Loans

Money lent to individuals or businesses in return for interest in addition to repayment of principal. Common types of loans include commercial loans, interbank loans, mortgage loans, and consumer loans.

21,791 Questions
Loans
Credit Reports

How long does information stay on your credit report?

Under the Fair Credit Reporting Act information can be included in your credit reports for seven years. But there are exceptions to this rule:

  • Information about criminal convictions may be reported without any time limitation.
  • Bankruptcy information may be reported for 10 years.
  • Information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
  • Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
  • Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

Here is more input:

  • The seven year statute of limitations on information listed on your credit report figures from the date of last activity.
  • According to the FCR Act Section 605 a debt can remain on a credit report for 7 years and 180 days after the delinquency that caused the account to go bad. Sometimes creditors will sell their bad accounts or post information on the credit report to show an activity date that is less than 7 years. THIS IS PROHIBITED. (I ended up having a judgment removed, the collection accounts removed, and the original creditor account removed.) In short, the time clock starts on the month the original delinquency started by the original account, regardless of whether the account has been sold to a collection agency, was paid at a later date, or a judgment was placed. The FTC has ruled this to be the law when it comes to time periods. If the credit reporting agencies are showing an account on your record that originally went bad more than seven years ago, regardless of date of last activity, dispute the information and they will have to remove it. The reasoning behind this is similar to chapter 13 bankruptcy which stays on your credit for just 7 years instead of chapter 7. The courts have ruled if you did not file a bankruptcy and had several bad credit items they would strictly fall in under the chapter 13 guidelines. I ended up paying on debts that were less than 7 years old and had all the collections, judgments, and original creditors of more than 7 years removed. Even though the judgment was only 2 years old and unpaid and the collection account was only 3 years old, they were still bound to the time line of the original creditor. This regulation prevents accounts from staying on your credit forever.
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Loans
Credit Reports
Improving Your Credit Rating

How can you repair your credit after a car repossession?

I have declared bankruptcy which included a vehicle re-possession and thank God, I now have great credit again! So good in fact, that I have three credit cards! This process will take at least ten years, but if you are in real trouble and have no other way out, it does work.

Your first step is to acquire a secured credit card. Depending on how damaged your credit is will determine how much you have to pay and how much you will receive. I applied for a Capital One Mastercard, paid $75 and had a limit of $300. Because I used the card and paid it every month, I built up a positive credit record and now have a lower interest rate, higher credit limit and pay no annual service fees.

Make sure that you use the card in place of a regular purchase then set the money aside and pay the card BEFORE your due date to avoid paying interest i.e: you have $200 for groceries, put the groceries on your credit card and put the $200 cash aside then a day or two before your minimum payment is due put the $200 you saved on your credit card, no interest, card is paid and you get kudos on your credit score. Do this on a regular, at least monthly basis and you'll see a great improvement.

I then went to a car dealership that specializes in bad credit (I'm from Canada and so went through Mac James Motors) but if you look through your local yellow pages you should be able to locate a dealership that advertises bad credit sales. The interest rate is high and the financing is usually 36 months which makes your monthly payments higher than your average vehicle loan but the improvements it makes to your credit score is well worth the price providing you can afford the payments (I financed a $10,000 car at $439/mth for 36mths at a 29% interest rate for a total of @$16,500).

You can also go to The Brick or Rent-to-Own and finance some furniture, entertainment system, etc and as long as you pay on time, everytime you will see an eventual improvement in your credit (takes a bit longer than high risk credit cards and auto financers since those typically report to credit bureau every month as opposed to rent-to-own type places that typically report every 6 mths)

To track your credit score, apply for it every 6 mths to see where your rating is, what's affecting it and ensure that it is accurate since there have been known cases of credit report errors.

Good Luck!

The only two ways to have a negative item removed from your credit report is by disputing the negative item with the credit bureau reporting it or time. If the information is correct regarding the repossession it will be on your credit report for at least 7 years. You can contact the creditor and start a payment plan and have the credit bureau put a note in your public credit file that a payment plan has been started. If you dispute the item and it can not be proved within 30 days or their records are incorrect, they must remove it from your credit report or correct the information.

To repair your credit in general, you must have negative accounts removed and positive accounts added.

