Loan Questions

Q&A: How would an auto loan work if you wanted to be financed through your bank and not the car dealer?

Question by SimplyHappy: How would an auto loan work if you wanted to be financed through your bank and not the car dealer?
Would I have to get the bank loan first then pay the dealer?

Best answer:

Answer by Jay P

You have the right to have a car financed through whatever bank you chose. It is always a good idea to find the lowest rate you can find and then go to the dealer. The dealer may be able to beat that rate but you never know. Should you go with another bank, they will either cut a check directly to the dealer or write you a check. Either way works fine.

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Posted by getloans - November 8, 2012 at 1:56 pm

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Can you get a payday advance from another state?

Question by duckgirl313: can you get a payday advance from another state?
i live live in michigan and was wondering if you could get a payday advance from ohio?

Best answer:

Answer by Shaka Labbits
Yes you can, of course there are couple of things to consider since different states have different regulation.

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Posted by getloans - October 31, 2012 at 1:53 pm

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Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?

Question by shooter 1: Is it better for your credit to have several credit cards with moderate limit, or one card with a high limit?
I have zero debt. I also have several credit cards. I am wondering how it will affect my credit to request the highest limit for each card, or if I should cancel all but 2 and have those with high spending limits. Along the same lines, how does “available” credit affect one’s credit score negatively or positively? If I get a $ 50,000 limit on a card (with 0 balance) but say, go to buy a car, will I be denied because I have too much credit out there?

Best answer:

Answer by talr
It’s better for your credit to have several cards with modern limit, as the FICO formula used by the credit bureaus consider the number of credit lines in good credit (by their type, e.g. revolving credit, installment loans etc). A lower number of credit lines will result in a lower score (since you’ll have more limited history).

Obviously that assume all of them are in good standing – if they’re not, the picture changes dramatically.

As to the total credit, what they look at is which percenage of your total credit are you using, and for that it’s irrelevant how it’s distributed between the credit lines.

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Posted by getloans - October 30, 2012 at 2:45 pm

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Q&A: I have bad credit and am looking for an installment loan to pay off payday loans?

Question by : I have bad credit and am looking for an installment loan to pay off payday loans?
I need Canadian companies only, preferably Ontario

Best answer:

Answer by My Take on It
You are not going to get an installment loan to pay off payday loans if you have bad credit.

In fact, you had to get payday loans because that was the only type of loan you could get due to your credit then..and now you cannot even pay the payday loans, and your credit is still bad. If you couldn’t get a *normal* loan back then, you sure won’t be getting one now.

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Posted by getloans - October 24, 2012 at 1:38 pm

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Q&A: What are my chances of getting a personal loan?

Question by axr: What are my chances of getting a personal loan?
Hi, I am a non-us resident with an H-1B, with no debt right now making 60K a year renting an apartment with a 93 toyota car. I am able to save $ 1500 a month. I would like to apply for a personal loan of about $ 25000 to repay a loan I took back in my country where is interest rate is extremely high and I am wondering what you guys think about my chances.
Question two would be is there any not-for-protfit agencies that can help me with choosing the best loan. PReferably it is not online.
Third question is can I get a car loan and then not buy a car and use it for other purposes?
Thanks

Best answer:

Answer by pepper
Well, I’ll start with the 3rd question. No, you cannot get a car loan and use it for other purposes.

If you are saving $ 1,500 per month and you have this money in a bank money market account – you should have no trouble securing a loan from the financial institution with which you do business if you are a stable employee with a verifiable income.

Do you own your home? How long have you been at your current residence? Have you even approached your bank? Are you contractually bound to your employer? Are you here with a work visa? What is your country? Can the bank verify your loan information?

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Posted by getloans - October 23, 2012 at 1:35 pm

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What credit cards can I apply for with no credit?

Question by naomishonta: What credit cards can I apply for with no credit?
I am a college student and I want a credit card or two to help start building my credit. What credit cards can I apply for with no credit history?

Best answer:

Answer by Huntsman

New federal regulations are making it extremely hard for anyone under 21 to get a credit card.
You must have employment for 1 full year (full time)
And, have sufficient salary to support a card.
A checking account and a savings

IF you get a card, make sure you pay in full each month.
Never dare carry balances which can only destroy credit.

