Are installment loans viewed differently from revolving loans?
Question by crazy: Are installment loans viewed differently from revolving loans?
When applying for a mortgage, do lenders view your installment loans (car payment) differently than your revolving loans (credit cards)? How does the credit bureau view it when determining your score?
Best answer:
Answer by Gina
Yes, installment loans are different from revolving loans. With an installment loan, there is a set date that the loan will be paid off and closed. A revolving loan you can pay down and charge back up forever.
Mortgage companies look first at your total debt. Then at the type of debt your have. If you have $ 50K in debt but only $ 2K is credit cards and the rest is vehicles, (cars, boats, RV) it’s not going to be viewed the same as someone with $ 50K in debt where $ 30K of it is unsecured revolving debt.
As for the credit bureau, they score based on total debt and payment history. If you have a lot of credit cards that are opened, but have no balance that can be a negative. Late payments are negatives. Lots of unsecured debt is usually a negative.
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Categories: Loan Questions Tags: differently, from, Installment, loans, revolving, viewed
Q&A: Does anyone know where to get an installment loan if you’re receiving Unemployment benefits?
Question by 2NewHips: Does anyone know where to get an installment loan if you’re receiving Unemployment benefits?
I am currently out of work and in desperate need of a loan. I’d like an installment loan that I can pay back over time because I’m receiving unemployment benefits and money is really tight.
Best answer:
Answer by Satisfied Mind
I’m not entirely sure you can get a loan when your not working, at least not from anywhere legitimate. I am sure, however, that it is not a good idea to put yourself in a deeper hole.
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Categories: Loan Questions Tags: anyone, benefits, Installment, Know, loan, receiving, Unemployment, you're
Is an unpaid payday loan in Texas considered a criminal case or a civil case?
Question by jnttweise: Is a unpaid payday loan in Texas considered a criminal case or a civil case?
If you took out a payday loan, Is it a civil case or a criminal case in the state of Texas? Can you do jail time?
Best answer:
Answer by Docker
No you cant go to jail, but it will screw up your credit and they can take you to court, which means additional fines and court cost for you.
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Categories: Loan Questions Tags: case, civil, considered, criminal, loan, Payday, Texas, unpaid
What Are Installment Loans?
Question by bdf s: What Are Installment Loans??
What are Installment Loans? How are they different from line of credit?
If I want to pay off my credit cards, should I take line of credit or Installment Loans?
Best answer:
Answer by wcqa626
An Installment Loan is where you get the money in a lump sum and start paying within 30 days of loan disbursement. A Line Of Credit is where you borrow funds as you need them, and only pay monthly payment on the amount you borrowed. To pay off you credit cards take out an installment loan, and start using credit responsibly.
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Categories: Loan Questions Tags: Installment, loans
How does the personal loan from banks such as Bank of America or Citibank work?
Question by BeBeAdY: How does the personal loan from banks such as Bank of America or Citibank work?
I just received an offer to apply for a personal loan for up to 35,000 with Bank of America and for up to 5,000 with citibank. I actually need no more than 7,500. The interest rate is between 9,97 and 27,88 based on credit worthiness. I will like to know how it works. I’m hesitating between that and applying for a credit card. My credit score is fair (650). A friend advised me to go for the loan because it’s a guaranteed fixed interest. But since I’ve never done it before I will appreciate some more advice. Thanks so much.
Best answer:
Answer by Mrs Apple
Loans and credit card are quite similar. It really depends on your credit history and your employment status. No company will give you money if you don’t have a job. Loans and credit card interest can be fixed or variable. This is something that you need to talk to the bank about. Don’t apply for a credit card if the interest is not fixed. The only difference is that a loan will require you to pay off at a certain amount of time. This is how the bank calculates your monthly payments. As for credit cards, you can pay off anytime you want but you’ll need to make minimum payments. Since you are only making minimum payments, you can end up never paying off this debt. However, you can negotiate on the interest rate in the future if your credit history improves.
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What to expect from pay day loan summons?
Question by Chocolate Drop: What to expect from pay day loan summons?
I received a summons for non payment of a pay day loan. What should I expect when appearing in court?
Best answer:
Answer by CatDad
Are you sure that this is a real summon? Is there a court case docket # and is there a firm date and time set? If it’s a real threat, then try to settle before it reaches court. If you can’t, show up in court and bring complete documentation of your income and living expenses to court. Pay stubs and copies of bills. You can use this to negotiate much more favorable repayment terms.
