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How to Save Money Without Refinancing Your Vehicle



Bad credit can make a big difference in the amount of money you end up spending on an auto loan. If you’re looking for ways to save money on your current loan, without refinancing, we have some tips for you.

Save Money Without Refinancing

When you want to save money on your car loan, you have plenty of options. If it’s been over a year since you’ve taken out your loan, and your credit score is good or at least improved, refinancing can be one of the better ways to save money on your car loan.

However, if refinancing isn’t an option for you, or you simply don’t want to go through the hassle, you typically have a few other options.

Start with a large down payment. The more money you can put down on a loan, the less you have to borrow. This saves you time and money, and you pay fewer interest charges. This is especially important for bad credit borrowers since you typically qualify for a higher interest rate.

How to Save Money Without Refinancing Your CarOpt for the shortest loan possible. When you need to save money on an auto loan, taking one out for the shortest time you can comfortably afford saves you money in interest charges. Car loans are typically simple interest loans, meaning interest charges accrue daily based on your principal balance. Shorter loan terms mean higher monthly payments, leaving less for interest to be charged on.

Pay off your loan faster. Even with a short loan term, or a small initial loan, you can only save money by paying off your loan ahead of schedule. Most auto loans don’t include prepayment penalties, so you can pay your loan as quickly as you please. There are several ways to accomplish this in order to save on interest charges: pay extra whenever you can; split your payment by paying half at the beginning of the month, and the other half on or by your due date. You could even round up your payments to a set higher payment if you can afford it. Every little bit helps.

Try having a cosigner. There’s no guarantee that having a cosigner qualifies you for a lower interest rate, which can save you money, but if you’re struggling to get an auto loan, adding a cosigner with better credit can help. If their credit is high enough, it may persuade the lender to give you better loan terms than you could qualify for on your own.

Refinancing to Save Money

When you refinance, you’re replacing one auto loan with another on the same vehicle. If you’re running out of options to save money on your loan without refinancing, you may need to consider it if you want to stay in your current vehicle.

The most common reason for refinancing is to save money on your monthly payment. This can be done by either lowering your interest rate or by lengthening your loan term.

Only a lower interest rate or a combination of a lower rate and longer loan term can save you money overall. If you stretch your loan term without a better interest rate, your monthly payment can decrease, but you end up paying more in interest over the remainder of your loan.

To qualify for refinancing you must typically have:

  • Good credit, or a better credit score than when you started your loan
  • The car must be within the lender’s range for age and mileage
  • The loan amount must be acceptable to the refinancing lender
  • There can’t be negative equity in the car
  • Your payments must be current

Trade-In for a More Affordable Car

If you’re not so keen on keeping your car, or it’s just not an option without refinancing, you can consider trading in your vehicle for a more affordable model. As a bad credit borrower, it’s important to find an affordable, reliable car that holds its value. And, if you’re in an equity position, anything left over after paying off your loan can be put toward a down payment on your next car.

Let Us Be Your Guide

If you’re looking to save money on your next car loan either on a new vehicle or through refinancing, we want to help. At Auto Credit Express we work with a nationwide network of special finance dealerships that are signed up with subprime lenders.

These lenders work with people in many sorts of credit situations. Don’t wait to find your next car loan, simply fill out our fast, free, no-obligation auto loan request form to get started.

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Are Sallie Mae Student Loans Federal or Private?



When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances



Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit



Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.



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