit rating.

How to Make a Marketing Plan for a Start-up

By admin

On February 9, 2021

In Loan

If you are starting a business, the first thing you need to make a marketing plan. This will outline how you will reach your audience and convince them to buy your products and services. Creating a marketing plan does not involve too much cost, but you should try to make it as impressive as possible. This is because you may need to pitch an investor to fund your start-up.

Although other funding sources are available, they cannot allow for borrowing as much money as you can by pitching investors. They will be ready to contribute to your business if your marketing plan is strong. If it is not convincing to make them believe that you can earn good revenues, they will never invest in your start-up. It can be daunting to create a robust marketing plan. However, it should not be. Here are some tips you should follow to create a marketing plan.

Jot down goals

The first thing you need to think about is setting goals. You cannot start a road trip unless you know where you want to go. Likewise, you cannot run your business without knowing what you want to achieve. Your goals can range from raising brand awareness to acquiring new customers, targeting prospects on social media, and the like.

Write down the goals you have set and then write what you will do to achieve them. For instance, if your goal is to raise brand awareness, you will have to tell your target audience who you are, what you do, and how you are stand out from others. You should have methods to make your brand known to people.

Define your budget

The marketing plan will not require any investment, but you will need money to run marketing campaigns. It is paramount to know beforehand the money you will need for the marketing of your business. If you are using both traditional and online marketing methods, make sure that you have money to contribute to both types of marketing.

If you face a shortage of money, you can always make adjustments. You can also take out online loans in Ireland. Of course, as your business grows, you can contribute more money to the marketing of your business.

Use the right channels

Various platforms are out there where you can reach out to your target audience to promote your business. As you know you need to make a website to communicate about your products and service, you will have to think about other communication channels you will use.

Make sure that your marketing plan explains all that. If you miss this point, your marketing plan will not be worth reading. This must talk about how you will use email, social media, content marketing, and offline promotion platforms to spread the word about your business.

Determine your target audience

You cannot define communication channels if you have not determined your target audience. If your marketing plan does not define your target audience, you will be directionless in the end. Of course, you cannot promote your products and services unless you know whom you need to promote.

To make your marketing successful, it is crucial to give the message to the right audience. Your marketing plan must include how you will reach out to your potential customers and which methods you will follow to promote your business.

It is always advisable to have alternatives in case one method fails to help you achieve your goal. The plan must outline the following points:

Offerings to your target audience
How you set yourself apart from your competitors
Reasons why your potential customers will choose you over your competitors
Location, demographics and interests of your users

Measuring tools

Your marketing plan must outline the tools you will use to measure the success of your strategy after you implement it. Mention key performance indicators to find out how much you have made progress. For instance, if your goal is to increase brand awareness, the key performance indicators you will use are website traffic, social shares, and the like.

If you are planning to open a start-up, you must have an impressive marketing plan. Just having an idea is not enough to make your business successful.

A marketing plan gives you a direction of what you need to do and where you need to go. Without it all, your effort will go in vain, and as a result, your business will keep going downhill.

If you do not know how to make an effective marketing plan, you can consult a marketing service provider. They will understand your business goals and help you frame a strategy that works for you. Make sure that you hire the one who is experienced and has a reputation. Ask your friends if they can provide you with some good references.

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