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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  • 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 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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  • What is a good credit score range?

    Q: What is a good credit score range?

    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 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.
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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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  • 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.
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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 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 a good credit score from Experian?

    Q: What is a good credit score from Experian?

    A: According to Experian, a good credit score is a score above 700. This suggests to a lender that there is a history of good credit management. Experian states that most credit scores are between 600 to 750.
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  • What is the difference between credit and debit?

    Q: What is the difference between credit and debit?

    A: The difference between credit and debit, relating to a bank card, is that credit allows a purchase without immediate funds based on the customer's trusted and proven ability to pay, while debit is an actual debt recorded in an account, as defined by Dictionary. In bookkeeping and accounting, a credit is a payment to an account, and a debit is a debt on an account, according to Bookkeeping Basics.
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  • How does a voluntary repo affect my credit?

    Q: How does a voluntary repo affect my credit?

    A: 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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  • 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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  • 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 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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  • 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 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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  • 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 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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  • What is a credit card's CVV code?

    Q: What is a credit card's CVV code?

    A: A CVV number stands for the card verification value on a debit or credit card. On Visa, Discover and MasterCard, the three-digit number is located on the back of the card. A four-digit number is found on the back of American Express credit or debit cards.
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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 choose a credit card for the first time?

    Q: How do you choose a credit card for the first time?

    A: When choosing a credit card for the first time, it is important to consider yearly or monthly fees, periodic and annual percentage interest rates, rewards programs, grace periods for payments, credit limits and extra fees. Various types of cards are available for those who qualify for them.
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