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Seize the Day: 5 Cities That Offer Graduates Great Opportunities

July 20, 2016 by Average Joe Leave a Comment

The time after college graduation can be both exciting and a bit scary. After all, it’s your time to shine and seize the opportunities that come your way. While you may feel like renting your own apartment or house is the ticket to freedom and independence, living at home can help you save money on rent and perhaps be closer to your job.

But oftentimes this method of saving money can end up making people lazy, complacent and unambitious. It’s better to set the tone for the next couple years of your life and get out of your comfort zone. Sometimes that means moving to a new city in search of a new job, new friends and a new life. If you’ve decided it’s time to take the plunge into your adult life, it’s important to become educated about which cities provide the best opportunities for recent graduates.

Here are some quick stats on the five best cities for recent college grads.

Arlington, Virginia

Jobs in management, business, science or the arts: 67.1 percent
Percentage of population age 20-29: 21.4 percent
Percentage of population 25 and older with a bachelor’s degree or higher: 71.5 percent
Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 31.4 percent
Median earnings for residents 25 and older with a bachelor’s degree: $72,406

Madison, Wisconsin

Jobs in management, business, science or the arts: 52 percent
Percentage of population age 20-29: 24.7 percent
Percentage of population 25 and older with a bachelor’s degree or higher: 56.8 percent
Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 24.9 percent
Median earnings for residents 25 and older with a bachelor’s degree: $45,176

Washington, D.C.

Jobs in management, business, science or the arts: 60.5 percent
Percentage of population age 20-29: 20.7 percent
Percentage of population 25 and older with a bachelor’s degree or higher: 55 percent
Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 26.1 percent
Median earnings for residents 25 and older with a bachelor’s degree: $62,475

Boston

Jobs in management, business, science or the arts: 47.2 percent
Percentage of population age 20-29: 24.8 percent
Percentage of population 25 and older with a bachelor’s degree or higher: 46.5 percent
Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 29.1 percent
Median earnings for residents 25 and older with a bachelor’s degree: $55,810

Minneapolis

Jobs in management, business, science or the arts: 48.3 percent
Percentage of population age 20-29: 22 percent
Percentage of population 25 and older with a bachelor’s degree or higher: 48.1 percent
Rent as a percentage of income for residents 25 and older with a bachelor’s degree: 22.4 percent
Median earnings for residents 25 and older with a bachelor’s degree: $46,837

Keep in mind, it’s important to have a clean driving record for potential job applications. Don’t underestimate the possibility that certain jobs will require you to utilize your car during work hours. In general, it’s also important to stay safe on the road as you commute to and from work. Refresh your memory on the rules of the road.

If you find yourself grabbing a few drinks with friends after work or on the weekend, be smart about who drives. Use Uber or Lyft and eliminate the chances of getting a DUI. If you strive to maintain a clean driving record, you will — and it will save you a lot of unnecessary hassle in the future. Growing up means not only preparing for a big move, but also acting responsibly in all areas of your life.

Yes, Someone Is Taking Your Money

June 27, 2016 by Average Joe Leave a Comment

When we’re kids, the world of grown up finance seems distant and confusing. Bank accounts and mortgages are words we didn’t understand. Our only experience with money was the cash we carried to school, or the allowance our parents may have doled out to us every month or so. We might have lost a quarter while playing, or given up our lunch money to the bully at recess. Whatever it was, grown up money habits seemed safe and secure. We figured that once we got to be adults ourselves, we could lock away our savings in an impenetrable vault and live without worry that someone else might take it.

The thing is, though, people do take your money. Today more than ever, regular people are vulnerable to the predations of individuals and corporations who make it their business to steal or skim as many dollars as they can get access to. It’s not too different from the schoolyard bully situation, though today’s ripoff artists like to hide behind suits and expensive desks, or even cloak themselves in digital anonymity. For people looking to make their money go farther and last longer, it’s imperative to stop these characters before they start. It’s almost always easier to prevent theft than it is to recover funds. Here are some things to keep in mind.

