What is the difference between a credit report and a credit score?

June 30, 2024 No Comments

A: Your credit report is almost like a report card for your debt history. It shows your personal information, including name and address. It also lists all your creditors with current balances, those with paid-off balances from the last 7-10 years, and those accounts that

What is the difference between a loan and a line of credit?

June 30, 2024 No Comments

A: Standard loans and lines of credit represent two different methods of borrowing money for both businesses and individuals. Typical loans might include mortgages, student loans, auto loans or personal loans; these are one-time, lump-sum extensions of credit that tend to be paid down through

What is the difference between a non-recourse loan and a recourse loan?

June 30, 2024 No Comments

A: The essential difference between a recourse and non-recourse loan has to do with which assets a lender can go after if a borrower fails to repay a loan. In both types of loans, the lender is allowed to take possession of any assets that

What is the difference between a possessory and a non-possessory lien?

June 30, 2024 No Comments

A: The primary difference between a possessory and a non-possessory lien is based on the entity which retains possession of the underlying collateral securing a loan during the period of repayment. A lien is a legal claim to an underlying asset that has been set

What is the difference between a prepaid credit card and a gift card?

June 30, 2024 No Comments

A: Gift cards are a popular way for a gift giver to ensure the intended receiver gets the desired gift. One no longer has to guess what the gift recipient likes; instead, recipients can purchase what they want using the cash value on the card.

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

June 30, 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?

June 30, 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?

June 30, 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?

June 30, 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

When is mortgage insurance tax deductible?

June 30, 2024 No Comments

A: For tax year 2016, the tax deduction for private mortgage insurance (PMI) is allowed for mortgages taken out or refinanced after Jan. 1, 2007. If certain requirements are met, mortgage insurance premiums can be deducted as an itemized deduction on your return. If your

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