Rick Ingersoll is the author of the popular Frugal Travel Guy Blog, which is read around the world and averages 6000 views per day. He is constantly on the lookout for the best credit card and debit card sign-up bonuses, and he posts travel tips daily on these and other technique to help his readers reduce their travel expenses for the rest of their lives.
Yet with all the new deals he's constantly finding, his Top Travel Deals remain constant. What are they? He took the time recently to explain.
No 1: Specific credit card companies that offer huge sign-up bonuses.
The number of cards offering big bonuses with no first year fee is growing rapidly, Ingersoll said. If you need 50,000 Continental or British Airways miles, or 50,000 Hyatt, Priority Club, or Marriott hotel points, you should apply for the Chase Sapphire Preferred Guest card. And the Chase Ultimate Rewards points are easily transferred, one to one, to the Hyatt, Priority Club and Marriott programs.
No 2: The new Business Gold Rewards Card from American Express Open.
This card offers 50,000 Membership Rewards Points with no first year fee, he said. The minimum spend is ,000, but you have a lengthy five months to complete that spend. If you have property taxes to pay or you have an extension to pay your income taxes in October, you can use this card to pay both and get to that minimum spend pretty quickly.
No 3: Using your good credit to secure free travel.
There is no more effective or lucrative way for someone with a good credit score and financial discipline to amass frequent flier miles than to take advantage of a host of credit card sign-up bonus offers, Ingersoll says. Of course, this method is not for those who don't handle credit wisely and who don't, or can't, pay off their cards' balances in full every month. It takes a good credit score and the ability to follow promotion directions to pull this off.
The effect on your credit score per credit card application is only two to five points, according to Ingersoll. I've received over 90 credit card sign-up bonuses over the years and still have excellent credit. This is a terrific mileage earning technique, but remember: You must meet the minimum spend requirements in the amount of time they give you, and you must pay your cards in full at the end of the month. If you can't do that, this technique is definitely not for you.
No. 4: American Express Platinum for points and lounge access.
The American Express Platinum Card has a rather steep annual fee of 0, but it gives you 25,000 Membership Rewards points, 0 in airline incidental spend credit, and lounge access for one full year, Ingersoll said. There are also two Mercedes Benz' versions of this card that offer 5000 or 50,000 points, depending on the annual fee. The more expensive card provides lounge access as well. I can't vouch for these other versions, however.
No. 5: Bank Direct Mileage Checking for American Airlines.
Why do I like this program? Because you can earn up to 22,000 American Airlines frequent flier miles by making direct deposits into it for three months, using its bill pay function for 12 months, and, most importantly, you can earn 100 miles per month per 00 you keep in the account, he explained. There's also a 1000-mile sign-up bonus.
Ingersoll noted that miles earned are typically non-taxable, and that the Bank Direct program requires maintaining a 00 minimum balance to avoid monthly fees.
No 6: The best all-around travel credit card, year after year: Starwood Preferred Guest (SPG) credit card from American Express.
The SPG card is simple the best for travel, he said. It allows you to earn a 10,000-mile sign-up bonus, there's no annual fee for the first year, and you have the opportunity to earn 15,000 more points with just a 00 spend over the first six months. This is my go-to card for everything.
No 7: US Airways' 40,000-mile card with no first year fee.
No 8: FlyerTalk tip 75,000 American Airlines miles
On on FlyerTalk.com, the primary online community where frequent travelers around the world exchange knowledge and experiences, there's evidence that people are still getting 75,000 American Airlines miles for personal cards on the same day they apply and that amount again on the business card if they apply 90 days later, he said. That's a good deal in anybody's book.
Rick Ingersoll is a retired mortgage banker who got into the travel hacking game as a hobby. But as he continued to amass miles and points and he and his wife began to enjoy travel the world for free or nearly free, he was inspired to share his tips and techniques with others by blogging. He also published The Frugal Travel Guy Handbook.
Today, Ingersoll receives a constant stream of thanks from readers who have been able to travel at prices they can afford since they began following The Frugal Travel Guy.
Sondag 31 Maart 2013
Vrydag 29 Maart 2013
{prltitle}
In spite of the questionable commercial banking practices illustrated below, there are some realistic and practical business financing solutions available to small business owners. The emphasis here is focusing on the problems rather than the solutions primarily because of the lingering notion by some that there are not significant current commercial lending problems. Objective observers (which probably do not include most politicians and lenders) are almost unanimous that the series of errors made by business lenders are likely to be long-lasting for business borrowers in their ongoing efforts to obtain small business financing.
Small business owners will be more likely to avoid serious future business finance problems with working capital management and commercial real estate loans by exploring what went wrong with business financing and commercial lending. Especially if they need help finding realistic small business finance options, this is a critical issue for most commercial borrowers.
An ongoing problem is illustrated by misleading lender statements about their small business financing activities. Although banks have typically been reporting that they are lending normally with their small business financing, the actual results indicate something very different by any objective standard. From a public relations viewpoint, it is clear that banks would rather not admit publicly that they are not lending normally. As a result of this particular issue alone, small business owners will need to be cautious and skeptical in their attempts to secure business financing.
Commercial bankers routinely lost sight of a basic investment principle that asset valuations will not always increase and in fact can decrease quickly. Many commercial loans were made in which there was little or no equity by the business borrower. Banks invested almost nothing in cash (as little as three cents on the dollar) when buying future toxic assets. The apparent assumption was that if any downward fluctuation in value occurred, it would be a token three to five percent. In fact we have now seen many commercial real estate values decrease by 40 to 50 percent during the past two years. For banks which made the original commercial mortgage loans on such business properties, commercial real estate is proving to be the next toxic asset on their balance sheets. In contrast to the government bailouts to banks having toxic assets based on non-performing residential loans, it is unlikely that banks will receive similar financial assistance to cover commercial mortgage problems. Such commercial real estate financing losses could produce serious problems for banks and other lenders over the next three years. Many commercial lenders have effectively stopped any meaningful small business financing despite ongoing concern and criticism about current reduced business lending activity.
When making loans or buying securities such as those now referred to as toxic assets, there were many instances in which banks failed to look at cash flow. An underwriting process known as stated income in which commercial borrower tax returns were not required was used for some small business finance programs. One of the most prominent business lenders aggressively using this approach was Lehman Brothers (which filed for bankruptcy due to a number of questionable financial dealings).
Greed seems to be a common theme for several of the most serious business finance mistakes made by many lending institutions. Unsurprising negative results were generated by the attempt to produce quick profits and higher-than-normal returns. The only people seemingly surprised by the devastating losses are the bankers themselves. The largest small business lender in the United States (CIT Group) declared bankruptcy after two years of attempting to get someone else to pay for their mistakes. By most accounts many of the largest banks should have been permitted to fail but were instead kept afloat by government bailouts, and even after that experience we are still seeing a record level of bank failures. Commercial lenders made serious mistakes by almost any standard used to evaluate them, and according to a popular phrase, if business lenders and business owners forget these mistakes, they are doomed to repeat them in the future.
