Being an "Authorized Account Holder" on Parents Credit Card is Affecting my Credit Score!?
Question:
When I was surrounded by college my mom opened a credit card and put me on the side as an 'Authorized Account holder', along with my two sisters. She never asked me if this is something that I considered necessary to do, but I know she meant in good health. I've been out of college for almost 5 years very soon, and I'm still on this credit card...and let's just say aloud my mom doesn't really pay her bill prompt and she's carrying a balance that doesn't look similar to she's going to pay bad anytime soon. This is affecting my credit score and coming up as my one and only "Adverse Account". I'm 25 years old and starting to have a sneaking suspicion that more about my credit rack up and my future. My question are:
1.) Can I remove my name or will my mom enjoy to?
2.) Will removing my name from this affect my credit evaluation (similiar to closing a line of credit does)?
3.) Can I be removed from this narrative when there is a harmonize (not MY balance but her balance).
Thanks surrounded by advance!
Answer:
An authorized user is an authorized user regardless if a SSN be given.
Either she can remove you by contacting the creditor - which would be the easiest, or you can dispute the account next to the CRA's.
Being removed may hurt your scores especially if it is your oldest or one of your oldest accounts. You would lose history plus you would be raise your overall utilization on the rest of your accounts - but - since she is not taking care of the description and since it is actually hurting you right in a minute, you may not see much of a drop when you are removed. (late payments are a major win killer) In fact, if she is constantly behind and/or maxing it out, you might get lucky and see your mark stay the same or if truth be told rise when it is removed - it's very firm to say exactly what will occur.
You can be removed when there is a set off on the account. You are single an AU and "you" are not liable for the balance.
Your mom will hold to and further the Credit Card company will have to agree to release you. I own some bad word... you're more than an "authorized user" she gave them your ssn and made you a co-maker on the card. Think of a business that have employee cards. Those cards do not report on the employee's credit report. Why? Because they're not surrounded by the employee's name. In your baggage, however, mom definitely added you to the report.
Actually it depends on the card. Some cards you can be an authorized user and they only enjoy your name, no social, others ask for your social. If they do not enjoy your social, your mom might be able to give the name them and take you stale the card. Then it will just be removed from your credit.
It largely depends on the tale that was set up. If you be under the age of 18 later they must remove you from the account and hold you safe. If you were over the age of 18 you may hold been duped to cosign. If you are indeed a cosigner than the portrayal will probably have to acheive a 0 symmetry and then you can be remove (the edge may close that account and reopen one contained by just her name) If you are merely an authorized signer on her account consequently a mistake has be made, and you need to contact the dune. They can relieve the debt and have it delete from the credit bureau.
I do not use credit cards, however my mother does and has my dub on 3 of her accounts. Thankfully they've all be paid on the dot and are now at or close by zero balance.
Over the years, I have tried to enjoy my name removed from these accounts through the creditors and the bureaus. All enjoy told me that she is the ONLY way to pinch my name stale the accounts.
Good luck!
Depending on the card issuer and how you are listed on the details, you may or may not be liable for any existing balance if you mother default.
As long as the account is current, you should be capable of get your term removed.
Worst case, you can write the card issuer and state that you will not adopt liability for any ADDITIONAL charges. Send that letter certified post, return receipt requested and maintain a copy. If they won't remove your name completely, you enjoy limited you liability to the current be a foil for.
Car hawker financing?
Question:
anyone knows how a used coup¨¦ dealer (new within business) can get bank or other financial institutions to finance vehciles to it's customers. do u know any bank who have programs similar to that? any related advise?
gratitude in finance for your time and help
Answer:
I am an Sales Manager for a Dealership contained by Indiana and can help you. There are tons banks that will contract "Direct" with you. There are profusely of things that you need to be aware of, and financing is not an assured thing to contract with, unless you hold someone trained to do so. I have be in the business for 15 years and hold seen profoundly of banks that own their own measures that they use. You will want to contact your local "big branches" and ask them for the phone number to their direct lending executive. They will have contracts for you to sign and you must abide by their rules, TILA law, and use the appropriate forms in proclaim to gain the funding without dare. Secondary lenders such as (Drive, Americredit, ACC...etc) are going to require much more stipulations such as paycheck stubs, complete phone bills, utility bills, pieces of mail...etc. You will want to enjoy a structure in mind within how you want to your financing department to be structured, and do not overload yourself with bank. It is better to have a few bank that you know personally, than 30 that you solitary send deal to once or twice a month. Feel free to e-mail me if you have more question at stevenlaureys at hotmail dot com.
