Archive for the ‘Borrowing’ Category

The Fair Debt Collection Practices Act

Main Concepts of The Fair Debt Collection Practices Act If you find yourself in financial difficulties, there are several specific steps you can take to protect your credit standing. Although creditors can always turn over your account to a collection agency, some prefer not to do so and would rather make an arrangement for repayment […]

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Fair Credit Reporting

The Fair Credit Reporting Act When you apply for credit, the lender may ask a credit reporting agency for a summary of your financial history before deciding whether to grant the loan. This is standard procedure, particularly when substantial sums are involved, and every day, thousands of such credit reports are issued to lenders throughout […]

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Equal Credit Opportunity

The Equal Credit Opportunity Act Before 1975, when the Equal Credit Opportunity Act became effective, a considerable number of Americans — women, older people and minority group members — often had difficulty in obtaining loans and credit. Since then, discrimination on these bases has been forbidden by law. Prospective lenders no longer have the right […]

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The Truth in Lending Act

The Truth in Lending Act is a US Federal Law Protecting Consumers in Credit Transactions The primary purpose of this federal legislation, enacted in 1968, is to make the borrower aware of exactly how much a loan will cost. There was a time when lenders could simply advertise “8 percent interest.” Unless the borrower carefully […]

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Protections For Users of Credit

Legal Protection Of Borrowers Like millions of Americans, you probably make at least some of your purchases on credit. The practice of buying now and paying later, though vital to both individual and national economies, can be dangerous if abused. Each year hundreds of thousands of people find themselves over their heads in debt and […]

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The Perils of Cosigning

Bank Loan Cosigning Perils There may come a time when a friend or relative applies for a loan and the lending institution refuses unless the applicant can find a cosigner. If someone you know asks you to cosign a loan, consider the request very carefully before you agree. Chances are that the lender would not have […]

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Getting a Loan

How To Successfully Qualify For A Bank Loan? Before applying for any kind of loan, it is prudent to analyze just how much money you need and precisely how long you need it for. Then compare the rates and conditions you will have to abide by for the use of someone else’s cash. Financial institutions […]

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How Good Is Your Credit Rating?

The Three C?s Of?Your Credit Rating In the days before computers and credit cards, loan officers usually sized up applicants on the Three C’s of Credit: Character (a moral commitment to pay the money back), Capacity (the means to do so) and Collateral (property that could be seized and resold in the event repayment was […]

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How To Calculate Your Credit Rating?

Credit Rating Test The “test” given here can indicate only your relative credit-worthiness. It cannot tell you whether you will actually get credit from particular lenders, whose policies may vary widely according to their experiences, profit targets and tolerance of risk under different economic conditions at different times. One lender, for example, might sign you […]

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Credit Cards

What Is A Bank Credit Card? Credit cards, whether issued by banks or other institutions, are another form of revolving credit. These cards entitle their holders to a predetermined maximum against which they may borrow, and the principal repaid is automatically restored to the credit line. You can use a credit card to pay for […]

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