Small business owners will be more likely to avoid serious future business finance problems with working capital management and commercial real estate loans by exploring what went wrong with business financing and commercial lending. Especially if they need help finding realistic small business finance options, this is a critical issue for most commercial borrowers.
An ongoing problem is illustrated by misleading lender statements about their small business financing activities. Although banks have typically been reporting that they are lending normally with their small business financing, the actual results indicate something very different by any objective standard. From a public relations viewpoint, it is clear that banks would rather not admit publicly that they are not lending normally. As a result of this particular issue alone, small business owners will need to be cautious and skeptical in their attempts to secure business financing.
Commercial bankers routinely lost sight of a basic investment principle that asset valuations will not always increase and in fact can decrease quickly. Many commercial loans were made in which there was little or no equity by the business borrower. Banks invested almost nothing in cash (as little as three cents on the dollar) when buying future toxic assets. The apparent assumption was that if any downward fluctuation in value occurred, it would be a token three to five percent. In fact we have now seen many commercial real estate values decrease by 40 to 50 percent during the past two years. For banks which made the original commercial mortgage loans on such business properties, commercial real estate is proving to be the next toxic asset on their balance sheets. In contrast to the government bailouts to banks having toxic assets based on non-performing residential loans, it is unlikely that banks will receive similar financial assistance to cover commercial mortgage problems. Such commercial real estate financing losses could produce serious problems for banks and other lenders over the next three years. Many commercial lenders have effectively stopped any meaningful small business financing despite ongoing concern and criticism about current reduced business lending activity.
When making loans or buying securities such as those now referred to as toxic assets, there were many instances in which banks failed to look at cash flow. An underwriting process known as stated income in which commercial borrower tax returns were not required was used for some small business finance programs. One of the most prominent business lenders aggressively using this approach was Lehman Brothers (which filed for bankruptcy due to a number of questionable financial dealings).
Greed seems to be a common theme for several of the most serious business finance mistakes made by many lending institutions. Unsurprising negative results were generated by the attempt to produce quick profits and higher-than-normal returns. The only people seemingly surprised by the devastating losses are the bankers themselves. The largest small business lender in the United States (CIT Group) declared bankruptcy after two years of attempting to get someone else to pay for their mistakes. By most accounts many of the largest banks should have been permitted to fail but were instead kept afloat by government bailouts, and even after that experience we are still seeing a record level of bank failures. Commercial lenders made serious mistakes by almost any standard used to evaluate them, and according to a popular phrase, if business lenders and business owners forget these mistakes, they are doomed to repeat them in the future.
Vrydag 22 Maart 2013
{prltitle}
Do you happen to be one of the millions who have bad credit? Bad credit is nothing to be ashamed of or be upset about. It happens to even the best of us. With the bad economy swiping most of the Europe and North American, high employment rates, and ever rising prices of energy and goods, there is little surprise why so many good people have fallen behind their payments. However, bad credit does complicate matters especially if you are seeking financing. Under normal circumstances this may not be so difficult to put up with. However, the problem becomes critical if you urgently need financing to pay for an emergency situation. Below we will discuss how to find financing for such situations.
Life is Unpredictable
There is little doubt in anybody's mind that life is unpredictable and unexpected events can creep up at the time that we expect them the least. Such is life and we do not have control over these situations. However, with a little knowledge we can take the proper action should such an event occur. It has happened time and again to people with bad credit and it can happen to you. For instance, if you have bad credit how could you get financing to pay for car repair or a medical emergency bill? These bills cannot linger and need to be paid immediately. You will perhaps have the fund in a couple of weeks when you get your paycheck but you cannot wait that long.
Traditional Methods Not Feasible
Traditional methods of securing a loan are not feasible. First, you may be turned down due to your poor credit rating, and second it takes too long to get the financing you need and your emergency cannot wait that long. There was a time that lenders would not even entertain the idea of dealing with people with bad credit. However, with so many people who have poor credit, some lenders have adopted new ways of qualifying individuals.
New Methods for Qualifying Borrowers
These lenders will look at your employment history rather than your credit history to qualify you for the loan. Therefore if have been employed for a while and make over a 00 a month, there is a strong possibility than you are qualified for a loan. These lenders understand the urgency in which you need the funds so they work quickly to provide with the cash you need. You will usually receive the funds you need within 24 hours.
What are Cash Advances
These forms of payments are referred to as cash advance, payday, or simply bad credit loans. As the name denotes it is an advanced payment with a short term that needs to be repaid usually within two weeks or a month. These loans are not for everyone as they carry very high interest rates.
Specific Usage
These advances are not for everyone and not meant for every situation. The sole purpose of these loans is to help those out that are stock in an emergency situation and need urgent access to cash. For these individuals the availability of the funds outweighs the high interest rate charged. However, before taking out one of these bad credit loans, you need to be certain that you are able to repay the funds in full on the due date to avoid worsening your financial situation. If these loans are used for their specific purpose, then these funds can provide the much needed assistance to those that require it urgently until they can be repaid when the individual receives his or her next paycheck.
Life is Unpredictable
There is little doubt in anybody's mind that life is unpredictable and unexpected events can creep up at the time that we expect them the least. Such is life and we do not have control over these situations. However, with a little knowledge we can take the proper action should such an event occur. It has happened time and again to people with bad credit and it can happen to you. For instance, if you have bad credit how could you get financing to pay for car repair or a medical emergency bill? These bills cannot linger and need to be paid immediately. You will perhaps have the fund in a couple of weeks when you get your paycheck but you cannot wait that long.
Traditional Methods Not Feasible
Traditional methods of securing a loan are not feasible. First, you may be turned down due to your poor credit rating, and second it takes too long to get the financing you need and your emergency cannot wait that long. There was a time that lenders would not even entertain the idea of dealing with people with bad credit. However, with so many people who have poor credit, some lenders have adopted new ways of qualifying individuals.
New Methods for Qualifying Borrowers
These lenders will look at your employment history rather than your credit history to qualify you for the loan. Therefore if have been employed for a while and make over a 00 a month, there is a strong possibility than you are qualified for a loan. These lenders understand the urgency in which you need the funds so they work quickly to provide with the cash you need. You will usually receive the funds you need within 24 hours.
What are Cash Advances
These forms of payments are referred to as cash advance, payday, or simply bad credit loans. As the name denotes it is an advanced payment with a short term that needs to be repaid usually within two weeks or a month. These loans are not for everyone as they carry very high interest rates.
Specific Usage
These advances are not for everyone and not meant for every situation. The sole purpose of these loans is to help those out that are stock in an emergency situation and need urgent access to cash. For these individuals the availability of the funds outweighs the high interest rate charged. However, before taking out one of these bad credit loans, you need to be certain that you are able to repay the funds in full on the due date to avoid worsening your financial situation. If these loans are used for their specific purpose, then these funds can provide the much needed assistance to those that require it urgently until they can be repaid when the individual receives his or her next paycheck.
