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What do you think are the disadvantages of using the longest credit terms possible?
Because the term is longer, you will pay more in interest over the life of the loan. (more months = more interest payments) Also, creditors usually charge a higher interest rate for a longer term. So this compounds the problem and can cause the total cost of credit to be much higher. Another problem is: taking a long term for the purpose of lowering your payments encourages borrowers to borrow more than they can afford. Another problem is that if the term is too long, the purchased item (car for example) depreciates faster than you pay down the loan. This can put the borrower in a position of owing more than the item is worth. In such cases, selling the item can be very difficult. Remember that your question only asks for disadvantages. There are some advantages to long term credit. (especially 0% financing)
What else can I help you with?
Where can I get instant credit cards for bad credit?
It may be possible to get a credit card with bad credit, but the terms will be unfavorable. You should work at rehabilitating your credit rating before applying for credit cards.
What is credit vetting?
Credit Vetting is asserting the credit worthiness of the client or agent in terms of financials. Credit Vetting is asserting the credit worthiness of the client or agent in terms of financials.
Match each of the credit card terms?
Matching credit card terms is often found on a finance test. Common credit card terms include annual fee, credit line, grace period, and introductory rate.
What are the disadvantages of raising capital on credit with a card merchant?
The principal disadvantage of this type of capital funding is its cost. Credit card borrowing is one of the most expensive forms of borrowing in terms of interest rates charged. There is also little scope for flexibility in repayment terms within these fairly rigid operating structures. Pure capital should essentially be the owner's stake in the business and carry as little cost as possible. Banks and asset financiers offer conventional funding and working capital as well.
What are the terms and condition of a Barclays Bank Credit Card?
The terms and conditions of a Barclay Bank Credit Card vary depending on which credit card but they all have general terms. They are also extremely long and extensive. One of the main terms is one need to pay off the balance of the credit or interest will be incurred.
Where can I get instant credit cards for bad credit?
It may be possible to get a credit card with bad credit, but the terms will be unfavorable. You should work at rehabilitating your credit rating before applying for credit cards.
What is the longest drive in terms of yardage in pro football history?
The longest drive possible is starting from the team's own end zone. This has been done before, but it is rare.
Are there any types of credit cards one can get if they have declared bankruptcy?
When in bankruptcy it is not possible to have a credit card. Once the terms of the bankruptcy have been met, some credit card companies will consider issuing a credit card to some people.
What are the advantages disadvantages of silt?
what are the disadvantages & advantages of silt in gardening terms
Can you unscramble EMNLLRST?
There are no words which use all of these letters. The longest possible words have five letters and include melts, rents, smell, stern and terms.
What are advantages and disadvantages of big o notation?
AdvantageIt is possible to compare of two algorithmswith running timesConstants can be ignored.Lower orUnits are not imder terms are ignored
What is credit vetting?
Credit Vetting is asserting the credit worthiness of the client or agent in terms of financials. Credit Vetting is asserting the credit worthiness of the client or agent in terms of financials.
Which Republicans longest life expectancy in terms of years?
43 years, 299 days is the Republicans longest life expectancy in terms of years.
What is the highest beacon score possible?
The highest possible Beacon Score is 900. This indicates excellent creditworthiness and a strong likelihood of receiving favorable terms on loans and credit.
Match each of the credit card terms?
Matching credit card terms is often found on a finance test. Common credit card terms include annual fee, credit line, grace period, and introductory rate.
What are the disadvantages of raising capital on credit with a card merchant?
The principal disadvantage of this type of capital funding is its cost. Credit card borrowing is one of the most expensive forms of borrowing in terms of interest rates charged. There is also little scope for flexibility in repayment terms within these fairly rigid operating structures. Pure capital should essentially be the owner's stake in the business and carry as little cost as possible. Banks and asset financiers offer conventional funding and working capital as well.
What are the terms and condition of a Barclays Bank Credit Card?
The terms and conditions of a Barclay Bank Credit Card vary depending on which credit card but they all have general terms. They are also extremely long and extensive. One of the main terms is one need to pay off the balance of the credit or interest will be incurred.
