Credit 101 What is Credit? | How Do I Get Credit? | Credit Precautions | Glossary

What is Credit?
Credit is "extended" to you when someone lends you money or assets, and trusts you to pay it back. It gives you the ability to buy today and pay tomorrow.
There are two types of credit:

* Unsecured: There is no asset or collateral being used to secure the debt. An example of unsecured credit is a credit card.
* Secured: Some type of collateral is used to secure the debt. This can be a house, car or boat that the lender can take back if the loan isn't paid.

Benefits of Credit


* Easier to buy a house
* Easier to finance a car
* In some cases, necessary to get car insurance
* Convenience
* Emergencies
* Safer than carrying cash
* Easier to rent an apartment
* Ability to rent a car
* Allows you to make purchases over the internet
* Some jobs may have a credit check requirement
* Can use it to pay college expenses
* Necessary to build a credit history

Risks of Credit


* Easier to make impulse purchases
* Can accumulate more debt than you can afford
* Misunderstanding of complicated terms and conditions

Know What You Need

Before you implement a contract, know exactly what it is that you need. Shop around to compare the offers - and above all the interest - of building societies, banks, independent financial brokers and dealers own arrangements.

Always compare like with like - if you must add up to € 2000 and intends to repay the loan within three years, each lender to ask the details of the APR (annual) for a loan of this amount, the size of the monthly payment more than 36 months, and the total amount to be repaid.

Remember to check the interest rate is fixed or variable.

Note that some systems can not buy the car, but rent long term!

Determine how much you can afford to pay per Mo. repay a loan adds to your costs, so they try to as soon as possible - to pay less in total interest paid on short-term loans.

Borrow only what you can afford to repay, and always try to buy as much of your own money as possible, pushing the car.
Clued-up on credit

Insert the largest deposit you can afford

Calculate how much you should borrow

Check out terms from different lenders

Compare like with like loan amount and term

Always check the APR (annual percentage rate)

Secured loans are cheaper than unsecured loans

Apply for your credit record if a credit refused

Contact with the borrower, if you can not keep up repayments

Make a payment scheme

Get comprehensive insurance for the car

Nissan Taking Orders for All-Electric Leaf By August 2010

In spite of all the recalls being issued and negative press regarding certain other Japanese automakers, Nissan is charging ahead with their innovative 2011 Leaf and plans to start taking orders by August 2010. While electric cars are nothing new, the Leaf, according to Nissan, is the first all-electric vehicle designed for the mass market.

When you consider that all previous electric models have only been available for lease, the fact that Nissan plans to make the Leaf available for purchase shows the company’s faith in all-electric technology. More than 50,000 potential customers have already signed up for the latest updates on the Leaf on Nissan’s new website, so you can expect those slots on the waiting list to fill up fairly quick.

Nissan says the first Leaf models could be delivered as early as December 2010 in select North American markets, so seeing the Leaf (in production form) on the road isn’t too far away. Pricing for the Leaf will be announced in April and an official waiting list will be set up shortly after where you can put down a fully-refundable $100 reservation fee for your own all-electric, zero-emission 2011 Nissan Leaf. Sign up here to keep up with all the details on the Leaf’s upcoming release.

BUYING GUIDE to New Compact Cars

Overview

Compact cars are popular given the current economic climate. Spiking gas prices and marked improvements in features have more shoppers opting more than ever for these "econo-boxes". Today, compact cars not only deliver excellent fuel economy but add sophisticated styling and everyday practicality at prices that won't break the bank. With more features offered as standard equipment, cars in this class offer excellent value.

Because of their smaller dimensions, they are more fuel efficient than mid-size cars, averaging anywhere from 20 to 50+ miles per gallon.

Model Price Range: $9,500 - $22,500

The Minimalist Approach

The 2010 Chevy Aveo in a no-frills base trim can be had for around $10,000. That means no power windows, no CD player, and no cruise control. Hey, nobody said life was fair. The good news is that these cars are built to be efficient, reliable, and cheaper to operate.

The 2010 Honda Fit, 2010 Nissan Versa, and 2010 Toyota Yaris are carryovers from 2009 and have gone through minor updates for 2010. The Versa has drawn praise for its styling, the Fit for its interior space and the Yaris for its overall package. The 2010 Fit is only available in a hatchback whereas the Versa and Yaris are available in hatchback and sedan body styles. Historically, all three models will have higher-than-average reliability.

Edmunds.com says that "The Honda Fit is a triumph of creativity, proof that good ideas don't have to be expensive. It seats four comfortably (five in a pinch), offers great fuel economy (above 33 mpg), and is as easy to live with as your best friend."

Motor Trend goes on to say "Like all Hondas, it comes better equipped than Heidi Klum, with ABS, six airbags, a 160-watt CD audio system, A/C, five cupholders, and power windows, mirrors, and door locks."

