Loan payments can be difficult to calculate. Generally, each month you pay interest for only that month – that’s 1/12th the yearly rate (APR = Annual Percentage Rate). You also only pay interest based on the loan’s current outstanding balance. Loan: Balance of 100 remaining at 12% APR Pay the loan off in 10 months. […]
Author Archives: Staff
Typical Interest Rates
Simple-interest loans are used for houses, cars, education, boats, airplanes and other large purchases. Once the loan is signed, the buyer starts using the item and begins paying for the rented money until the loan is repaid. The rental rate for money is agreed to by the buyer and lender. A house loan (mortgage) may […]
Layaway and Credit
Whats the difference between Layaway and buying something on Credit? When using a Layaway program, the purchased item is not given to the customer until they have completely paid for the item. A credit check is not necessary and there are generally no finance charges, because money is not being borrowed. Buying something using credit means […]
Credit Measures Responsibility
Borrowers with poor credit ratings are sometimes people who can’t afford higher interest payments. At first this seems like an unfair system which favors the wealthy, but that’s not true. Wealthy people have to earn their credit ratings through responsible use of borrowing. Everyone earns their credit rating this way, regardless of net worth. Some […]
Business of Lending Money
Money-lending is a business. Can’t believe we have to say that, but we do… and it’s the simple truth. Lenders need to be repaid more money than they lent out – or else there’s no point to being in that business. The original amount of money you borrow is called the ‘principal’ and the extra money […]
What is a Credit Bureau
As people borrow and repay money throughout their lives, they’re showing the world how financially responsible they are. Credit Bureaus are listening, and gathering data about payment histories – tracking people throughout their lives. That’s the goal anyway, but a credit bureau can’t magically track people. Many lenders want use credit histories to make decisions about […]
Borrowing money is risky
Most people take 15-20 years, accumulating enough wealth to pay for a house. If people had to save enough money to pay for an entire house before getting started, they wouldn’t be able to buy one when they need it. That’s the need to borrow money when buying something really expensive – this borrowed money […]
Mobile App Support
Frequently Asked Questions: Why can’t I edit the Total Value field? Press the opposite-arrows button to swap the Monthly Payment field to the top. Once you do this, all numbers entered will calculate the top number. What should I put in each of the fields on the main page? Touch that field, then a “…more […]