More Americans With Bad Credit Approved for Car Loans

In the United States, the debt for auto loans has capped in excess of $987 billion according to Experian Automotive reports made about the industry late 2015. This amount is the highest outstanding balance for auto loan debt since the first public report issued in 2006. Between the year 2014 and 2015, there have been 11.5% of consumers that have taken out car loans. Some of those loans were subprime, which means that the consumers had bad credit. In the latter part of 2014, these subprime car loans capped more than 20% in open balances and this number increased in 2015. These numbers may mean that there are more people with poor credit needing vehicles.

Subprime Loans

Consumers with subprime loans have low credit scores and for that reason car loan applications and approvals have risen. However, in the same manner, auto loan companies have reported a decline in thirty day delinquencies among consumers. This could be due to one or two reasons. The auto lenders may be selecting consumers with bad credit, but at the same time, consumers who want to build their credit so do their best to pay on time. On the other hand, it could mean that consumers who have poor credit want to take responsible action to improve their finances. In any case, the auto debt report indicates that it is possible to be approved for auto title loans or car loans even when you have bad credit.

The Consumer

Most lenders realize that bad credit doesn’t mean that the person is bad. It may be that the person met on some bad times and was forced to consider credit as their last option. For that reason, they may have taken care of other pressing matter and allowed credit to go bad. Purchasing a vehicle is not something that many consumers relish. Of course, fast cars and shiny wheels get the adrenalin rushing and sometimes, the consumer will want to buy a car that is way above their financial means. If you are a consumer with bad credit, it is best to prepare yourself for the shopping experience.

The Lender

There are specific things to consider such as:

  •       Shopping around
  •       Conducting research
  •       Check your credit rating so you can fix any errors

Not all auto lenders treat credit ratings the same. Therefore, it is best to learn more about each lender you are interested in – before you make a decision to purchase a vehicle. Although, you may have bad credit, it doesn’t mean that you have to settle for a double digit interest rate. Some lenders are more lenient towards the consumer with bad credit, not capitalizing on their situation, but trying to help them to build back their credit. That is the kind of lender you should try to find. Don’t just look for the lenders that tout loans for consumers with bad credit. There are lenders that offer better deals.

The Bottom Line

If you want to improve your credit rating from bad to good, then an auto loan or auto title loan is your ideal option to get you out of that rough patch financially. You don’t have to allow your bad credit to be the deciding factor when you get ready to purchase a vehicle or obtain a title loan.


Abercrombie & Fitch Company Increase in Sales May Surprise Shoppers

Abercrombie & Fitch Company is a clothing retailer for teenagers. The company posted an astonishing increase in sales during the last quarter of the holiday shopping period. This broke a declining streak that was taking place in the company’s sales for more than three years. The declining spell was broken due to a great demand for the company’s Hollister brand of new apparel.

Customer Dissatisfaction

Some customers don’t care about the dissatisfaction experienced with a company as long as they have the best looking apparel. Abercrombie & Fitch might score low with many customers, but with introduction of a new line of clothing, the customer mill could open back up. It could be that the new Hollister brand display on the mannequins in the windows of various retail stores across the nation attracted attention and soon the word got out and then caused the stores to flood with customers.

A Small Improvement

One small improvement during the quarter can make a world of difference, especially for a clothing store or department store that did not do well in sales. The entire industry is claiming that sales were low and millions of dollars in business were lost due to the bad wintry weather felt across much of the nation. For the most part, consumers were not able to leave their homes to shop. In addition, shoppers did not see the need to purchase warm clothing for the upcoming summer, which would have allowed them to reap the discounts that come with shopping for summer clothes during the winter months.

The Secret Out

For Abercrombie & Fitch, the secret was to use a well-liked brand (Hollister) to break the monotony of winter, creating a surfing theme to get people out of their homes and into the stores to find ways to relinquish their sweaters and coats once and for all. In addition to this little revealed secret, the company altered their marketing strategy by turning up the lights in the store and reducing the sound of the store music. This one small change likely improved the way that parents thought about the influence on their teenage children. Satisfying parents is important to getting more sales since the parents are the ones with the credit card.

