Quick Cash: The Story of the Loan Shark
Quick Cash: The Story of the Loan Shark
Loan sharks may conjure up an image of tough guys in fedoras looking to make a profit off of desperate people in dire financial straits, but in reality, lenders who advance small sums of cash at high interest rates until payday existed long before organized crime entered the trade. Today the businesses that fill this niche in the credit market prefer the name ‘payday lenders’ rather than loan sharks, but most large cities are still a hotbed of usurious lending, and the landscapes are dotted with their inviting and brightly colored storefronts. Despite their more respectable name, these predatory lenders have endured through regulation, prohibition, and the rise and fall of the mob since the late 1800s.
In this intriguing and accessible book, Mayer aptly assesses the consequences of high-interest lending—both for the people who borrow at such steep prices and for society as a whole. He argues that although some consumers gain from borrowing at high rates, payday lending in its modern form consistently traps many of the wage earners who pawn their postdated checks, leaving them worse off than they were before. Because payday lending regulations vary widely throughout the country, Mayer chose to focus his story on Chicago, a city that serves as a fine representative of the legacy of loan sharking. Quick Cash will engage policy analysts, economists, and regional historians, as wells as general readers interested in the fascinating story behind these unscrupulous lending operations that feed off America’s current tough economic times.
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Getting a mortgage when my co-signer owe taxes to the IRS?
Melly Asked: Getting a mortgage when my co-signer owe taxes to the IRS?
My husband and I are pre-approved for a mortgage with my parents co-signing. My father owes taxes to IRS around $50,000 and has done installments payment. Do we still qualify for a loan even if he doing a payment plan for his taxes?
Answers:
tro Answered:
is the loan being awarded based on yours and your parents credit? if so it would appear the $50000 tax debt would disqualify your parents for the loan
Judy Answered:
If you can’t qualify on your own without your parents as cosigners, you’ll need to find a different cosigner.
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Categories: Loan Questions Tags: IRS, loan, mortgage
PayDay Bank UK – Dealing with Debt Collectors
Debt calls and letters from debt collectors can be intimidating, but if you know your rights and deal with them correctly you can save yourself a lot of unnecessary stress.
If you are in the U.K. click this banner for a no risk loan application. Options for Canada and Australia are also available on this site.
In the U.S., click the banner below for an instant installment loan with 100 days to pay. Remember, that there is no risk in the loan application. Once you are approved for a loan, legitimate lenders will allow you to review all the terms before you accept the money. So apply and then decide.
Categories: Loan Videos Tags: Installment Loans, loan
High credit utilization affect on credit score?
Dae Asked: High credit utilization affect on credit score?
Hi, I was just wondering how my credit score will be affected by my high debt to credit ratio. Last time I checked my FICO I had a 725 (May 2011). I am trying to get a loan for a used car but am afraid of being denied.
It would probably help if I told you a little about my credit history. I had a one year installment loan from first quarter 2010 to 2011. I paid that off a month earlier than due.
In March of 2011 I got a credit card with a $4000 limit, and in May I got a Macys credit card with a $300 limit. These are all the loans/credit I have ever had, my average account history is 8 months. I maxxed the Macy’s card out because I only got it for the 30% savings (bad habit I know). The credit card I have never had a balance of over 10%.
For both cards I pay over triple+ of the minimum payment, so that I can get it over with sooner. I have never been late for any loan/credit payment.
Just recently I had to use up alot on my credit card. It now has a balance of $2900, and $75 for the Macy’s card.
I plan on paying $600 on the credit cards next due date, and paying off the Macy’s on its next due date as well.
After that, I will make a payment plan to where I can get the credit card balance and interest paid off in 10 months.
How badly will this affect my score and how long will it take to repair it. Will it ever get above the original score of 725?
The balance also shows up on my authorized card holders credit report, will this mess up her chances of getting a loan? She has no credit history at all.
And lastly, should I even bother with applying for a car loan?
Thanks in advance.
Answers:
Guess Who Answered:
Your credit scores are only part of the criteria lenders use to determine your credit worthiness.
Your income and other debts also play a part in the decision.
Paying a debt before it is due doesn’t help your credit scores. Your debt to available credit ratio might, however.
Opening too many new accounts or having too many inquiries hurt your scores.
Only time can increase your credit scores. Your credit scores are not based on how much you owe, but on how well you handle your finances.
