Loan

Key information about your loan and finance needs, learn about different types of loans available in the market. Information presented here will help you choose correct and better loan options for your loan needs. You will be able to choose best option for Personal Loan, Business Loan and Small Business Loan.

• What is Loan?
  A brief description about loans, its hidden cost, difference between loan & gift, formalities involved while taking loan etc..
    
• What is unsecured Loan?
  An unsecured loan would do nothing for you but land you into trouble as you could keep on paying more interest than is your due for it. If you know what is a personal loan then a personal loan and an unsecured loan are the same things.
     
• What is Defaulter Loan?
  When you use a credit card to make a purchase or you take loan for a lender you agree to a certain set of repayment terms. The repayment guidelines inform you how and when do you need to repay the amount whether it is weekly or monthly etc.
    
• What is Jumbo Loan?
  The housing bubble has been very disappointing for people wanting to buy their dream homes. The prices of some starter homes in some places have made people look towards jumbo loans to get the house of their choice.
     
• What are Pay Day Loan?
  Pay day loans are also known as cash advance loans and these are short term loans with a high rate of interest to generate cash between payments of wages.
     
• What are Conforming Loan?
  A loan that conforms to limits set by Fannie Mae and Freddie Mac is known as a conforming loan. The loan that exceeds these limits is known as a jumbo loan and carries a higher rate of interest.
    
• What is Home Equity Loan?
  An owner can access the equity in their primary residence without having to sell his property such a settlement is known as a home equity loan. Equity is the amount that is the difference between the value of the home and what is owed against it.
     
• What is Margin Loan?
  The loan provided by a brokerage house to customers for the purpose of buying stocks on credit is known as a margin loan.
     
• What is Monthly Statement?
  A personalized financial record that keeps the person abreast of the status of his account is called a monthly statement. This information is mailed to the recipient nearly around the same date each month.
    
• What is Home Equity?
  The amount of money already paid by you against the value of your home is known as home equity. To determine your home equity just perform a simple calculation subtract the amount of the mortgage balance from whatever is the present fair market value of your home.
    
• What is Debt Relief?
  The way you get relief from your debts through various methods like contacting your creditors for easier repayment options, debt consolidation or filing of bankruptcy is known as debt relief.
    
• What is a Gas Credit Card?
  You might feel that buying gas has become very expensive these days. So if you wish then you can avail a gas credit card that will offer you a rebate on your purchases of gas.
    
• What is the Prime Rate?
  The rate at which the banks and lenders give credit to their most trustworthy customers is known as prime rate. Loan products like automobile loans and personal loans take the prime rate as the base rate.
    
• What is FICO Score?
  A method to measure the credit worthiness of a person without actually having to access the financial history and records of the person is known as the FICO score.
     
• What is an APR?
  This is the Annual Percentage Rate that is used to express the cost of credit. This is the amount that a customer needs to pay yearly for acquiring credit or loans etc. It is law that the lenders have to disclose the APR to the customer fully.
   
• What is Airline Credit Card?
  There are a number of credit cards offering the perk of frequent flier bonuses. These cards provide you with bonus flier miles depending upon the amount that you have spent through your card.
    
• What is an Internet Bank?
  The internet has come as a revolution for all of us. The way we live our lives has changed completely. There is the opportunity of shopping, studying and even working from home online.
      
• What is a Line of Credit?
  Line of credit is also called a credit line or a credit limit. This is the maximum amount of cash that a bank or lending institution will lend to some one without asking for additional approval.
   
• What is an Adverse Credit History?
  You might know adverse credit history by a host of other names. For instance bad credit history, poor credit history, impaired credit history etc.
    
• What is Bill Consolidation?
  When someone transfers all their outstanding loans and debts to one loan plan for bill consolidation then this process is called bill consolidation.
    
• What are Charge backs?
  When financial charges are reversed back in case of fraudulent or dubious transactions they are known as charge backs.
    
• What is Debt Management?
  The standard financial definition of debt management is the assistance of a third party to a debtor in managing their debts and repaying them.
   
• What is a Money Market Account?
  The term money market is a generic one that describes a place where the banks and other financial institutions lend, borrow and trade in money, certificates of deposit, and other financial instruments.
    
• How do I Remove Errors on my Credit Report?
  There can be many problems but fewer can be more troubling than errors on your credit report. This is because they are very hard to rectify and show for a long time on your report.
    