PPI and Other Unwanted Subscriptions. PPI, or Payment Protection Insurance, is a fine financial product that was unwittingly foisted on many borrowers in England over the past couple of decades. It’s not that the insurance was bad. Most people just didn’t want it, and didn’t know that somewhere buried in their dozens of loan application documents was a contract they were signing for the coverage. Today there are many class action lawsuits in motion, and the PPI deadline is quickly approaching. There are examples of many similar ripoffs, but sometimes we’re our own worst enemies. Ever subscribed to entertainment or monthly shipments from Amazon or other providers? It’s easy to forget about these services and just let our funds slip away monthly.
Encryption and Anonymity. If I were to ask you which online passwords were the most important, which would you identify. No, not Facebook (though it’s not totally insignificant). No, not your HBO NOW account. Email and Banking? Yes! Totally! It’s getting easier than ever for hackers to crack weak passwords. When it comes to email, this is the gateway to all of the rest of the information available about you online. Most of us have our other passwords mentioned somewhere in our emails, so hackers often find financial passwords and move on from there. If they can get through a bank password without cracking your email, all the easier. Try Google 2-Step Authentication for your most important web accounts, and request that your institutions support 2-Step Authentication if they do not already.

It’s harder than ever to get through life without someone picking your pockets. In the digital world, it’s just like the old playground bully situation. Keep your stuff safe by paying attention and preparing for the worst. You might be able to keep your money to yourself.

The Advantage of Video Conferencing for IT Oriented Companies

May 10, 2016 by Average Joe Leave a Comment

Work for a company that doesn’t video conference? Here’s a way to save time and money….

Companies often fail to consider the potential applications of video conferencing aside from using it as a means of enabling multiple people from different regions to communicate with one another at the same time. There are actually new uses for the technology that have been developed which enables better service, internal IT assistance as well as new work-from-home opportunities for employees.

Use in Customer Support

Video has considerable potential in its use in customer support. CSRs (Customer Support Representatives) often encounter situations where they are having problems identifying an issue simply because the descriptions given by the client are very vague. To counteract such a situation, IT oriented companies such as Nvidia or AMD could utilize web chatting as a potential solution to the problem. All the enterprise would need to do is create an online support portal that enables consumers to contact a support representative. If the CSR is having issues with what the client is describing, a link can be sent that would create a video conference between the client and the CSR. This is possible so long as the client has a desktop, laptop or mobile phone that has a camera. This process could expedite a customer’s issues and lead to fewer instances where a client is dissatisfied with the customer service provided by a company.

Working From Home

Working from home is not a relatively new concept and has been around for quite some time. Its application though in mainstream corporate operations is somewhat doubtful. People work from home when they are sick or when the weather does not allow them to get out of their homes. Using it as an effective alternative to actually being in the premises of the company is at times not feasible since there are aspects to a job that require you to talk to one of your colleagues or bosses directly to get it done. This is one of the reasons why using visio conférence for IT companies through providers like Blue Jeans has become popular since it enables people to easily talk to their colleagues face-to-face while they work from home. While it is no replacement for actually being in the office, it does help in situations where a person is too sick to go to work or cannot reach the company due to snow, floods, or a wide assortment of weather conditions.

Use When Hiring New Personnel

Another potential way in which IT oriented organizations can use online discussions is for their various hiring practices. With IT departments often being located in different regions due to better tax deductions and hiring incentives, organizations often find themselves in a situation where the employees they want to hire are located in places where they do not have a recruitment center. One way of addressing this problem is to utilize web chats to have online interviews with their desired candidates. The advantage of this method is that this allows them reach talented individuals that they otherwise would not have been able to bring to the recruitment table. Not only that, it also allows HR departments to schedule interviews in such a way that it is convenient for all the parties involved.