Make contacts at your local banks and credit union. You can have your customer permeate out the application, fax it to the bank/c.u., and they will do the work of approving the financing.
When my dad had a big ticket item business (not cars, but it would work the same), i.e. what he did. The smaller credit unions minister to him the most, they seemed to want the business more than the big established bank.
Can I income a merchant in need them finding out my credit card numbers?
Question:
This is to avoid any other charges in the adjectives.
Answer:
Go with Paypall
www.paypal.com
Some credit card companies very soon allow you to generate one time use numbers for just that purpose. If your card does not allow this, see if they adopt PayPal or some other form of payment.
use a cashiers check, paypal or a prepaid credit card.
I doubt that a merchant will charge your card within the future though. If its a credit card company or something big they wouldnt want to lose their multi-million dollar company over something petty close to that.
If this merchant is a creditor...dont even bother cause if the see a copy of your credit report they already know your account numbers, etc.
Good Luck
Citibank cards enjoy a feature where on earth it generates a credit card number to be exact good for a one-time purchase. Check next to your credit card and see if they have that leeway.
Validation missive?
Question:
I recently tolerate my debt go to a CA. I've be reading questions on here that involve 'validation letters' that they own to send to lawyer. What exactly is that?
Answer:
June 13, 2001
Your Name
123 Your Street Address
Your City, ST 01234
ABC Collections
123 NotOnYourLife Ave
Chicago, IL
Date
Re: Acct # XXXX-XXXX-XXXX-XXXX
To Whom It May Concern:
This letter is person sent to you in response to a sense sent to me on September 30, 2002). Be advised that this is not a refusal to recompense, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is NOT a request for “verification” or proof of my mail address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your office provide me with competent evidence that I hold any legal prerequisite to pay you.
Please provide me near the following:
What the money you say I owe is for;
Explain and show me how you calculated what you vote I owe;
Provide me with copies of any papers that show I agreed to clear what you say I owe;
Provide a endorsement or copy of any judgment if applicable;
Identify the unproved creditor;
Prove the Statute of Limitations has not expired on this report
Show me that you are licensed to collect in my state
Provide me near your license numbers and Registered Agent
At this time I will also inform you that if your offices own reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this undertaking might constitute fraud under both Federal and State Laws. Due to this certainty, if any negative red mark is found on any of my credit reports by your company or the company that you represent I will not hesitate contained by bringing legal goings-on against you for the following:
Violation of the Fair Credit Reporting Act
Violation of the Fair Debt Collection Practices Act
Defamation of Character
If your offices are competent to provide the proper documentation as requested in the following Declaration, I will require at most minuscule 30 days to investigate this information and during such time all collection distraction must cease and desist.
Also during this validation length, if any action is taken which could be considered detrimental to any of my credit reports, I will consult near my legal counsel for suit. This includes any index any information to a credit reporting repository that could be inaccurate or invalidated or verify an account as accurate when contained by fact within is no provided proof that it is.
If your offices founder to respond to this validation request within 30 days from the date of your bill, all reference to this account must be delete and completely removed from my credit file and a copy of such deletion request shall be sent to me hastily.
I would also like to request, within writing, that no telephone contact be made by your office to my home or to my place of employment. If your offices attempt cell phone communication with me, including but not fixed to computer generated call and calls or correspondence sent to or next to any third parties, it will be considered persecution and I will have no choice but to record suit. All future communications near me MUST be done in writing and sent to the address noted surrounded by this letter by USPS.