Please note that you must keep your focus on your overall credit score, not just removing that repossession. Also placing a note on your credit report does not help with your credit score. There is a process to the credit system and you mus have full knowledge in order to maximize results. Adding trade lines really helps but know your goals. If you are seeking a new car with limited credit history and that repossession it is virtually impossible to get a new car from a credible lender. You may have to go to one of those carry the note car companies. However, if you have a history of good credit and have made successful car payments with that repossession, then getting a car loan may not be as difficult with a good down payment. Just know that there is a home credit score, car credit score and credit card credit score. Obtaining credit for anyone of those categories can be different. You must know the difference.

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The only real way to repair your credit is to stop buying things on credit so often. If you can not pay cash for a car, use the bus until you can buy a car.

Credit is based on your history of paying bills. If you get a bankruptcy added, you are looking at a decade of high payments for everything before you start seeing some sunlight. Even then, some companies will never give you credit after a bankruptcy. You are ALWAYS better off trying to pay your debt as opposed to running away from your promises.

Your credit score is based on 1. Your payment history 2. The amount of debt you could get from your cards and 3. The amount of debt you really have.

Not paying a bill and allowing a car to go repo on you is a big no no. Getting credit cards and never using them is a good thing, if you do not have to pay an annual charge.

What you really want is someday having financial security, not a good credit score. This is done by not living beyond your means. Do not buy stuff you do not have the cash for. Do not go on vacation if you have not paid your car off in full.

True independence and true freedom is having money in the bank, not owning the task masters at a bank. If you have allowed a car to go into repossession, pay the rest of the car off and stop over spending for a few years. That is the only honest method of repairing your credit. Remember you really want to have money in the bank, not a good credit rating to become a slave to debt again.

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Business & Finance
Loans
Definitions
Planet Mars

What is the meaning of 'Have you ever been bonded'?

Bonded means insured. At some time in the past have you ever been insured against the loss of a large amount of money or valuable .

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Loans
Student Loans and Financial Aid
Income Garnishment
United Arab Emirates

How many months jail for loan defaulters in uae?

24 I'm sure :-) :-) :-)

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Loans
Mortgages
Home Equity and Refinancing
Estates
Money Management

Can the executor assume the mortgage of the deceased?

The executor must discuss that with the lender. If the executor is going to inherit the property the lender may agree to allow an assumption of the mortgage.

589590591
Personal Finance
Loans
Student Loans and Financial Aid
Money Management

How can you pay off your student loan if you live overseas?

Hey, Why dont you go for FAFSA assistance.. they provide good guidance in regards to federal student loan and are legit as well. One of my friend studying at http://www.northclevelandhighschool.com/ applied for loan through their online process and was able to pay it off on time due to the proper guidance they provided him... https://studentaid.ed.gov/sites/default/files/international-students.pdf you can read this out as well for more help.

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Personal Finance
Loans
Student Loans and Financial Aid
Scholarships
Money Management

If you have little or no credit history can you get a student loan without a co-signer?

* There really is no private lender that will approve you without credit history or a co-signer. The only sure thing is to get a credit card and use it responsibly for a year or two. That is, until the government cleans up it's federal aid system so it works for everyone. * It depends that how good you are in your education how efficient enough you can proof your self to get a loan of any type. Federal students loan and private students loan offers various advantages. You will not need any cosigner if you have good academic record.

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Personal Finance
Loans
Student Loans and Financial Aid
Money Management

How long before outstanding student loans are forgiven?

It doesn't matter how long you had the loan, you have to pay it back unless you are disabled, a teacher in low-income schools, part of the peace corps, or the school forged your signature.

If you have a federal direct student loan you can go on an income-contingent plan that will forgive loans after 25 years in repayment.

25 years is the max---Never default on the loan.Many payment plans out there.Once you default you can never arrange and special payment plans

Thanks Casey Mahoney

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Loans
Mortgages
Money Management

What is a reverse mortgage and how does a reverse mortgage work?

Designed for seniors, a reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership. A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is a relatively new product. A reverse mortgage provides unique benefits for its target market eg: someone over 62 who lives in his/her primary residence, who has substantial equity in his/her home, and who has little or no income. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home. Eligibility for a reverse mortgage is set by the Federal Government; The Federal Housing Authority FHA tells HECM lenders how much they can lend you, based on your age and your home's value.

The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan.

Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front fees than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. This is an important factor to consider because the mortgage must be paid in full if the owner decides to sell the property or if their heirs desire to keep it after their death. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction.

