Q&A: What are the positive and negative sides of credit card’s usage?
Question by uk_emmigrant: What are the positive and negative sides of credit card’s usage?
Please,list me some of the positive and negative effects of using credit cards.
Thanks in advance !
Best answer:
Answer by Paul R
Negative:
People who lack self-discipline spend money they can’t pay back before the due date, and run up huge debts (kind of like Congress). Then, the atrocious interest rates make them very hard to pay off.
Positives:
1) You can establish good credit so that when you want to buy a car or house, you can get a loan on better terms.
2) You can buy stuff online and if someone manages to steal your info and run up a huge bill on your card, your loss is limited to $ 50 by law.
Edit 1:
Yes Rebecca, I DO know that, hence I don’t need to do any work or research on it to convince myself, but many people don’t. What is your point? Are you saying that 13% to 23% interest is not atrocious? Or, that the concept of usury is outdated?
The following sources are for you, to show that there are many people who do not know what they are getting into. Maybe they should, but the fact is, many don’t.
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How much do I need to make to get a bank loan?
Question by Ryan D: How much do I need to make to get a bank loan?
A few months ago I applied for a bank loan of $ 10,000 to pay off my credit cards. Unfortunetly I was unapproved and recieved a letter saying the reason was “Income insufficient for amount of credit requested.” So how much do I need to make to get a loan? My yearly income is $ 23,500 and my credit score is 670.
Best answer:
Answer by nique09
Your income for that much of a loan should be at least 45,000 to 60,000 yearly.
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Categories: Loan Questions Tags: bank, loan, much, Need
Can any one explain me , difference between fixed installment or reduced installments in personal loans.?
Question by Veera: Can any one explain me , difference between fixed installment or reduced installments in personal loans.?
Can any one explain me , difference between fixed installment or reduced installments in personal loans.
plz also tell me which bank is giving at modarate interest rate for personal loans for software engineers(bangalore).
Best answer:
Answer by mardix27
In simple layman’s terms:
Fixed installments are rates that are the same throughout the length of the loan. Therefore, your monthly payments would be the same throughout the life of the loan (unless you default or something).
Reduced installments may be temporary and/or varied. Your monthly payments may be lower than normal, but your payments may not be the same and may vary month by month. There is also a chance that as with those rates seen in ARM mortgages, your rates may almost skyrocket in some months.
As for as banks & loan rates, I am not too sure at which bank has the best rates. I personally belong to a Credit Union. Credit Unions gives good rates to its members. Check out www.http://www.lovemycreditunion.org to find a credit union that you could join.
Good luck
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Categories: Loan Questions Tags: between, Difference, explain, Fixed, Installment, Installments, loans, Personal, reduced
Q&A: How do you get into rental properties with no money down?
Question by Pale Face: How do you get into rental properties with no money down?
I’m trying to get into real estate as a landlord in the Houston area. I have no down payment, but excellent credit. Thanks in advance for your help.
Best answer:
Answer by Real Estate Guy
First, with investment loans you need 20% or more down.
However, look long and hard at getting involved in this!!!
Even if you could find 100% financing, your rental income will NOT cover the loan. This mean that you would be covering the difference between your rent coming in and your mortgage payment.
For example. Lets say that your rental income is $ 1,000 a month. However, your mortgage payment is $ 1,500 a month. You would need to come with an additional $ 500 a month just to break even.
A rule of thumb is this: your total monthy expenses on a rental, including the mortgage, taxes, insurance shouldn’t be more the 50% of the total rent coming in. If you can get $ 1,200 a month rent, your total mortgage (PITI) shouldn’t be more then $ 600 a month.
You will look at this an assume that the other 50% ($ 600/mn) is profit. WRONG. This will cover upkeep, renting expenses and other costs.
You can’t; you have to have money to put down.
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Categories: Loan Questions Tags: Down, into, money, properties, rental
What would happen if you didn’t pay back a bank loan?
Question by Moatilliatta: What would happen if you didn’t pay back a bank loan?
What if you took out a bank loan or some other loan, then left the country and left no money in your own bank accounts? Could legal action be taken or would they just mark it against your credit and keep accruing the debt?
Not asking if I could get this loan, but if I indeed already had and decided to do that, what kind of legal repercussions there may be.
