When John Lyly first coined the famous phrase “all’s fair in love and war,” he couldn’t have conceived of credit card debt (the year was 1578, after all). But love was anything but financially fair to GOBankingRates reader Dana, who at age 54 has virtually no credit history — except for one credit card her ex-boyfriend maxed out and never paid. Understandably angry about the situation, Dana didn’t pay the balance either. For more than 30 years, she let the debt linger and did nothing else to actively bui ...

Despite laws prohibiting lending discrimination on the basis of age, it can be challenging for older people to qualify for financing. The rejection rate for mortgage applications rises steadily as people age, according to a 2023 research paper from the Federal Reserve Bank of Philadelphia.Lenders can ask your age on applications, but only for the purpose of gathering demographic data, as specified by the Home Mortgage Disclosure Act (HMDA) . The information is supposed to be confidential and not used to app ...

While most personal loan interest rates are fixed, federal rate changes and inflation do impact interest rates for new loan borrowers, although indirectly. As the cost of living rises and more Americans take on personal loan debt, it is important for consumers to understand how inflation and federal rate changes can affect their loans. Understanding current interest rate statistics and personal loan information can help you better plan for your own borrowing needs and get the best out of your loan. Bank ...

Sometimes you just need a fresh start. For many people, the new year represents exactly that: a time to wipe your slate clean, reset intentions, and start building new habits. Does that mean you can reset your credit scores in the new year and start fresh? Unfortunately, credit scores don’t “reset.” In fact, many people will see their credit scores drop in the new year due to debt they took on during the holidays. But that doesn't mean you're stuck with bad credit forever. Credit scores are shaped by lon ...

Core Insights - Low-interest personal loans are primarily available to highly creditworthy borrowers, with competitive APRs often below the national average of 12.21% as of December 31, 2025, and frequently below 10% [2] Group 1: Qualification Criteria - To qualify for the best personal loan rates, borrowers typically need an excellent credit score, defined as a score between 800 and 850, which indicates responsible credit management [3] - Checking credit reports for errors is essential, as inaccuracies can negatively impact credit scores; free reports can be obtained weekly from all three major credit bureaus [4] - Paying off revolving debt is crucial, as credit utilization ratio significantly affects credit scores; even small balances can lower scores enough to disqualify borrowers from the lowest rates [6][7] Group 2: Additional Requirements - A high credit score and sufficient income are vital for securing the lowest personal loan rates; improving credit scores before applying can lead to better rates [8] - Borrowers should shop around with at least three lenders or use a marketplace to compare offers, ensuring they meet criteria such as a FICO score above 740, an established credit history, and a bank account for automatic payments [8]

The primary difference between APR and interest rate is that APR considers all the costs of your loan, while your interest rate does not. When lenders display an interest rate, it only reflects the percentage they collect monthly on the amount you borrow.So, although your interest rate is just 13% , the true cost of your loan (when factoring in the cost of the origination fee) is 16.33% APR .Using the steps outlined above, here’s how to calculate your APR:Let’s say you borrowed a $15,000 personal loan with ...

Core Insights - Car-loan delinquency rates are projected to rise for the fifth consecutive year in 2026, although the increases are becoming smaller [1] - Household debt has reached a record $18.6 trillion, with mortgage balances making up the majority at $13.07 trillion [2][4] - The Federal Reserve is expected to lower its benchmark rate only once or twice in 2026, which may not provide significant relief for borrowers [4] Household Debt - The total household debt in the U.S. has ballooned to $18.6 trillion, with mortgage balances being the largest component [4] - Non-housing balances, including credit cards and auto loans, have increased, with credit card balances at $1.23 trillion and auto balances at $1.66 trillion [2] Delinquency Rates - Car-loan delinquency rates are expected to rise, while credit card delinquencies are projected to remain stable [1] - Mortgage delinquencies are anticipated to increase slightly due to a modest rise in unemployment [1] Lending Environment - Lenders have tightened underwriting standards, particularly affecting low- and middle-income households [6] - The job market will significantly influence loan approval difficulties in the upcoming year [6][7] Interest Rate Outlook - The Federal Reserve has signaled a higher threshold for interest rate cuts in 2026, which may limit relief for those burdened with debt [4] - If the Fed does cut rates, borrowers could see significant savings on mortgages, with potential savings of $929 for a 25-basis-point cut on a $370,000 loan [10] Credit Card and Auto Loan Insights - Credit card APRs are more directly influenced by the federal-funds rate, but even a full percentage point cut would only save an average cardholder $65 annually [15] - For auto loans, a 25-basis-point cut on a $30,000 loan would save $74 a year, while a 100-basis-point cut would save $295 [13] Consumer Strategies - Consumers are encouraged to improve their credit scores to take advantage of potential rate cuts [16] - Strategies include addressing delinquencies, maintaining low credit utilization, and negotiating lower interest rates with credit card issuers [20][19]