It would be advisable that you assure that your history are in charge before I am forced to nick legal feat. This is an attempt to correct your records, any information obtain shall be used for that purpose.
Best Regards,
Your Signature
Your Name
A Validation letter is primarily a letter that you would convey to have the Collection Agency substantiate the debt that they say you owe.
There is nil wrong sending a validation letter surrounded by fact you should other send a communiqué if you know the debt is not yours. However, if it is a valid debt(and you know it is) this can be seen by them as you trying to hold them sour. This may or may not make them smaller quantity willing to work next to you to make arrangements beside them to pay it past its sell-by date.
A validation letter is a see sent to you by the creditor that lists the current charges including adjectives applicable interest charges that they have incurred It states your total obligaion to the company. It is prerequisite in a liquidation because it shows the attorney the total amount to file for, to close that justification so an addendum does not requirement to be later file.
A validation letter requests proof of the debt. Since you ADMIT contained by your question the debt is legal, don't waist your time. If you owe the money, they will provide the documentation and you will only own delayed payment and incurred more interest charges, and collection fees.
We own a room full of collection agents today!
Let me give you newly one example of why you should always bear out a debt.
I am working with someone in a minute who received a collection notice for $1600. The woman knew it couldn't possibly be that much and be scared to departure about it.
I help her draft a simple validation demand to this collection agent. After two months, no validation. Then we gain another letter from a clean collection agency..this time it's $1300!
You are demanding validation to make sure they are not insulation your debt (for one reason). If the CA thinks you are merely dodging the bill....well Boo Hoo! All they enjoy to do is FOLLOW THE LAW, send out the validation info, and natural life goes on. After adjectives, if they are going to sue you, they already have this info, right? They can't sue you lacking this info, right?
.....or did they lose your signed contract and bills? No paper, no lawsuit!
So within the case of the woman I'm helping.....why can't the validate this debt? They are currently surrounded by violation of the FDCA, and if they try to sue we will simply counter sue for their betrayal, wipe out the lawful fees and knock off $1000 from the debt.
I can't infer of any good defence not to send the reminder, can you?
Email me if you need a virtuous sample dispatch, or look at my past answers. I'm not on my department computer at the moment and don't have the connection handy.
How frail do i have need of to be to go and get a debit card or credit card?
Question:
my parents have be telling me that I necessitate to be at least 15 to capture a debit card I rly want to know thnx.
Answer:
18 is the age when you can get credit card or debit card. 'prepaid credit cards' these most recent cards are in truth a form of debit card. There is no credit offered, just the power of being competent to use plastic rather than change. This is helpful for transactions on the internet, booking holidays and hotels and transferring money.
Application process Applying for a prepaid credit card is natural as there are no credit search necessary, because the card providers are not offering you credit! The application is usually honourably quick and simple and within some cases the card issuers offer 100 per cent implementation - you don't even need to be 18 next to some companies. The best credit card option for you is prepaid credit card.
Prepaid credit card uses Not simply can a prepaid card enable customers who find it intricate to get credit, but this type of card can give support to you take control of your finances, if you hold found normal credit card interest rates too high-ranking and the balance offered too mouth-watering. You can be confident that you will stick to your budget with a pre-paid card, as you are the one who sets it by decide how much to top-up your card with!. Read more in the order of it at: http://www.credit-card-gallery.com/artic...
18
18 for your own account. i am not sure but parents may be capable of add your identify in their sketch once kid is 15.
yeah I think 16 or so to catch a debit card and for a credit card 18 years old
Usually 18, but not other. The credit card or debit card is not just an application but also a contract. When you enter a contract you must be of minimum permitted age to do so which in most cases is 18. However here are some exceptions. THe most common exception is to find a joint story with any a parent or guardian and have a card issued within your name. The parent or guardian become the legal owner and sole responsibility for the rationalization but you could get a card beside your name on it.
i own a debit card, i got it when i be 15, idk if it is technically in my describe or what but i can use it online and enter my own name and stuff, idk what age is required
You can be 13 to gain your own Debit Card (in Arizona) It might be different within some states, I would suggest calling your local bank
Ps, My favorite mound is Desert Schools , in AZ. Great Bank!!
That depends on where on earth you live. Most states in the US require you to be at lowest possible 18 due to contract laws.
I work for wachovia and you enjoy to be 18, visa will not give anyone specifically under that age a debit card, however you can hold a atm card
What are some dutiful prepaid debit cards/credit cards that you can use online?
Question:
Ok, Im sure everyone knows around the prepaid debit cards and credit cards that act as a legitimate credit card, just they are prepaid. I am looking for one that:
1. You can use online
<br>
2. Has a 3 digit warranty code (like for online)<br>
3. can be put into my name
4. you can buy/pay for it it through paypal
I enjoy almost $200 in my paypal justification, I need to procure it out. Also, I bought my mom a computer for her birthday and am trying to help her use it, she wont use her credit card online as she is afraid of anyone scammed, so I can just dispense her a prepaid debit card, kill two birds beside one stone :)
Answer:
Prepaid credit card uses Not only can a prepaid card see customers who find it hard to carry credit, but this type of card can help you pinch control of your finances, if you have found average credit card interest rates too high and the match offered too tempting. You can be confident that you will stick to your budget near a pre-paid card, as you are the one who sets it by deciding how much to top-up your card next to!
Most prepaid credit cards can enable you to: No longer own to carry currency when shopping Use an ATM to withdraw money - at home and out of the country Transfer funds - send money to other cardholders Shop on the internet near security Top up your mobile phone Have an supplementary prepaid credit card for family use - adjectives for a teenager for emergency use (usually 13 years plus for a name card holder). You can good credit card at: http://www.credit-card-gallery.com/prepa...
Try the All-Access card by NetSpend:
http://www.allaccesscard.com/
It's a prepaid Visa debit card so you can use it online lately like a credit or mound debit card and is personalized (has your name embossed on it). You can establish it without paying anything up front and verbs funds from your paypal account to the All-Access card using a routing number that you find on their website. You can do this even before the card arrives contained by the mail.
Does anyone know of a definite honest online loan service,close to a payday loan???
Question:
Answer:
you can go to
http://www.researchitforme.com/wesayes/p...
never to it online. someone could hack.
budge straight to the bank.
Payday loans are a high-speed but expensive way to gain money so please be sure to borrow only what you can conspicuously afford to pay rear the next time you gain paid.
Having said that, check out this website which have links to legit payday loan companies. I hope this helps.
Good luck!
Just a short time bit of information about payday loans...when you multiply it, it literally can equal 400% interest rates!! So it is a very expensive instrument to borrow and should be a last resort.
Can u lolly checks after guard of america closes?
Question:
can u still cash checks after the dune of america closes? I got remunerated and I'm 16 and I can't get my check cashed my Dad said because the sandbank closed.. can i still cash it somehow
Answer:
No. but you could deposit it surrounded by the ATM if you have a debit card and clutch cash out.
If you own a BOA debit card it will advance you $100 on a deposited check surrounded by the ATM. Otherwise you're only other alternative is a check cashing place and I really would not recommend you do that.
How much am I really paying off?
Question:
I am getting a loan for $8,000 dollars. I'm guessing that the intrest rate is probably going to be at a 20% percent intrest rate. How much will I end up paying off when I'm done?
Answer:
Assuming that the interest rate is actually as illustrious as 20%, your total amount paid wager on to the bank is $10,703.16.
Using a loan calculator, the monthly clearing is $297.31.
Take care,
Troy
Have to know the permanent status of the loan to tell.
If your first donation is 30-days from the date you sign the contract, you are paying back $10,702.80. If you first pocket money is 45-days you are paying back $10,786.32.
When you sign the final loan documents, it will inform you exactly how much you will pay on the contract. Read it watchfully.
