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Discuss one advantage and one disadvantage of consumer credit.
Weegy: An advantage of consumer credit would be that people are actually able to afford to buy extremely expensive items, such as houses and cars. [ One disadvantage of it is that it's quite easy for it to get out of hand, meaning that your monthly credit bill is too high and you cant afford it. ] (More)
Question
Expert Answered
Updated 9/15/2010 11:47:56 PM
1 Answer/Comment
Advantage:
Your delinquent accounts will have a Re-Rating. If you started a credit counseling program with delinquencies already showing on your credit report, it is possible after a period of time to have those delinquent accounts re rated or re aged. Usually this can be done after three months of on time payments. You want your accounts to be re aged as soon as possible. The quicker it is done, the quicker your credit score will go up

Disadvantage:

Even if you know that you need to be in a credit counseling program, you may find that you still cannot make the minimum monthly payment. At this point you may want to consider debt negotiation. Visit GetPreQualified.com to find more information on debt negotiation and debt settlement.
Added 9/15/2010 11:47:56 PM
what is the difference between plurals and possessives.
Weegy: go to (More)
Question
Expert Answered
Updated 9/17/2010 3:35:04 AM
1 Answer/Comment
Plural means more than one.
Possessive pronouns-: mine, yours, his, hers, its, ours, theirs, and whose
Added 9/17/2010 3:35:04 AM
•What is collateral? Why is collateral required for some people and for some types of loans?
Weegy: Collateral is required for practically all loans. E.g. for a mortgage, the collateral is the house; for a car loan, the collateral is the car. Loans involve risk, and to reduce the risks, lenders require collateral to help insure repayment. [ Very good to excellent credit is not enough to eliminate risk - you have to put up something you would not want to lose to show "good faith" - intent to repay. Signature loans (i.e. those without collateral) only go to the bank's very best customers. You need superior (not just "excellent") credit, very high income, high net worth, long-standing relationship with your banker, etc, to prove ability to repay. The last person I personally know who got a signature loan has net worth well into 8 digits, and annual income of 7 digits. He's been known to his bank for decades - as have quite a few family members. Needless to say, his credit score is over 800 as well. Banks rarely do signature loans! ] User: Why is collateral required for some people and for some types of loans? Weegy: Collateral is required for practically all loans. E.g. for a mortgage, the collateral is the house; for a car loan, the collateral is the car. Loans involve risk, and to reduce the risks, lenders require collateral to help insure repayment. [ Very good to excellent credit is not enough to eliminate risk - you have to put up something you would not want to lose to show "good faith" - intent to repay. Signature loans (i.e. those without collateral) only go to the bank's very best customers. You need superior (not just "excellent") credit, very high income, high net worth, long-standing relationship with your banker, etc, to prove ability to repay. The last person I personally know who got a signature loan has net worth well into 8 digits, and annual income of 7 digits. He's been known to his bank for decades - as have quite a few family members. Needless to say, his credit score is over 800 as well. Banks rarely do signature loans! ] (More)
Question
Expert Answered
Updated 9/17/2010 12:17:43 AM
2 Answers/Comments
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation. If a borrower does default on a loan (due to insolvency or other event), that borrower forfeits (gives up) the property pledged as collateral - and the lender then becomes the owner of the collateral. In a typical mortgage loan transaction, for instance, the real estate being acquired with the help of the loan serves as collateral. Should the buyer fail to pay the loan under the mortgage loan agreement, the ownership of the real estate is transferred to the bank. The bank uses a legal process called foreclosure to obtain real estate from a borrower who defaults on a mortgage loan obligation.
Added 9/17/2010 12:03:56 AM
How Does a Collateral Loan Work?


A Collateral Loan is Secured


1. When a borrower gets a collateral loan, the borrower essentially "secures" the loan by giving the lender an ownership interest in the product being purchased. Most collateral loans are used to finance vehicles, homes or other big-ticket items that can be easily located and taken over by the lender if the borrower should fail to repay. In these cases, the financier takes ownership interest upon initiating the loan, and loans only the exact amount needed to purchase that property. In some cases, however, the bank may take ownership interest in an item--ranging from a vehicle to electronics to high-end jewelry or watches--already owned by the borrower in exchange for a cash loan. Regardless of how the loan is originated, the lender is granted an extra layer of security in its investment through its ownership interest; if the borrower should fail to repay, the item can be legally seized and sold to repay the balance of the debt.


A Collateral Loan is Reported to Credit Bureaus


2. Although collateral loans are secured, they are still valid loans. For this reason, lenders routinely report the loan activity, payments or late payment activity to the three major credit bureaus: Equifax, Experian, and TransUnion. Should a borrower fail to repay the loan, the delinquency will damage the borrower's credit rating in addition to the borrower's forfeit of the property used to secure the loan. Collateral loans are generally somewhat safer than unsecured loans, however, because many borrowers understand the risk and repay the loan in a timely manner. For this reason, many lenders are more willing to take risks on borrowers with collateral, making collateral loans an excellent method of building or restoring credit. Borrowers who have no credit or who have experienced serious credit problems in the past may find easier-to-obtain collateral loans a beneficial source of credit.


Reposession is an Option


3. Even though borrowers with collateral are generally more likely to repay, some borrowers do become delinquent and, ultimately, go into default. When this situation arises, the lender exercises its ownership interest in the collateral property and begins repossession (or, if the collateral is a home, foreclosure) activities. In many cases, lenders use licensed repossession or foreclosure agents local to the borrower, though some smaller institutions or local lenders choose to perform the repossession activity themselves. When the property is repossessed, the lender sells it--usually at auction, though some private sales do take place--in an effort to recover the remaining balance on the loan. If the balance is fully satisfied by the sale, the borrower receives a derogatory mark with the credit union and the ordeal ends. If the sale of the collateral does not generate enough money to satisfy the borrower's loan obligation, the funds are applied, the credit bureaus are notified and the borrower becomes responsible for paying the remaining balance. In many cases, the borrower simply forfeits the collateral property and repays any remaining balance, though extreme cases may force the borrower into bankruptcy protection.
Added 9/17/2010 12:17:43 AM
Which University resources have you been using to help you be a more effective student? How might those resources help you be more effective in this course?
Weegy: Some effective resources in or available around a university are books concerning specific topics. The best resources are asking a teacher for help. That what they are paid to do:) (More)
Question
Expert Answered
Updated 9/24/2010 11:50:29 AM
1 Answer/Comment
library is an essential part of a university, i consider it the best resources i can use to be a better student. in library, there can be a pc with internet which you can use to search for vast of informations which can be helpful to you studies.
Added 9/24/2010 11:50:29 AM
What are some things you can do to improve poor credit?
Weegy: Begin by opening individual savings and checking accounts in your name. [ Over time, your deposits, withdrawals, and transfers will demonstrate that you can handle money responsibly. Applying for a loan is another option, but be aware that this method of establishing a credit history will cost, since loans require the payment of interest. You could take out a bank loan secured by the funds you have on deposit or by items you own, such as a car. You could also ask a friend or relative who has good credit to cosign a loan, which means that he or she shares liability for the loan with you. ] (More)
Question
Expert Answered
Updated 9/20/2010 7:37:47 PM
1 Answer/Comment
Good credit repair advice can be found at
Added 9/20/2010 7:37:47 PM
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