Script

Everyday someone becomes in debt because of car financing, a loan, or rent to own 3DTUcompanies. You have to be careful when dealing with some of these companies; they advertise their service as the best deal ever but never put the down side to the contract on paper. According to Kimberly Amadeo In December 2016, U.S. consumer debt rose 4.5 percent to $3.76 trillion. Of this, $2.767 trillion was non-revolving loans, and it rose 5.1 percent. Loan Companies use media to get the attention of potential clients and to persuade them into buying their services. Here we are going to look at two different types of media that comment on debt. Media one is a commercial from Scarsdale Ford and media two is and ad from a Loan Company

Many businesses are requesting credit report authorizations from their applicants as part of their screening process for employment. According to the Federal Fair Credit Reporting Act (FCRA), the applicant must give the employer authorization in order for the employer to receive a copy of the credit report. (Rosen, 2000). Credit reports are requested by some companies to review and verify information regarding the applicant such as one’s identity, the amount of debt and also to help them to determine if one is qualified for the job. In addition the credit report contains a variety of personal information for example one’s first and last name, the social security number, current and

1. Case Study:  “Don’t Let Crooks Steal Your Identity: How to Protect Yourself-and Your Credit Rating” (p. 225)

How to improve your bad credit over time, is by pulling your credit report. You can gain the knowledge needed to fix your problems. “Credit reports are available through one of the three major U.S. credit bureaus: Experian, Equifax and TransUnion. Because of a change of law in 2005, each of the credit bureaus must provide you with a free credit report once a year, through www.annualcreditreport.com (Woolsey, B., 2016).

Making mistakes when it comes to your credit is a lesson that many people learn the hard way. Constant phone calls, mail, and threats can make a tough financial situation worse. Either how well or how poorly you manage your debts and finances are available to creditors to see when you apply for credit, such as for a retail store card, or even an auto or home

The United States lending industry’s main focus has become accentuating profits; therefore, they have made it impossible to live without a credit card in today’s economy and to avoid being taken advantage of by the banks. James Scurlock, director and producer of the film, “Maxed Out”, devotes his movie to informing the audience of the credit card system and its many flaws and gives examples of people who are majorly affected by the pressure the lenders apply. Throughout the movie, numerous statistics, and expert testimonies are presented, as well as comparisons and appeals to emotion. Through the use of this support Scurlock, is able to convey his overall message and propose numerous minor arguments that clarify

There is some scope for regulations to target the representations concerning credit repair, due to the strict limitations on removing credit

It is imperative that young adults comprehend the facets of obtaining and maintaining proper credit in order to sustain a sound credit history. For example, the most widely used credit score is Fair Isaac Corp.'s FICO score, which ranges from 300 to 850. A FICO score of 760 or higher reveals an individual’s respectable borrowing power, for even a recently reported late payment can have a substantial effect on a credit score (Holmes). In addition, young adults can learn the importance of securing proper credit and increase their attractiveness in lender’s eyes by aiming to use less than 20% of one’s available credit (“Get”). Since lenders pay close attention to the amount owed on credit cards relative to the limits provided, lenders are able

As the U.S. economy continues its struggle to climb out of a deep recession, personal loans remain very difficult to secure. Having shouldered much of the blame for the financial hardships that have befallen consumers across the nation, many banks now require potential borrowers to meet strict criteria for an approval. With the financial institutions being more selective about who they assist, Detroit locals like Ashley Wright are learning that consumers with excellent credit and decent paying jobs are the most likely to make the cut. "Getting an approval was definitely a journey," said Wright, who was in search of a personal loan to help out with school and living expenses. Wright found that a private bank was the best place to turn for

As it concerns trying to recover past due accounts from your debtors, they myriad of debt collection laws can, at times, feel like a stumbling block. Certainly, your primary goal is persuading as many delinquent customers as possible to pay their debts, and help keep your business' cash flow strong.

Title one of The Credit Card Act offers protection to consumers against rapid rate changes, as well as requires credit card companies to acknowledge one’s ability to pay off the credit card before approval. Under this title, payments must be on the same date each month, with the bill being sent at least three weeks in advance. Bills are also accessible to consumers online or over the phone at no extra cost (Public Law). These accommodations give consumers every opportunity to pay their bills with ease and in a timely manner. However, some people such as student, Carlos Macias, continue to argue that the method of which credit scores are accounted for leaving the companies at fault. Macias argues in his

So it is also attractive for Jules Kroll to take this opportunity to enter the credit rating industry. In addition, the “issuer pays” model, which used by the big three rating agencies, lets companies shop around for the best ratings, putting pressure on the agencies to inflate their grades. As a result, it is very difficult to argue that they can adequately represent the users’ side. Therefore, Jules Kroll wants to use another model that can assign unbiased and reliable ratings.

The company’s incentive system also encouraged brokers and sales representatives to move borrowers into the subprime category, even if their financial position meant that they belonged higher up the loan spectrum. Brokers who peddled subprime loans received commissions of 0.50 percent of the loan’s value, versus 0.20 percent on loans one step up the quality ladder. For years, a software system in Countrywide’s subprime unit, sales representatives used to calculate the loan type that a borrower qualified for, did not allow the input of a borrower’s cash reserves (Morgenson, 2007).

* Not only do borrowing and lending rates differ due to taxes and transaction costs, but some individuals are screened out of legitimate credit markets altogether due to informational asymmetries

As technology improves, the wide use of “hard information”, such as the borrower’s credit history, reduces informational asymmetries. Therefore, long-distance small business lending is easier (Frame, Srinivasan, \& Woosley, 2001; Petersen \& Rajan, 2002). However, even with the use of credit score data, collecting ``soft information" still helps local lenders control risks to avoid delinquency (DeYoung, Glennon, \& Nigro, 2008) and provides informational advances in offering more favorable rates (Agarwal \& Hauswald, 2010).