Car Breakdown Insurance for When the Ice Cream is Melting

Car breakdown insurance is for those moments when the repair is such a challenge you aren’t even thinking straight. Imagine this: you’re on your way home after a long day of work, and you notice an odd tapping noise from the engine compartment. You have a “please pick up…” list from the family, so you stop at the store for interesting items such as hair ties, Barbie clothes, a cake mix and ice cream. That’s when you remember that your daughter is having a birthday party. Your mind is on sweet treats and matching disposable dinnerware as you climb into your vehicle and start down the road. The tapping noise becomes worse, then turns into a rumbling shudder. Just in time, you guide your vehicle to the shoulder as it gives one great thump and dies. The inane thought in your mind is, “Oh, no! The ice cream will melt!”

Insurance Agent to the Rescue

In such situations, it is wonderful to have someone you can call on for help. Most car breakdown coverage includes towing, and some policies even include loaner vehicles. A quick call to your car breakdown insurance agent soon has a towing truck dispatched to your location. Soon you, your vehicle and your grocery purchases are loaded up and headed toward help. Will it be in time to save the ice cream? Perhaps not, but it will get your vehicle off the road and to a certified mechanic who will be able to diagnose the problem. Breakdown coverage can help with major repairs, such as taking care of getting a new motor, without your whole budget going into meltdown.

Car Breakdown Insurance Coverage

Car breakdown insurance is not roadside service, although it often comes with a limited amount of roadside help. It is intended to help with large repairs that can cost almost as much as a good used car – those big ticket items such as a motor overhaul or replacement or rebuilding the transmission. The good news is that while it might not get you home before the ice cream melts, it does mean that if you spent your last dime on birthday party “fixin’s”, there will be a tow truck, and there will be repairs for your vehicle without having to mortgage the house or get one of those infamous payday loans.

Not as Expensive as You Might Think

Breakdown insurance is relatively inexpensive when compared to collision insurance or even liability. The big catch with it is that you need to take out the insurance before your warranty or extended warranty expires, and you do need to have a somewhat newer vehicle. Insurance companies like to place their bets on sure probabilities. They hope that you will pay premiums, not collect on your policy. They work with statistical probability which indicates about the time that a vehicle will start costing too much in upkeep to make it worthwhile to keep repairing it. Therefore, they do have an age and mileage cutoff for when your vehicle will qualify for breakdown insurance. So, it isn’t about the cost so much as it is about the timing.

Is Breakdown Insurance Worth the Premiums?

It certainly is worth paying the premiums to get breakdown insurance. Even with the restrictions and the deductibles, engine or transmission repairs can run into thousands rather than hundreds for repair costs. Having an insurance policy that will pick up most of the cost can be the difference between repairing and replacing a favorite car or truck. Your breakdown policy can be a true budget saver – it might even save the ice cream.

Lending Criteria for an Affordable Loan Rate: How to Get Approval for a Low Interest Rate Loan

Whilst everyone wants an affordable loan rate, not all will be eligible. This is because lenders use credit scoring to weed out applicants who are most likely to default on their credit agreement. Since the credit crisis, the banks have become increasingly concerned with protecting their balance sheets from bad debt. Whilst this position may or may not change in the future, it certainly won’t until unemployment starts to fall to a more realistic level.

Acceptance for An Affordable Loan Rate

A low interest rate loan will only be offered to customers with excellent credit, stable employment and a low income to debt ratio. Customers who do receive approval for payday loans will be further broken down into interest rate tiers to provide a more effective reflection of the risk of default. There is no longer a ‘one size fits all’ approach to lending so reliable payers will always enjoy the lowest interest rate loans.

Searching for a Cheap Bank Loan

It is important to perform plenty of research before applying for a low interest rate loan. There are a number of price comparison websites, such as, that can be used to trawl the market for the best deal. It is then possible to compare the key features and decide which low cost loan to apply for. A common mistake many customers make is applying for too many low APR loans, mortgages and credit cards in a short timeframe. Each credit search will be recorded for a period of 12 months.


Criteria for a Low Interest Rate Loan

  • Excellent credit. Creditors will only approve individuals who have a reliable repayment history. A customer with missed and late payments will be deemed too great a risk for an unsecured affordable loan. Subject to affordability and sufficient home equity, secured homeowner loans may be available at a higher rate of interest. A bad credit rating not only increases the cost of borrowing, but also the likelihood of creditor rejection.
  • Stable employment. The longer the applicant for a low APR loan has been in the same job, the greater the chance of acceptance. Anyone who is still in their probationary period or in temporary employment will be rejected for a low interest rate loan.
  • Low income to debt ratio. Creditors are looking for customers who don’t have a high amount of debt relative to their income. Whilst an income to debt ratio of under 36% is considered essential, it will need to be lower if the customer is to qualify for an affordable loan rate.