Woensdag 20 Maart 2013
{prltitle}
It is common to say that if you are going to buy a house to get pre-approved. You must have met the real estate agents said that it is essential to obtain prior approval or to apply for a loan as a first step. But, of course! In fact, most of the real estate agents will not let you step in their cars, if you have not talked with the lender in advance. You must be highly qualified and necessary, but at home until then they will show interest in you. Home sellers also demand that the letter of credit lender must accompany all offers to purchase. There are various advantages of pre-approved home loans, than you might think. Some of them are listed below.
Benefits of mostly pre-approved credit:
This will allow you to obtain prior approval of the amount you can borrow from the bank. This gives you a look at the amount you can have and therefore can be viewed on a house for himself. The Bank also confirms your financial situation and gives pre-approval certificate for it. Adoption is also believed that the type of property you are interested in, and various other conditions.
Conditionally pre-approved home loan will also help to improve the negotiating position. As a loan to buy a house pre-approved certificate you are in a better position to buy as the seller knows that you already have conditionally approved the funding. This makes your offer more luring as many buyers in the reverse situation that can not arrange financing.
The presence of the certificate also increases the credibility of the case, as you are sure that you have and how much you can drink. It also helps you to consider APT homes in your range. So this will save you time and allow you to move into your dream home sooner and easier way.
Even if you get a certificate, which is not obliged to the bank make its use for sure. There is no cost and is free. Suppose you do not like any of the houses now, you should not take any home loan.
When you find a suitable house final application is very easy, as all work is done. And you will soon shift to your new home.
Moreover, until your financial situation has not changed, the bank may extend the validity of the certificate, if you can not find the right home for yourself.
It can also help you get a tough sentence. And, as you still have to go throughout the procedure, why not before?
You must call the various pre-approved home loan lenders and compare prices and then choose the most suitable as a pattern. Select appropriate your personal and financial needs. I consider how long you will stay in the home and whether your income will grow in the coming time. And, finally, be patient, as the loan approval can take several weeks depending on conditions and your lender.
Remember your offer will be preferable to supply the competition without a pre-approved home loan letter.
Bad credit is very important question. Currently lending market offers various options for home refinancing for home buyers. Those who are looking for a smart option like VA refinance, please go to this site where you will also find info about VA refinance program and how to low down payments.
Also I would like to give some general tips. Currently the web technologies provide us with a really unique chance to select precisely what one needs at the best terms which are available on the market. Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. Use all the tools of today to get the info that you need.
Benefits of mostly pre-approved credit:
This will allow you to obtain prior approval of the amount you can borrow from the bank. This gives you a look at the amount you can have and therefore can be viewed on a house for himself. The Bank also confirms your financial situation and gives pre-approval certificate for it. Adoption is also believed that the type of property you are interested in, and various other conditions.
Conditionally pre-approved home loan will also help to improve the negotiating position. As a loan to buy a house pre-approved certificate you are in a better position to buy as the seller knows that you already have conditionally approved the funding. This makes your offer more luring as many buyers in the reverse situation that can not arrange financing.
The presence of the certificate also increases the credibility of the case, as you are sure that you have and how much you can drink. It also helps you to consider APT homes in your range. So this will save you time and allow you to move into your dream home sooner and easier way.
Even if you get a certificate, which is not obliged to the bank make its use for sure. There is no cost and is free. Suppose you do not like any of the houses now, you should not take any home loan.
When you find a suitable house final application is very easy, as all work is done. And you will soon shift to your new home.
Moreover, until your financial situation has not changed, the bank may extend the validity of the certificate, if you can not find the right home for yourself.
It can also help you get a tough sentence. And, as you still have to go throughout the procedure, why not before?
You must call the various pre-approved home loan lenders and compare prices and then choose the most suitable as a pattern. Select appropriate your personal and financial needs. I consider how long you will stay in the home and whether your income will grow in the coming time. And, finally, be patient, as the loan approval can take several weeks depending on conditions and your lender.
Remember your offer will be preferable to supply the competition without a pre-approved home loan letter.
Bad credit is very important question. Currently lending market offers various options for home refinancing for home buyers. Those who are looking for a smart option like VA refinance, please go to this site where you will also find info about VA refinance program and how to low down payments.
Also I would like to give some general tips. Currently the web technologies provide us with a really unique chance to select precisely what one needs at the best terms which are available on the market. Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. Use all the tools of today to get the info that you need.
Dinsdag 19 Maart 2013
{prltitle}
Muhammad Ali, Lance Armstrong and Chris Evert, were all champions that dominated their respective sports, but like all those before them they found that for one reason or another, no one stays champion forever. Yes the concept of being on top, even if only for a short while, is a dream for most individuals, who would revel in the celebrity it brings. Honor and fame would be theirs as fans would love and adore them. On top of the world, how great would that be? But being on top also has a negative side, as there are always those who desire to be champions too. The champ would indeed be wise, to know that someday one of them will get their wish. No one stays champion forever. The ex-champion life is often different than the previous one, being out of the limelight, deposed and on the verge of being forgotten. How the ex-champ fares in this latter life, depends on the understanding they had then and the preparation they made.
We Americans are the champions of the modern economic and financial world, being the many players for Team USA. We have collectively been on top for the last five decades, with the prosperity and arrogance to show. We don't say I am the greatest!, but we know that collectively, we really think we are. But would we be wise to prepare for the day, when we will be champions no more? Is it possible that our title could be taken from us or could we give it away, being overconfident, deceptive or very, very nice? Our currency is the world's reserve currency and everyone has and uses it, but, what would happen if that changed? What if we weren't financial champions anymore and had to enter the latter life. How would we fare? How would I, and how would you?
Would the inflation that accompanies a devalued dollar affect our nation, with the sharp rise in prices it brings? Goods and services Americans purchase monthly could double in price, hitting incomes hard, in a very short period of time. What if no one wanted the amount of dollars we have anymore, demanding that we pay additional or in someone else's money? Would this affect our national pride, crippling our incomes? What a change in the American champion life, with budgets busting at the seams! Fixed contractual obligations would still have to be paid, even after paying so much more for the most basic of needs. Suffering and default would ensue. How would our countrymen fare in this latter life, not being with the team on top anymore? What about me and what about you? How would we fare when we too could no longer play the game?
Rome, France and Great Britain were all on top at some time before. Their economies and currencies stalled for one reason or another, and each became champion no more. Could it happen to us? Yes, It happened to them. You see, no one stays champion, forever. History screams that it will happen somehow, someway, and discredits the arrogant response of defiance. Ignorance hasn't fared well either as a strategy to retain the coveted championship title. So we'd better come with something never seen in history before. We could repent as a nation, for our national sins, pleasing the great God who went before us in our fight to the top. But if we won't as a nation, then we better as individuals and prepare using Biblical principles.