Enabling Better Inter-Departmental Collaboration

The most obvious application of online discussions is helping companies develop better inter-departmental communication and collaborations. People like talking to one another face-to-face and this is an aspect that emails and phone calls cannot replace. We all like seeing reactions, facial expressions and the various subtleties of a person’s body language. It is what we have grown used to and expect when it comes to talking to other people. By using this technology, people become more at ease when it comes to talking to one another and this makes the process of communication and collaboration easier in the long run.

Increasing Responsiveness to Operational Issues within the Company

The last potential application of this technology is its use in improving an IT department’s response to software or hardware issues within the enterprise. Many businesses provide smartphones to their employees as both an incentive as well as a means of enabling the company to contact them through installed applications. One of the possible uses of these devices is to install an alert application that allows an employee to connect to someone within the IT department via a video call. Through this application, the employee in question can show the IT department what sort of issue they are having and get an immediate response regarding a potential solution that can be applied by the employee. This saves both parties a considerable amount of time and effort when it comes to resolving minor IT related concerns that can be fixed with a few instructions.

All in all, the use of video conferencing in IT-oriented companies holds a lot of promise given its versatility and potential applications.

Five Ways to Save on Your Business Insurance

March 25, 2016 by Average Joe 2 Comments

Business insurance can get expensive. In 2014, the average cost of a small business insurance policy was $725.33 across all industries, business sizes and policies, according to Insureon. This cost rose with the number of policies purchased. Businesses buying two policies paid an average of $1,405.86; those purchasing three paid $2,424.53; and those buying four spent $3,817.68.

Type of policy also affected cost, with general liability insurance averaging $425 and employment practices liability insurance averaging $1,585. Your industry may also affect your costs, with general liability insurance for a consulting company rising to $3,000 a year, while a landscaper might pay $15,000, says Trusted Choice.

All these costs add up, but here are a few strategies to help lower your rates.

Compare Prices

The most basic step to take is to compare rates from different providers. You’re probably familiar with Progressive’s commercials about comparing quotes on car insurance, but the company also offers quotes on business insurance policies including general liability insurance, commercial auto insurance, property insurance, workers’ compensation insurance, professional liability insurance and special policies designed for contractors.

Other business insurance sites to investigate are InsWeb and NetQuote.

Buy a Bundled Package

If your business needs multiple policy coverage, another way to save is by buying a bundled package, which can be cheaper than buying individual policies. A popular package for small businesses is a Businessowners Policy (BOP). As Forbes explains, a BOP typically combines general liability and property insurance with policies such as business interruption insurance, vehicle coverage and crime insurance.

BOPs do not typically include certain types of policies such as professional liability insurance, workers’ compensation or disability insurance. However, you may be able to negotiate a customized BOP that includes some of these policies added on. Some commercial insurance providers may bundle in your home and car insurance.

Choose a Higher Deductible

HomeInsurance.com editor Arthur Murray suggests lowering your business insurance costs by increasing your deductible, the amount of money you have to pay before your insurance policy pays their portion. Choosing a higher deductible reduces the amount of money your insurance company pays in the event of a claim, so if you’re willing to pay a higher deductible, insurance providers are willing to lower your premium.

Of course, this will make you liable for paying your deductible should you need to file a claim. Choosing a higher deductible will also discourage you from filing small claims, potentially making you eligible for a discount if you remain claims-free for a long period. Some providers may also offer a discount if you pay your premium in a lump sum.

Reduce Your Risk

Insurance companies are willing to offer discounts to clients who present less risk. You can lower your risk by taking proactive loss prevention steps.

For instance, implementing a theft prevention plan by taking steps such as installing IP cameras for surveillance can help persuade your insurer to offer a lower rate on crime insurance.

Starting a workplace safety program and making disaster preparation plans are other examples of steps to take to reduce your risk in the eyes of your insurance provider.