Getting the Cheapest Loan Rate

Whilst low interest rate loans will be available to individuals who can comply with the above criteria, this group is relatively few in number. It may be possible to get a cheap bank loan that is secured on a property at a better rate than would be available on an unsecured basis. Always be selective and perform plenty of research before applying for a low cost loan. Too many applications for loans and credit cards will reduce the likelihood of acceptance.

Bad Credit Auto Refinancing Loan for Lower Car Payments

A bad credit auto refinancing loan could substantially reduce the cost of buying a car. Once repayments have been made punctually for approximately two years, lower car payments can be achieved. This is the case even after filing for chapter 7 bankruptcy and other serious credit transgressions. Although bad credit history repair generally happens naturally over time, there are also ways to improve credit scores prior to refinancing auto loans. Customers may also wish to consider clearing some of the outstanding vehicle finance.

Why a Bad Credit Auto Refinancing Loan Helps to Save Money

A better credit score can be achieved, provided that current and future credit agreements are complied with. Refinancing a car loan after a couple of years can help to save money because lower auto refinancing rates will now be available. Although the rate of interest will be higher than for people with an excellent credit rating, there will be more favorable opportunities for those who intend to refinance a car. It is simply a matter of establishing a reliable repayment history and establishing a higher percentage of vehicle equity.

Increased Equity Leads to Improved Auto Refinancing Rates

Although cars values gradually depreciate over time, so does the amount of money owed to the vehicle finance company. Lower car payments can be achieved by building equity or offering the lender a higher auto deposit. Most bankruptcy car loans require a deposit of upwards of 30%, but auto refinancing rates will be lower to customers who wish to clear some of their car finance from personal savings. Better car financing deals are available because it is easier for the lender to recover their money.

How to Get a Better Credit Score Prior to Refinancing Auto Loans

Although poor credit repair is achieved gradually, there are steps that can be taken to improve credit. The following methods can be used to rebuild credit scores:

  • Request a free credit report from Experian, Equifax and TransUnion and check each report for errors. For example, if a debt shows as active and it was included in a bankruptcy agreement, it can be amended personally or with the assistance of a credit repair attorney.
  • Avoid maxing-out credit cards. Always use 10 to 30% of the available credit limit and settle this in-full at month end before applying for a bad credit auto refinancing loan.
  • Pay down debt as owing less money results in a better credit rating. The lower the amount of money owed, the less likely the customer is to default on the agreement.
  • If an unsecured card isn’t available, consider signing-up to a secured credit card. Lenders report to credit reference agencies so punctually repaying revolving debt is fundamental to achieving a good credit score rating.

Refinance a Car for Lower Car Payments

Once repayments have been made for a minimum of two years, bad credit auto refinancing helps to save money. It is essential that all payments are made punctually in order to get a better credit score. A higher credit rating coupled with greater vehicle equity leads to lower auto refinancing rates in the future.

Reverse Mortgages – Pros and Cons

A reverse mortgage is a loan that allows seniors and retirees to get money to pay the expenses that they have. Unlike the common types of mortgages, people are not required to pay them until they move out of the home. This also means that they are not required to pay mortgage bill every month. Reverse mortgages also allow people to convert part of their home equity directly into cash.

In order to be eligible, the home owner must be 62 years old or older. The home must be a single family home, or a home with one to four units, with at least one occupied by the home owner. There are currently many debates about whether reverse mortgages are beneficial or not. The following below shows the pros and cons and of reverse mortgages. Knowing the advantages and disadvantages of reverse mortgages will allow home owners to make a better choice when it comes to choosing them.

Pros of Reverse Mortgages

There are many advantages reverse mortgages that can benefit home owners. For example, the home owner does not have to make a monthly payment. This means that the homeowner may never have to worry about where to get the money pay the mortgage. This is very beneficial for people who have hard times to make ends meet. Home owners can also use the money for whatever they want, such as paying off expensive medical bills, buying food, or going in vacations.

As long as the homeowner continues to live in the property, he can receive additional income from the reverse mortgage. Even if the loan amounts surpass the value of the house, the home owner can still receive more money each month.

Cons of Reverse Mortgages

While reverse mortgages can indeed be helpful for seniors, there are some disadvantages they should be aware of. Reverse mortgages are very expensive loans, and applicants are required to pay costly origination fee. The closing costs are also expensive for reverse mortgages.

Reverse mortgages the eligibility of seniors for programs such as Medicaid. When all of the money from reverse loans are placed in a bank account at once, seniors can be come ineligible for these programs. If seniors receive more money than they are going to spend, they may become ineligible for Medicaid.