Limit unnecessary fixed contractual obligations that lay claim on a future income. It may be diminished in power and prowess. It will be tough enough in the latter life, to lay and keep hold of the essentials. Why make it harder by making promises now, that you will wish you hadn't then? America can't always be on top, it's just against all the odds. Be prepared by being lean, living a simplified life and able to stand in the day of trial. Having imagined the fall and picked out a softer landing place, where you'll reside with wisdom until the calamities pass. Study the Bible and all of its financial instruction. Don't wait until too late, following others. Think about history and championship reigns. Then ask the hard questions and be truthful as you answer. What if ours was no longer the world's reserve currency? What will we do to stay on top? Will our nation repent, for its national sins invoking the help of the creator God? Or will we deny and ignore the warnings of times past? How will America fare when this all goes down? How will these things affect team USA? What about me, and how about you? Think my friend and then ask, Can anyone be champion forever?
Tony Gary
We Americans are the champions of the modern economic and financial world, being the many players for Team USA. We have collectively been on top for the last five decades, with the prosperity and arrogance to show. We don't say I am the greatest!, but we know that collectively, we really think we are. But would we be wise to prepare for the day, when we will be champions no more? Is it possible that our title could be taken from us or could we give it away, being overconfident, deceptive or very, very nice? Our currency is the world's reserve currency and everyone has and uses it, but, what would happen if that changed? What if we weren't financial champions anymore and had to enter the latter life. How would we fare? How would I, and how would you?
Would the inflation that accompanies a devalued dollar affect our nation, with the sharp rise in prices it brings? Goods and services Americans purchase monthly could double in price, hitting incomes hard, in a very short period of time. What if no one wanted the amount of dollars we have anymore, demanding that we pay additional or in someone else's money? Would this affect our national pride, crippling our incomes? What a change in the American champion life, with budgets busting at the seams! Fixed contractual obligations would still have to be paid, even after paying so much more for the most basic of needs. Suffering and default would ensue. How would our countrymen fare in this latter life, not being with the team on top anymore? What about me and what about you? How would we fare when we too could no longer play the game?
Rome, France and Great Britain were all on top at some time before. Their economies and currencies stalled for one reason or another, and each became champion no more. Could it happen to us? Yes, It happened to them. You see, no one stays champion, forever. History screams that it will happen somehow, someway, and discredits the arrogant response of defiance. Ignorance hasn't fared well either as a strategy to retain the coveted championship title. So we'd better come with something never seen in history before. We could repent as a nation, for our national sins, pleasing the great God who went before us in our fight to the top. But if we won't as a nation, then we better as individuals and prepare using Biblical principles.
Limit unnecessary fixed contractual obligations that lay claim on a future income. It may be diminished in power and prowess. It will be tough enough in the latter life, to lay and keep hold of the essentials. Why make it harder by making promises now, that you will wish you hadn't then? America can't always be on top, it's just against all the odds. Be prepared by being lean, living a simplified life and able to stand in the day of trial. Having imagined the fall and picked out a softer landing place, where you'll reside with wisdom until the calamities pass. Study the Bible and all of its financial instruction. Don't wait until too late, following others. Think about history and championship reigns. Then ask the hard questions and be truthful as you answer. What if ours was no longer the world's reserve currency? What will we do to stay on top? Will our nation repent, for its national sins invoking the help of the creator God? Or will we deny and ignore the warnings of times past? How will America fare when this all goes down? How will these things affect team USA? What about me, and how about you? Think my friend and then ask, Can anyone be champion forever?
Tony Gary
Sondag 17 Maart 2013
{prltitle}
When you trade money for an asset, you own tangible property. You can touch it and feel it ? and you'd certainly know if it disappeared.
Now, think of the money you pay your employees. Are you receiving tangible assets in return for your investment, or is the return on this investment disappearing over time?
How Much Does Pat Cost Per Hour?
Many business owners think of the cost of employees in terms of their hourly cost (e.g., Pat's rate is per hour, plus some payroll taxes). But, let's see what Pat really costs his employer for each hour he is available to work.
Start by calculating the number of hours an employee is potentially available to work. We'll start with 2,080 hours (52 weeks per year x 40 hours per week). But then we need to subtract the following non-working periods for the year:
Six holidays
10 vacation days
Six sick or personal days
Two days of training seminars.
This comes to a total of 24 days or 192 hours, leaving us with 1,888 available working hours.
We then subtract about two hours from each remaining work week (47) for miscellaneous administrative meetings, timekeeping, shop time and so forth (breaks are charged to jobs).
This reduces the available production time by another 94 hours, so now Pat is actually available for approximately 1,794 hours.
Pat's -per-hour compensation comes to ,360 per year. In addition, Pat's employer has additional costs that are attached to this employee's job:
,005 in payroll taxes (based on the state unemployment rate of 2.7% on the first ,000 and no other state disability taxes)
,536 in workers' comp (at per 0)
,200 in health insurance (at 0 per month)
,060 in retirement benefits (at 3% of compensation)
0 in cell phone costs (at per month)
0 in uniforms (four logo shirts at , one logo jacket at )
,000 in company vehicle usage (depreciation, gas and oil, maintenance, license, insurance)
0 in small tools and equipment usage (at per month)
8 estimated annual bonus (2% of wages)
0 employer-paid snacks, meals, parties, entertainment
0 in training fees, seminars, etc.
This totals just over ,000 in additional costs and brings Pat's annual cost to ,389.
So, Pat's real cost to his employer is .21 per production hour (,389/1,794 hours). That's 72% more than Pat's hourly rate.
Pat is truly a costly and valuable asset whose time should be carefully guarded.
Time as Tangible Property'
Time is money. We've heard that over and over.
For your employees, that's definitely the case. They are trading their time for your money.
So, if their time equals your money, you need to safeguard that time as carefully as you would safeguard your new vehicle, a state-of-the-art computer or the money in your wallet.
And, you must begin to think of the theft or waste of time as the theft or waste of money. Then you must present your revised view of time to your employees. To help with that mental transition, let's look at the following examples in terms of cold, hard cash coming out of your pocket.
A Sad Story
Several years ago I hired a start-up landscaper to help landscape my new home. He was starting his business as an adjunct to another company he owned and wanted to see if the landscaping business would work out for him.
My new home had large windows with a view of the backyard. I worked from home on several occasions when the work was to have taken place. Because my car was in the garage, the crew didn't know I was there. What I saw from my windows was not pretty.
The owner arrived with four workers, showed them the site and gave them instructions. He then left to get additional equipment and supervise another job.
About 15 minutes later, I saw that the work had slowed noticeably. Within another 10 minutes or so, two of the four workers had stopped working completely and were engaged in an earnest conversation while leaning on their shovels and rakes.
Shortly after that, worker #3 decided to join in while worker #4 continued to work diligently in the hot sun. Eventually worker #4 stopped working and joined the group.
