Local-financial.net Blog
Life Insurance As An Investment
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Life insurance was never designed as an investment. However, life insurance companies have refined this product over many years to accommodate consumer demand and regulatory requirements. Today, you can buy a life insurance policy that functions as an investment. There are three kinds of policies that allow you to do this.
7 Tips for Increasing Your Credit Score
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Your credit score is one of the most important numbers in your life. A good credit score can help you get the best rates on mortgages, auto loans, and other types of credit. If your score is poor, you will find it difficult to qualify for credit and may pay outrageous interest rates on your loans and credit card accounts. If you already have a poor credit score, do not despair. There are several ways to improve your score without resorting to illegal or unethical tactics.
Bankruptcy Basics - What You Should Know Before You File
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Hundreds of years ago, a debtor who was unable to pay his debts was frequently thrown into debtor’s prison. Luckily, a debtor who has run into hard times no longer faces such harsh punishment in the United States. The United States Bankruptcy Code provides protection for individuals, couples and businesses that are unable to pay their debts. While each situation is unique, there are some bankruptcy basics that anyone who is considering filing for bankruptcy under the Bankruptcy Code should know.
Read more: Bankruptcy Basics - What You Should Know Before You File
Obtaining a Home Equity Loan Despite Having Bad Credit
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If you have a less-than-desirable credit and you need a big sum of money, you can take advantage of the equity in your home. You have built up your equity in your home if you’ve had your home for two years at least and you've been religiously paying your mortgage amortizations. Your equity is the difference between the total value of your home and the unpaid amount on your mortgage. If you want to know the exact value of the equity in your home, have your property appraised. Then, check your latest statement for the outstanding balance on your mortgage account or inquire from the mortgage company. For instance, if your home's total value is $250,000 and the unpaid amount on your mortgage is $100,000, your equity is $150,000.
Read more: Obtaining a Home Equity Loan Despite Having Bad Credit
What Does the APR of a Credit Card Really Mean for the Average Consumer?
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Summary: APR is a term commonly used to describe interest rates for investments and credit lines. For the average credit card consumer, it may not be readily apparent what emphasis should be placed on APR as compared to other terms in their credit card agreements. The average credit card consumer should have a simple understanding of what APR is and how APR and other common credit card agreement terms apply to their individual credit card habits. For the average credit card consumer, APR should be an important consideration when choosing between credit cards.
Read more: What Does the APR of a Credit Card Really Mean for the Average Consumer?
The Potential Consequences of Co-signing a Loan
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If you have good credit, co-signing a loan for a friend or family member with credit problems may seem like a simple way to help someone you care about secure the financing necessary to make a large purchase. Unfortunately, co-signing a loan can have unpleasant consequences that can negatively impact your credit score and your financial freedom. Once you co-sign a loan, you cannot revoke your signature. Therefore, it is vital that you take the risks into careful consideration before putting your good credit on the line.
How Credit Card Balance Transfers Affect FICO Score
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While credit card companies place a high importance on customer retention, they also spend millions of dollars each year in an effort to attract new customers by stealing them away from other banks. By offering balance transfers, credit card companies allow consumers to transfer outstanding debt from their current credit cards to new accounts. Balance transfers carry many benefits and can help you save money, pay down your balance faster or consolidate debt. When transferring credit card debt, however, it’s crucial to remember that doing so could have an impact on your FICO scores.
Read more: How Credit Card Balance Transfers Affect FICO Score
The Drawbacks of Mortgage Assumption Agreements
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One option that homeowners facing foreclosure rarely consider is allowing a buyer to assume their mortgage loans and relieve them of the burden of making a mortgage payment each month. Before you start actively searching for someone willing to take your mortgage off your hands, however, you should be aware of some of the dangers that accompany transferring your mortgage to someone else.
How A Balloon Payment Affects Your Mortgage Loan
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A low monthly mortgage payment is a common goal among homebuyers. Knowing this, some lenders offer loans that contain a balloon payment. Balloon payment loans provide homebuyers with reasonable monthly payments and often allow buyers to qualify for a larger mortgage loan. These loans come with a catch, however, as the homeowner must pay a much larger than normal payment to the lender at some point during the mortgage term. Because of this, many consumer advocacy organizations consider mortgage balloon payments an example of predatory lending.