Why Improving Your Credit Score May Be a Wise Resolution for 2014

FEver considered a “pay day loan”? Check out the article below and avoid falling into the pay day loan trap and improve your financial position!

To many, it may appear that Americans are as addicted to credit as they are to their favorite latte, and the lending and credit industry has reaped the benefits, especially from those who have less-than-a-great credit score. One aspect of this fact appears to be changing based upon a recent announcement by federal regulators.

The announcement basically states that authorities who regulate the banking industry will be closely scrutinizing short-term loans, commonly referred to as “pay day loans”. The news is being heralded by consumer advocate groups who have expressed their concern that these types of loans should be classified as predatory lending.

In November of 2013, the Office of the Comptroller of the Currency along with the Federal Deposit Insurance Corporation (FDIC) issued a statement directed at banks that offer these types of loans. This statement advised that these lending practices were going to be closely scrutinized to ensure that the borrowers’ ability to repay, usually measured by credit score, was taken into consideration when executing the loans. Large banks in the US, including Wells Fargo, US Bank and Regions, are responding to the news by halting their offerings of such loans, many as soon as within the next few weeks.

Read the full article.

Source: InvestorGuide

Tags: Credit Score, pay day loans

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