When dealing with a lot of debt, debt consolidation can be an excellent solution. It allows you to condense your various types of debt with a bigger loan, reducing the amount of interest and number of bills to be paid. However, in the current economic climate, finding lower interest rates can be a challenge, and the collateral some lenders require can make the loan not worth it. Continue reading
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0% APR Car Loans, Really?
The first important question to answer is: what is APR? Any kind of loan will include an interest rate. However, the interest rate does not include additional, hidden fees, insurance requirements, or other expenses. The combination of all of these is what makes up the APR, or annual percentage rate. In the Truth in Lending Act, the government not only simplified and made visible the other payments, it created a tool which allows consumers to compare prices and financing options more accurately and easily. “0% APR” says on the surface that the car loan you’re looking for doesn’t have any of these extra fees attached to it. Unfortunately, using low or 0% APR as an advertising strategy is very common, and if you don’t look at the fine print, you are likely to end up paying more than you bargained for. Continue reading
What is Overdraft Protection?
Overdrafting your debit card is basically the same thing as exceeding your monthly credit card allowance: you have withdrawn more money from your checking account than you have there. The difference? Where with a credit card the amount you spent simply gets rolled into your bill, if you withdraw more money than you have in your checking account—whether you go over by a couple cents or fifty dollars—you can get charged an overdraft fee of between $10 and $38. Continue reading
Building Wealth Through Saving
In the present economy, often the idea of being able to set aside money seems unrealistic, but in truth saving money can be simpler and less straining than it first appears. The best way to begin is to open a savings account in a bank of your choice. Different banks have varying policies and initial deposit requirements, so talk with bank representatives to be sure you understand all the specifics of your account. Keep in mind that the IRA—Individual Retirement Account—is a tax-free savings option. There are a number of different types of IRAs, and once again it is important to consult a bank representative about which choice is best for you. Continue reading
What are credit report disputes?
A dispute, in the context of credit reports, is essentially an attempt to correct credit report inaccuracies. Having an accurate credit report is important, because having poor credit—regardless of whether the information is correct or not—can negatively affect your ability to get a loan, get insurance buy a house, buy a car, or even get a job.1 It is estimated that as many as 75% of credit reports contain some incorrect information.2 Continue reading
What is a NextGen Score?
The NextGen score is a type of risk scoring model. A risk scoring model uses a complex equation to assess the risk of offering a loan to someone based on that person’s credit history. The number generated by this equation is a person’s credit score. The Fair Isaac Corporation (FICO) originally developed the risk scoring model used by TransUnion, Experian, and Equifax. Though they are not the only company to create such a model, theirs is one of those most used by lenders when evaluating people for loans. Continue reading
What is a Slow Pay?
A “slow pay” is exactly what its name suggests it is: a bill you paid too slowly, that is, a payment the creditor received later than the due date. A slow pay can happen with credit cards bills, mortgage payments, or even goods and services which require payments made over time (such as website hosting companies). If your bill is paid less than 30 days late, only the company you paid money to can view that information. Continue reading
Warning signs to avoid personal loans
A personal loan usually occurs between an individual and a bank, though people are increasingly seeking out person-to-person loans. Both parties agree to a set amount of money which the lender will give to the other party, as well as an interest and payment rate, which regulates how much and how often the money must then be repaid. Most people, of many different income ranges, take out secured loans for cars or homes.1 Continue reading
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