Credit & Lending

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.

See Full Answer
Filed Under:
  • How do you recover money owed?

    Q: How do you recover money owed?

    A: Recovering money owed can involve making a reminder phone call to the debtor or obtaining a court judgment against the debtor; this judgment grants permission to place a lien against property or garnish wages. Other ways to recover money include engaging the services of a collection agency, using a mediator, offering a settlement agreement and sending a registered letter to remind the debtor of the money owed, according to ProfitGuide.com.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • What is the mortgage underwriting process?

    Q: What is the mortgage underwriting process?

    A: The mortgage underwriting process is the final, extensive review phase of a home loan application before a lender approves and funds a mortgage. The homeowner typically has little to no direct contact with underwriters as their reviews are performed behind the scenes.
    See Full Answer
    Filed Under:
  • What tools can I use when dealing with home loans?

    Q: What tools can I use when dealing with home loans?

    A: Most of the tools available that aid in estimating, obtaining and managing a home loan are online calculators. These calculators rely on accurate user input of certain variables related to the mortgage, household income and home to be purchased. The tools calculate values that are useful or necessary to know for dealing with home loans. Information is critical for mortgage shoppers, the Federal Trade Commission states.
    See Full Answer
    Filed Under:
  • What does adverse credit mean?

    Q: What does adverse credit mean?

    A: According to FinAid, adverse credit is defined as having any debt paid over 90 days late, or having a Title IV debt within the past five years that has been subjected to default, foreclosure, bankruptcy discharge, repossession, tax lien, write-off or wage garnishment. While this designation does not otherwise involve the credit score, it does have an effect on a person's ability to get a loan or other financing.
    See Full Answer
    Filed Under:
  • What is a GMAC auto loan?

    Q: What is a GMAC auto loan?

    A: A GMAC auto loan is a consumer debt instrument that is issued to help finance the purchase of an automobile. Wikipedia explains that In 2010, GMAC changed its name to Ally Financial, but it continued to offer vehicle financing to qualified customers.
    See Full Answer
    Filed Under:
  • What is pre-approval?

    Q: What is pre-approval?

    A: Pre-approval means a lender is ready to make a customer a loan or extend some other type of credit based on information the customer provided or that the lender retrieved from a credit reporting agency. Pre-approval is not usually a guaranteed approval; instead, it is an initial creditworthiness evaluation.
    See Full Answer
    Filed Under:
  • How do you write a letter for explanation of a bankruptcy?

    Q: How do you write a letter for explanation of a bankruptcy?

    A: The purpose of a letter of explanation of a bankruptcy is to explain to a potential lender the extenuating circumstances for an unfavorable credit history. These can include loss of a job, medical problems, family member deaths and other circumstances that are unlikely to reoccur. A combination of these credible excuses sometimes help reduce the waiting period for obtaining a new mortgage after bankruptcy or foreclosure, according to Innman News.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • What is a credit card CVV number?

    Q: What is a credit card CVV number?

    A: A CVV number on a credit or debit card is a three or four-digit number printed on the back of the card used to verify that the user has physical possession of the card when making purchases, according to CVV Number. These numbers are also called card security codes.
    See Full Answer
    Filed Under:
  • What is a mortgage?

    Q: What is a mortgage?

    A: A mortgage is essentially a loan, usually given by a bank, to provide individuals and families with funding to secure housing. Mortgages fall into the larger category of financial loans, but are specifically designed for real estate. Mortgages contain several different components, which include collateral, principal, taxes and insurance.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under:
  • How do I get my name off of a joint mortgage?

    Q: How do I get my name off of a joint mortgage?

    A: A mortgage is a legally binding contract, so it is not possible to remove a name from the loan documents until the mortgage has been paid in full. According to the San Francisco Gate Home Guides, the mortgage loan can be refinanced in the name of the person who wishes to keep ownership of the home, or the property can be sold to settle the debt.
    See Full Answer
    Filed Under:
  • Is 644 a good credit score?

    Q: Is 644 a good credit score?

    A: According to Credit.org, a credit score of 644 is not considered a good credit score. A score that ranges from 620 to 680 is categorized as an acceptable credit score.
    See Full Answer
    Filed Under:
  • How old do you have to be to get a student loan?

    Q: How old do you have to be to get a student loan?

    A: Students can apply for student loans without their parents cosigning at any point they are ready to enter college even if they are under the age of 18. This is because the "defense of infancy" does not apply to federal student loans.
    See Full Answer
    Filed Under:
  • What is the average monthly car payment?

    Q: What is the average monthly car payment?

    A: According to Experian Automotive, the average monthly car payment for a new car in late 2013 was $471. For consumers purchasing a used vehicle, the average monthly car payment for the same period was $352.
    See Full Answer
    Filed Under:
  • How long does eviction stay on a credit report?

    Q: How long does eviction stay on a credit report?

    A: Financial Scams notes that an eviction can stay on a credit report for up to seven years. Typically the landlord does not send the information to the credit bureaus. When a landlord evicts a tenant through court action, the eviction appears on a credit report as a public record.
    See Full Answer
    Filed Under:
  • How do you calculate TTL for a car in Texas?

    Q: How do you calculate TTL for a car in Texas?

    A: Several online sales tax and fees calculators are available that help you estimate how much you pay when purchasing a new car. State-specific sales tax calculators allow you to determine the estimated TTL for a car in Texas.
    See Full Answer
    Filed Under:
  • 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.
    See Full Answer
    Filed Under: