Loan Questions

Why do people prefer to use credit cards instead of debit cards ?

Question by Nassim: Why do people prefer to use credit cards instead of debit cards ?
As far as I know, credit cards involve paying interest rates to the bank wich costs additional money on top of the purchases price. On the other hand debit cards are free when used in offline and online purchases, so does anybody know why people prefer to use credit cards instead of debit cards ?

Best answer:

Answer by sporregar

Debit cards aren’t necessarily free to use. My credit union allows 4 transactions per month free and then you have to pay a fee per transaction after that. Some stores also charge a fee to use a debit card.

If you pay your credit card balance in full each month you don’t pay interest so you’re coming out ahead there. Also, debit cards get deducted immediately and many people are walking a thin line with overdrafting and can’t afford the fees for that.

Many people like to have what they want when they want it and don’t mind paying the interest on the credit card because they can just pay the minimum due. They can keep up with the Joneses that way and not worry about actually paying off what they owe.

Add your own answer in the comments!

9 comments - What do you think?
Posted by getloans - January 30, 2013 at 1:01 pm

Categories: Loan Questions   Tags: , , , , ,

Do i have to repay my student loans from one school if I start attending another?

Question by united albaquirki: Do i have to repay my student loans from one school if I start attending another?
I am going to be graduating in Dec from a community college.. with my associates in pre nursing. i am going to be attending a 4 year school to get my bachelours in nursing… do i have to start repaying my loans from first school now?? or does it wait til i am graduated from the second school?

Best answer:

Answer by Bluekittie
If it is through FAFSA, you can just change the school when you file your on-line App.
If it or a portion was through the school you will get a statement for you to begin paying.

Know better? Leave your own answer in the comments!

Be the first to comment - What do you think?
Posted by getloans - January 26, 2013 at 1:15 pm

Categories: Loan Questions   Tags: , , , , , , ,

What types of credit cards pays the customer for using the card?

Question by kiwi753: What types of credit cards pays the customer for using the card?
Can you please include the types of cards that a 19- year- old can get. What I mean is, some credit cards are difficult to receive based on age etc. I have a credit card and I dont like that company and I am about to actually close the account, but I want another credit card..

Best answer:

Answer by Lee
Speaking from experience, there are quite a few of credit cards that offer money back… I’m just not exactly sure if companies have varying names for these types of credit cards. The card I have is from Citi Bank and the card is called “Citi Dividends.” The way mine works is that for each $ 100 that I charge I get $ 1 back. It isn’t much, but there is no annual fee for this card either. Also, after the “dividends” is up to $ 50, you can call or go on their website to request that a check be cut. So, they’ll cut you a check that you’ll receive within a week or 2 for exactly $ 50… No taxes taken out or anything. =) Hope that helps!

What do you think? Answer below!

3 comments - What do you think?
Posted by getloans - January 25, 2013 at 1:42 pm

Categories: Loan Questions   Tags: , , , , , ,

How does a credit card work, what is the best card available?

Question by dasnatch20: How does a credit card work, what is the best card available?
First time dealing with credit cards need as much info as possible.

Best answer:

Answer by seaportma
First, go on line. There are a lot of articles on getting into trouble with credit cards. Pay attention to them.

It sounds like you have no experience with credit cards, and are trying to build a credit history.

Apply for a card. Do not spend more than you do today; do not spend more than you can afford. Pay the entire credit statement as soon as you receive it. Since you are paying off the entire statement before the due date, you will not have to pay interest or late payment penalties. After a while, you will get other offers from other credit card carriers. If they have better terms (lower interest rate, better benefits) take a card with the new carrier, and cancel the original card.

Remember: if you do not pay off the entire statement, interest is charged on the unpaid portion. And this is where most newbies get into trouble.

Bottom line — Do not spend more than you can afford to pay off and do not get into debt.

Know better? Leave your own answer in the comments!

3 comments - What do you think?
Posted by getloans - January 24, 2013 at 1:56 pm

Categories: Loan Questions   Tags: , , , ,

Who is the best company to get a home loan through with bad credit?

Question by Jessie: Who is the best company to get a home loan through with bad credit?
I have pretty bad credit and I need a home loan, but I don’t want to get screwed.. does anyone know who I should go with?

Best answer:

Answer by Quicken Loans

I recommend looking around for “subprime” lenders. They are companies that specialize in working with clients with bad or less than good credit.

Are you sure your credit is bad? Make sure you know your credit score. If you truly do have bad credit, you may want to take some steps to improve your credit before you apply for a mortgage.

Also keep in mind that the rules and regulations for the subprime loan market have changed recently and it may be hard to qualify for a loan.

But anyway, do a search for subprime lenders and you’ll find a company that can help you. I work for Quicken Loans and you can contact us also if you like. We don’t do very many subprime loans, but you never know what you qualify for until you speak to a mortgage professional and get real and accurate advice and numbers.

