 Score currently crap (601equifax, 595 experian, and 549 trans)? |
| My score was 750 until my spouse lost his good paying job, and couldnt get equivelant pay so our income drastically dropped. We continued to pay good on house and cars, and tried to make cc payments.... |
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 How can I improve my Credit rating in order to get just one credit card? |
| There has been some sort of bad credit go against me due to a dispute I had with a lender a few years back. I have nevertheless settled all my debts in full but this bad credit rating still remains. I... |
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 What do i do now? |
| Lately i have been receiving weird e-mails.Saying that i need to give them my account number,my full name and my passport number because of someone i hardly knew that had died in 1998.His name is Mr. ... |
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 Must wife pay credit card debt of deceased husband? |
| will wife assets be used to pay credit card debt of deceased husband with no liquid or hard ... |
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 Bad credit history, who to turn to for credit help ? |
| I have a fairly bad credit history, but need to get a credit card, can anyone sugest who to apply to please.... |
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| A friend of mine was discharged from her bankruptcy early december last yr and wants to get a visa card so she can pay for goods in shops and over the net.She doesnt want an overdraft or any credit, ... |
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 Am I going to be forced to live in a cardboard box? |
| I will graduate in 2 weeks with a Master's degree in Mental Health Counseling. Yes, this is a great accomplishment, but it has come with a hefty pricetag of about $90,000 (undergrad debt ... |
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 Does your credit score go down everytime somebody checks it? |
| Ive heard that and I was wondering how many times does it take for your credit score to decrease? Im trying to buy a car and two dealerships have checked it so far but i want to try one more car ... |
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 Pay off car, or pay off credit card? If anyone can give me financial advice it would be appreciated.? |
Ok, so here is the sisuation.
I have a new car loan for 21,000K dollars, at 8.5% interest. My payment is about 390$ a month.
I owe a installment payment to Bank of America, for two credit ... |
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 Applying for a credit card that would build my credit report? |
| Hi all, I am new to the united states and has been living here for a year. My current credit score is between 600-700 and I want to open a new credit card account to build my credit history here. W... |
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 Bankruptcy possible? |
| We are a family of 3, annual income about $21k. We have about $5k in credit cards, $7k in medical bills, $14k in student loans, and $2k in miscellanous debts (utilities, etc.) As well as about $15k ... |
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 What is the best first credit card to get? |
| I would like one hat has good rewards, with no annual payments, i have no ... |
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 Why do so many people fall into credit card debt so easily? |
| A lot of people before they get credit card are determined to make full credit card payment every time and say that they can never fall behind because they are responsible. But after a short while, ... |
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 Debit Card Question? |
I have a debit card with about 800.00 dollars on it. Can I use it like a credit card at clothing stores, apple inc etc. By that I mean not over the internet, at the actual store.
thanks
... |
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 Does filing bankruptcy mean I loose my car & house? |
| If I file bankruptcy will I loose everything I have? Will all my debit be down to zero? How does bankruptcy work?... |
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 After I pay my debts, how long does it take for my credit to rise substantially? |
| I will pay off all of my debts in 6 months. Will my credit go up immediately after they're off of the books?... |
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 How do I improve my credit score quickly? |
| My credit score is far worse than I thought, and is dropping by the minute. I have a lot of debt, and little to no time to pay it off. I HAVE to buy my house in June and basically have to raise my ... |
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 Credit card? |
say i dont pay my credit card bill and the bank that has my savings and checking also issued me a credit card,can they go into my account without permission and take the money to pay my bill?
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Snakes on a Plane | What exactly is a balloon payment? |
We're not speaking of mortgages here. Balloon payments are also for cars. |
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quizzard123
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A lump sum payment made at the end of a loan or lease period.
Balloon payments are sometimes used to lower monthly payments on the loan. What happens is that the lender calculates a large payment (on a car it might $5000, $10,000, even more) that is due at the end of the loan. It allows a slightly lower monthly payment to be made over the early years of the loan, with the downside that there is a large payment due at the end. It also generates a significant amount of interest over the years.
For instance, on a $20,000 car loan, a typical monthly payment might be $394 over 5 yrs. If we add in a $5000 balloon payment, the monthly drops to $324. That might make it something the borrower can handle. |
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src50
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A large one-time payment due at the end of a loan. |
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tslavik2001
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It's the same concept for mortgages, cars, and any other type of loan.
The balloon payment is a large lump sum payment made at the end of the loan term. It is used to bring down the monthly payments.
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Joe R
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To make loans attractive to borrowers, lenders sometimes offer loans in which the monthly payments are low. But making such small payments, doesn't pay off the entire loan within the life of the loan. They usually require a large final payment to pay them off, called a "balloon payment".
Borrowers who forget they have a balloon payment are often caught short when it's time to pay it. You should anticipate yours and start saving money for when yours is due. |
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Thomas
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one huge last payment |
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brodie1716
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First off do not do one without carefull consideration.
But basicly if you borrow 10,000 that payment would be about 200 a month for 60 months but lets say you only want to pay 150. Then you could get a ballon paymne were you pay 150 month for 60 months but you would owe 2500 as the last payment. People will do these on cars because they can assume they can sell the car for 2500 at the end and save some money each month. This is a very bad idea! Most likely the car will not be worth as much asyou think and even more likely you will not even keep the car that long in the first place which means you have been paying 150 instead of 200 which means every month you owe 50 more then its worth so over a few months that can add up quick. Now this was a very simplified answer but long and short I sold cars for almost 5 ears and I never once saw this work well for anyone. Terrible idea buy what you can offord and nothing more there is no good way to get more for less. |
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Rex K
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It's when you hit the "end of the road". |
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rmm
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A balloon payment is something to be AVOIDED, unless unusual circumstances apply - such as you have a large amount of money tied up in something (like a CD) that you can't get to until later.
Like others said - you pay a little each month (interest only perhaps) and a big balance at the end of the loan.
You are gamboling that you will be good enough to save money or get extra money at the end of the loan - good chance it won't happen. Then you will be stuck with a big bill that you can't pay and will have to get another loan to pay off the balloon payment. |
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Worldly25
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Car costs 30k. You make monthly payments for 3 years, 36 months.
Only 500 of the monthly payment is toward the principle so at the end of 35 months you have paid 17,500 The 36 month payment is the balloon payment of 12,500 so the car is paid in full. |
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