Core Insights - Home equity loans are a viable option for homeowners needing a lump sum of cash, offering competitive rates compared to credit cards and personal loans, with potential tax deductions available [1] Group 1: Home Equity Loan Overview - A home equity loan is a second mortgage allowing homeowners to borrow against the equity built in their property, with lenders typically limiting borrowing to 85% of home equity [2] - For example, if a home is valued at $390,000 with an outstanding mortgage of $245,000, the maximum loan amount available would be $86,500, calculated as 85% of the home value minus the mortgage balance [3][7] - Home equity loans provide funds in a lump sum, with fixed interest rates and terms ranging from 5 to 30 years, making budgeting easier [3] Group 2: Risks and Considerations - Home equity loans use the home as collateral, posing a risk of foreclosure if monthly payments are not met, and upfront closing costs range from 2% to 5% of the loan amount [4] - Borrowers should be aware that withdrawing funds reduces their home equity [4] Group 3: Credit Score and Loan Qualification - A credit score below 580 is categorized as "bad" credit, with many lenders preferring a minimum score of 680 for home equity loans, although some may accept scores as low as 620 [6][9] - If a borrower's credit score is low, they may face less favorable loan terms, such as higher interest rates, making it advisable to improve the score before applying [10] Group 4: Steps to Secure a Home Equity Loan with Bad Credit - Understanding lending guidelines is crucial, as most lenders require a maximum debt-to-income (DTI) ratio of 43% and a combined loan-to-value (CLTV) ratio of 85% [11] - Improving credit scores and reducing debt levels can enhance approval chances, with a focus on correcting any inaccuracies in credit reports [13][14] - Calculating home equity and CLTV ratios is essential, as lenders consider these metrics when approving loans [16] - It is recommended to shop around and compare offers from multiple lenders to find the best terms [17][18] - Organizing necessary documentation before applying can streamline the process and help avoid delays [19] Group 5: FAQs and Additional Considerations - Homeowners with bad credit should assess their financial situation before applying for a home equity loan, as alternatives like personal loans or credit cards may be more suitable [20] - The lowest credit score typically accepted by lenders for a home equity loan is 620, with better scores leading to more favorable rates [21] - If an application is denied, borrowers should seek feedback from the lender to understand the reasons and improve their chances for future applications [22]

Welcome back to Worldwide Exchange. Asusu is a leading fintech platform that helps renters build their credit by reporting their monthly payments to the major credit bureaus. The startup, which joined the CNBC disruptor 50 list this year, works with twothirds of the country's largest real estate owners and covers more than 5 million rental units.It's also struck a new deal to help to fund the company's growth. Joining me now to break down that news is Asusu's co-founders and CEOs, Samir Goyle and Muimo Abby ...

Core Insights - The discussion highlights the challenges faced by individuals who have paid off debt but struggle with credit scores due to lack of revolving credit [1][2] - The emphasis is on maintaining a debt-free lifestyle, with advice against acquiring new debt to improve credit scores [2] Group 1: Debt Management - Marsha from San Antonio shared her experience of paying off her house and car, only to discover her credit score was zero due to no revolving credit [1] - Ramsey reinforced that the primary goal was to eliminate debt, not to incur new debt for the sake of improving credit scores [2] Group 2: Credit Score Misconceptions - Co-host Jade Warshaw recounted her experience of expecting her credit score to drop to zero, only to find that the free site she used did not reflect her actual score [3] - The narrative illustrates a common misconception that a zero credit score is desirable, while in reality, it can hinder financial opportunities [3]