Sales Results

The company showed that these sales results indicated their efforts to make things better, revamping their inventory and improving the experience that shoppers had when they come to the store. These minor, but significant changes increased the company’s shares from 22 percent to over 31 percent in pre-market trading.

Proven Wrong

At the end of January 2016, Abercrombie retails sales tacked on one percent, which analysts thought would go the opposite way in sales decline. The joke is on them because Abercrombie proved otherwise. The results show that the Abercrombie brand is progressing in a challenging market during an also challenging trading period. Abercrombie has taken most of its logo-centric apparel out of its retail stores because they were no longer in fashion. Instead, over the past year, those were replaced with trendier fashion in Bohemian and denim inspired tops and skirts. So the surprise is on the public and not Abercrombie because they knew exactly what they were doing. Their strategy paid off.


Responsibilities Associated with the Use of a Credit Card

No matter if you are using a credit card to purchase groceries or to getting a new computer; you still have some financial responsibilities to the creditor and to yourself. You have to use your credit cards wisely so as to avoid any debt catastrophe. Some of the things you have to consider and put into action are paying on or before the due date. This is important to your credit rating. If you are late in making payments, the creditor will report this to the credit bureau and it can cause a negative mark on your credit report. In addition, when you pay late, this will result in late fees and more finance charges on top of what you are already paying.

Your Payment

When a payment is made, it is mandatory by law that the creditor places a credit on your account for the money paid as long as it received. However, there are a few exceptions. Your card issuer can ask that you pay within a reasonable time frame, cutting it off to a few hours after the due date. For example, it could be at the close of business on the due date and if the close of business is 5 PM, then if payment were to be received at 6PM or the next day, it forces the creditor to charge you additional finance charges and late fees. The creditor can delay applying credit to your account if the payment that was received does not result in late fees and additional finance charges. It is best to know the creditors payment rules and follow the instructions so that you do not incur additional charges.

The Process

If you were to send payment to a wrong address, this could place a delay in proper credit to your account. This delay could be up to five days. If you are unsure of payment address, you probably will find it on your monthly statement. It is ideal and convenient to pay your bill online, but make sure that you set some kind of reminder so that you don’t forget or you could set up automatic payments, which would occur on the due date. You could also set up an electronic notice of return to ensure that the creditor receives the payment via mail or online. Make sure you have sufficient funds in your bank account because an overdraft will only delay payment and crediting to your account. This could subsequently ruin your credit.

Other Issues

If there is a credit balance associated with your account, you can either keep the balance or contact the creditor for a refund as long as the amount is more than a dollar. Your creditor is responsible for sending the refund within a reasonable time frame – 7 days to be exact after receiving your request. If you don’t request a refund and you don’t make any additional purchases within a six month period, the creditor has to refund the money.


Other Responsibilities

Your card issuer must send you a refund within seven business days of getting your request. If you don’t ask for a refund and you don’t make any other purchases for more than six months, the issuer must make a good faith effort to send you a refund. It is your responsibility to contact the creditor if you find any errors on your monthly statement. You should file a written dispute if you see any errors. The same is true if you find any unauthorized charges. Never loan your card to anyone or leave your card carelessly around. Always be cautious about how you handle your credit card.


What You Should Know Prior to Sending Out 1099s

Most people who are self employed and contracted out to another company will often receive a 1099 form to file their taxes. However, while this form may seem mysterious to many, it is really not. However, prior to sending out one of these forms, there are some things that business owners need to know. In other words, there are certain guidelines, requirements and rules to consider. It can be quite exasperating to track the new changes to the process. With that being so, there are some business owners that will not file anything and give up trying. It can be very risky to do this, though, since there are penalties attached if the rules are not followed. Moreover, the penalties can tack on quite quickly.

Payments Made

You can simplify the process by following specific actions. The first step is to find out the identity of the person to whom the Form 1099 should go. The general consensus is to send out Form 1099 to anyone receiving $600 or more in payment for services rendered. You have to also send out a Form 1099 for rents, awards and prize money. If you made a payment for any personal reasons, you don’t have to issue the 1099 form. Payments that are issued for business or trade fall into the category of receiving a 1099 form. The form could go to a partnership, individual, LLC, estate or limited partnership. It seems as if the government is not trusting of lawyers to report their entire income. So if you paid $600 or more to an attorney, you have to send them the 1099 form, even if the law firm is incorporated.

