Credit & Lending

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Submitting to voluntary repossession can reduce the amount of money that is ultimately charged to you and might therefore make restoring your credit a little easier. A voluntary repossession is much like an involuntary repossession in that the unpaid balance of the debt is still charged to you along with any costs associated with repossessing the property but, according to the Federal Trade Commission, it might be cheaper.

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  • What is the difference between debt and equity?

    Q: What is the difference between debt and equity?

    A: Debt is loan financing used to start or grow a business. Equity financing is investment money received in exchange for shares of ownership in the business. The National Federation of Independent Business indicates that debt has to be repaid, while equity does not have to be repaid.
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  • 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.
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  • How long does it take for bad credit to go away?

    Q: How long does it take for bad credit to go away?

    A: Negative accounts on a credit report are usually removed after 7 years; however, negative accounts pertaining to bankruptcies generally remain on the credit report for 10 years. The time starts when the account is first listed as past due, according to Equifax.
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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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  • 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.
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  • What is the best credit score site?

    Q: What is the best credit score site?

    A: The best credit score website should provide its users with an easy way to find out their credit grade scores. As of 2014, any of the following three provide a great service: Equifax, Experian and FreeCreditReport.
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  • What happens if my house is repossessed?

    Q: What happens if my house is repossessed?

    A: If a house is repossessed by the mortgage company, it is usually sold through an auction or a real estate agent. Depending on both the mortgage company and the state, the former owner may have the opportunity to redeem the property. If the home sells for less value than the outstanding mortgage, the former owner may be sued by the lender for the difference or have the debt forgiven.
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  • What percentage of parents pay for college?

    Q: What percentage of parents pay for college?

    A: The percentage of parents who pay at least a portion of their children's college costs is between 22 and 35 percent. The rate varies depending on the components of cost and payment figured into the calculation.
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  • What is a renter credit check?

    Q: What is a renter credit check?

    A: A renter credit check is when a landlord checks a person's credit report and score to determine if he should rent a property to the potential tenant. A renter credit check is often the only way a landlord can sort reliable tenants from unreliable tenants.
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  • How can you improve a low credit score?

    Q: How can you improve a low credit score?

    A: Improve a low credit score by analyzing your credit report and disputing any errors, paying off debts, balancing existing cards and keeping up with current payments, states About.com. Avoid applying for new credit cards, cancelling old cards or reaching your credit limit.
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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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  • 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.
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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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  • 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 long before a check becomes void?

    Q: How long before a check becomes void?

    A: According to RealSimple, banks are not required to honor personal checks that are more than six months old. Checks older than six months are considered "stale dated," and it is up to the bank whether or not to honor them.
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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 the definition of annual premium?

    Q: What is the definition of annual premium?

    A: An annual premium is defined as the amount that someone is required to pay each year in order to keep his or her insurance policy active. If the insured person does not pay the premium amount by the policy's specified due date, the policy is cancelled. Some insurance companies offer a grace period after the due date, and if the premium is paid in this time frame, the policy is reinstated.
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  • What are the factors that go into your credit score calculation?

    Q: What are the factors that go into your credit score calculation?

    A: The factors that go into calculating a FICO credit score, the system used by most banks and other businesses that deal in credit, include payment history, amount of debt, length of credit history, types of credit and amount of inquiries. Special circumstances such as bankruptcy or a limited credit history also impact credit scores.
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  • What is a good credit score for a car loan?

    Q: What is a good credit score for a car loan?

    A: CarsDirect notes that an average, or good, credit score for a car loan is 680-739. An excellent credit score for a car loan is 740-850. A consumer whose credit score lands in the excellent range is eligible for the best interest rates available on a car loan.
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  • 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.
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