To be eligible for a reverse mortgage, you need to be at least 62 years old, occupy the home as a primary residence, and either own your own home outright or only owe a small amount on your existing mortgage loan that can be paid off at closing with the proceeds from the reverse mortgage.

In general, a reverse mortgage is tax free and has no income restrictions. Additionally, most payments from a reverse mortgage won't affect Social Security or Medicare benefits. In fact, many seniors use a reverse mortgage to supplement their Social Security and Medicare, allowing for more financial security.

Reverse mortgages also work in a purchase transaction. You can purchase a home without making a single monthly mortgage payment. This option allows seniors to move close to family when the need arises. There are various ways seniors can benefit with a reverse mortgage including receiving additional tax-free monthly income or a lump sum payment, cancelling a current mortgage payment, funding long term care insurance and in-home care, renovations and repair work to their homes.

In many states, the Reverse Mortgage, or Senior Reverse Mortgage, allows for a new home purchase with the use of reverse mortgage funds, this rule does not apply nationwide. Although HUD and the FHA recently passed the HECM Reverse Mortgage home purchase program, allowing you to purchase a new home with reverse mortgage proceeds, borrowers in Texas are not yet eligible. Rules in individual states may vary. Please see a specialist in your own state for more details.

336337338
Loans
Co-signing
Student Loans and Financial Aid
Money Management

Can co-signing a car loan affect your chance to get a student loan?

Only your previous federal loan history affects your ability to get most federal student loans.

For private student loans, your debt (including debts you cosigned on) are a factor that would be considered by most lenders in making a credit decision.

Your potential lender may ask themself: "If this person had to repay the loan they cosigned on, and all the other debts on their credit report, plus the loan they are asking us to approve, could we expect them to repay based on what we know about their income and credit history?"

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Personal Finance
Loans
Student Loans and Financial Aid
Money Management

If several loans are in default how can you find out who holds the loans and is there a phone number to call?

A consolidation loan will allow you to get an income sensitive payment that will fit your budget, or you can file for deferment or forbearance.

CALL THE DEPARTMENT OF EDUCATIONS LOAN FINDER LINE. THE NUMBER IS 800 621 3115

If they are federal student loans, you can also check the National Student Loan Database (nslds.ed.gov) which is the government's central database of student aid. If you have private student loans, there is no central place that tracks these. Best idea is to check your credit report. You can get a free yearly report at annualcreditreport.com.

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Loans
Student Loans and Financial Aid
Money Management

Are there income limitations for Stafford Loans?

There are no income limits for unsubsidized Stafford loans.

Subsidized Stafford loans are awarded based on need.

There are two types of Stafford Loans

  • Stafford (Subsidized) - The interest portion of the loan is borne by the federal government. You can apply provided you spent at least half the time in school.
  • Stafford (Unsubsidized) - Interest portion is to be paid even if the student is enrolled in the school. Offered to those with maximum borrowing capacity.
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Loans
Student Loans and Financial Aid
Money Management

Can student loans be used for things such as an apartment or a car if it is necessary to complete the education?

Your student loans are yours. You have to repay them later, so you do what you want to with them now. Yes, they are supposed to be for help in your education, but I am raising two kids and going to school only with my student loans.

The only demand by the lenders is to payoff your loans on time, otherwise you can do anything with your loan as you want.

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Personal Finance
Loans
Student Loans and Financial Aid
Credit Reports
Money Management
Credit

Do student loans show up on your credit report?

yes, the private or federally guaranteed student loans will show up on your credit report. If you are delinquent or in default on your loans, you can get help with consolidating the loans at www.defaultms.com

The loans will show up on your credit report, even if they are still designated as deferred. You will not owe anything until roughly 6 months after you graduate, and the loan status will change to active once repayment begins.

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Personal Finance
Loans
Student Loans and Financial Aid
Money Management

How can you protect yourself from wage garnishment for a student loan already paid off?

Provide proof you already paid the loan in full.

That means front/back copy of canceled check or paid in full letter from the loan holder.

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Personal Finance
Loans
Student Loans and Financial Aid
Money Management

If you have frightening credit can you still qualify for a student loan?