I continued to look out the window periodically and saw that the most productive activity involved worker #2 tossing a rock from one hand to the other. There were also group meditations during which all four workers stared intently for prolonged periods at one of the holes previously dug in the ground.
When I shared this with the owner of the fledgling landscaping business, he wasn't totally surprised after all, work had been progressing quite slowly.
My landscaping eventually was finished, but unfortunately, so was his start-up business.
Time and Money Drains
Less dramatic examples of time theft surround us constantly. Employees who would never even think of stealing work tools, or who would be aghast at the thought of taking a bill out of a cash drawer, think nothing of routinely carrying off multiples of those amounts in the way they mismanage their time.
Using Pat as an example, let's see what happens when we quantify some of those time drains on an employer's bank balance. You can imagine how these liabilities cost a company even more by raising stress levels and reducing employee morale and client satisfaction.
Breaks and lunches. A friend of mine used to say, Well, I came in late today, so I'd better leave early. Of course, as a diligent employee, he was just being humorous, but plenty of workers often take advantage of their breaks and lunches (e.g., taking extra breaks for coffee, cigarettes, the restroom, personal errands, etc).
It's amazingly easy to slip in an extra five or 10 minutes of non-productive time here and there. Let's say that Pat tarries an extra five minutes at lunch, takes four extra 10-minute coffee, restroom or smoke breaks during the day and then leaves 10 minutes early for a personal errand. That's 55 minutes of time lost in bits and pieces throughout the day. At .21 per production hour, Pat's time is worth nearly 50 cents a minute so he has just stolen .78 worth of time.
Would you believe that, if Pat does this every working day, you're looking at ,316 out of your pocket? It's sad, but true.
And for some employees, 55 minutes a day may be just the tip of the iceberg. Think of the following scenarios that can also divert their time and your money.
Personal phone calls and e-mail. With cell phones, office phones and computers continually at hand, the temptation is always present to fritter away time on personal matters.
Personal conversations with co-workers. Depending on the number of participants, this can be a double, triple or even quadruple dip into your pocketbook.
Playing games, daydreaming, gazing into holes, etc. I call this doing nothing when you could be doing something of value. These are valuable activities for folks who are off work or on vacation, but you shouldn't finance these past-times while your employees are supposed to be working.
Being unprepared. Companies can lose a truly staggering amount of time and money when employees forget or lose tools, arrive at the job site in improper clothing, mix up driving directions and forget job materials or don't bring enough of them. Inefficiency, extra trips and repeat work all abound when workers are not thinking ahead of the game.
Lack of direction or wrong direction. When employees lack initiative or receive unclear instructions, they wander about trying to figure out what to do first, second or third. You can imagine what a huge waste of time that is. It's just as harmful when employees work very quickly at the wrong thing. This usually wastes time and resources to get to the wrong place and then undo the mistakes created in the process.
Unreliability and disruption. How much stress and chaos can you stand? An unreliable worker will eat up not only his time but your time and your team's time. Can you afford it?
Personal crises (kids, spouse, parents, pets, car trouble, sickness, etc). Even the most dependable employees have an emergency now and then or get ill, but some workers seem to live in a cloud of crisis situations. Don't try to fix their dramas. Just find someone who's in a better position to safeguard your worker funds.
Passive-aggressive behavior. A passive-aggressive person is often very nice and agrees wholeheartedly with you until you walk away. Then the employee turns around and does as he or she pleases. If you've got one of these folks on your staff, you'll lose their production time and then spend more of your time wondering if something is wrong with your own communication skills (or if you read the person wrong). Then you'll try again and the same thing will happen. Don't continue the investment.
Impaired by alcohol, marijuana or other drugs. You'll definitely lose assets and resources if you have employees who abuse substances. You lose their time and skills when they don't show up or under-perform due to the previous night's (or weekend's) activities, and your other employees' productivity and morale may suffer, too. In addition, substance-impaired employees are downright dangerous to themselves and others if they use alcohol or drugs on the job. They frequently experience money issues and may ask you for loans between paychecks.
You may face related liability issues as a result of employing someone impaired by alcohol and drugs. (See Lifestyles Can Be Red Flags: Know the Warning Signs of Fraud for more information on other fraud dangers related to substance abuse.) You must be very careful about safeguarding your assets if you're dealing with a substance abuser.
Outright time theft (fraudulent clock-ins, reporting work time when not working). You should make it clear via policies and conversations with employees that such activities are grounds for immediate dismissal. No ifs, ands or buts about it you will not tolerate theft.
If your employees engage in any of the above time and money drains, you are not receiving an honest day's work in return for your valuable time, trust and hard-earned money.
Run some time and money loss calculations of your own the next time you encounter one of theses situations. Be sure to include the cost of all parties involved. Compute the daily, weekly, monthly and annual projections.
You may want to share the results of your calculations with your employees. They'll probably be quite surprised when you show them what they are costing you in wasted time and squandered assets. They'll probably realize that you are very aware of the cost of their time, and that you are closely watching how they handle the time funds that you have entrusted to them.
Now, think of the money you pay your employees. Are you receiving tangible assets in return for your investment, or is the return on this investment disappearing over time?
How Much Does Pat Cost Per Hour?
Many business owners think of the cost of employees in terms of their hourly cost (e.g., Pat's rate is per hour, plus some payroll taxes). But, let's see what Pat really costs his employer for each hour he is available to work.
Start by calculating the number of hours an employee is potentially available to work. We'll start with 2,080 hours (52 weeks per year x 40 hours per week). But then we need to subtract the following non-working periods for the year:
Six holidays
10 vacation days
Six sick or personal days
Two days of training seminars.
This comes to a total of 24 days or 192 hours, leaving us with 1,888 available working hours.
We then subtract about two hours from each remaining work week (47) for miscellaneous administrative meetings, timekeeping, shop time and so forth (breaks are charged to jobs).
This reduces the available production time by another 94 hours, so now Pat is actually available for approximately 1,794 hours.
Pat's -per-hour compensation comes to ,360 per year. In addition, Pat's employer has additional costs that are attached to this employee's job:
,005 in payroll taxes (based on the state unemployment rate of 2.7% on the first ,000 and no other state disability taxes)
,536 in workers' comp (at per 0)
,200 in health insurance (at 0 per month)
,060 in retirement benefits (at 3% of compensation)
0 in cell phone costs (at per month)
0 in uniforms (four logo shirts at , one logo jacket at )
,000 in company vehicle usage (depreciation, gas and oil, maintenance, license, insurance)
0 in small tools and equipment usage (at per month)
8 estimated annual bonus (2% of wages)
0 employer-paid snacks, meals, parties, entertainment
0 in training fees, seminars, etc.
This totals just over ,000 in additional costs and brings Pat's annual cost to ,389.
So, Pat's real cost to his employer is .21 per production hour (,389/1,794 hours). That's 72% more than Pat's hourly rate.