Thanks
Best answer:
Answer by Huntsman
Will you ever need a loan in the new country? If so, they will ask for your old information and check your reports and see your history.
Do this only if you know you will never need credit again. A landlord in a new country will also check.
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Q&A: What are my chances of gettin a personal loan?
Question by Bobby: What are my chances of gettin a personal loan?
I am looking to get a personal loan to do some remodeling around the house. I am looking for $ 3500. I have a FICO of 715. I have 4 credit cards with perfect payment history with about 25% of the credit limit used. I have had 3 car loans with no missed payments as well as my student loans with no missed payments. Should I be worried I would be denied?
Best answer:
Answer by Merry
You’re more likely to get good rates (and good chances of getting one) through a credit union that you’re already doing business with. Some credit unions are better about this than others. So, if you’re not already a member, I’d keep this in mind when looking for one.
Some banks might be good. It’s always worth asking your bank what sort of options they have. I would bet that you can get a loan. Don’t expect the payback terms to be long – though one time my credit union ran a special of something like $ 3,000 for 30 months.
Good luck!!
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Categories: Loan Questions Tags: Chances, gettin, loan, Personal
Where can a person with bad credit get a relatively small loan?
Question by Neal R: Where can a person with bad credit get a relatively small loan?
I had to take out a couple of payday loans for an emergency and now they are drowning me. If I could get an installment loan for $ 1500 or so I could get back on track. Does anyone have any ideas?
Best answer:
Answer by SDD
You can try one of the peer-to-peer lending groups like Prosper. Without knowing anything else, I can’t say what the odds are, but it wouldn’t hurt to try.
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Categories: Loan Questions Tags: Credit, loan, person, relatively, Small
Q&A: How do I get out of my 20% APR? Where can I refinance my vehicle with poor credit?
Question by Kelle: How do I get out of my 20% APR? Where can I refinance my vehicle with poor credit?
My boyfriend was forced to use Drive Time because of his poor credit, he is now stuck in a 20% APR, paying $ 200.00 every 2 weeks. On a 2003, bottom of the line F150. We are desperately searching for what measures we can take to get him refinanced? His bank has already turned him down, and Drive Time will not work with him. Is a self reposession our only option?
Best answer:
Answer by erin o
If he still has poor credit then it’s doubtful that you’ll find anyone willing to give you a loan with a lower interest rate. You can sell the car and buy one that it much cheaper.
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Categories: Loan Questions Tags: Credit, poor, Refinance, vehicle
My installment loan for mobile home is in default, what do I have to do?
Question by nhop02: My installment loan for mobile home is in default, what do I have to do?
I got a letter in the mail saying that my installment loan for our mobile home is in default, what do I need to do? can i make up the payment? i am a month and half behind I guess. My husband didn’t make a payment.
That’s all I have to do is bring the loan payments current? and they will stop the default?
Best answer:
Answer by Squirt
Bring your payment current. Mortgage co. would rather work with you than spend time and money in a default situation. It will ruin your credit if you default. Maybe the loan payment wasn’t credited to the right acct. If your husband did pay, check your canceled checks and bring a copy to the co. Women need to know what goes on in their finances so maybe it’s a good idea for the 2 of you to pay bills together.
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Categories: Loan Questions Tags: default, home, Installment, loan, mobile
Can I repay all my subsidized loan at once?
Question by Sayyem: Can I repay all my subsidized loan at once?
Let’s say that the repayment period starts, but I have enough money to repay all my loan at once. If I follow the repayment plan, they would get more money out of me at the end because of interest. So, repaying all my loan at once would cost me less. But the question is would I be able to do that or not?
Best answer:
Answer by dawncs
You should do it if you have the cash or the savings. If you have to take another loan, it would be a bad idea if it was not a tax deduction such as a credit card or a personal loan. You could make extra payments to your student loan no matter what to decrease the amount of it if you had the cash or not. The only problem is that if you start saving for it while in college that it could be held against you the next year when you complete the FAFSA form. Your income and savings counts at a higher rate than your parents in the formula used to grant financial aid.
What do you think? Answer below!
Categories: Loan Questions Tags: loan, Once, repay, subsidized