• What is Credit Counseling?
  This is one of the alternates to the procedure adopted by people who are not able to repay their debts, called bankruptcy. Filing bankruptcy is not so easy any more these days.
    
• What is a Wire transfer?
  Money that is electronically transferred is called a wire transfer. There is no actual exchange of cash in this electronic transfer only the balances in the accounts are adjusted accordingly.
    
• What is a sub prime loan?
  If someone is unable to get credit through the regular channel of loans then seeking a sub prime loan is the next option. These loans are meant for people with bad credit records.
    
• What is a spendthrift?
  You could be earning what someone can all a dream salary. However if none of it remains with you at the end of the month it’s completely useless. The world and life are both unpredictable.
    
• What is a Collateral Loan?
  A secured loan is known as a collateral loan. Such a kind of a loan is obtained from a bank or any financial institution and if the loan amount is not repaid then the collateral can be sold off to obtain the amount.
    
• What is a Credit Card?
  It may seem like an insignificant little plastic card that people seem to keep flaunting in their pockets but it is the end result of a complex banking procedure. The people who have such a card are allowed to purchase goods at credit upto a certain credit limit.
    
• What is an ATM?
  Earlier how many times did it use to happen that you were shopping and ran out of cash? You had to miss out on something favorite in the sale because you did not have a credit card also?
    
• What is Debt Counseling?
  At present times more than ever we seem to find ourselves in debt. This debt could be of any kind, credit card debt or whatever. Credit cards are one of the major reasons why people are finding themselves in debt.
   
• Gift Certificates?
  Many people view gift certificates as very convenient gifts. Gifts certificates are a better option than giving someone cash, but at the same time the recipient has the advantage of choosing whatever they like.
    
• What is Cash Advance?
  This is terminology for the credit card world where the card holders can borrow actual cash against their current balances. For most of the card users the actual advance that is available is just a small percentage of their over all credit limit.
    
• What is a Checkbook?
  A checkbook is that which consists of a supply of preprinted banking checks. It also consists of a registry that records the payments and deposits, deposit slips for all incoming checks and currency and a sleeve that contains a pocket for receipts.
    
• What is a Money Order?
  If there is a requirement of paying for something and one doesn’t want to write a personal check then the option is to buy a money order. Such a method of paying bills is still very popular today and many people prefer this over a personal check.
    
• What is a Credit Bureau?
  An organization that tracks the credit histories and other related information of individuals is known as a credit bureau. Whenever some applies for seeking some form of credit like housing, employment etc then the lender can check the borrower’s credit record on file with the credit bureau.
    
• What is a Credit Card Balance Transfer?
  When you are in debt applying for a credit card would be a foolish idea. However there could be one exceptional scenario where in it could be a good idea where credit card balance transfer is involved. This facility can be availed by you if you have a mail box and a social security number.
    
• What are Credit Reports?
  Reports that contain the financial status of a person and his credit history and which are used to determine the credit worthiness of someone are called credit reports.
    
• What is a Checking Account?
  It is a federally protected account that is provided by banks and financial institutions to business men etc for the purpose of depositing and withdrawing money.
    
• What are Prepaid Credit Cards?
  After applying for a credit card some people are rejected. This happens because of poor credit history. The major credit cards are used to make hotel, airline, car rental reservations etc, so the problem with poor credit history arises over here.
  
• Should I buy a home or keep renting?
  Everyone wants to own a home instead of staying in a rented one but buying a home is one of the important decisions that one takes in his/her life. As it is associated with one’s emotions, family and personal reason, its important to take the right decision at the right time. So before buying one should be totally honest to himself and ask the entire related questions that can affect the buying process including budget, requirements and the purpose of use, whether personal or business.
  
• Choosing Credit Cards
  Credit card is a kind of retail system that lends money to the consumer instead of deducting it from the account of the user unlike debit card. It requires the balance to be full paid in each month or else charges interest. Instead of interest rate credit card involves several other charges that include Annual Percentage Rate (APR), transaction fees, annual fees and several other charges. There are different credit cards issuing companies that provide credit cards with minimum fees.
  
• Payday "Cash Advance" Loans
  Bills are due! And you need money to pay off your bill within weak or you have to fulfill your daily necessity, and then go for a “Payday Cash Advance Loans”. Payday cash advance loans are the fastest short-term financial loans that meet your sudden financial requirements. This provides cash advance for some important work, as you can’t wait for your paycheck or payday to arrive. So Payday cash advance loan is the most preferred option which you can payoff as soon as you receive your paycheck.