Pat is truly a costly and valuable asset whose time should be carefully guarded.
Time as Tangible Property'
Time is money. We've heard that over and over.
For your employees, that's definitely the case. They are trading their time for your money.
So, if their time equals your money, you need to safeguard that time as carefully as you would safeguard your new vehicle, a state-of-the-art computer or the money in your wallet.
And, you must begin to think of the theft or waste of time as the theft or waste of money. Then you must present your revised view of time to your employees. To help with that mental transition, let's look at the following examples in terms of cold, hard cash coming out of your pocket.
A Sad Story
Several years ago I hired a start-up landscaper to help landscape my new home. He was starting his business as an adjunct to another company he owned and wanted to see if the landscaping business would work out for him.
My new home had large windows with a view of the backyard. I worked from home on several occasions when the work was to have taken place. Because my car was in the garage, the crew didn't know I was there. What I saw from my windows was not pretty.
The owner arrived with four workers, showed them the site and gave them instructions. He then left to get additional equipment and supervise another job.
About 15 minutes later, I saw that the work had slowed noticeably. Within another 10 minutes or so, two of the four workers had stopped working completely and were engaged in an earnest conversation while leaning on their shovels and rakes.
Shortly after that, worker #3 decided to join in while worker #4 continued to work diligently in the hot sun. Eventually worker #4 stopped working and joined the group.
I continued to look out the window periodically and saw that the most productive activity involved worker #2 tossing a rock from one hand to the other. There were also group meditations during which all four workers stared intently for prolonged periods at one of the holes previously dug in the ground.
When I shared this with the owner of the fledgling landscaping business, he wasn't totally surprised after all, work had been progressing quite slowly.
My landscaping eventually was finished, but unfortunately, so was his start-up business.
Time and Money Drains
Less dramatic examples of time theft surround us constantly. Employees who would never even think of stealing work tools, or who would be aghast at the thought of taking a bill out of a cash drawer, think nothing of routinely carrying off multiples of those amounts in the way they mismanage their time.
Using Pat as an example, let's see what happens when we quantify some of those time drains on an employer's bank balance. You can imagine how these liabilities cost a company even more by raising stress levels and reducing employee morale and client satisfaction.
Breaks and lunches. A friend of mine used to say, Well, I came in late today, so I'd better leave early. Of course, as a diligent employee, he was just being humorous, but plenty of workers often take advantage of their breaks and lunches (e.g., taking extra breaks for coffee, cigarettes, the restroom, personal errands, etc).
It's amazingly easy to slip in an extra five or 10 minutes of non-productive time here and there. Let's say that Pat tarries an extra five minutes at lunch, takes four extra 10-minute coffee, restroom or smoke breaks during the day and then leaves 10 minutes early for a personal errand. That's 55 minutes of time lost in bits and pieces throughout the day. At .21 per production hour, Pat's time is worth nearly 50 cents a minute so he has just stolen .78 worth of time.
Would you believe that, if Pat does this every working day, you're looking at ,316 out of your pocket? It's sad, but true.
And for some employees, 55 minutes a day may be just the tip of the iceberg. Think of the following scenarios that can also divert their time and your money.
Personal phone calls and e-mail. With cell phones, office phones and computers continually at hand, the temptation is always present to fritter away time on personal matters.
Personal conversations with co-workers. Depending on the number of participants, this can be a double, triple or even quadruple dip into your pocketbook.
Playing games, daydreaming, gazing into holes, etc. I call this doing nothing when you could be doing something of value. These are valuable activities for folks who are off work or on vacation, but you shouldn't finance these past-times while your employees are supposed to be working.
Being unprepared. Companies can lose a truly staggering amount of time and money when employees forget or lose tools, arrive at the job site in improper clothing, mix up driving directions and forget job materials or don't bring enough of them. Inefficiency, extra trips and repeat work all abound when workers are not thinking ahead of the game.
Lack of direction or wrong direction. When employees lack initiative or receive unclear instructions, they wander about trying to figure out what to do first, second or third. You can imagine what a huge waste of time that is. It's just as harmful when employees work very quickly at the wrong thing. This usually wastes time and resources to get to the wrong place and then undo the mistakes created in the process.
Unreliability and disruption. How much stress and chaos can you stand? An unreliable worker will eat up not only his time but your time and your team's time. Can you afford it?
Personal crises (kids, spouse, parents, pets, car trouble, sickness, etc). Even the most dependable employees have an emergency now and then or get ill, but some workers seem to live in a cloud of crisis situations. Don't try to fix their dramas. Just find someone who's in a better position to safeguard your worker funds.
Passive-aggressive behavior. A passive-aggressive person is often very nice and agrees wholeheartedly with you until you walk away. Then the employee turns around and does as he or she pleases. If you've got one of these folks on your staff, you'll lose their production time and then spend more of your time wondering if something is wrong with your own communication skills (or if you read the person wrong). Then you'll try again and the same thing will happen. Don't continue the investment.
Impaired by alcohol, marijuana or other drugs. You'll definitely lose assets and resources if you have employees who abuse substances. You lose their time and skills when they don't show up or under-perform due to the previous night's (or weekend's) activities, and your other employees' productivity and morale may suffer, too. In addition, substance-impaired employees are downright dangerous to themselves and others if they use alcohol or drugs on the job. They frequently experience money issues and may ask you for loans between paychecks.
You may face related liability issues as a result of employing someone impaired by alcohol and drugs. (See Lifestyles Can Be Red Flags: Know the Warning Signs of Fraud for more information on other fraud dangers related to substance abuse.) You must be very careful about safeguarding your assets if you're dealing with a substance abuser.
Outright time theft (fraudulent clock-ins, reporting work time when not working). You should make it clear via policies and conversations with employees that such activities are grounds for immediate dismissal. No ifs, ands or buts about it you will not tolerate theft.
If your employees engage in any of the above time and money drains, you are not receiving an honest day's work in return for your valuable time, trust and hard-earned money.
Run some time and money loss calculations of your own the next time you encounter one of theses situations. Be sure to include the cost of all parties involved. Compute the daily, weekly, monthly and annual projections.
You may want to share the results of your calculations with your employees. They'll probably be quite surprised when you show them what they are costing you in wasted time and squandered assets. They'll probably realize that you are very aware of the cost of their time, and that you are closely watching how they handle the time funds that you have entrusted to them.
Woensdag 13 Maart 2013
{prltitle}
To successfully fund your start up business, we recommend that you employ one of the following alternatives:
- A business loan. This kind of loan is often considered the most traditional form of business financing. With it, you can look forward to receiving sufficient funds to finance a business requirement. In return, you will be asked to submit payments to your lender, on a monthly basis, until you can completely pay back the funds you borrowed, plus a reasonable interest charge.
However, you should remember that applications for traditional business loans often take as much as four months to receive approval. And so this might not be the best financing option for you, especially if you need a huge sum of cash to finance an urgent business need.