Work with Your Agent

Consult your insurance agent for insight into the best ways to bundle your insurance and which prevention steps to take. You should also keep your agent updated about any major changes in your business that may affect your insurance needs. Allstate recommends reviewing your insurance coverage with your agent once a year.

What the recent stock market turmoil could mean for your finances?

February 24, 2016 by Average Joe Leave a Comment

What Could Happen To Your Finances?

The financial markets are highly unpredictable at the moment. It seems that every day there is a news story about another crash just around the corner. It can be scary for those who have their money tied up in the stock markets. Even those who do not have a lot of money in the markets may be worried, as the impact of changing stock market conditions can have an effect on their financial health as well.

It is always a possibility that the markets could take a sudden downturn and cause real problems. There is little that any one investor can do to stop the forces of the market. The markets simply react how they are going to react, and the rest of us have to do our best to ride the waves.

Current issues facing the market include issues in China as well as concerns about the Federal Reserve and what it will do with interest rates. The Federal Reserve raised interest rates a quarter of a percent at the very end of 2015. It was the bare minimum that they could raise them, and the first time that they had raised rates in nearly a decade. However, this did not stop the markets from reacting in a big way.

Many fear that the Federal Reserve raising interest rates could lead to a lot of devastating outcomes for the economy. They worry about a global economic slowdown, and about inflation taking off. However, as Reuters reports, there is probably little to be too concerned about in the immediate future.

There is every chance that the interest rate issue will be a non-factor for most. However, those looking into getting a personal loan of some kind may want to take note of these changes and how they could play a role in their life. Consider looking at a personal loan calculator for more information about what the interest rates could mean for how much you can borrow and what amount you will have to pay back.

The best thing that anyone can do when faced with stock market volatility is to wait things out and continue to invest in the markets the same as before. Most of the time volatile moves in one direction or the other are temporary and something that can be easy to overreact to if given the opportunity. All people should try the best that they can to ignore such movements and carry on as planned into the future.

Theories of Fundamental Analysis

February 23, 2016 by Average Joe Leave a Comment

Forex traders utilize fundamental analysis to make better decisions when trading. An extremely valuable tool that forex traders use consistently to better their positions within the trading world is reviewing economic indicators and announcements. The forex trader can utilize a financial calendar to keep track of these indicators and when they are to take place. Presently, there are numerous economic indicators which the forex trader should keep a close eye on to help them better position themselves in a tough trading market. These calendars will provide you with the data point you use to better determine the future direction of the forex market.

Again, there are numerous economic indicators which the forex trader can take advantage of to better position themselves within the markets. Some of these economic indicators consist of The Consumer Price Index (CPI), Producer Price Index (PPI), Purchasing Managers Index (PMI), Non-Farm Payroll, Industrial Production Index (IPI), Retail Sales Report, Gross Domestic Product (GDP) etc.

The Consumer Price Index can be considered one of the most important economic indicators looked at/reviewed by forex traders. The Consumer Price Index is the benchmark for inflation for the United States economy. The Consumer Price Index ascertains the change in the price of a basket of goods and services. Examples of items within the Consumer Price Index would be Other Goods and Services (tobacco, haircuts etc.), Medical Care (medical supplies, doctor’s services etc.), Housing (fuel oil, bedroom furniture etc.) & Food and Beverages (wine, milk, breakfast cereal etc.).

The Producer Price Index or PPI is an additional indicator that measures inflation within the United States. In a nutshell The Producer Price Index is a gauge of wholesale prices at producer level. Items included in the PPI would be items such as consumer goods and capital equipment. The major difference between the PPI and CPI is that the PPI does not include services within its calculation. In addition, the Producer Price Index is reported each month.

The Purchasing Managers Index is another regularly utilized economic indicator used by forex traders. The PMI gauges and is a barometer of business activity within the United States. The market indicator reviews both the manufacturing as well as the services sectors. The Purchasing Managers Index is a survey which queries those respondents about their perception of business variables and if they believe the variables will change from the previous month.