The Penalties

If you do not issue a 1099 form, there are penalties that vary from thirty dollars to one hundred for each 1099 form. It depends on the length of time that has passed since the company was supposed to issue the form. If there was total disregard or intentional actions on the part of the business to issue this form, the penalty is a minimum of $250 for each 1099 form. There is no maximum penalty.

The Exceptions

There are exceptions to the rule and the list is quite a long one. However, the most common exceptions are the fact that the 1099 form does not need to be sent to a corporation. You don’t need to send it either when you collect rent payments from property managers. However, the property manager has to send the 1099 form to the property owner.

The W-9 Form

If you are a business owner and you paid money to a vendor of $600 or more, ask the vendor for a W-9 form prior to paying them. If you made this a normal practice, then on the W-9, you will have the vendor’s information, which would include mailing address, business entity and Tax ID. Therefore, if the vendor’s business entity is listed as corporation, you don’t have to send out a 1099 form.

You are not allowed to print 1099 forms from the Internet. It has to be sent to you after ordering from the IRS. Or you can get them from your local post office. The IRS requires that you compile the 1099 forms and submit it along with the 1096 form.

OPEC Meeting With Saudi Arabia & Russia

Oil prices briefly shot back up this week, reaching some of its highest levels since the drop off started the past couple months. In mid February this was surprising but not unwarranted. There was a ray of hope as Russia and Saudi Arabia talked about the problem of the overflow of supply and some steps to be taken to stabilize the industry.

Perhaps this could be the start of a new oil recovery in the marketplace. The biggest oil producers have agreed to freeze the current production levels and this can be seen as one of the first deals in 15 years between an OPEC country and non OPEC country ushering in new hope for renewal in constructive talks.

A major problem that could arise is Iran now re entering the market and raising its production to higher levels after they got out of their most recent trade embargo.

Specific Areas of Improvement

Brent Crude oil raised itself up by $2 and hit around $35.39 a barrel and made over 11% of gains over the preceding two days. Analysts were wondering if this was possible and the price dipped back to around $32.00 not knowing the entire outcome if it was going to keep rising or not. In the meantime there was an increase in U.S. Crude oil that rised 5.1% or $1.50 up to $30.94. This was the highest U.S. Crude had been since earlier in February.

These improvements can be taken as coming off the recent talks between top officials in Saudi, there was oil minister Ali al-Naimi and from Russia was Alexander Novak, two major figures who want to reach an agreement between the two countries for hope of a global success.

Also in the mix was Eulogio Del Pino from Venezuela who is also an oil minister. He has been going on a sort of campaign around the world meeting with major oil producers trying to get everyone on the same page to freeze production.

A lot of people are considered about the wildcard, which is Iran, so this small burst in oil prices may be short lived if the prices are rising at an alarming rate. These types of moves would put the supply and demand back into equilibrium but the reserves right now throughout the globe are at record levels. Something that would stop an oil price rise from happening anytime soon.

Oil prices have fallen 70% in almost two years and is due mostly to record-breaking production by OPEC members and producers like Russia. There is the possibility that the cusp of this entire debacle is still up in the air and this will be more cause for volatility.

In the meantime Oil producers in the United States have to be wary as they cut back on their drilling and processing to avoid losing too much profit and be able to maintain themselves as companies in the potential recovery, whenever that may be in the upcoming future.

Post Office Network’s Future Depends On Finances

Recent reports have been made available regarding the country of Ireland and their post office network. Based on information from this report, it was determined that the post office must provide customers with more financial services. Under the recommendation of the Post Office Network Business Development Group, who completed the report, post office locations that do not obtain a lot of traffic should become hubs for business and social activities for the areas that they serve. The future lies in providing these new types of financial services. Here is a further look into what the Irish post office can expect.


