What is the difference between closed-end credit and a line of credit?

July 7, 2024 No Comments

A: Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. The difference between these two types of credit is mainly in the terms of the debt and the debt repayment. Closed-End Credit Closed-end

What is the difference between secured and unsecured debts?

July 7, 2024 No Comments

A: Loans and other financing methods available to consumers fall under two main categories: secured and unsecured debt. The difference between two is the presence or absence of collateral – that is, backing for the debt, something to be taken as security against non-repayment. This

What types of liens are seen as good and which are bad for my credit?

July 7, 2024 No Comments

A: Creditors that allow purchases to be made through financing often require property to be pledged against a credit account; this is known as collateral. Through the use of collateral, creditors establish a priority interest in the asset used to back the loan or line

What’s the difference between a consumer disclosure and a credit report?

July 7, 2024 No Comments

A: Consumer disclosures and consumer credit reports are both regulated by the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions amendments made to the FCRA. Consumer disclosures and credit reports are obtained from credit bureaus, and there is plenty of informational

What are some historical examples of debt securitization?

July 7, 2024 No Comments

A: The first debt securities were probably sovereign debt assets that were transferred from the British government to mercantilist corporations in the 18th century. Contemporary debt securities began in the secondary mortgage market in the 1970s. How Securitization Works Securitization is the fancy title for

What are the basic requirements to qualify for a payday loan?

July 7, 2024 No Comments

A: Payday loans, also known as cash advances, are short-term, low-balance, high-interest loans typically at usury rates that are so-named because of a tendency for the funds to be borrowed on a post-dated check that is cashed on the borrower’s upcoming payday. These loans are

Is it possible to get a free credit report from Equifax?

July 7, 2024 No Comments

A: It is possible to get a free credit report from Equifax, as well as the other two major credit bureaus, Experian and TransUnion. Equifax is a consumer credit reporting agency; its main purpose is to track and monitor the credit of American consumers. You

What are the benefits of an assumable mortgage?

July 7, 2024 No Comments

An assumable mortgage allows the purchaser of a property to assume the mortgage from the property’s seller. The benefits of assuming a mortgage almost always stem from the buyer’s ability to take on the assumed mortgage rate, which often is lower than prevailing market rates.

Is refinancing my mortgage a good idea?

July 7, 2024 No Comments

A: The typical rule of thumb is that if you can reduce your current interest rate by 0.75% to 1% or higher, then it might make sense to consider a refinancing move. The first step is to calculate your monthly savings should you do the

Is Your Credit Score Affected by the Number of Cards You Have?

July 7, 2024 No Comments

A: Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential credit worthiness. Generally speaking, the higher your credit score, the less of a credit risk borrowers will perceive you to be. If

All Rights Reserved