Articles Index - page 2
Government Loans
Government loans come in a variety of flavors. You can get a government loan to go to school, buy a home, run a business, and more. This list shows the most common government loan programs.
Perkins Loans
Perkins Loans are available through schools for students in need. The US Government loans money to the school, which passes it on to select borrowers. This page covers the basics of Perkins Loans.
PLUS Loans
PLUS Loans are available through US Department of Education funding programs. This page covers the basics of PLUS Loans. PLUS loans are unique because you can get really large loans depending on your costs of attendance.
Stafford Loans
Stafford Loans are available through US Department of Education funding programs. This page covers the basics of Stafford Student Loans. A unique characteristic of Stafford Loans is that they're easy to qualify for in most cases.
How Subsidized Loans Work
Subsidized loans are loans for which the borrower does not pay interest. Interest would normally be charged periodically according to the annual percentage rate (APR). However, with a subsidized loan the interest is paid by another party.
How to Ruin Your Credit
Having access to other people’s money is overrated. If you’re of the same mind, you may want to completely eliminate any chance of somebody lending you money. Here are some tips on how to destroy your credit score.
How to Fix Your Credit Report
In order to get the best loan rates, sometimes you need to fix your credit report. For a variety of reasons, credit reporting agencies may have bad information. To fix your credit report, follow these simple steps. Then go back and get the loan terms you deserve.
Community Reinvestment Act
The Community Reinvestment Act was designed to make money available to underserved areas. Banks took deposits in low-income areas, but they did not make many loans in those areas. Congress passed the Community Reinvestment Act to encourage lending, home ownership, and business expansion.
What Types of Loan Modifications Exist?
Banks can change the terms of your loan to make the payments more affordable. These changes are often called loan modifications, and they may be permanent or temporary.
Loan Modifications
Loan modifications are changes to your loan agreement. Your payments get more affordable, and you don’t have to default on your loan. Banks choose to offer loan modification programs because it is easier to work with you than to go after you. Let's review how loan modification works, and how you can improve your chances.
Moral Hazard - How Moral Hazard Works
Moral hazard is a concept saying that people will take risks if they have an incentive to do so. The idea is that people might ignore the moral implications of their choices. Instead, they will do what benefits them the most. The concept of moral hazard comes from the insurance industry.
Information Stored at Credit Reporting Companies
Credit reporting companies are like information warehouses. They collect information that might be relevant to prospective lenders. This page details the types of information stored at the credit reporting companies.
Build Credit - How to Build Credit - Why it is Important to Build Credit
If you don't have a history of using credit, lenders don't know if you are a good customer. You need to build credit. Find out more about why you should get started, and we'll cover some easy ways to build credit.
How Credit Scores Work
A credit score is just a number. The credit score tells lenders how likely you are to default on a loan. By understanding how credit scores work, you can figure out what lenders are looking for and how you can improve your credit score.
Deficiency Judgments
Deficiency judgment are court orders that make you personally liable for unpaid debt. They are often associated with foreclosures, when a home's selling price is not enough to cover the loan balance. Let's take a closer look at what deficiency judgments are and if you should expect one.
Annual Percentage Rate (APR)
Annual Percentage Rate (APR) is a way to compare the costs of a loan. Although it’s not perfect, it gives you a nice standard for comparing the percentage costs on different loans. This page covers the basics of APR, and how you can calculate it.
Upside Down Loans
An upside down loan is a situation where the loan balance is greater than the purchased item’s value. This happens when the item loses value faster than the loan balance decreases. This page covers upside down loans and how to spot trouble.
Lease vs Buy Your Next Vehicle
It’s time for a new ride, but you may not have enough cash to buy a vehicle. Should you lease or use an auto loan? The lease vs. buy decision depends on what you need and what you believe. This page covers the most important factors of your lease vs. buy decision.
When You Need Money
At some point in our lives, we all reach the point where we say “I need money”. If you’re at that point, here are some ideas on getting the money you need. I hope to steer you in the right direction and cure the "I Need Money Blues".
Payday Loans
Payday loans are short term loans you can use to get through a rough spot. Before you use a payday loan, make sure you understand the costs and risks. This page gives you a quick overview of how they work, and ideas on what you can do to avoid using payday loans.
How Credit Bureaus Work
Credit bureaus play a vital role in your borrowing life. They serve as your reputation in a world where the banker doesn't know you. The credit bureaus collect information about you and pass it on whenever somebody needs to get the scoop on you.
Home Equity Loans
Home equity loans allow a homeowner to borrow money by pledging the house as collateral. Borrowers who want to borrow a relatively large amount of money or who don’t have good credit often find the home equity loan to be attractive. Read up on the basics and get some tips on managing your home equity loan.
Student Loans 101
Student loans are a way to pay for higher education. Whether you love debt or you hate it, student loans are an investment in your future. They can make an education possible when there is no other way. This page covers the basics of student loans and points you towards additional resources.
10 Tips for Prosper.com Borrowers
Getting a loan at Prosper.com involves more than just asking for one. In order to get money (and get it at a reasonable rate) you have to create a good listing. This page covers the essentials of creating a loan listing at Prosper.com.
Home Equity Loan Tax Deduction
One nice feature of home equity loans is that borrowers may get a tax deduction on interest paid for the loan. Before you try this, you should understand that the tax deduction is not unlimited. Find out how the tax deduction really works.