Credit & Lending

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 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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  • What Is the Maximum Interest Rate Allowed by Law?

    Q: What Is the Maximum Interest Rate Allowed by Law?

    A: In the United States, the maximum interest rates financial institutions can charge are controlled by state law, and they vary from state to state. For example, Delaware sets the limit at 5 percent above the current federal discount rate while some other states have no limits at all.
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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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  • 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 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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  • 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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  • 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 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 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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  • 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 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 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 the Highest Credit Score You Can Get?

    Q: What Is the Highest Credit Score You Can Get?

    A: 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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  • 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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  • 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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  • 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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  • How Can You Raise Your Credit Score Fast?

    Q: How Can You Raise Your Credit Score Fast?

    A: According to Forbes, some ways to raise a credit score quickly include raising credit limits, keeping accounts open and paying bills on time. Increasing credit limits and keeping accounts open lower a consumer's balance-to-limit ratio, an important ratio when calculating credit scores, according to Experian. Paying bills on time is important because timely payments directly determine a third of the credit score.
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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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  • 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 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 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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