You would think that since consumer financing is numbers-based – a loan amount, length of term, and interest rate equals a monthly payment – it would be considered science. In the words of coach and ESPN College GameDay analyst, Lee Corso, “not so fast!” Things are often described as being either art or science, mainly [...]
Most of us have used a phrase from the past that has stuck with us years later. The phrase, “You can pay me now or pay me later” is one many of us remember and use. It’s from the FRAM oil filter commercials in the 70s and 80s. The implied meaning of the phrase in [...]
I continue to be amazed by retailers who hide the fact that they have consumer financing programs, as if it’s shameful. They should join Credit Providers Anonomous! If there were such an organization, and I may just start it up, you would find retail owners sitting together confessing about how they can’t admit they have [...]
The reports of snail mail’s death have been greatly exaggerated! Why? Just look at all those offers for credit or personal loans that show up. You can also turn on Sirius XM radio and get a steady dose of commercials touting online lending offers. While most are legitimate and can actually help, some are traps. [...]
It was bound to happen. For many years, we’ve been benefitting (unless you’re a saver) from low interest rates the Federal Reserve has engineered to help prop up the economy following the Great Recession. Low interest rates meant low borrowing cost. But, what goes down, must go up (take that Sir Isaac!) If you applied [...]
In the good ‘ol days, we had a nice neat hierarchical order to the credit lending – a prime lender, near-prime lender, and subprime lender. Well, those days are gone! Consumer finance (and even patient finance) lending has morphed and the lines have blurred. Today, you see traditional prime lenders “digging deeper” or approving lower [...]
Let me be clear - In no way are you a dummy! But, how credit decisions are made by a bank or lender can make you dumbfounded. While every person’s credit report has similar data categories – credit limits, account balance, monthly payments, credit inquiries, etc. – what a bank looks at when considering issuing [...]
Whether you’re a business offering financing options to consumers or you’re a consumer out looking for ways to pay over time for the things you want, you’ll be interested to know that financing programs are not static. The old adage “Nothing is certain but death and taxes” rings true when it comes to lending options [...]
The advertisements are everywhere. They’re on TV, satellite radio, mail, web browsing, and social media. Lenders want you to bring your outstanding balances to them with the promise of a lower rate, which may or may not be true. It sounds like a good idea – make three or four different payments become one. But, [...]
Some journalists have been sounding the rising debt alarm bell. While I’m not worried about current debt levels, I do take solace in the concerns being raised, as there was none of that pre-2008. What I will attempt to do in this post is to break household debt down for you. The Federal Reserve Bank [...]