The Non-Farm Payrolls is a key indicator which captures the payroll data for a majority of the United States. The Non-Farm Payrolls does not include non-profit employees, workers within private households, government employees and farm employees. This indicator is also released on a monthly basis and is also a strong indicator of the health of the United States Economy.

Similar to the Consumer Price Index, the Gross Domestic Product is the most important of the economic indicators tracked by forex traders. The Gross Domestic Product includes the total dollar value of goods as well as services produced over a finite time frame. The Gross Domestic Product represents everything produced by individuals and businesses along with salaries of workers. The GDP is scheduled and broadcasted each business quarter by the Department of Commerce.

In closing, fundamental analysis should be utilized by every forex trader and have economic indicators scheduled like clockwork on their financial calendars. Fundamental analysis can help traders make better decisions when it comes to making financial decisions related to forex trades. Fundamental analysis incorporates new information to determine the future direction of a currency pair and provides you with the tool you might need to trade the forex market.

Strategies for Handling Unexpected Expenses

February 22, 2016 by Average Joe Leave a Comment

Only 38 percent of Americans have enough money saved up to cover an unexpected expense such as a $1,000 emergency room visit or a $500 car repair, Bankrate found. Twenty-six percent of respondents said they would cover expenses by reducing spending on other things, 16 percent would borrow from family and friends, and 12 percent would use credit cards. What would you do if you had to pay for a sudden bill? Here are a few strategies to help you prepare for the unexpected.

Build an Emergency Fund

Personal finance author Dave Ramsey recommends saving up a $1,000 emergency fund before pursuing any other financial goals. The purpose of this is to cover unexpected immediate expenses, such as fixing a plumbing emergency or buying new car tires so you can get to work. Store this money in a separate checking account so you’re less tempted to spend it.

After meeting this initial goal and paying off non-mortgage debt, Ramsey recommends saving up enough to cover three to six months of living expenses, in case you lose your job or face a similar situation. In today’s tough economy, saving enough for nine or even twelve months isn’t a bad idea.

Start Budgeting

In order to save up an emergency fund, it will help to create a budget. Two out of three Americans don’t prepare a detailed budget each month, according to a Gallup poll. If you’re new to budgeting, a simple guideline experts recommend is the 50/20/30 rule.

The 50/20/30 rule means that you put 50 percent of your monthly income towards essential expenses such as rent, 20 percent towards financial goals such as building savings and repaying debt, and 30 percent towards discretionary spending on non-essentials such as clothes or entertainment.

Buy Insurance

Having adequate insurance is another preventive measure that can keep you out of financial emergencies. The NEA recommends that in order to have comprehensive insurance against financial emergencies, you should consider a range of possible policies.

Health insurance is essential in the event that a medical emergency treated at somewhere like CSU urgent care hits you with a high hospital bill. Life insurance can protect your loved ones in the event of your death, and some policies enable you to borrow or cash out funds. Disability insurance safeguards you in the event that you’re unable to work. Mortgage life insurance can help your loved ones cover your house payments in the event that something happens to you. Homeowners or renters insurance can protect you against emergencies such as fire or theft. Auto insurance can protect you from the cost of having to replace a vehicle or make repairs.

Finding Financing When You Aren’t Prepared

What if it’s too late to take the preventive measures above and you need to raise funds fast? In this case, you still have a few options. Using your credit card or borrowing from family or friends are the most common strategies. If you need immediate cash and you have a credit card but you can’t take a cash advance or would prefer to avoid the interest, you might offer to take a friend shopping on your credit card in exchange for them giving you the amount of cash you need.

If you’ve got something worth selling, you can use it to raise cash. Some good candidates include gold, silver, collectibles, extra clothes, and books.

You can also sell your labor. If you have freelancing skills in areas such as writing or graphic design, you might advertise them online. Sites such as TaskRabbit let you connect with consumers who need help with chores such as moving, home repair, cleaning, shopping, and event planning. You may also be able to convince people you know to give you money in exchange for promise with help on tasks. For instance, you might promise to babysit a friend’s kids.

