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Can a creditor of an unsecured credit card debt seize a car that has equity in it to satisfy their debt?
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How the accounting entry should be made when the creditor convert the loan to equity?
Debit Loan and credit Capital Reserve
What amount of unsecured loan to be considered under quasi equity?
quasi equity
Is a Line of Credit a secured loan?
Some are secured, some are not. A Home Equity Line of Credit is secured by real estate (a residence or property) A business line of credit may be secured by a stake in the business or lien against equipment or inventory. Business lines may also be unsecured. Personal or "signature" credit lines are unsecured.
Does transferring a home equity loan to a lower interest unsecured credit card have a positive or negative effect on one's credit rating?
It helps because when you transfer the loan, you are actually "paying it off".
Is a home equity line of credit payment reported to the 3 credit bureaus?
Every creditor can at their option report to none, one, 2 or all three credit bureaus. Generally speaking, most lenders report to all 3.
Can you have both a home equity and a home improvement loan at the same time?
Yes, it is possible to have both a home equity and home improvement loan at the same time. The home equity loan will typically be guaranteed by the value of the property and the home improvement loan will typically be an unsecured personal loan. Ideally, one would use the home equity loan (or line of credit) for home improvement activities in order to write off a portion of the interest paid from their taxes (unsecured personal loans do not get the same tax treatment).
What happens when paying off an equity line of credit?
Nothing happens when you pay of an equity line of credit. The equity that you used for your line of credit is now safe.
Why equity account have a credit balance?
Because equity is an income - therefore it is a credit, not a debit.
What is equity line of credit?
An equity line of credit is issued based on the amount of equity you have in your home. If you have a $100,000 house and owe $75,000 then you would have $25,000 in equity.
Why would someone need an equity line of credit?
Equity line of credit is typically used in reference to a home loan. The amount of money paid into your home is your equity. With a home equity line of credit, it acts like a credit card. One may need it if they can not qualify for a credit card, or a higher credit limit on their cards.
Can a creditor's lawyer place a lien on a financed vehicle in the state of Texas?
When you signed the contract to finance the vehicle, the creditor put a lien on the vehicle. In the rare event that this was not done, it can be done later in some cases.Also, a creditor can place a lien on an already financedvehicle if there is more equity in the vehicle than the amount of the original loan. Generally, a creditor who obtains a judgment lien against you can arrange to place that lien against any property you own in order to satisfy the lien.
What the different types of credit?
Credit can be simply defined using three (3) aspects: * Secured (Collateralized) or Unsecured Credit (is there an asset positioned as a backstop to cover the debt if the borrower defaults) Example: Auto loan is secured by the car, a credit card is unsecured * Installment or Revolving Credit (is the loan fixed at a certain amount and paid back in similar installments over time or can the principal and payment of the loan change over time) Example: Auto loan is installment, home equity line of credit is revolving * Personal or Business Credit (is the business for an individual/family or for a business)
