What is loan flipping?

Loan flipping occurs when a borrower has built up some equity in his or her house, and a ‘lender’ calls them up and offers them cash in exchange for the equity. Usually the ‘lender’ will continue to convince the borrower to cash out until all equity has been squeezed out of the house. While these […]

Credit Insurance

Credit insurance is an add-on you can get while receiving a loan that protects you should certain life events happen. Though it’s marketed as helping consumers, the history of credit insurance is a little spotty. In fact, the FTC had to come in recently and clarify when lending companies were breaking the law. What does […]

How to Avoid Predatory Lending

With many American’s credit scores suffering in this financial climate, predatory lending has begun to become more and more of a problem. Often with brick and mortar stores in low income neighborhoods, predatory lenders often wrangle in consumers who believe they cannot get a loan anywhere else because of their credit or income situation. Predatory […]

Different Ways to Rebuild Credit

With a sluggish economy and many high school and college graduates unable to find jobs, many Americans these days are suffering from poor credit. But a low credit score does not have to be taken for granted. Credit scores can change! Here are a few things you can do to start improving your credit score. […]

Different Types of Installment Loans

Installment loans are loans where the borrower repays the amount he or she receives in equal amounts throughout the life of the loan. Largely considered safer than payday loans, installment loans have recently grown in popularity among consumers because of their lower monthly payment options. What many people don’t realize is that installment loans have […]

Payday loans that have transitioned to installment loans

Research has shown that payday loans are often harmful to borrowers. Many are unable to pay the large lump sum due at the end, which often leads to repeat borrowing and a lifestyle of debt. Because of the potential for harm to consumers, many states have passed legislation requiring payday lenders to allow borrowers to […]

Understanding the APR (Annual Percentage Rate)

APR, or annual percentage rate, is the total amount that is charged to a borrower if that borrower does not pay the balance before interest builds. In essence, it’s the cost of taking out a loan, and therefore represents the total cost of a loan or line of credit. Oftentimes, APR doesn’t necessarily just represent […]

What happens during a credit check?

If you’re shopping around for credit cards, once you submit your application the lender is going to run a credit check on you. This means that they’ll be looking at both your credit report and your credit score. Your score will fall anywhere between 300 and 850 and is obtained from the information on your […]

Understand Your Fico Score

The purpose of your fico score is to illustrate to lenders your ability to pay upon your debts. In a sense, it’s your financial savviness. A predetermined algorithm uses five categories to reach your unique credit score. The categories are: 10% — Types of Credit Used 10% — New Credit 15% — Length of Credit […]

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