Eligibility for Federal Stafford loans are not based on your credit so yes, it is possible to get a student loan even with "frightening" credit. The exception to that is if you have previously defaulted or are significantly past due on a previous student loan. Even in this case, there are options to clear this up pretty quickly, so you may continue your schooling. Finally, most private student loans are credit-based so for those, you will at the very least need a co-signer.

Federal loans limits are too low. The "non-credit" based loans like Stafford need to raise their limits to approx. $10,000-$15,000 per year. Then a student has a chance to fully fund their own college tuition at a State College without help from parents.

It is every child's right to go to at least a State college of their choice.

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Loans
Co-signing
Mortgages

Can a cosigner have their name taken off a debt?

The purpose of a co-signer is to guarantee payment by the primary borrower whose credit record isn't good enough to obtain the loan on their own. The lender will not release the cosigner because if the primary party fails to make the payment it is the responsibility of the cosigner to pay. The co-signer has promised to pay off the loan if the primary borrower defaults. That's how the borrower got the money!

It is rare, and would be exceptional, for a creditor to allow a co-signer to be released from liability from an outstanding debt. Usually, the only way this can be accomplished would be for the primary borrower party to refinance the loan in their name only.

Call the creditor to see what options are available. At the very least, let this be a lesson you learn from. When you co-sign for someone else, you are taking a risk that a creditor (who lends money as a business) is unwilling to take. There is always a reason they won't take that risk. Why would you?

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Personal Finance
Loans
Personal and Payday Loans
Money Management

Can you extend your payday loan?

Yes, depending on which state you live in.

For most states, payday lenders have put into place mechanisms to extend loans up to the maximum number of times the state allows.

When extending a payday loan, keep in mind that you will pay an extension fee (which will be the same as the origination/application fee) that you paid when getting the payday loan in the first place.

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Personal Finance
Debt and Bankruptcy
Loans
Co-signing
Bankruptcy Law
Money Management

Can you cosign a car loan if you filed for bankruptcy?

If you can find a lender who will accept your signature, sure. Unlikely.

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Loans
Mortgages
Estates
Money Management

Are adult children liable for parents mortgage debt?

No, not as long as they didn't co-sign the mortgage. However, if the parents have died and their property is subject to a mortgage the lender will foreclose on the property if the mortgage isn't paid. If the heirs want to keep or sell the property they must keep the mortgage payments current.

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Personal Finance
Loans
Student Loans and Financial Aid
Money Management

Can a bankruptcy be opened to include a student loan if the loan wasn't in default at that time?

It would be a waste of time and money. The higher education amendment act made student loans non dischargable in Banruptcy Court. You would have to prove a major financial hardship to have it considered. It's next to impossible.

A consolidation loan will allow you to get an income sensitive payment that will fit your budget, or you can file for deferment or forbearance.
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Loans
Student Loans and Financial Aid
Education
Money Management

Who qualifies for student loans?

The Lending Tree site provides an excellent discussion of student loan qualification. The site is attached to this question as a related link.

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Personal Finance
Loans
Student Loans and Financial Aid
Money Management

Can a car that you own be repossessed for college loan payments that you owe?

Any assets you own, including cars, can be seized if they win a judgment against you in court. Since they can garnish wages and offset tax returns without taking you to court, those are the most common methods of collecting.

No, they cannot take your car for college loan payments. They can, however, potentially have money taken directly from your pay and/or garnish your tax refunds. Your best bet is to try and resolve your account with the loan company. If you have defaulted, ask them about consolidating or rehabilitating your loan. If you haven't defaulted, there are many lower payment options, deferments and forbearances that may be able to assit you.

Regards -Cicily

You can get assistance with the consolidation of your loans through www.defaultms.com

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Loans
Mortgages
Money Management

Can you apply for 2 mortgages based on one property?

Yes you may, as long as it does not exceed the value of the property. You can not obviously finance 200% of the value of your property with 2 separate loans but you can apply for a first lien mortage and a second lien mortgage, it's done very frequently with purchases to avoid PMI by splitting a 100% LTV loan into an 80% 1st loan and a 20% second mortgage.

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Loans
Mortgages
Home Equity and Refinancing
Money Management

You have 50000 for down-payment and you want to borrow 250000 from bank.current mortgage interest rate is 6 percent . If you equal monthly payments for 15 years how much will monthly mortgage be?

An amortization table would give you the answer. If this is a real life situation and you are in the US you would be getting screwed at this rate of interest.

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