Know better? Leave your own answer in the comments!

5 comments - What do you think?
Posted by getloans - January 19, 2013 at 1:09 pm

Categories: Loan Questions   Tags: , , , , ,

Where can I go online to compare rates for a personal loan?

Question by LineQ: Where can I go online to compare rates for a personal loan?
I want to borrow some extra money for school (not a school loan). Is there any where I can go to find the best interest rates for a personal loan like they do for car insurance?

Best answer:

Answer by Andrea

http://www.bankrate.com will show you rates in your area. You should know that you have to have excellent credit to get a personal loan and also have the means to repay it.

A credit union is your best bet for a good rate and a safe lender to deal with.

Give your answer to this question below!

1 comment - What do you think?
Posted by getloans - January 18, 2013 at 1:48 pm

Categories: Loan Questions   Tags: , , , ,

Should I take try and get a bank loan to pay off my student loan?

Question by steven: Should I take try and get a bank loan to pay off my student loan?
My student loan is variable interest and sits at 12.25% right now. I owe 11,100$ on it. Would it be better for me to try and get a bank loan to pay it off so that I’m dealing with the bank instead of the Sally Mae loan?

Best answer:

Answer by bluebell

It would be good for you to find a lower rate of interest.

Find out from banks and local credit unions what their rate of interest is for a personal loan. When you have found the best rate, ask there about the possibility of a loan. If that is credit union, you will need to join up as a member and start saving there, ideally every week. After about 10 weeks you may apply for a loan, and by then you will have created a “history” with them for reliability, and getting the loan is virtually assured. You need to repay it (ideally weekly) over 5 years. A loan this size would cost approx. $ 65 weekly in my credit union over 5 years, or $ 95 weekly over 3 years.

Add your own answer in the comments!

3 comments - What do you think?
Posted by getloans - January 12, 2013 at 1:15 pm

Categories: Loan Questions   Tags: , , , ,

Will the credit cards that charge no interest for transfers pay off installment notes too?

Question by mydoghatesme: Will the credit cards that charge no interest for transfers pay off installment notes too?
I have an installment loan that I pay. The payment is$ 239/mo. Is there a credit card or another loan I can get with no interest or low interest if I have great credit? My current rate is 10%.

Best answer:

Answer by bdancer222
If you find a credit card offering 0$ or low interest with no transfer fee, you could use it to pay off an installment loan. However, such credit card offers are pretty much non-existent now. If you have stellar credit, you may get an offer for a low interest rate for a limited period (a year or less), but there will probably be a transfer fee of about 3%.

You also have to be very careful with those special offers. Any little slip up will result in a rate increase.

What do you think? Answer below!

1 comment - What do you think?
Posted by getloans - January 11, 2013 at 1:06 pm

Categories: Loan Questions   Tags: , , , , , ,

Q&A: Where I can get a home loan with poor credit?

Question by Christina K: Where I can get a home loan with poor credit?
I have poor credit and I am on a time crunch. I have money for a down payment and the income for monthly payments, but my credit score is in the 500 range. The house that I am wanting is asking $ 95,000. Is it even remotely possible for me to get a loan?

Best answer:

Answer by bdancer222
Maybe, if your downpayment is big enough. Your score will really work against you and I assume you have at least some derogatory items in your credit file that cause that poor score. Those deroagtory items will also be a problem as most mortgage companies will insist those all be settled before you are approved.

You will also need at least a 2 year stable work history and sufficient income. Your monthly payment should be not more than 25% of your monthly income.

Know better? Leave your own answer in the comments!

Be the first to comment - What do you think?
Posted by getloans - January 10, 2013 at 1:31 pm

Categories: Loan Questions   Tags: , , ,

What kind of interest can you deduct off taxes??

Question by Melissa R: What kind of interest can you deduct off taxes??
We have our mortgage interest that can be deducted of course. But what other kind of interest payments can a person deduct?
We have a couple smaller installment loans. Two are for loans we got to pay off medical bills, and another is just an installment loan we took out to fix some things around the house.

Is the interest we paid against those loans, deductible on our taxes. Or just our mortgage interest (and student loan interest)??

Best answer:

Answer by Michael R

Usually only the interest on mortgage’s and students loans can be wrote off per say. However state income tax or sales tax is the next biggest thing you can write off (since your itemizing).

Then a gift to charity usually anything under 250 they don’t require proof. Say you donated some to your local police department or bought girl scout cookies. Who knows you might think of something you forgot.

Try medical expenses too. But usually it has to be a huge amount.

Anyway check out the links below one is to the Schedule A&B which is your itemized deducton form to see if you can write off anything else.

Know better? Leave your own answer in the comments!

4 comments - What do you think?
Posted by getloans - December 20, 2012 at 2:48 pm

Categories: Loan Questions   Tags: , , ,

« Previous PageNext Page »