Latest Loans Questions

Elderly couple reviewing financial documents
May, 17, 2013
Retirees should pay off their mortgage loan before retirement. The years during retirement offer consumers fewer options for funding. Retirees no longer hold full-time positions and therefore any incoming salary is reduced or eliminated. More retirees rely on Social Security benefits, 401(k) payouts, pensions, or other savings funds. Unforeseen expenses, such as an unexpected healthcare cost, can further add to the weight of a retiree’s debt, so paying off a major financial obligation such as a mortgage loan before this occurs is beneficial. Certified military housing specialist Greg Cook said planning ahead is important.
car loan denied
May, 15, 2013
Before approving an auto loan, lenders use a set list of criteria to gauge a borrower’s credit worthiness. The criteria include a borrower’s credit score, repayment history and overall credit history. Borrowers with high credit scores and reliable sources of income can count on receiving money easily and usually at a low cost. Those with low credit scores will have to pay more in interest on their loans, but borrowers with poor credit histories often have no access to financing at all. Before you apply for an auto loan, examine your credit history and check for the following traits that will red flag your account in the eyes of lender.
counting money
May, 15, 2013
An installment loan is a long-term loan, usually due in small installments spread out over several weeks. Under an installment loan, the lender gives the borrower a certain amount of credit. Unlike payday loans, which usually need to be repaid within 14-31 days, an installment loan is paid out in monthly installments over the course of several months. To avoid the interest rate caps set in place by several states, installment lenders employ two tactics: offering loan insurance packages and convincing borrowers to renew their loans.
May, 10, 2013
To calculate the APR of your payday loan, use the formula   ((F/T) x 365)/(the term of the loan in days), where F represents your loan fees and T equals the total amount of the loan. For example, if you receive a total of $255 in credit from a lender for a 14 day payday loan and owe $45 in fees, your calculation would be: ((45/255) x 365)/(14) = (0.17647 x 365)/14 = 64.41156/14 = 4.6008, or 460.08 percent What is an APR?
french fries
May, 9, 2013
Yes, you can get a business loan to start a franchise. However, it is not necessarily an easy or straightforward path. Rick Bisio, former Director of International Business for Cinnabon, Popeye’s Chicken, Church’s Chicken, and author of The Educated Franchisee, told that there are different ways to get a business loan. “How an entrepreneur would choose to finance the business will have a lot to do with the type of business, total investment and financial resources,” said Bisio. He also said that borrowers can obtain business loans guaranteed by the SBA. However, this is a complicated route.
Businessman behind bars
May, 8, 2013
It is unlikely that an ex-felon will gain approval for a standard business loan. Typical bank financing is usually out of the question. The Small Business Administration (SBA), the main loan guarantor for business loans in the United States, is particular about the recipients of their funding. The SBA will not lend to borrowers who have committed crimes of “moral turpitude.” Gaining funding is a major hurdle for almost all entrepreneurs, and ex-felons are no exception. In fact, they face ever more struggles at overcoming hurdles in order to start a new business.
May, 2, 2013
A pension loan gives borrowers a lump cash sum in exchange for a percentage of the borrower’s future pension payments. The loan is usually paid back in monthly installments. Consumer advocate groups warn against pension-advance loans because they charge high interest rates. What is a pension?
toy car on hundred dollar bill
May, 2, 2013
Yes, your parents can cosign on an auto loan for you. In fact, there are several benefits when parents do so for their child. Gail Cunningham, Vice President of Membership and Public Relations at the National Foundation for Credit Counseling, told that when parents cosign on car loans for their children, it could help their son’s or daughter’s financial reputation. “Assuming payments are made responsibly, this activity will help build a positive credit report for them,” said Cunningham.  However, cosigning on auto loans shouldn’t be done without careful consideration.
car keys
Apr, 29, 2013
Experts recommend limiting your car loan term to 48 months or less, but there are some benefits to choosing a longer term length. In the last quarter of 2012, the average duration of an auto loan term was 65 months, or nearly five and a half years. Seventeen percent of auto loans issued that quarter lasted 73 to 84 months. These longer, subprime auto loans are a result of increased competition among financers to draw in more customers and increase profits. Longer auto terms mean smaller monthly payments for borrowers and bigger pay outs for financers.
loan application
Apr, 26, 2013
Federal regulators have announced that they are imposing new regulations on direct-deposit advances, a short-term loan service offered by some major banks. Regulators have compared the advances to payday loans, in that both services don’t vet a borrower’s ability to repay a loan, have a very quick turnaround, charge high interest rates, and are difficult to repay for some borrowers.