Another option is crowdfunding. GoFundMe includes a section where you can raise funds for emergencies. Finally, Need Help Paying Bills lists a wide variety of charities and other resources that provide assistance with bills, mortgage, debt, and other financial burdens.

Articles that are worth the read:

4 Life Hacks to Maintain Your Social Life While on a Budget

February 1, 2016 by Average Joe Leave a Comment

One of the first things to go in serious debt elimination or cash saving budgets is entertainment. When you’re used to an active social life, this can become the most challenging part of the whole process. After all, just because you’re on a spending diet (or fast) doesn’t mean your friends are. They are used to you doing things with them—things that, more often than not, cost money—and they aren’t going to stop inviting you to fancy dinners just because you’ve announced your allegiance to Dave Ramsey.

So how do you maintain you’re social life while strapped for cash? Balancing a budget while keeping your social life alive is not only possible, it can be fun. Your budgeting days offer the opportunity to switch up the social routine by adding creative activities to the mix. Here are four hacks to stay social without spending an arm and a leg.

For the Drinkers

Host a beer tasting party. Not as stuffy or expensive as a wine tasting party, and slightly classier than bring-your-own-PBR Scrabble night, a DIY beer tasting party will thrill your social group. Invite beer-loving friends to bring a six-pack of a unique brew and hold blind tastings throughout the night with homemade score cards. Vote on first, second and third place.

For the educational-minded, have participants explain the history and science behind their beers. If you’re lucky, one of your friends will bring something fancy like Guinness’s new Nitro IPA—a smooth, creamy pale ale made with Guinness yeast—and teach you all about nitrogenated beers.

For the Foodies

Throw a recipe swap party. Improve your foodie game, save some cash and hang out with your friends in a fresh way all at the same time. It’s the same idea as a potluck except you choose a theme for the dishes and everyone walks away with a bunch of new recipes. Themes could be anything from appetizers to culturally inspired dishes. Along with their dish, each friend brings a stack of recipe cards to hand out. As the penny-pinching host, your goal is to keep your dish as simple as possible by making something from ingredients you already have, or mostly have, in the house.

For the Fashionistas

Organize a clothing trade. If fashion’s your jam, organize a clothing swap with your chic friends. Send out an Evite a month in advance, being sure to note a precise amount of items each person should bring to ensure quality, fair selections. Depending on how insane your friends are about free clothes, you might need to implement some additional rules such as a lottery system detailing the order in which people “shop” for clothes. This event is a two-birds-one-stone situation: an innovative way to spend time with friends and a fresh new wardrobe—for free.

For Anyone, Anytime:

Propose anything nature-oriented. If you’re worried about telling the whole world that you’re broke—don’t. Simply become the friend who has taken a sudden interest in Mother Nature. Most outdoor activities such as hiking, camping and biking are free or extremely affordable. Even getting together with a friend to walk the dogs through the park or a nature reserve can set the stage for quality time at the best price.

How People with Bad Credit Can Survive the Storm

January 12, 2016 by Average Joe Leave a Comment

The upcoming storm of rising interest rates and increasing lender cautiousness makes life difficult for people with already bad credit ratings. In the coming year, you will have to tighten up and you will have to make a new start to get your credit rating back on track. Forget about the mistakes of the past and read our tips for how people with bad credit can survive the storm.

Don’t Cancel Your Credit Cards

Do you have a spending bug you can’t seem to beat? The worst thing you can do is to cancel your credit cards. Unbelievably, this is a sign of panic and lenders will kick your credit score in the pants for doing it. The alternative is to leave these lines of credit open, but cut up the card. That way you’ve effectively closed your account without hurting your credit score.

Can You Kick a Debt Quick?

