What Is Revolving Credit and Why Could It Be a Problem?
As a real estate office or property management firm, credit screening becomes essential for considering prospective mortgagees or tenants. Unless the applicant is purchasing the home as an investment with trust funds or as a cash transaction, details about financial history prove whether the potential buyer can likely be trusted with a mortgage, to make the commitment of continued payments over years to come.
However, some applicants have real trouble with revolving credit, and their credit report will show how well they handle this type of credit. If they have a healthy credit report, the chances are they will pay back the mortgage. If their credit report is questionable (borderline), then they may have to provide more information to convince the lender.
Both installment and revolving credit are paid back to the lender in lump sums.
Installment credit is paid in equal amounts per month on the total sum which is determined when the loan is approved. Also, the total of the loan remains the same until paid in full. Think of a car loan, and you will understand.
Revolving credit, though, is issued as a total amount, but how much is expended and paid per month is up to the borrower. As the borrower spends against the total, s/he makes payments, and the total available “renews.” Credit cards are an example of revolving credit. So is a HELOC (homeowner’s equity line of credit). For an equity line of credit, the applicant pays a “commitment fee” as well as interest expenses as long as the line is open or until the terms are fulfilled, and the loan is paid.
Of course, credit card debt is not the sole place a potential buyer can get in financial trouble, but it is often a deep pit. If the applicant is not careful, revolving credit can cause damage to a credit report, particularly if only a minimum amount is paid and the interest is accruing. And it can take years to eradicate the debt and rebuild good credit standing.
A firm such as Data Screening.com can provide accurate and current information on any applicant’s creditworthiness. Cash flow concerns will be evident as will a complete financial picture. Then a real estate office or property management firm can approach a rental decision with confidence.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the New Jersey Staffing Alliance, the Society for Human Resource Management and the National Association of Professional Background Screeners. How may we help you today?
Watch Out for Holiday Scams: More than Excitement Is In the Air
While you are enjoying your decorating and cookie-making, keep an eye and ear out for those humbug holiday scammers. They are rife this time of year with all kinds of ingenious schemes and hacking plans to catch you off guard and “relieve” you of your cheer.
Fraud is an ever-growing force among consumers. Perpetrators have a singular way of “knowing” what to say, saying it fast and friendly and tricking you unaware. From fake charities to “phishing” for details, be mindful of a potential free-for-all.
3 ways you could be attacked
One of the cleverest hacks has to do with “updating” a troubled computer system. A caller from an obscure location claims to represent a major company which you have heard of or recently used. The caller, armed with partial personal information, who says he or she has recognized you are having trouble with some computer operations, promises to fix it like new. Once he gets your login and password, he can do all manner of “work,” and you will be none the wiser.
A second scam pertains to your credit card’s magnetic strip, which is easier to hack than the chip and pin readers now replacing the swipe system. Since Target’s massive data breach last December in which over 100 million had their card info and data stolen, the new system is a welcome deterrent.
What remains the most successful scam? Email phishing is still tops, especially fraudulent ones from shipping companies. These schemes try to get your passwords as most people will use the same one for several if not all accounts. If these phishers get the right one, they could be in your finances before you can say “pumpkin pie.”
3 ways to thwart an attack
Regarding a computer update scheme, get the individual’s real name, direct phone number, company name and supervisor’s name. Then offer to call him back at a more convenient time. This gives you time to verify whether he is who he says.
For credit cards, be sure to follow the prompts for the chip and pin reader. Keep receipts and review your account online daily to make sure all charges are accurate. Question any you don’t understand.
For emails, look at the email address first. If it is not the right domain name, chances are it is not legitimate.
During this holiday time, Data Screening wants to make sure you enjoy your shopping as well as your celebrations. These warnings might help you bypass some of the schemes and frustrate the fraudulent.
About DataScreeening.com
Data Screening is a Certified Women’s Business Enterprise that has offered business-to-business employment and tenant screenings to human resource professionals and business owners, including staffing companies, for two decades. Among other organizations, they are members of the New Jersey Staffing Alliance, the Society for Human Resource Management and the National Association of Professional Background Screeners. How may we help you today?