Posts Categorized: General Debt & Loan Consolidation Information

Measuring Your Financial Standing with the Debt to Income Ratio

Posted by & filed under General Debt & Loan Consolidation Information.

Before settling on a residence and signing along the dotted line, prospective homeowners must ask themselves the critical question- how much home they can afford. This, of course, is a function of their financial stability and creditworthiness, two leading factors gauged by a widely-used formula known as the debt-to-income ratio (DTI). Lenders assess a consumer’s… Read more »

The Fair Debt Collection Practices Act: Shielding Consumers from Abuse

Posted by & filed under General Debt & Loan Consolidation Information.

Along with the Fair Credit Reporting Act, the Fair Debt Collection Practices Act (FDCPA) forms the cornerstone for consumer credit protection in the United States. Its objectives are as follows: 1) to prohibit collection agencies from utilizing abusive debt collection methods, 2) to provide debtors with remedies as well as a mechanism for disputing the… Read more »

Tracking Debt with Free Credit Scores

Posted by & filed under General Debt & Loan Consolidation Information.

A credit score is a numerical representation of a consumer’s credit rating and a summary of the information on his or her credit report. Lending institutions, landlords, mortgage brokers, and employers utilize this pivotal number to gauge a prospective applicant or borrower’s creditworthiness and financial reliability, determine his or her eligibility for credit, and set… Read more »

Consumer Credit & Commercial Credit: Separate Financing for Different Purposes

Posted by & filed under General Debt & Loan Consolidation Information.

In the credit-oriented world in which we live in, American consumers and businesses have a plethora of choices in terms of loans and lenders. A wide variety of financing sources offer multiple forms of consumer credit and/or commercial credit. Lending institutions differ in the 1) types of loans they extend and their maturity dates, 2)… Read more »

Credit Monitoring Tools: Extra Protection for Consumers

Posted by & filed under General Debt & Loan Consolidation Information.

Each year, thousands of American consumers aiming to get out of debt or interested in improving their credit rating or keeping tabs on their credit report seek the financial peace of mind offered by credit monitoring services. These consumer-oriented programs, which are available through the three leading credit reporting agencies (TransUnion, Experian, and Equifax), provide… Read more »

How Credit Bureaus Report Consumer Credit Scores

Posted by & filed under General Debt & Loan Consolidation Information.

In today’s consumer credit driven world, a good score affects many things for individuals, including their ability to avail loans and credit cards. A good credit rating also determines the type of interest rates and insurance premiums consumers are able to obtain from companies. Credit ratings are provided by three major credit bureaus in the… Read more »

The Ripple Effect of Consumer Credit

Posted by & filed under General Debt & Loan Consolidation Information.

From credit cards and auto loans to residential mortgages, home equity loans, and personal lines of credit, consumer credit facilitates the daily lives of millions of Americans by providing convenience and fiscal flexibility. This indispensable and valuable monetary tool offers numerous benefits including the following: Ability to satisfy basic consumer needs Ease of use Opportunity… Read more »

Credit Reporting Agencies: Serving both Lenders and Their Prospects

Posted by & filed under General Debt & Loan Consolidation Information.

To determine whether a credit applicant is a good or bad credit risk, lenders rely on the data produced by credit reporting agencies, alternatively referred to as credit bureaus. These boast voluminous databases of consumer credit records on millions of Americans and offer lending institutions an in-depth look at a prospective borrower’s credit history. The… Read more »