The reason why so many people have bad credit is spiraling debt. They get into a situation where they have so many bills coming in they can’t pay them all off and they barely remember who they owe and how much they have to pay.

Start the next year by hitting a debt right between the eyes. Get together a lump sum and pay off some debts in their entirety. This is a form of debt consolidation that will make it easier to rebuild your credit rating later on.

Talk to Your Lenders

It’s amazing how many borrowers won’t speak to the people who have leant them money. Nevertheless, this is a powerful tool in your resource. If you’re having problems paying your debts or rebuilding your credit rating, talk to these people. Tell them your difficulties.

They’ll often work out a different agreement to help you make your repayments. They don’t care about anything except getting their money back, so any chance to make a formal arrangement will be grasped with both hands.

Too Many Loans?

This is the first step. We’re not saying that you need to stop taking out all loans. You need some lines of credit if you’re going to rebuild your score. However, what people need to understand is that in the future lenders are going to be more stringent than ever before. Every rejected application leaves a stain on your credit record; therefore, you should only apply for loans you’re practically guaranteed to receive. A good choice might be a company like the scottishtrustdeed.co.uk where their focus is to help people find personal loans with bad credit. Interest rates will be higher but again your best bet is to not apply for loans.

Get a “Bad Credit” Credit Card

Someone with bad credit has the problem of not being able to easily get any new lines of credit. They need a higher rating. This is where “bad credit” credit cards come in. These are types of cards designed specifically for people with bad credit.

Here are some characteristics of these cards:

Higher interest rates.
Lower limits.
Lack of choice.

As you can see, the upcoming debt storm isn’t a reason to panic. Keep a cool head and you should have no problems getting out of that pit of bad credit.

How to Get a Vehicle Loan: Tips for the Credit-Challenged Car Buyer

December 30, 2015 by Average Joe 4 Comments

Buying a car is an exciting experience, one that everyone dreams about when they’re young. But when you’re an adult trying to buy a car with little to no credit, that experience is more like a nightmare. Although it may not seem like it is possible to get a good car loan with nonexistent credit, it is achievable if you ask the right questions and know where to look.

How long will the loan be active?

Before pursuing a loan, it is important to crunch some numbers and make some decisions. The first thing you should ask yourself is how much you can afford to pay each month and how long you are willing to pay it. You want to be sure the payments are reasonable and within your means. Don’t overestimate, but you want to pay as much as you can without setting yourself up to fail.

If you decide that a longer auto loan (more than six years) is best for you, know that your monthly payments will be lower, but you will end up paying more in interest over the life of the loan. Choosing a longer loan also means you run the risk of falling victim to depreciation. This means you could end up owing more on the car than it is worth, or the dreaded underwater scenario.

Do you have a co-signer?

If you alone do not look appealing on paper, adding a co-signer to the loan, like a spouse or parent, can make you look a lot more attractive to lenders. With a cosigner, the party lending the money has more options for recovery outside of the borrower. Essentially, if you have someone with good credit willing to vouch for you, you are more likely to drive away in a new or used car. However, you have now made that individual as equally responsible for the payments as you are.

Who will lend to you?

Don’t give up on a bank loan until you’ve actually tried. Know that you are more likely to be approved at an institution where you already have an account. If you are not approved the first time, it may be worth your time to wait and apply again a few months later, particularly if in those months you can demonstrate steady employment, change in income or steady credit payments.

If you have no luck at a corporate bank, try for pre-approval from a credit union. Credit unions are capable of making personalized decisions, especially if you bank there. A bonus is that credit unions tend to offer lower interest rates than banks, and they do not follow the bank’s tiered rate system, so your interest payments will be the same as any other credit union member’s, regardless of your credit score.

Another option is to go with a dealership that caters to customers with little to no credit, such as DriveTime. Its website states that it has approved over 2.5 million people and sold over 750,000 used vehicles to people with no or bad credit. It claims that it works with all credit types, so you are more likely to get approval.