Get your parents to co-sign on a card with you. Discover allows this.
But… only do this if they have amazing credit.
^ if they carry balances or have debt, do not co-mingle your finances with theirs

Also consider a secured card from your bank.
Again. No games of carrying balances that can easily destroy credit

Note: Plenty of people buy their first car without any credit.
They have proof of their income, employment, and savings accounts.
Along with a nice down payment.
Don’t struggle if you don’t have credit.
A bank will look at your overall financial health and your ability to pay back

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Posted by getloans - October 17, 2012 at 1:38 pm

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Installment loans help credit score?

Question by heather S: Installment loans help credit score?
I am trying to repair some of my credit and heard that taking out installment loans, which only be to pay for my credit debt and paying off the loan before it’s due will help out my credit score. has anyone ever heard this and does this really work, i need to build my score quickly within the next 6 months and pay off bad debt.

Best answer:

Answer by Smoovy Loco
There are two main types of credit: revolving accounts that allow you to build up and pay down balances, and installment loans that typically have fixed payments that require you to pay down your balance over time. Credit cards and lines of credit are examples of revolving accounts, while auto loans and mortgages are considered installment loans. The FICO formula has always rewarded folks who had and successfully managed both types, which is why getting an installment loan was often recommended as a way for people with troubled credit to rehabilitate their scores. The new scoring formula is even more sensitive to the mix of credit types people have and use. In the past, people were able to get and keep very high scores using only credit cards; it’s not clear if that will still be true under FICO 08.

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Posted by getloans - October 16, 2012 at 1:56 pm

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Is it possible to have a $50000 credit card cash advance limit?

Question by : Is it possible to have a 000 credit card cash advance limit?
I have been trying to learn about credit card cash advances, as I’m curious to learn how they work. How do credit card companies determine this limit? How high can this limit be? Thanks guys

Best answer:

Answer by Barnesy

Neither you or the lender would want a cash limit this high. If you need this level of cash then you would take out a personal loan. The interest rate would be less and the entire arrangement would be more manageable for all parties.

Typically, a credit card issuer does not like to see large cash-advances against a credit card. They often signify that a borrower is in some kind of financial stress.

The most sophisticated credit card issuers can see a cash-advance inside (or nearby) a casino and make rapid status changes on the account. e.g. a customer that has maxed out their daily card limit on debit card cash and then proceeds to run credit card cash-advances is probably not going to be the best credit risk.

This whole area is extremely complex. Banks hire large teams of statistical analysts to perfect lending models around cash advances. They then spend millions on systems that can act upon the models in real-time.

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Posted by getloans - October 8, 2012 at 1:53 pm

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What will happen to my credit cards if my home is foreclosed?

Question by triguyinla: What will happen to my credit cards if my home is foreclosed?
I have over $ 100,000 in credit on my 7 or 8 credit cards, all with a 0 balance. I am facing foreclosure in a few months. Will the banks cancel my credit cards once I get a foreclosure on my credit? Should I just max out all my credit cards with no intention to pay them?

Best answer:

Answer by Teresa H
Unless you are earning a very large income, you don’t need to have $ 100,000 in available credit. You should close all but 2 or 3 of the credit card accounts. Pick the ones with the most favorable terms, such as the longest grace period, the lowest interest rate, no annual fee, and with the maximum limit at about 15% of your income. I am assuming that since you have a 0 balance, you pay them off each month, which is a very sensible practice that you should continue. Showing poor judgement along with poor luck doesn’t help you in the long run. These actions will result in a credit score that won’t go as low as it could otherwise.

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Posted by getloans - October 5, 2012 at 1:50 pm

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How to prove paid personal loan on paper?

Question by Mark Edge: How to prove paid personal loan on paper?
Hello. I took out a personal loan with a friend and will be repaying it in full. How do I have prove that i paid it for the courts? A promisory note seems to be only for the issue of a loan, not the actual repayment is done.

Best answer:

Answer by Grandview Investigations

Just as you wrote a contract for the loan, you can also write a paper for the satisfaction of the loan or record payments as the case may be. If you are paying in full, just write something like this:

On (state date) the loan made on (state date loan was given) between (state his name) and (state your name) was paid back in full in the amount of (state amount paid)

Have both of you sign it and to be sure, have a witness also include their name on this same paper.

You should be fine and this will be satisfactory for any court if by chance you are sued for this amount.

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Posted by getloans - October 4, 2012 at 1:57 pm

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