When someone co-signs for credit for someone else, the co-signer guarantees that the bill will be paid of the borrower defaults. If this is a joint account, the both account holders are both responsible for 100% of the debt. The creditor can choose which one he wants to pursue if you default. So yes, your debt may prevent your co-signer/joint account holder from obtaining credit.
Hold off on the car loan for now.
Good luck.
BungalowMo Answered:
Closing your cards when you only have an 8 month credit history is a very very bad idea.
To learn more about how credit scoring works, this thread from the myFICO forums is the most informative & accurate information you’ll find in one place.
Not all links within will pertain to your situation, but many will.
Those folks got me from mid 500 FICO’s to mid 700’s today..They ROCK!!!
EL Answered:
Close any credit cards you do not use and never use more than 1/3 of the available balance AND pay more than the minimum payment. Before applying for a car loan, find out what you can afford to spend on a monthly payment including insurance and maintenance. Going in knowing what you can realistically afford will keep you from tanking your credit score because you got a loan you really can not afford to pay.
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Categories: Loan Questions Tags: get a loan, loan, loans
5 Simple Ways To Improve Credit Score – Mortgage Brokers Edmonton
Often times people think that their credit score is perfect, untarnished and in good standing. Well creditors can be unforgiving sometimes and for whatever reason you may have missed a payment which can in turn bruise your credit. Here are some ways that help you keep on top of your credit.
- Check your credit on regular basis. Your inquiry should not affect your credit score. By doing this you will be able keep a tab of your credit score and monitor any fraudulent activity such as identity theft.
- Get a credit card to establish or re-establish your credit. If you are applying for new credit card get one that will have a minimum limit of $2,000. If you are re-establishing credit then get a pre-paid credit card. This will show as revolving credit and allow you to improve your credit rating.
- Get a loan to improve your credit. For example a car loan which is considered as revolving credit shows to the lenders that you are capable of managing debt. These are considered to be installment loans.
- Pay Down credit cards as fast as you can. this will drastically improve your credit score in a shorter period of time.
- Credit correction. If you have had a collection, late payment or even bankruptcy; based on the infraction, they should fall off after a certain period of time.
At Western Direct Financial Mortgages we help you back to the road of recovery. Contact us for a free no obligation consultation.
Categories: Loan Videos Tags: loan, loans, Pay Down
How can “up” my credit score?
Amanda Asked: How can “up” my credit score?
I have several negative items that are showing on my credit until about 2014-2016, all of these negative items showed paid however it is still hurting my credit, I do have a few good standing items on my credit which I know are helping a little- my small limit credit card,a small loan installment I just paid off and my student loans which are paid on time every month, however these older negative items are still putting a heavy weight on my low credit score and I don’t know how to bring it up. I don’t want to take out more credit and it wouldn’t be easy anyway with a 590 credit score but seems like the few good standing accounts I have aren’t even making any impact on my credit. I have no car payment and no real “debt” I just make sure what little bills I do have are paid on time every month and pay more than the min. to try and help with my score. I would like to be able to buy a house in the next few years!! help!!
Answers:
steelerchick86 Answered:
Persistently write letters to the paid debtor and to the credit bureau (transunion, etc) asking them to please remove the items. Explain to them that people make mistakes and learn from them and that your debt is indeed paid in full. ask them if there is anything they can do to help you clear these items so you can purchase a home to better your life and the economy….sounds stupid right? I got 13 negative things removed from mine jumping my score from 595 to 672….once i did that i opened a few credit cards-charged minimal and then paid in full every month now my score is almost 760!!! Even if you don’t hear back keep writing them letters-they will get sick of hearing from you and delete it just so you stop. It took me almost 2 years to get everyone to cooperate but they all did.
Frank is Back Answered:
Opt out of pre-approved c/c offers from the opt out website (use google).
I heard it can raise your score 25 pts by opting out. Give it a try. I did.
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Categories: Loan Questions Tags: Amanda Asked, Answered Persistantly, Back Answered Opt, loan
Will installment loan mess up credit when already approved for car?
Sexy Redbone Asked: Will installment loan mess up credit when already approved for car?
Ok just trying to get some info. I have recently been approved for a suv i wanted and am putting money down on it. But because of this it has left me short a little. If i was to get an installment loan that says no credit checks which is my last and most dreaded option, would that mess up me finalizing my truck? Will the loan Company even check my credit again when i go in to finalize? Or is it best to wait till that’s all done before doing any of that?
Answers:
BungalowMo Answered:
Buying a new/used SUV, and already being broke & needing a loan for daily expenses is a really really bad sign of what is to come.
