Top credit information: facts you should know
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Can I cancel my credit insurance? How do people with bad credit get credit? Can I repay installment loans early? We’ve compiled ten popular loan questions that people ask online.
Average American credit card debt
American debt is getting worse every year. The average American’s credit card debt in 2003 was:
- Credit card debt $693 billion;
- TOTAL debt of $7.38 trillion.
As early as 2021, the average American’s credit card debt reached:
- $787 billion in credit card debt.
- Total debt $14.96 trillion.
The trend continues to worsen. Data Source: Federal Reserve Bank of New York (2021). The debt statistics are from the second quarter of each year.
- You can get a loan even if you don’t have an official job
It turns out that some banks give loans without a certificate of income, but you should not count on a large amount and low interest rates in such a situation. It is best to apply to the bank where you have a debit card. Banks often make special offers for their customers with more loyal requirements. This applies in particular to Online loans for bad credit.
But in any case, the borrower must have an income, albeit unofficially. If you have a source of income — You don’t have to borrow money, you have to live within your means. If you have no source of income — you don’t have to take out any loans, you just drive yourself into a hole. Find a better source of income.
2. What unofficial proof of income can I submit for a loan?
Some banks grant credit and require simplified receipts where income can be proven by free form statement, bank form, bank statement or even no proof of income. The total family income is also taken into account. Co-borrowers or mortgages increase the chance of approval and allow you to borrow on more favorable terms.
3. You can get rid of credit insurance
You just have to write an application and send it to the insurance company. You must also enclose a copy of the insurance contract with the application.
The company will refund the money within 10 business days. If you want the money to be transferred to a specific account, you should provide its details in the application. Note that if the contract has already begun, the money will be returned after deducting the services already provided.
4. Insurance can be returned for early loan repayment
First, you need to get a debt-free certificate from your bank. This document must be attached to the application for reimbursement of the sum insured. However, the possibility of the bank returning the insurance premium depends on the terms of the loan agreement and the insurance contract. One of three situations is possible:
- in the first case, you are entitled to a refund of the full amount of the insurance premium paid, without commissions and deductions;
- in the second case, the bank reimburses a partial refund, that is, the amount proportional to the duration of the insurance claims;
- in the third case, the sum insured will not be reimbursed at all. This situation is possible if the insurance contract provides that in the event of early payment of the loan to the customer, the insurance premium paid will not be returned. In this case, the customer has the full right to appeal to the court.
5. You can take out a loan against pledging real estate owned by a proxy
It all depends on the powers given by the owner to a person to dispose of his property.
If the power of attorney contains a right of disposal over the property in the form of pledging it to the creditor, you are entitled to invoke the security of properties that are not owned by them, to obtain a loan. It should be understood that the more specifically described in power of attorney cases, for which the owner gives you the right to pledge his property, the fewer questions the lender can have.
Don’t forget to get your spouse’s consent and permission to place the property in escrow.
6. It is possible to refinance a recent loan
Yes, but it’s a very specialized offering on the market. Most of them require the borrower to make at least 3/6 payments on the existing loan. But the main requirement for refinancing any bank is the absence of default on current obligations.
7. Repay the installment early
An installment received from a bank is a loan. The bank cooperates with the business. And the store gives the customer a discount on the goods in the amount of interest accrued on the loan.
8. You can get a loan even if you have a bad credit history
Borrowers with bad credit have the best chance of getting a credit card. So if you want to make up for past mistakes and improve your credit history, it might be worth first getting a card from a bank with a loyal risk-taking strategy and using it cautiously for a few years. A fresh history of on-time payments will help improve your reputation in the eyes of potential lenders and increase your chances of getting a bigger loan.
9. What should I do if a collection agency calls and threatens?
If the collection agency violates the law, the debtor should first collect as much evidence of the violation as possible — Call details, audio recordings of conversations, photos of messages. It is also worth contacting the prosecutor’s office.
The borrower can also refuse to interact with the creditor and his representative by registered mail with a list sent to the creditor’s legal address.
But! If your only home is a mortgage, it will be excluded from the list of properties that the lender does not have the right to foreclose on. Therefore, if bailiffs are trying to put your home up for sale and it is not included in the mortgage, you are welcome to apply for annulment of the bailiff’s decision to sell your home. The same applies to those who file for or plan to file for bankruptcy. Apply to the court to have the property excluded from the bankruptcy estate.