- A small business credit card. Did you know that there are credit cards especially designed to meet the needs and special requirements of business owners? They're called business credit cards. You can apply for one and use it for covering the bills and expenses you will incur, especially if you don't have enough cash to settle them, right away.
There are two basic types of business credit cards - secured and unsecured. To get a secured business credit card, you need to make a substantial deposit to your target card issuer. This initial cash-out serves two important purposes. First, it guarantees the repayment of your credit card charges, in case of default. Second, it determines the spending limit that will be imposed on your business card account.
An unsecured business credit card, on the other hand, does not come with a security deposit requirement. Instead, it carries strict credit score requirements and steep interest rates. Still, it is worth mentioning that such lines of credit come with much higher spending limits or caps as compared to their secured counterparts.
- An equipment lease. If your business has limited financial resources and you need expensive equipment, such as heavy machinery, vehicles or office furniture then, we encourage you to lease, instead of purchasing, them. Look for an equipment supplier nearby and arrange for a true lease. After all, with this option, you can receive the equipment you need without shelling out a significant percentage of your working capital. Moreover, you can use your business finances for covering more urgent startup costs you will soon incur.
- Invoice factoring. If you're in dire need of cash to settle your financial obligations and to keep up with your loan payments then, we suggest you sign up for invoice, or accounts receivable factoring. In this arrangement, you will submit some of your unpaid invoices to a factoring company, for cash. This will provide you with at most 80% of the sum of cash tied-up with your accounts receivable. The remaining 20% will be given to you by the factoring agency as soon as it receives complete payment from your customers.
Now, to avoid problems, we suggest you carefully select the invoices you will submit for factoring. Look for the receipts from your most reliable customers and file them with your chosen factoring agency. By doing so, your enterprise can avoid getting penalized for payment delinquency or default.
Copyright (c) 2013 Irish Taylor
- A business loan. This kind of loan is often considered the most traditional form of business financing. With it, you can look forward to receiving sufficient funds to finance a business requirement. In return, you will be asked to submit payments to your lender, on a monthly basis, until you can completely pay back the funds you borrowed, plus a reasonable interest charge.
However, you should remember that applications for traditional business loans often take as much as four months to receive approval. And so this might not be the best financing option for you, especially if you need a huge sum of cash to finance an urgent business need.
- A small business credit card. Did you know that there are credit cards especially designed to meet the needs and special requirements of business owners? They're called business credit cards. You can apply for one and use it for covering the bills and expenses you will incur, especially if you don't have enough cash to settle them, right away.
There are two basic types of business credit cards - secured and unsecured. To get a secured business credit card, you need to make a substantial deposit to your target card issuer. This initial cash-out serves two important purposes. First, it guarantees the repayment of your credit card charges, in case of default. Second, it determines the spending limit that will be imposed on your business card account.
An unsecured business credit card, on the other hand, does not come with a security deposit requirement. Instead, it carries strict credit score requirements and steep interest rates. Still, it is worth mentioning that such lines of credit come with much higher spending limits or caps as compared to their secured counterparts.
- An equipment lease. If your business has limited financial resources and you need expensive equipment, such as heavy machinery, vehicles or office furniture then, we encourage you to lease, instead of purchasing, them. Look for an equipment supplier nearby and arrange for a true lease. After all, with this option, you can receive the equipment you need without shelling out a significant percentage of your working capital. Moreover, you can use your business finances for covering more urgent startup costs you will soon incur.
- Invoice factoring. If you're in dire need of cash to settle your financial obligations and to keep up with your loan payments then, we suggest you sign up for invoice, or accounts receivable factoring. In this arrangement, you will submit some of your unpaid invoices to a factoring company, for cash. This will provide you with at most 80% of the sum of cash tied-up with your accounts receivable. The remaining 20% will be given to you by the factoring agency as soon as it receives complete payment from your customers.
Now, to avoid problems, we suggest you carefully select the invoices you will submit for factoring. Look for the receipts from your most reliable customers and file them with your chosen factoring agency. By doing so, your enterprise can avoid getting penalized for payment delinquency or default.
Copyright (c) 2013 Irish Taylor
Donderdag 07 Maart 2013
{prltitle}
I Can't Lease A Car Because Of My Credit Score?
Leasing a car with a bad credit score can be difficult since most of the car dealers do not let people with a bad credit score simply walk in and borrow for just any car. A car lease is similar in that the dealer will check your credit in order to assess your financial capability of meeting your lease payments. People with a bad credit standing are considered a high risk to the lessor - the risk is that you will not be able to pay on time, will default on the payment or will consistently fall into arrears on your lease payments. In the case that you default the dealer will likely repossess the car causes dealers a headache because the condition of the car is might have devalued its worth.
Your average car lease contract requires an up front deposit for security in addition to the monthly lease payments. The key to getting bad credit car leasing approved is to expect to deposit a higher downpayment in order to rely less on your financial responsibility assessment based on credit. Dealers will often allow for a bad credit lease if you will offer terms in exchange for their higher risk.
Not all dealerships will accept this next leasing strategy but it is worth considering offering additional collateral as security when leasing a car. Contracts are wide open, and almost everything is possible when mutually agreed upon, and additional collateral if accepted will help secure the asset in the case you default on the payment of your car lease fees. Bad credit car dealerships and used car dealers will typically be more flexible to this type of creative car lease arrangement.
When leasing a car with bad credit you benefit by shopping around amongst the different auto dealerships that offer leasing options for bad credit people. Do not focus on one dealer alone, it pays to have dealers compete for your bad credit lease. You might be as excited as pie and ready to sign on the dotted line to lock in your new car lease, little knowing that the next dealer has easier qualification standards and a better deal waiting that you missed out on. The next car lease offered might be at a lower price.
Prepare Before Going Bad Credit Car Lease Hunting
Before you begin negotiating with the dealers, be sure to get a copy of your own credit report so that you will have an idea of your own standing. How bad is your credit really, at this very moment, you might have a lower lease risk than you think.
If you are having trouble getting a car lease with bad credit, it might be only a couple of negative items on your credit report that are preventing you from getting approved. You have the option to go to the three bad credit reporting agencies and request to remove from your credit report negative items that are not factual so that your credit report will look good on paper to increase your lease approval chances for your dream car. In addition to increasing your chances for approval, it will save you money as a good credit score help you lower your lease rates and could help lower any deposits required.
If you have your heart set on leasing a car with bad credit, dealerships offer options. Large car dealerships and some smaller bad credit dealerships can replace the bank and offer their own lease structuring options. A large car dealer in this economy might be overstocked and in need of lowering their inventory making them more willing to provide bad credit car leasing options that they otherwise would not consider. The telephone is your friend, and can save you time, but get out and speak face to face with the leasing office personnel, the relationship you build could sway the scales in favor of your lease approval.
