Previous - 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - Next
- Qualifying Ratios
A qualifying ratio is the comparison of your debts to your income. They are used by lenders in deciding whether to make the loan, and under what terms. There are two ratios they use: the housing (or top) ratio and the total debt (or bottom) ratio. The top ratio is arrived at by dividing your housing costs by your income. To establish the bottom ratio, your minimum monthly consumer debt obligations (such as credit card and auto loan payments) are added to your housing expense, and then this figure is divided by your income. Generally, to qualify for a loan you would need a ratio of 28 on top and 36 on the bottom.
- Rebate Card
A rebate card is a credit card that rewards you for using it. The rebates are usually in the form of cash, services such as airline tickets or discounts on future purchases. A rebate card offering cash back returns a percentage of your total purchases to you each month, though your reward balance may need to reach a minimum before you can withdraw it or credit it back to your account. In general, these cards are useful if you pay your balance in full each month; otherwise the often higher rates of interest these cards carry can more than cancel out your rebate.
- Repayment Plan
A repayment plan is the schedule by which you pay back a loan on which you have defaulted. A repayment plan includes an amount that you agree to pay towards the principal on the loan and an interest charge. Usually a repayment plan requires monthly payments until both the principal and the interest are paid back in full.
- Revolving Credit
Revolving credit means that a lender agrees to extend you a specific amount of money continuously. With revolving credit, you can borrow up to the full amount of the loan, repay some or all of it, and borrow up to the full amount again. The total credit available to you will increase and decrease as you borrow and repay the funds. Interest is charged on the actual balance that you owe. Your payments are based on how much of the loan you have withdrawn, and the interest on that amount. Loans with revolving credit can be repaid over time or all at once.
- Reward Credit Card
A reward credit card gives you points, cash back or some other bonus such as airline miles for using it to make purchases. There may be specific conditions that must be met in order to get the rewards, such as frequency of use. These types of cards often carry an annual fee, and may have higher rates of interest than other cards, so they are most beneficial to those who pay their monthly balance in full.
-
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 - 10 -
11 -
12 -
13 -
Next
(4.80 out of 5)