Credit & Lending

A:

Experian considers a credit score higher than 700 as indicative of good credit management. Typical credit scores range between 600 and 750, but the scale runs from 300 to 850.

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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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  • 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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  • How do you check the status of a credit card application?

    Q: How do you check the status of a credit card application?

    A: In some cases, credit card applications completed online result in an instant credit approval. Other times, approval requires manual review by a bank employee. The procedure for determining a credit card application status varies from bank to bank.
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  • 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.
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  • 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.
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  • 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.
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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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  • 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 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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  • 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.
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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 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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  • Can I give my house back to the bank?

    Q: Can I give my house back to the bank?

    A: According to the Federal Trade Commission, a person facing foreclosure can give his house back to the bank with a deed in lieu of foreclosure. In exchange for signing over the deed to the home, the bank forgives the debt owed on the home.
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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 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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  • 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.
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  • What are some different types of payment terms?

    Q: What are some different types of payment terms?

    A: Different types of payment terms include cash in advance, deferred payment and cash on delivery, according to BusinessDictionary.com. These are conditions that allow the buyer to make payments on a specified date.
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  • 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.
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  • What is the highest credit score you can get?

    Q: What is the highest credit score you can get?

    A: As of 2014, a perfect score on the FICO credit scoring model is 850. However, a perfect score is rare. A 2013 Bankrate article pointed out that a long-time mortgage banker had never seen a FICO score higher than 834.
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  • How much debt does the average American have?

    Q: How much debt does the average American have?

    A: On average, Americans have more than $15,000 in debt, and that is just credit cards according to Debt.org. That doesn't include mortgages or car loans, which significantly increase that number.
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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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