Archive for July, 2008
Student loans and your credit score
Posted by: | CommentsHow you handle your student loans will affect your credit score for years to come. With college tuitions rising by up to ten percent in 2004 alone, you may be thinking of taking on a student loan to help with the finances. Your student loan will likely be the largest debt you’ve ev…
Credit score myths
Posted by: | CommentsDon’t be misled by credit myths. Understand what truly affects your credit score so you can work to improve it. When you apply for a mortgage, line of credit or even a department-store credit card, the lender will check your credit score. This figure, a measure of your past ability to make payments on time and…
New credit scores
Posted by: | CommentsNew measures of financial reliability used by the FICO Expansion credit scoring system can help you if you lack a traditional credit rating. Lenders use credit scores to make decisions about loan applicants. Utilities, telecom providers and other businesses whose services require regular, ongoing payments may also check credit scores befo…
VantageScore FAQs
Posted by: | CommentsThe credit agencies introduce a new scoring system. Find out how VantageScore is different and what you need to know about it. In mid-March, the three major credit-reporting agencies jointly introduced a new credit scoring system called VantageScore. This raised a number of questions for consumers. Here are answers to some o…
Don’t let holiday credit card debt hurt your credit score
Posted by: | CommentsSeasonal credit card debt can cause lenders to view you as a bad credit risk if you don’t manage it well. If you’re struggling to pay off holiday debt, you’re not alone. According to CardWeb.com, a firm that provides information on the credit-card industry, holiday shoppers charge an average of more than…
Rate locks when rates are rising
Posted by: | CommentsRate locks when rates are rising
By Marcie Geffner – LendingTree.com
If you’re ready to apply for a home loan, but are concerned that interest rates might go up before your loan closes, a rate lock might be just what you need.
A rate lock puts a hold on your interest rate for a set period of time, though you’ll still have to qualify for the loan to receive that rate.
If you expect your loan to close quickly and you’re willing to take a chance that interest rates might go up, a lock might not be important to you. But if there could be a delay before your loan closes or you couldn’t afford the loan if the rate went up, a lock might be a smart precaution. Ask your loan officer to help you weigh the pros and cons and decided when to lock your rate, if at all.
Some lenders will lock your rate when you submit your application. Others will float the rate until your loan is approved or even longer, unless you purchase a lock.
Don’t confuse a rate lock with a fixed-rate loan. A lock holds the rate while your loan is being processed. It doesn’t mean your rate can’t change after your loan is funded.
If you want to consider a lock, be sure to ask these questions:
● Does the lock apply to the interest rate and points?
A “point” is a fee that’s equal to 1 percent of the loan amount. Some borrowers “pay points” to reduce the interest rate on their loan. A lock should cover both the rate and points.
● When will the lock expire?
A typical rate lock is good for 30 days, but a longer or shorter period might be appropriate, depending on how soon you expect your loan to close. Most lenders charge a higher fee to lock your rate for a longer time. If you don’t want to take any chance that your rate might increase, err on the side of caution and get a longer lock.
● Can the rate float down?
One disadvantage of a rate lock is that if you lock your rate and then the interest rate goes down, the lender might not give you that lower rate. Some lenders allow a one-time float downward after the rate is locked.
If a rate lock is important to you, be sure to work with a reputable lender who will honor that commitment and process your loan in a timely manner. Insist that the terms of the lock be put in writing, and keep in close contact with your loan officer to make sure your loan will close before your lock expires.
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Home Credit and Finance Bank refutes FAS allegations
Posted by: | Comments11.7.2008 – Following an announcement on 8th July 2008 from the Federal Antimonopoly Service (FAS Russia) when it confirmed that it had initiated a case against Home Credit & Finance Bank (“HCFB”) for allegedly breaching Article 14 of the Federal Law “On Protection of Competition”, the Directors of HCFB today issued the following statement: