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 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 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.
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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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  • 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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  • 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 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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  • 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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  • 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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  • 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.
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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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  • How Do You Build Business Credit?

    Q: How Do You Build Business Credit?

    A: Building business credit usually involves setting up a business, acquiring all necessary legal and tax documents, and maintaining a good credit history. You also need to keep accurate books of accounts.The lenders normally access this information when approving business credit.
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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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  • 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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  • 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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  • 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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  • 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 a Promissory Note?

    Q: What Is a Promissory Note?

    A: A promissory note is a written financial record of the details surrounding a loan between two parties. It encompasses every aspect of the financial agreement and serves as documentation and proof of the transaction.
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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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  • 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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  • 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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