If you don’t show up, the other side will get a default judgment and they will get this on THEIR terms. They will tack on all sorts of add-on fees and the amount of the judgment could end up being two or three times the actual amount of the debt. Even worse, the court could authorize maximum wage garnishment if you don’t show up to make your case to the judge, which can be as high as 25% of your wages. Even if you are frightened….or you’re sick with a 102 degree fever, show up anyway. You are not being put on trial and there will be no jury. It will not be like the Judge Judy Show where the judge will be screaming at you and insulting you. It’s almost a step above going to traffic court…it will be over very fast.
On the day of the court, DO NOT sign any document from your creditor’s attorney that you do not understand. The other side’s attorney will probably shove a clipboard in your face with a document to sign. It will most likely be a “Consent Judgment” form disguised as a friendly payment plan. They’ll smile at your and say we can avoid court if you just agree to this payment plan. If you sign this and you’re just one day late on payment, then this agreement gives them direct power to freeze your checking account and garnish your wages. Tell them that you will not sign any document without having an attorney looking over it.
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Categories: Loan Questions Tags: expect, from, loan, summons
How much does an installment loan help yor credit score?
Question by The Duke: How much does an installment loan help yor credit score?
If a credit score is between 600-650, how much would an installment loan of $ 2,000 paid back in 12 months help that credit score?
Best answer:
Answer by tudorjason
It’s difficult to say. Regular people don’t perfectly know how credit scoring models work. However, if this is your first installment loan, it will have a more significant impact than if it’s, perhaps, your 15 installment loan.
If your credit history is fairly short and young, your score will probably raise about 50 points. If you have several installments, then maybe only 15 points.
A credit history takes several years to build. The longer an account stays active and in good standing, the better.
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Categories: Loan Questions Tags: Credit, Help, Installment, loan, much, Score
Q&A: How does a payday loan work and how could I get one if I have a crappy credit?
Question by Waylin Skinner: How does a payday loan work and how could I get one if I have a crappy credit?
How does a payday loan work and how could I get one if I have crappy credit?
Do I have to pay the whole amount of the loan back in one payday?
Best answer:
Answer by Jane Does
First off, most payday loans places don’t even run a credit check. If you go somewhere like Ace Cash Express (a national chain), what they will do is have you write out a check for the amount of the loan plus fees, post-dated for your next payday. Some places also allow you to use a debit card if you prefer. The requirements are that your next payday will cover the amount and you have a working bank account. At Ace, in particular, the fees are $ 20 per every $ 100 that you borrow. Or $ 100 for every $ 500. It’s very expensive. I cannot tell you which places, but there are some that offer you the ability to refinance your loan before your payment is due (don’t wait until your paycheck has hit your bank account to start this process or your money will be GONE). This makes you acquire extra interest charges, so be wary. But I know it is possible. I don’t do payday loans myself, but my mother in law practically lives off of them. She has found a company that allows her to “pay it out” by refinancing and taking a partial payment from a few different paychecks rather than taking it all out of one. But I guarantee you this is not an option everywhere, and you’d do best to ask MANY questions and read ALL fine print. Companies like this are in it to make a buck…so don’t expect any cashier to answer any questions you DIDN’T ask. They could care less, because as soon as your paycheck hits your bank, they will get their money.
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installment loans?
Question by Jerry W: installment loans?
I’m looking to try to get an installment loan from my local bank for credit purpose only. My credit is bad, how will I be determined if I get one with bad credit? Will they even give me one?
Best answer:
Answer by Jake
Banks basically decides on giving you a loan on these factors.
Affordability, stability, credit worthiness, collateral and net worth. If your credit is not very good bank may ask you for a collateral or you may be subject to risk based pricing. Worse the credit, higher the interest. You may also want to try scheduling 2 lenders who are more aggressive in trying to gain your business such as Credit Union or Wells Fargo.
Hope this helps.
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Categories: Loan Questions Tags: Installment, loans
Q&A: What hapeens when a payday advance loan goes unpaid ?
Question by chasead95: What hapeens when a payday advance loan goes unpaid ?
My sister-in-law has about 4 payday advance loans that she’s not paying. I’ve told her that she could go to jail for this. She says no she cant because it’s a loan, not a bad check. Does anyone know?
Best answer:
Answer by random_synchronicity
Normally when taking out a payday loan you have to write post-dated checks which they then will cash once the agreed upon day arrives. If there isn’t money to cover the checks when they attempt to cash them, then they will file hot check charges against her and she can go to jail especially if she knew the money wasn’t going to be available since that’s theft by deception.
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