Sentences with phrase «risk of loan default»

FICO scores range from 300 to 850; the higher the score the lower the risk of loan default to lenders.

There could be a greater risk of the loans defaulting (putting your money at greater risk) if:

There is a greater risk of the loans defaulting and therefore your money is at greater risk if:

Not exact matches

Remember though, if you default on a secured loan then the assets or asset class you used as a security could be seized by the creditor in a Court procedure that could also put your company out of business, so there is some element of risk to consider with asset - based financing.

These types of loans also carry other risks, such as demand provisions under which a bank can arbitrarily demand repayment, as well as high default rates, putting borrowers in a difficult spot.

Whereas default risk is a natural disincentive to loose lending, from the banks» perspective, the risk of issuing mortgages is minimal, which helps to explain why they're willing to loan money at such low margins.

In order to prevent the risk of default, do your research and plan ahead to ensure that you will have enough money coming in to always make your loan payments on time.

Mortgage insurance refers to any insurance policy that protects lenders against the risk of a borrower defaulting on a mortgage loan.

Because its purpose is to reduce risk to lenders, mortgage insurance is priced to reflect the relative danger of the borrower defaulting on the loan.

The researchers at myFICO say that consumers who open several credit accounts in a short period of time are a greater risk to default on their loans or miss credit card payments.

Ultimately, if you're struggling with your current payments or are at risk of defaulting and still have several years left on your loans, debt consolidation might be a good idea.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

If you are currently delinquent on your student loans and at risk of falling into default, the time to act is now.

Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

This form of lending is concerning for three main reasons: Like storefront payday lending, auto - title lending carries a triple digit APR, has a short payback schedule, and relies on few underwriting standards; the loans are often for larger amounts than traditional storefront payday loans; and auto - title lending is inherently problematic because borrowers are using the titles to their automobiles as collateral, risking repossession in the case of default.

And while federal loans come with their own set of challenges and risks, all 1.37 million private loan borrowers are often subject to fewer protections and less flexible repayment plans than those offered under federal loan agreements.Less accommodating repayment options and more rigid terms can quickly lead to private student loan defaults, which is a dangerous financial place to be.

Lenders in America's $ 1.2 tn car - loan market are extending terms for as long as eight years, meaning they face a greater risk of defaults and meagre...

Lenders set their mortgage rates in order to offset the risk of borrower default, and also to make some profit on the loan (it is a business after all).

Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.

The Financial Services Authority (OJK) said it was considering setting a cap on interest rates and the size of loans offered by fintech firms, in a move aimed at minimizing the risk of defaults.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

The primary risk of not paying back a delinquent loan is that the account goes into default.

Without the funds, Greece will almost certainly default on its next loan repayment, due at the end of this month, and risks ejection from the 19 - nation Eurozone which looms as a giant unknown to global investors.

For borrowers unsure of their future finances, interest - only loans are not a good choice, as the benefit of low initial payments is likely not worth the risk of defaulting on the loan.

There's a bigger risk of defaulting on a renovation loan when you have less money invested in your home.

If the true number of Imminently at - risk loans is somewhere between 13 and 15 million, the default and foreclosure crisis is about 60 % over.

These types of loans can attract borrowers who are likely to default and would be at risk of losing their home or car.

It also won't put any existing assets at risk of repossession, should you default on the loan.

Such options often include local automobile dealers and / or local finance companies which are likely to charge them higher interest rates to offset the higher risk of them defaulting on loans.

Borrowers with a poor credit score are seen as being at a higher risk of defaulting on a loan.

Countries continue to loan because they trust that future profits from interest outcomes the risk of the other's default.

Allowing defaulting on student loans changes the risk profile of the loans, which primarily affects the interest rate.

In the 50s, a mathematician named Earl Isaac and his engineer friend, Bill Fair, devised a model they called Fair, Isaac, and Corporation (FICO) to evaluate the risk of an individual defaulting on a loan.

Rather than looking to emulate the English model of the 1990s, the U.S. might instead consider emulating some key features of the modern English system that have helped moderate the impact of rising tuition, such as deferring all tuition fees until after graduation, increasing students» ability to cover living expenses, and automatically enrolling all graduates in an income - contingent loan repayment system that minimizes both paperwork hassle and the risk of default.

Rather than looking to emulate the English model of the 1990s, the U.S. might instead consider emulating some key features of the modern English system that have helped moderate the impact of rising tuition, such as deferring all tuition fees until after graduation, increasing liquidity available to students to cover living expenses, and automatically enrolling all graduates in an income - contingent loan repayment system that minimizes both paperwork hassle and the risk of default.

Since there is no collateral, there is no risk of repossession and the lender will probably find it very difficult to recover his money if you default on the loan monthly payments.

Because collateral reduces the lender's exposure to the risk of default, secured personal loans have lower interest rates than their unsecured counterparts.

Therefore they consider your previous loan repayment history when measuring possible risks of default and the interest rate to assign to your loan.

There's a bigger risk of defaulting on a renovation loan when you have less money invested in your home.

For younger students, who do not have sufficient credit history, monthly payments on private student loans could be hardly bearable, as the interest rate set by lenders is typically very high to offset potential risk of default.

While bad credit lenders approve many loan applications and grant financing to people with past credit problems, it does not mean that they do not protect themselves from risks of default.

For borrowers unsure of their future finances, interest - only loans are not a good choice, as the benefit of low initial payments is likely not worth the risk of defaulting on the loan.

So, the risk of defaulting on an unsecured personal loan becomes practically nil.

It is open to homeowners who have already defaulted on their mortgage loans, as well as those who are at risk of defaulting in the near future.

Falling behind on your loans can put you at risk of default.

A high CCR means the borrower has a better chance of getting the loan and that the collateral will pay off the loan in the case of default without putting other assets at risk.

To take the above example further, it's likely to make even more sense to pay less on student loans when you're at risk of missing payments or defaulting on your loans.

In addition to pricing in risk of default and other expenses, private student loan lenders try to build in a profit margin that makes them competitive with other lenders.

They analyze data from millions of consumers, and determine what factors accurately predict your risk of defaulting on loans.

Since investors» money and risk of loss is directly tied to an individual borrower, it could present the borrower with an unsafe situation if they were to default on a loan with their identity or personal details known.