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Why Don’t I Qualify? Debt-to-Income (DTI) Ratios

Companies that lend unsecured personal loans make their qualifying decisions according to a loan applicant’s three important financial histories: credit, employment, and income – each an industry standard. And the most important history – income, because it includes the Debt-to-Income (DTI) ratio. DTI is a calculation used to determine the percentage of monthly income a...

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Credit Cards and their Benefits

Credit cards are an important, even necessary part of a consumer’s personal finances. They allow their cardholders to more securely shop stores online – anywhere in the world, and make purchases in the local mall with convenience and security. And for you to make the most of the benefits credit cards offer, you should understand...

Beware the Advance-Fee Loan Scams
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Beware the Advance-Fee Loan Scams

Offers for loans that require applicants to first wire money, make a credit card payment, or send a money order, check, or cash as part of the lending process may be scams. So, unfortunately, it is a common problem in the lending industry. Advance-Fee scams typically involve telephone or online solicitations that promise fast approval...

What is a Secured Loan?
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What is a Secured Loan?

The terms and conditions for a secured loan vary from lending company to lending company. They are loans that require a borrower to back his or her creditworthiness, the consideration given to a borrower’s likeliness to repay a loan, as a form of collateral. Collateral is a kind of property pledged to secure or guarantee...

Why Credit is Important
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Why Credit is Important

Personal Credit Anyone wanting to obtain a sizable loan, like a home mortgage, will need credit. More specifically, personal credit, and it is an unavoidable requirement in the lending process. Personal credit is comprised of several different factors: a borrower’s repayment history – whether or not they have been making their monthly payment requirements in...

How to Rebuild Your Credit with Personal Loans
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How to Rebuild Your Credit with Personal Loans

There are many different ways you can rebuild your credit. Your professional and personal circumstances will determine your options when deciding if accounts with slow pays and late payments should be closed, or consolidated into a single loan. They’re the two most effective ways to restore impaired credit quickly; unfortunately, they’re not always options for...

Bad Credit Increases Borrowing Costs
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Bad Credit Increases Borrowing Costs

Unsecured personal loan lenders charge borrowers with bad credit higher interest rates—it’s a standard industry practice called charging a risk premium. If you have experienced financial difficulties in the past that have negatively affected your credit history, you should expect higher borrowing costs, and prepare to resolve them. Knowledgeable loan consultants may advise you to...

How to Make the Most of Your Budget
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How to Make the Most of Your Budget

Consumer Budgets There are two basic consumer budgets: the individual budget and the household budget. Both involve administrative requirements: short and long term forecasts for expenses and income, and tracking all spending to ensure they are adhering to the agreed to budget. Planning guides and software programs are available to simply the administrative process and...

Make the Most of Your Budget
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Make the Most of Your Budget

The two basic consumer budgets are the individual budget, and the household budget. Both involve short and long-term estimates for expenses and income, and accounting for your spending. To increase the financial success of your budget, decrease your administrative requirements—make things simple. Successful budgeting also involves differentiating needs from wants. Every member of the household...

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What My Interest Rate Says About Me

Simply, lending companies evaluate their loan applicants based on several widely accepted factors.  And they categorized their loan applicants based on the outcome of their evaluation.   Loan applicants should know a little bit about the different factors used in credit evaluations.  The most important factor is his or her credit history – whether or...

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