A Little More Room

If you are looking for something with a few more technical gizmos in addition to a roomier interior, give the 2010 Nissan Sentra a look. The Sentra now sports technological appointments previously found only in higher-priced models. Features like intelligent keyless entry, keyless ignition, Bluetooth , in-dash 6-CD changer with MP3 capability and satellite radio. Prices for the Sentra range from $15,000 for the base model to $21,000 to the souped-up 200-horsepower SE-R Spec V.

Car and Driver says "The SE-R Spec V edges the Honda Civic Si on turn-in, power, ride comfort, and overall livability. "

The 2010 Ford Focus continues to makes strides in this category, with a PZEV-trimmed version that averages 37 MPG highway, as do stalwart models like the Toyota Corolla with 41 MPG, the refined and fun-to-drive (not to mention aftermarket-parts-friendly) 2010 Honda Civic. And if you demand passing lane performance, the torquey 2010 Volkswagen Jetta TDI (diesel) is your ticket to merge comfortably, all while still offering fuel-sipping economy.

For More Performance

If it's flat-out performance you are looking for, you have a plethora of options in the Compact Car class, including the quick and nimble Mitsubishi Lancer, Subaru WRX, and the fifth generation 2010 Volkswagen Jetta Mk V (pronounced Mark Five). Another contender, the redesigned 2010 Mazdaspeed3, brings 263 horsepower to the party in a utilitarian package that boasts a snowboard-friendly cabin featuring fold down seats, which boosts interior room. And then there's the creme-de-la creme: the 2010 Mitsubishi Lancer Evolution X.

A refreshingly new angle on sport compacts comes from Volvo in the form of the Volvo C30. Featuring a stout 2.5L turbocharged & intercooled inline-5 synonymous with the Swedish manufacturer, the C30 takes the Mazdaspeed3 a step further in terms of utility by offering a roomier cabin (notably for rear seat occupants).

Customizable Compacts

Though the iconic shape of the MINI cars remains the same, MINI will launch an eagerly awaited revamp of its current model lineup, consisting of a larger and more powerful MINI Cooper and MINI Cooper S (in both hatchback and convertible trim). The turbocharged inline-4 engine of the 2010 MINI Cooper S delivers zippy acceleration, going 0-60 in just 6.7 seconds and reaching top speeds of 140 MPH. Impressive handling is a result of a rigid unibody. With a bevy of color schemes and interiors amenities to choose from, you can customize your MINI to fit your individual persona. The best part is that it's all dealer installed for the perfect OEM-fit & finish, in addition to having the advantage of having the costs financed together with the base price of the vehicle.

Scion also offers a range of dealer-installed options for each of their three cars. The popular 2010 Scion tC remains unchanged for 2010, while both the Scion xB and xA receive minor updates with new color options and refreshed fascias. The xA has been replaced by the new xD. The xB gets a bumper in horsepower, boasting new accessory options to its already substantial list.

The 2010 xD continues to illustrate why Scion replaced the xA with itoffering more power, more room, and a more-appealing appearance. All for a bargain-basement price of around $15k.

Luxury Compacts

One new development in the Compact Car space is the arrival of luxury brands. Audi compressed its popular 2010 A4 into the 2010 A3, while the aforementioned 2010 Volvo C30 has also been released for the car buyer who wants a more upscale look and feel. For the buyer who wants even more performance and luxury, the 2010 BMW 128i and top-of-the-line 135i are available with fascia and trim updates for 2010.

These models can also be found in CarsDirect's Luxury Class, but we mention them here in the event that you are willing to shell out for expensive things in small packages.

Hybrid Compacts

This segment of vehicles was the first to sport hybrid technology, in which gasoline engines are paired with battery-powered motors to conserve gas and reduce emissions. With the discontinuation of the Honda Insight, the Toyota Prius becomes the most fuel-efficient car available, with an EPA estimated 51 miles per gallon in the city. Highway economy dips to 51mpg due to the inability of the brakes to partake in battery regeneration technology.

Four years after its redesign, the wildly popular Prius remains synonymous with the "green" car. Honda hopes to take away market share with the new 2010 Honda Insight, which can now run on only the electric motor at low speeds -- not possible with the previous generation.

Not only are hybrids excellent, fuel efficient vehicles, they are spacious and comfortable as well. The all-new 2010 Toyota Prius ranks first in Autos.com of overall comfort amongst popular compact cars and the Insight ranks a close 2nd.

Crossover Compacts

If you're in the market for a compact car, you may also want to consider more car-based crossover utility vehicles, or CUVs, which often deliver more durability and functionality.

Manufacturers are developing more and more of these "cute utes". Carryovers from 2009 include the Ford Escape, Honda CR-V, and Chevy Equinox.

Compact Car Safety Guide

Recent developments in automotive technology have made safety features as commonplace as the seatbelt. Such features include antilock brakes (ABS), side airbags, side curtain airbags and active head restraints. In some cases, advanced safety technology may only be available as costly options, if at all, so it's important to do your research if safety is important to you.