Closed End Line Of Credit

I am financing dental work and the provider applied to Capital One and Care Credit for 5000 dollers to cover my expenses, I was apporved for both and since Capital One had the lower interest it is what we went with. I still have to $5000 credit line available to me from Care Credit, would it be wise to close that or do nothing, or even another option, use it for other expenses (i.e. my out of pocket expenses when/if I go to the doctor and then pay that off at the end of the month? I would most likley use it rarely so is that really a better option then just closing the credit line?

Closing won't improve your score, and closing it might ding it a little bit. But I wouldn't recommend leaving it open. Since you don't need it then close it down.

If you want to have almost like a virtual line of credit, I would encourage you to save up $5,000 of your own money in a liquid Money Market Account with check writing capabilities and a cash card (like a debit card for use at an ATM). This could be your little fund for unexpected emergencies, etc. And the good thing is it could earn you a little interest while sitting in the MMA.

2008-04-17 19:28:54 by Danny

Hey guys sorry it's been awhile. as those of you who follow me on twitter know (somewhat in the wrong order lol) I was at the epically long ...

Based on my understanding mortgages are closed end loans, and line of credit or personal loans are open end loans. My question is, why don't banks or institutions allow you to borrow a 200K or what ever loan to buy a home, where the home in its purest essence is practically the collateral of the loan versus getting a closed end loan (mortgage) where amortizing are taken into account and practically the first 5 to 7 years the person borrowing to buy a home is just paying interest and the result is that practically you are buying one house for yourself and another for the bank so to speak?

On a long term loan like a mortgage, as you pointed out, a significant portion of the first payment is interest. It goes down a little with each payment, but it might be that 90 percent of the first payment is interest. So the banks, wishing to be careful and prudent, want these to be closed end loans. They don't want you borrowing a huge amount of money, based on 80 percent of the house's value, and then turning around the next week and borrowing even more, as you could do if it were open ended. They want assurance that the loan to collateral ratio will improve over time. They certainly don't want you to owe more than the house is worth, which could happen if you borrowed more or if the value of the house went down. Open ended home loans are often second loans, and have high and sometimes variable rates.

2008-02-19 11:24:48 by Stephen L

I could no longer make regular 850.00 mo.pymts. I have been paying 350.00 pr. mo while trying to work with bank by sharing all my info. including new job info.,tax returns,monthly ex penses, etc, They denyed request for loan modification, they feel me and spouse make enough money, and at the end of this month they will write it off and turn it over to their in-house collection agency. I have no problem paying back money I owe, I just can''t pay 850.00 pr. mon. WHAT CAN I DO TO PROTECT MYSELF FROM WAGE GARNISHING, AND OR BEING SUED. MONIES FROM MY IRA ACOUNTS HAVE ALREADY BEEN DEPLETED AT THE BEGINNING STAGES OF BUSINESS BEING CLOSED, SO THERE IS NO LUMP SUM OF MONEY FOR ME TO NEGOIATE WITH, THIS WAS A BUSINESS LINE GUARANTEED BY PERSONAL SIGNATURE. HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!

First, you don't have a 31,000 unsecured credit---you have a debt.

Second, you cannot be garnished before they obtain a judgment against you by due process,

If they do turn it over to their in-house collections, you will have the opportunity to negotiate with that department; do so. You may still be able to work things out. In the meantime pay nothing more.

Even if everything goes against you, you are probably at least 6 months away from any perfection;relax.

Good for you for trying to work this out; just be sure to maintain your rights and to exert what little leverage you have.

RJ

2009-08-29 21:27:12 by Jimmy

I have a rather sordid tale to tell.. so please bear with me thru the gory details!
My ex and my divorce was final about 2 years ago. In the months before our separation, he convinced me to co-sign on a couple of loans with him. One was an unsecured credit card loan (a Tweeter account actually) for about $8,000, the other an unsecured line of credit with a credit bureau for an astounding $50,000. We had amazing credit at the time.... Enter girlfriend, and divorce - go figure. In our decree, he was ordered to pay child support, those 2 outstanding debts, as well as some outstanding income taxes. Since that time, he's quit his job, and is working as an independent contractor to avoid paying child support, or any other "garnish-able" fees. He was also supposed to cover our child with health insurance - this didn't happen either. I, on the other hand, bought a small house and have been working my fanny off trying to keep my head above water without his help. I've been paying on all the outstanding income taxes monthly, and have maintained perfect credit on my end - without his help in any way - including child support. However, those 2 loans are simply out of my abilities to cover. He has the stereo from the Tweeter account, and the $50,000 went who knows where... (let's ask the girlfriend!)
I received a knock at the door yesterday with notice of a pending judgment. I'm not financially not able to hire an attorney - Is there anything I can do to protect my house and my meager checking account?.... or can they seize my checking, and attach a lein to the house so I can't ever sell. Oh - I also forgot to mention that I closed on my house prior to the divorce being final, so, since Texas is a community property state, his name is on the Deed. He was ordered in the Decree to sign a General Warranty Deed over on the house, but of course that hasn't happened either. Feeling like I'm in deep do-do here. Any input would be VERY appreciated.

judgement blues, I found a huge online list of Texas credit card resources. http://www.howtofindcreditcard.com/Texas -Credit-Cards.html Try calling a local company and they can answer your questions.

2008-08-10 14:54:43 by MAC Attack

Around 2 years ago, my friend told me that her store needed some emergency money. I lent her 2 of my highest credit line credit cards, so she can swipe it in her own store when she needed it. I never took a look at the statements because she was paying the bills every month for 2 years.

One day when i look at the statements for the 1st time. She had swipe $10000 total from both cards and she only had repay $2000 total. I got mad. I changed the card #s and told her should pay me back quick.

That is not the end. Sometimes she gets mad about paying the normal bills and claims she will suicide if i continue to ask her for those money. Sometimes she saids she will call the police if i keep on asking for those money. She close her store early and cut her phone line to aviod paying. She even write me a few check that cannot be cashed.

How can i get my money back? Please help me.
Can i still call and claim those are unathorized payments?
It is indeed authorized, but who knows?
I never sign any recipe, can not prove that i am the one who use it the money. Also, dont people get suspicious when all $10000 was made at the same store?

I would recommend that you go to this website and get their form letters to collect on overdue debts. They have everything from polite reminders to legal forms to use. The link is...

http://www.creditmanagementworld.com/for ms.html

2007-08-13 18:35:01 by NBJring123