In this chapter, students will be able to understand: Know when to use consumer loans and be able to differentiate between the major types; identify the various sources of consumer loans; choose the best loans by comparing finance charges, maturity, collateral, and other loan terms; describe the features of, and calculate the finance charges on, single-payment loans; evaluate the benefits of an installment loan; determine the costs of installment loans and analyze whether it is better to pay cash or to take out a loan.
The immediate objective of social funds was to cushion the impacts of
adjustment policies on the poorest, not to attack the structural causes of
poverty. Although many experts stated that liberalization and global-
ization policies would benefit the poorest sectors, what has been con-
firmed is that the structural causes of poverty cannot be modified in the
short or medium term only by expanding economies.
When a consumer applies for non-mortgage credit, such as a credit card, unsecured line
of credit, or installment loan (e.g. for an automobile, or furniture), the potential creditor
(data user) can request a credit report (with or without a credit score) from one, two, or
three of the credit repositories. A repository that receives such a request will send the
credit report to the potential creditor, and record an inquiry on the consumer’ s credit
report. The creditor can use the information in the credit report to help decide whether to
extend or deny credit to the consumer,...
There are about eight to 16 million people with low
and moderate incomes and poor credit who earn
below $40,000 a year who are subjected to the sub
prime lending market. The Federal Reserve reports
that those earning $30,000 or less per year, such
as Jesus, paid an annual interest rate that was 56.1
percent higher than people earning $90,000 a year .
In addition, most buy here/pay here lots do not
report payment history to the credit reporting
agencies, which prevents consumers from strength-
ening their credit history through steady repayment
of their car loan. ...