Alternative Student Loan Source Blog

If you need money and have poor credit, alternative financing may be just the thing you need. It depends on what you need the money for, of course, to determine what sort of alternative financing you should seek. If you need the money for a new car, for example, many car dealers have their own in-house financing available. Good credit helps, of course, but many dealers will allow you to buy a car from them with somewhat higher payments. If you really need a car, this may be your best financing option. Be sure you ask around and find the dealer who will give you the most car for the least payments, though. Don’t just settle on the first one you talk to!
If you need the money for buying a home, you can go to the home owner and try to arrange financing through him. Many people who want to sell their homes and haven’t had any serious offers will be willing to discuss alternative financing with you. Perhaps they will be willing to accept a small amount of money as a down payment and a higher interest rate. Maybe they’ll allow you to split your monthly payments with half going towards the down payment and half to the house payment. Beware of the type of alternative financing, especially where real estate is concerned, that is called “sub-prime”. It’s one of the reasons for the huge numbers of foreclosures and the disastrous effects on the economy these days. The payments start small but grow almost immediately until they double or triple and become impossible to pay.
Going to the source for your alternative financing can be very effective. The main things to remember are that you’ll still have to make payments, any contracts should be read very carefully before signing, and that as a buyer you’ll be responsible for property taxes and insurance. Be sure to consider these factors when making your alternative financing offer to the seller. Make the payments something you can live with, set an interest rate that is reasonable (bearing in mind that you can always refinance at a later date when you have sufficient equity). And never, ever agree to variable interest rates! Fixed rates only! Keep it as simple as possible, make sure it is within your means and alternative financing can put you into a home of your very own.