QandAs: Loans

Personal Loans

What is Credit?

Answer:
Credit is defined as a Financial Arrangements or Financial Borrowings by one party from another party and the amount is repaid at a later date with or without interest depending on the terms and conditions. Here the first party is known as Debtor (or Borrower) and the second party is known as Creditor (Lender).

Add Comment (0)

What is my Credit Rating?

Answer:
Credit Rating is defined as the rating which is calculated by the Credit Bureaus for estimating the ability of a person to repay the debts. The Credit Rating of a person is also known as Personal or Individual Credit Rating. If Credit Rating is calculated for a short period of time like 1 year than it is known as Short Term Rating and if it is calculated for a long period than it is known as Long Term Rating.

Add Comment (0)

What is Loan Deferment?

Answer:
The most common type of loan deferment, and the type that many people are familiar with, is the deferment of student loans. Basically, deferring a loan involves putting off the payments for a set time period, with no penalties. Student loans are often deferred when a student returns to school.

Add Comment (2)

What is Loan Delinquency?

Answer:
Loan delinquency is one step before defaulting on a loan. Whether it be a mortgage, a car loan, or a student loan, it is extremely important that the borrower make payments on time. Failure to do so can not only lead to late fees, but also put a stain on the borrower’s credit report.

Add Comment (0)

What is Loan Default?

Answer:
When a person borrows money, he or she typically signs a loan agreement, which states the terms of the loan. This contract includes the interest rate, monthly payments, and length of the loan. If the borrower fails to repay a loan according to the terms agreed upon, he or she is in loan default.

Add Comment (0)