Additionally, talk with the head of the finance department of the car dealership that you want to lease a car from. Negotiate with them without giving them the opportunity to look in your credit standing. Leasing a car with bad credit might prove impossible BUT... you might be surprised with a loan option for purchase. They are as interested in selling or leasing you a car as you are in getting behind the wheel of your new auto.
Let car leasing people see your sincerity and that you intend to make your car payments on time. However, do not fake your sincerity. Be genuine to who you are, there is no need to hide anything.
What To Do If You Still Can't Get Approved?
Make steps to improve your credit standing and build a history of on time regular payments. Shift your focus to paying your loans and/or credit cards on time and keep records of your good faith payment history. We want to build a case for your being a good risk for a car lease that you will then return to the dealer with. In addition your credit score will slowly improve. Speak frankly with the car leasing agent, find out what the minimum score is required to lease a car with bad credit.
While you are working on polishing your credit reports in order to make leasing a car easier, you can start saving up for your deposit for the car you want. When you return, if your credit standing will still makes you unqualified to lease the car you want, you have the other option of paying a higher downpayment, or you might have enough to get approved for a bad credit car loan.
Find out what loan offers for buying a new car might be available to you with our recommended auto financing provider...
Bad Credit Car Dealerships
There are car dealerships that accommodate people with bad credit. Look around in your neighborhood to find the bad credit dealers. Working with the bad credit dealers will provide you much more lease contract flexibility, but expect financing costs to compensate. Avoid entering any agreement that the monthly payments will be a challenge to meet, it will only lead to your facing similar bad credit car lease difficulties next time around.
When dealing with bad credit car dealers offering lease options, let them see your credit report and they will determine quickly if you meet their qualification standards for leasing a car with bad credit. If not, don't worry, offer any of the creative car leasing approval strategies above, and if still no luck, move on to the next bad credit dealer on your list.
When leasing a car with bad credit, many of the cards, unfortunately are in the hands of the dealership. Relationships can make the difference, so be charming, smile, meet the people offering the lease and show them your genuine sincerity in wanting to make a deal. Getting bad credit car lease approved requires a little luck, a good reaction, and a lessor willing to trust you with a second chance, keep at it and you will find one.
Leasing a car with a bad credit score can be difficult since most of the car dealers do not let people with a bad credit score simply walk in and borrow for just any car. A car lease is similar in that the dealer will check your credit in order to assess your financial capability of meeting your lease payments. People with a bad credit standing are considered a high risk to the lessor - the risk is that you will not be able to pay on time, will default on the payment or will consistently fall into arrears on your lease payments. In the case that you default the dealer will likely repossess the car causes dealers a headache because the condition of the car is might have devalued its worth.
Your average car lease contract requires an up front deposit for security in addition to the monthly lease payments. The key to getting bad credit car leasing approved is to expect to deposit a higher downpayment in order to rely less on your financial responsibility assessment based on credit. Dealers will often allow for a bad credit lease if you will offer terms in exchange for their higher risk.
Not all dealerships will accept this next leasing strategy but it is worth considering offering additional collateral as security when leasing a car. Contracts are wide open, and almost everything is possible when mutually agreed upon, and additional collateral if accepted will help secure the asset in the case you default on the payment of your car lease fees. Bad credit car dealerships and used car dealers will typically be more flexible to this type of creative car lease arrangement.
When leasing a car with bad credit you benefit by shopping around amongst the different auto dealerships that offer leasing options for bad credit people. Do not focus on one dealer alone, it pays to have dealers compete for your bad credit lease. You might be as excited as pie and ready to sign on the dotted line to lock in your new car lease, little knowing that the next dealer has easier qualification standards and a better deal waiting that you missed out on. The next car lease offered might be at a lower price.
Prepare Before Going Bad Credit Car Lease Hunting
Before you begin negotiating with the dealers, be sure to get a copy of your own credit report so that you will have an idea of your own standing. How bad is your credit really, at this very moment, you might have a lower lease risk than you think.
If you are having trouble getting a car lease with bad credit, it might be only a couple of negative items on your credit report that are preventing you from getting approved. You have the option to go to the three bad credit reporting agencies and request to remove from your credit report negative items that are not factual so that your credit report will look good on paper to increase your lease approval chances for your dream car. In addition to increasing your chances for approval, it will save you money as a good credit score help you lower your lease rates and could help lower any deposits required.
If you have your heart set on leasing a car with bad credit, dealerships offer options. Large car dealerships and some smaller bad credit dealerships can replace the bank and offer their own lease structuring options. A large car dealer in this economy might be overstocked and in need of lowering their inventory making them more willing to provide bad credit car leasing options that they otherwise would not consider. The telephone is your friend, and can save you time, but get out and speak face to face with the leasing office personnel, the relationship you build could sway the scales in favor of your lease approval.
Additionally, talk with the head of the finance department of the car dealership that you want to lease a car from. Negotiate with them without giving them the opportunity to look in your credit standing. Leasing a car with bad credit might prove impossible BUT... you might be surprised with a loan option for purchase. They are as interested in selling or leasing you a car as you are in getting behind the wheel of your new auto.
Let car leasing people see your sincerity and that you intend to make your car payments on time. However, do not fake your sincerity. Be genuine to who you are, there is no need to hide anything.
What To Do If You Still Can't Get Approved?
Make steps to improve your credit standing and build a history of on time regular payments. Shift your focus to paying your loans and/or credit cards on time and keep records of your good faith payment history. We want to build a case for your being a good risk for a car lease that you will then return to the dealer with. In addition your credit score will slowly improve. Speak frankly with the car leasing agent, find out what the minimum score is required to lease a car with bad credit.
While you are working on polishing your credit reports in order to make leasing a car easier, you can start saving up for your deposit for the car you want. When you return, if your credit standing will still makes you unqualified to lease the car you want, you have the other option of paying a higher downpayment, or you might have enough to get approved for a bad credit car loan.
Find out what loan offers for buying a new car might be available to you with our recommended auto financing provider...
Bad Credit Car Dealerships
There are car dealerships that accommodate people with bad credit. Look around in your neighborhood to find the bad credit dealers. Working with the bad credit dealers will provide you much more lease contract flexibility, but expect financing costs to compensate. Avoid entering any agreement that the monthly payments will be a challenge to meet, it will only lead to your facing similar bad credit car lease difficulties next time around.
When dealing with bad credit car dealers offering lease options, let them see your credit report and they will determine quickly if you meet their qualification standards for leasing a car with bad credit. If not, don't worry, offer any of the creative car leasing approval strategies above, and if still no luck, move on to the next bad credit dealer on your list.
When leasing a car with bad credit, many of the cards, unfortunately are in the hands of the dealership. Relationships can make the difference, so be charming, smile, meet the people offering the lease and show them your genuine sincerity in wanting to make a deal. Getting bad credit car lease approved requires a little luck, a good reaction, and a lessor willing to trust you with a second chance, keep at it and you will find one.
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