What credit score is needed to get an auto loan?
Creditors do not make decisions on loans based on your score. They look at your actual credit report. You can have a 740 FICO score and be turned down due to limited credit history. On the other hand, someone with a 640 FICO and extensive history will be approved. Basically, if you have less than 2 years of credit history, it will be considered limited and you will likely need a co-signer. In addition to clean credit report and mroe than 2 years of credit history, lenders consider your employment history and income -- both are more important than your score. Credit unions are more likely to work with limit credit history. They also tend to offer better interest. If you already have a car loan in your name, you have a good chance of getting approved for a refi thru your credit union. Don't refi for a longer term than the r.emaining term. Better to refi for a shorter term, even if you end up with the same or larger payment. Adding years to the loan means you will pay a lot more in interest
If someone has $1.5 million of debt from consumer credit cards, failed business loans, what happens if debtor goes to prison?
I know there’s no debtor prison in America that’s not what I’m saying. I’m talking about a case where a person is in a situation where rather than file for bankruptcy, or resolve a court order by s creditor legal suit where judge agreed his wages will be garnished wages... Debtor decides rather than live like this, he will commit a completely unrelated felony and get himself convicted with a very long prison sentence, something he did strictly to get himself behind bars Because In jail, how can creditors haste him if he’s in jail? They won’t garnish his 1 hour exercise or his prison food or the electric lighting of the state prison ... what now happens to that debt? He didn’t file for bankruptcy
What happens if someone refuses to pay credit card debt?
In the US, the typical process is:30-90 days after you don't pay, the creditor submits negative information to the credit reporting agencies The creditor enlists a collection agency to collect the debt After 6 months or so of non-payment, the creditor will "charge-off" the account. A charge-off is a tax accounting term, which adjusts the taxes owed by the creditor. It doesn't mean anything to the borrower except that their credit score will be hit hard. At this point, the account status on your credit report should go from "delinquent" to "closed by credit grantor/charge off" and a new account for the amount of the debt, with the collection agency as the creditor, appears.Depending on the statute of limitations in your state, the creditor or collection agency can sue you for the debt. (See Why Chat's Credit Confusion for state statutes.) After the SOL expires, the debt collector can still attempt to collect the debt but they have no legal recourse to sue the debtor, unless they restart the SOL by making a payment. After 7 years from the date of first delinquency (the first missed payment), the debt can no longer be reported on your credit report. The reality is that modern life will be much more difficult for people with bad credit - they'll have to do things like pay larger deposits on apartment rentals, have higher loan payments on their cars, need to use cash for just about everything and generally have a rough time when competing for resources (like housing) with people with good credit.
Can disabled people get a real credit card?
EDIT @ Judith - thanks for explaining. I'm sorry to hear that you, like so many of us, were victimized by the banks. Or maybe you will say it was all your fault, but I don't think so. They KNOW most people do not have the knowledge or discipline necessary to use credit responsibly, and they also KNOW that most people will only blame themselves, and rather than declare bankruptcy like any business would, they will instead slave away for many years to "pay their responsibilities". What bothers me is that they've made it necessary to have and use credit regularly to have a good credit score, which is necessary to avoid getting ripped off on auto insurance, or find a place to rent, etc.
How long should I wait in-between denied credit card applications to apply for a new one?
You should not go around applying for credit in too short a period of time, not matter if it is 30 or 60 or 90 days, no matter what, those credit applications affect ones credit scores. Your best bet is to forget a card for now, you would do better to open a secured credit card with a credit union. You simply deposit funds into an account that they hold to cover your credit purchases. If you deposit $500 then your credit line would be $500. Use the card and pay it every month and pay more then the minimum. After about a year, you will have enough of a history to help you obtain credit cards. When it comes to getting a mortgage, they (the lenders) want to see a history of how you make payments and how you handle your credit. They look at more then just your income. They also want to see the types of credit you have (revolving accounts, loans, and auto financing. You could start to build your credit if you were to shop around for an auto (nothing too expensive, even a used one real cheap will help you build a credit history). Shopping for things such as auto loans, loans, student loans and mortgages done so within a short period of time will not affect your score, FICO recognizes you are "rate shopping". FICO states within 15 days for older scoring methods. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score. You can go to the source area I have referenced to learn more on how to build ones credit, this is free info from FICO. Hope this helps answer your question.
A single man with a home rental lease and a car loan and credit cards gets locked up for 20 years. Do his creditors just take the loss? What happens to your financial affairs when you go to jail?
Going to jail does not relieve you of your financial obligations. People who are not considered flight risks are often given X days "to get their affairs in order" before they are to report to prison. In that time, they are expected to provide for caretakers of any property, or to divest themselves of it, pay existing debts, etc. If there is anything unresolved when their sentence begins, they can communicate with creditors from jail on a limited basis. Most people who wind up in prison don't have a lot of property to begin with. If they owe creditors, the creditors are probably going to eat the debt, as there are no assets to attach or onto which to place a lien. If they do have assets, the creditors can attach those to get at least a portion of their money if the assets are liquidated. I purchased a home from a couple who were breaking up, following a domestic violence episode. The husband was in jail. Each time we had to have documents signed, there was a delay until they could be brought to the jail for him to sign.
Getting a loan with a sub 600 credit score.?
Theoreticly if i needed $10,000 for something and my credit score was less than 600 should i even bother trying? Im going to need the money regardless but if i have no chance in hell of getting a loan im not going to pummel my already crappy FICO score even lower by asking for something im never going to get.