Buying a new/used SUV, and already being broke & needing a loan for daily expenses is a really really bad sign of what is to come.
I KNOW you want that vehicle, but at what cost? What do you have planned if something happens & you need some major repairs in 6 months?
I’m just trying to play devils advocate here for a minute.You honestly might want to consider a little cheaper vehicle, putting less down on it, and stashing the rest of that cash away for a rainy day.Because none of us knows when the storms are going to hit & it’s only wise to be prepared.
A payday type loan is trouble with a capital “T”!
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Categories: Loan Questions Tags: loan, Sexy Redbone Asked, SUV
When should I refinance my auto loan?
Mitch Asked: When should I refinance my auto loan?
I purchased a vehicle in December 2010 with very little credit history.Total purchase price was $14,900 with $1,900 down. I’m not sure what my actual FICO score was at the time but I had 0 installment credit history and only 2 credit cards that had been opened for about 2 years each. Plus, another 3 small student loans totaling $12k. Only one late payment on my credit history due to Microsoft renewing my Xbox live account without any notice. Needless to say, I didn’t get a very good interest rate (just under 12%) at the time of purchase. After 6 months of payments, the balance of the loan is about 11,500 now since I’ve been paying nearly double the minimum monthly payment of $297. I checked my credit score for the first time in over a year and according to Experian, it currently sits at 707.FYI – I have 6 hard inquiries on my credit over the last 2 years because I had my credit run 4 different times during the vehicle purchasing process which I know was a mistake. The Finance director at the dealership I purchased this vehicle through mentioned it’d be best to wait a year or a year in a half before I refinance. However, I think there’s obviously a conflict of interest there.
When is it best for me to refinance since I only have about 6 months of installment credit?
Answers:
Common Sense Answered:
Ummm, 12% isn’t that bad for “very little” credit. If you’re paying double your effective interest rate is much lower anyway. I wouldn’t bother with a refi.
Huntsman Answered:
With the way that auto loans have been a challenge to get in hand these days. The online places are fast and I have heard the are less paperwork.
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Categories: Loan Questions Tags: Huntsman Answered, loan, loans, Mitch Asked
Experts Discuss the Role of APR with Dr. Charles Richards
NILA (National Installment Lending Association) is a new association for an old industry. Installment Lenders were the original core of what became the American Financial Services Association (AFSA), which was formed in order to work with Arthur Ham and the Russell Sage Foundation on consumer credit reform a hundred years ago. Ham credited these lenders with playing a crucial part in getting the universal consumer credit law written in 1914 and passed in so many states. After AFSA expanded to include providers of other types of consumer credit, such as mortgages, vehicle finance and credit cards, installment lenders felt the need for a new association which would retain a more singular focus on traditional installment lending.
See another video and read more here: value and significance of the consumer installment loan industry.
Categories: Loan Videos Tags: APR, Installment Lenders, loan, loans
The Value and Significance of the Consumer Installment Loan Industry
NILA (National Installment Lending Association) is a new association for an old industry. Installment Lenders were the original core of what became the American Financial Services Association (AFSA), which was formed in order to work with Arthur Ham and the Russell Sage Foundation on consumer credit reform a hundred years ago. Ham credited these lenders with playing a crucial part in getting the universal consumer credit law written in 1914 and passed in so many states. After AFSA expanded to include providers of other types of consumer credit, such as mortgages, vehicle finance and credit cards, installment lenders felt the need for a new association which would retain a more singular focus on traditional installment lending.
INSTALLMENT LOANS THE SAFEST PRODUCT
There is general agreement that installment loans are the safest loan product for the consumer. Lenders test the ability to repay and loans are paid off in equal monthly installments of principal and interest. Borrowers therefore have a “roadmap out of debt.”
Equally important, loans are made from local bricks and mortar community offices, which are individually licensed and examined by state authorities. Loans are not sold off but are held and serviced in the local branches, giving both borrowers and regulators real people to talk to when they need to.
Rates are fixed and are the same for all borrowers; there are no prepayment penalties either and the product is as understandable and transparent as we can make it. Installment lenders do not require post-dated checks or access to a borrower’s bank accounts, unlike other kinds of lenders.
When installment loans were the only product available there was no problem with overlending and no problem with chronic indebtedness.
FINANCIAL CAPABILITY
Installment lenders report good and bad credit to the credit bureaus, thus enabling responsible borrowers to build up credit scores which can help them access other services.
Categories: Loan Videos Tags: Installment Lenders, loan, loans