This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Texans Won't Be Tapping Their Savings To Make Big Purchases In 2013

FARMERS BRANCH, Texas, March 20, 2013 /PRNewswire-USNewswire/ -- According to a survey from the Texas Credit Union League (League), 13.5 percent of Texans plan to purchase a car this year and 12.2 percent will buy a house. With the majority indicating they will not use savings to make their big purchases, the demand for affordable loans will likely rise.

While the current market offers favorable rates, MyFICO.com says the best options are usually only available to borrowers with "tier one" credit, which generally requires a credit score ranging from 760 to 850. Without research and planning, consumers outside of tier one may find themselves paying more than necessary for their loans.

Consumers planning to make a big purchase may want to ask:

  1. What is the average interest rate for auto loans in the U.S.?
  2. Is zero-percent financing always the best option?
  3. Will I pay more in financing costs for a used auto?
  4. How can I improve my credit score to take advantage of more favorable financing rates?

According to Courtney Moran, executive director of the Texas Credit Union Foundation, many consumers make the mistake of focusing solely on the interest rate of a loan.

"People need to consider the overall costs of the loan," she explains. "Many times there is great variance in the cost of ancillary products like gap insurance and extended warranties. And sometimes dealers will aggressively sell things that people don't necessarily need or want."

Moran also cautions homebuyers to ask questions regarding closing costs, discount points, and what prepaid items are required (such as prepaid insurance).

"Often individuals focus on the monthly payment. Even though a monthly payment may be affordable, it's important to consider overall costs. Fixating on monthly payments is another common mistake which results in paying much more over the life of the loan."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,796.14 -132.06 -0.74%
S&P 500 2,075.74 -13.72 -0.66%
NASDAQ 4,906.17 -33.1570 -0.67%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs