Missing loan payments can affect your credit in many ways. Here is the process of how late payments work:
Late payments are reported on day 30, 60, 90, 120, 150, and 180, which are negative marks on your credit score. At this point, the account is charged off. A charge-off is another new negative mark on your credit.
Once a collections agency is notified that creates a new mark.
All these negative marks can remain on your credit report and negatively affect your credit for 7 years.
If you receive pre-approved credit card offers in the mail, you may be wondering where they come from.
Keep in mind that receiving a preapproved credit card offer does not impact your credit score. So you’re safe there.
But, accepting the offer will negatively affect your credit.
So why you may be under the impression that the credit card will be easy to get and won’t impact your score, you could get impacted once the loan goes through.
When the lender requests your credit info, it will be in the form of what is known as a “hard inquiry” on your credit. That means a record of this inquiry will remain on your credit report for 24 months.
Because of this be cautious about who you inquire with. The more offers you accept, the more hard inquiries are made on your credit.
Peer to peer lending is an online platform that allows you to borrow directly from an individual instead of from an institution.
Peer to peer lending is growing in popularity because it’s a simple process that’s a win-win for borrowers who pay low interest rates and investors who earn high interest rates.
You can borrow for as little as 6% and earn an average return in the double digits.
Here’s how it works…
Borrowers post a loan listing that includes the amount they want and why they want it. Investors review loan listings and choose the ones that meet their criteria.
Peer to peer lenders screen all applicants and check the credit, which becomes part of your loan listing. Your credit will still mean something, but an individual investor may be more empathetic to your situation than a traditional bank.
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Credit card companies flood college students with credit offers. It may not be a great idea to act on them, but if you do you should be equipped with the best information out there so you don’t make the same mistakes others have made.
The biggest mistake people make with credit cards is that they rack up a lot of credit card debt.
Instead of doing that, you should use this is an opportunity to build credit. Take a look at these important credit card terms every student should be aware of below:
Additional cardholder – Credit card companies will allow another user to be on the account. The additional cardholder is not usually liable for making payments on the account, which remains the responsibility of the main cardholder.
Authorized user – Authorized users are people who have permission to use the credit card.
Co-signer – A co-signer is a person who is obligated to pay back the loan from the credit card just as the borrower.
Many real estate agents and investors have college degrees, but they are not specifically real estate-focused. The reason being that a college degree is not necessary for a real estate career.
For investment, the best teacher is real life. You won’t get the same experience learning in a classroom as you would on the job.
College can give students a false sense of confidence. They may believe the classes they are taking are preparing them for the job, but a hiring manager may disagree.
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