Credit & Lending

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According to Investopedia, a signature loan is a personal loan that does not require collateral to secure, typically issued by a bank or other financial institution. The loan is issued based on the customer's signature on the loan papers and his word that the loan is to be repaid. Because the loan is unsecured, it is also sometimes called a character loan or good faith loan.

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  • How many times a day can a debt collector call?

    Q: How many times a day can a debt collector call?

    A: According to the Consumer Financial Protection Bureau (CFPB), federal law does not define a specific number of times a debt collector is permitted to call, but the amount must not be enough to qualify as harassment. This rule extends to family and friends of the debtor.
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  • Where can you find lists of free student scholarships?

    Q: Where can you find lists of free student scholarships?

    A: There are many online lists of free student scholarships, including ones maintained by the Consumer Fraud Reporting Bureau, the list of free minority scholarships at Black Excel and the lists hosted on Scholarship Experts. These sites maintain different lists of scholarships that are organized by their accessibility and by the ways in which they apply and do not apply to bodies of students, according to the websites themselves.
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  • How do you check your credit score?

    Q: How do you check your credit score?

    A: Because lenders assess your credit score to determine how much of a financial risk you are, it is vital to stay on top of your credit score and check your credit reports yearly. You simply need a computer with Internet access and a credit card to check your score. Websites such as Annual Credit Report allow you to review your credit report and purchase your credit score.
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  • What are the advantages of a bank loan?

    Q: What are the advantages of a bank loan?

    A: According to Chron, the major advantages of a bank loan are stability and autonomy if the borrower is a small business. This source explains that banks lend money without taking ownership in the enterprise for which the loan is being used, so the borrower retains total autonomy as long as the money is paid back in time.
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  • What is a pending charge?

    Q: What is a pending charge?

    A: A pending charge on a bank account, credit card or debit card is one that has not fully been applied to the account yet, according to Wells Fargo. A pending charge may also be referred to as a pending transaction.
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  • How should you write a commitment letter?

    Q: How should you write a commitment letter?

    A: A commitment letter is written in a clear, concise and diplomatic tone. All essential information must be reviewed prior to writing. The letter outlines all previously agreed terms between the parties involved.
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  • How does revolving credit work?

    Q: How does revolving credit work?

    A: Revolving credit is a line of credit where a borrower is not bound by a set number of payments to pay back the loan, but is instead free to use the funds whenever they are needed. For individuals, an example of revolving credit would be a credit card, where monthly payments are paid based on the amount of funds that have been used. For businesses, revolving credit is often used to cover fluctuating operational expenses.
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  • Where can I get help for finding free grants at no cost to me?

    Q: Where can I get help for finding free grants at no cost to me?

    A: According to USA.gov, grants that come at no cost to the applicant can be applied for and potentially received from the federal government, from states and from local communities. The federal government typically provides funds to local agencies that then distribute the grants for particular purposes.
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  • Can you put a down payment for a house on a credit card?

    Q: Can you put a down payment for a house on a credit card?

    A: BankRate states that most mortgage lenders require a cash down payment of 5 percent, 10 percent or 20 percent of the price of the home. The Federal Housing Administration approves loans of 3.5 percent. The use of a credit card to pay the down payment is not allowed.
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  • How do you fix your credit?

    Q: How do you fix your credit?

    A: While there are no quick fixes for improving a credit score, there are steps to take to ensure that credit improves over time. According to myFICO, the first step is to make sure that the credit report is accurate and contains no incorrect late charges, delinquent accounts or any other negative items. Having an inaccurate item removed is one way to improve credit quickly.
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  • How long does it take to recover from bankruptcy?

    Q: How long does it take to recover from bankruptcy?

    A: The exact amount of time it takes for someone to recover depends on the type of bankruptcy filed, according to Experian. A chapter 7 bankruptcy stays on one's credit report for 10 years, while a chapter 13 bankruptcy stays for seven years. As time goes on, the damage to someone's credit score from the bankruptcy lessens.
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  • How long does a creditor have to collect a debt?

    Q: How long does a creditor have to collect a debt?

    A: The average statute of limitations, or the number of years a debtor has to seek payment or sue, is three to six years, according to the Federal Trade Commission. The exact time frame varies by state and the type of debt under collection.
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  • How do credit card companies investigate fraud?

    Q: How do credit card companies investigate fraud?

    A: Credit card companies investigate fraud by verifying all information associated with the account, speaking to the business entity where the money was spent and working with law enforcement to find the credit card thief. This process can take a long period of time and may be drawn out for several months depending on the amount of money that was stolen and the circumstances surrounding the account before the credit card was stolen.
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  • Can I buy a money order with a credit card?

    Q: Can I buy a money order with a credit card?

    A: As a general rule, a money order cannot be purchased with a credit card, according to Fox Business News.
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  • What are prox terms?

    Q: What are prox terms?

    A: Prox is short for the Latin term "proximo mense" and means in the next month. Prox terms is an invoicing agreement that requires the receiver of a good or service to reimburse a business within a month.
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  • What are advantages and disadvantages of using credit?

    Q: What are advantages and disadvantages of using credit?

    A: The University of Nebraska-Lincoln explains that using credit is convenient and allows consumers to cover unexpected expenses; however, it can lead to overspending. In addition, consumers using credit typically spend more in fees and interest.
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  • What is "do it yourself credit repair"?

    Q: What is "do it yourself credit repair"?

    A: According to the Federal Trade Commission, most credit repair businesses are scams, and as such they advocate consumers take a "do-it-yourself" approach to credit repair by working with creditors to remove inaccurate information, and by setting up and sticking to a payment schedule to pay off debts that are legitimately owed. There are no easy fixes when it comes to repairing credit, and in particular, only time can remove accurate negative reports, but taking a personal, and active roll in the repair process will save consumers money and reduce frustrations in the long run.
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  • What is the maximum interest rate allowed by law?

    Q: What is the maximum interest rate allowed by law?

    A: In the United States, the maximum interest rates financial institutions can charge are controlled by state law, and they vary from state to state. For example, Delaware sets the limit at 5 percent above the current federal discount rate while some other states have no limits at all.
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  • How do you ask for financial help?

    Q: How do you ask for financial help?

    A: Asking friends or family for financial help requires being honest about one's financial situation, including the possibility of and timetable for paying money back. It also involves treating the request as a business transaction, keeping lines of communication open and showing gratitude for any loan or gift received.
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  • How do I give back a financed car?

    Q: How do I give back a financed car?

    A: According to Nolo, a legal advice website, you can simply call the dealer and return a financed car, but the lender is under no obligation to release you from the debt owed. The lender may sell the car, but you may still be found liable for the difference between the price the lender gets from reselling the car and the price you agreed to pay.
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  • How can you raise your credit score fast?

    Q: How can you raise your credit score fast?

    A: According to Forbes, some ways to raise a credit score quickly include raising credit limits, keeping accounts open and paying bills on time. Increasing credit limits and keeping accounts open lower a consumer's balance-to-limit ratio, an important ratio when calculating credit scores, according to Experian. Paying bills on time is important because timely payments directly determine a third of the credit score.
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