Why adding financial services will benefit the post office

Bobby Kerr, who serves as Group Chairman made a recommendation that new services at post office locations should include the sale of motor tax discs, which is what Ireland uses for driving motor vehicles in public places. Currently there are two ways the Post Office Network makes most of their income. Revenue comes for a welfare contract with the Department of Social Protection, as well as a savings and financial services contract with the NTMA. It was determined that 48% of post offices in the country carry out only 12% of the Post Office Network’s business, which is why financial services should be implemented. The An Post, which is the postal service provider in the Republican Ireland, must take these numbers into consideration when reviewing and planning its five-year strategic plan. This plan will be worked out with The Irish Postmasters’ Union.


An Post to make changes

In the report by the Post Office Network, it was determined that An Post needs to develop their own portfolio of financial products and services for consumers. If they want to maintain market share, these financial products and services must maintain a greater influence than other third-party services. An Post doesn’t seem to be aware of the impending crisis that the Post Office Network might be facing, which is why it is imperative that An Post develop an independent working group as soon as possible. This group should work to review their five-year strategy, while offering improvements based on new financial services. It is possible that without reviewing their five-year strategy, some post offices will be forced to close.


Financial services not a new concept

It seems as though Ireland is following the lead of many other countries in the world, in regards to allowing their post offices to provide basic financial services and products. The United States Postal Service is becoming more innovative in their delivery services, as well as other services they might provide to customers in person. There are a number of post office locations in almost every town in the United States. If the United States Postal Service provided small loans, check cashing, bill pay, and the option to open a savings account, it could benefit the entire community. Not only would this provide residents of an area with an easy, one stop shop for mail and financial services, but it would also bring in more revenue for the postal service.


The United States Postal Service hopes to continue to meet the growing needs of the American economy and society. It seems as though this is exactly what they are trying to implement in Ireland as well, and hopefully both countries will benefit from new postal financial services.


Why the Descent in Oil is crumbling all Stocks

Most recently crude oil saw an increase of almost six percent after it dropped below $30 for each barrel within a day. The Energy Information Administration was able to confirm, after releasing a report that supplies had shown an increase over the prior week. For that reason, all gains in prices were erased within minutes. Through all the markets and this includes the stock market in the United States, the existing bear market in the crude oil stock is the longest it has been since the 1970s.

Capital Business

In the United States and around the world, oil drilling has been known as an intensively capital business. To run an oil well with only a limited lifetime, many companies have to spend a substantial amount of money to do so. For instances, shale oil wells might not be able to yield crude oil for a long period of time. For this reason, most companies have to issue huge amounts of stocks and incur more debt to be able to raise funds to operate the business.

Fear of Bankruptcy

At the existing price of crude oil, there are only a few wells that have seen a profit. However, most companies have to continue pumping oil in order to generate their own revenue. If not, the companies have to face the idea of liquidating their business. This aggravates the surplus in supply that increased substantially at record levels in the early part of 2015. Existing supplies have shown a heightened increase of 25% than was shown in prior years to 2015.  A report issued by Wolfe Research indicated that as the cost of an oil well broke even, it varied according to specific factors and is estimated to force producers of oil and gas to face the potential of bankruptcy by the middle of 2017, if the crude does not experience a fast increase to $50 or more. Yahoo Finance compiled data from over 500 oil and gas company and from the data, it was learned that only 5 companies were not involved in the bear market. This meant that their stock may have gone down 20% or more from their high. More than a third of these companies have experienced a reduction of 90% or more from their highs. This is a resulting indicator of possible bankruptcy issues in the future.

Getting Contagious

The oil and gas industry issues are creating difficulty for companies in the energy sector. It is evident when a company like Arch Coal had to file for bankruptcy protection because of its struggles with meeting their interest payments on more than $4.5 billion debt. This is as a result of spread of depressed oil prices in the credit markets. The Wall Street Journal confirmed that more than thirty companies in a broad sector of the industry have had to file for bankruptcy protection ever since the stock market reached its peak in 2015.

Without a rebound in crude oil, the credit markets will experience reduced stock prices. Unfortunately, if oil continues to crumble, the U.S. stock indexes will possibly enter the land of the bear market in 2016.