You must also tell us the duration of the loan. The longer it is the more you will clear in total
Recently i own applied for credit to buy a vehicle. i hold be denied several times, i found fraudlent items?
Question:
according to the report i have an alias??, and nearby are almost 100,000.00 debt on my report that is not mine . i don't know where on earth to start. i have looked at several websites to run my report but i am exceptionally apprehensive now to do this beside all the problems i already own . do you have any design . thank you
Answer:
You can obtain a free credit report from the Credit Reporting Agencies because you hold been denied credit. Don't be apprehensive around doing it, it will be worse on you if you don't. If it looks like you enjoy an alias it is possible that you have any been a sufferer of idenity theft, or your credit profile has be merged with someone of a similar moniker or SS#. File disputes with the Credit Reporting Agencies and include contained by the dispute the erroneous accounts and personal information. You might also want to file a police report a moment ago in luggage it is identity theft.
The contact below will take you to the FTC website that will dispense you much more information than I am able to type within here.
dispute them and u should be OK.. Make u tell adjectives 3 credit company's
I ordered an item on ebay and I can individual pay cheque money instruct or personal / cashiers check...ONLY HAVEA CREDITCARD?
Question:
I ordered an item off ebay and I can single pay beside a money order or personal/cashiers check, but I solely have a credit card. Is in that any way I can use my credit card to buy a money lay down or personal/cashiers check online? I need to rate the person please facilitate! asap
Answer:
Use your CC to get a dosh advance, and buy the moneyorder near the cash.
Read reward options earlier you bid.
Go to westernunion.com...
Try Western Union
You can't use paypal...that's weird. You should be capable of purchase a money order from any grocery store. Or if you own a bank justification, you can get a cashier's check through the sandbank. Otherwise, ask if you can write a personal check or wire money.
Looks close to these guys can do this for you...
https://www.emoneygram.com/emoneygram/in...
I call for to clear up my credit hasty..any apt agencies?
Question:
My credit is at the medicore level and am trying to build it in a hurry. Any suggestions on any reputable agencies that give in haste results?
Answer:
My suggestion is that you save the fees you are going to recompense by using a consumer agency and do it yourself! You find what you need to repair your credit at http://www.thecreditrepairmanual.com...
Good Luck,
Only request your free reoports and dispute any within acuracies, that can raise your chalk up some. No fast palns. The credit agencies protect aginst it. It reports history and will not glibly change reportings.
Don't bother near an agency. Just call your credit cards and see what they can do give or take a few lowering your interest rates and consolidating balances. Once you go and get your balances consolidated, only hide they desolate cards from yourself. Don't close them, though, because you need a honest buffer between your actual balance and your available credit.
Here is a great tip...review your credit bureau on-line. It will grant you a choice to "dispute" any item you disagree with or that does not pertain to you. Then, dispute every item 6 months aged or older. If the agency that submitted the information can not provide a substantiation of debt, or doesn't (and most won't) it will be deleted from your credit bureau. Unfortunately in that are no quick fixes, but this will retrieve you a lot of time and best of adjectives it is FREE! If anyone claims they can "clean up your credit history" swiftly, for a fee, they are any lying to you or it is illegal! Use great tell.
Whatever you do, make sure your hire someone to argue the authority (true or not-Credit Bureaus are responsible for furnishing proof) of the bad results against you. Many times reporting companies are sold and they keep horrible documentation, if it can't be proved, it must be removed! DO NOT entertain any type of credit restoration or consolidation of debt into smaller payments. This is an acknowledgment of guilt and will affect your credit worse. Try your local Yellow Pages and ask what their plan of attack is and timeframe. A credible company will not ask for the whole excise upfront, just a partial fee and more as you see headway.
do it yourself and save some money.. Pay your bills stale and it will take time for your chalk up to go up
It is time to call upon a professional. It will cost you, but sometimes they can increase your credit score 40+ points within two or 3 days. There is no way to report unless you have a professional credit repair company look at it.
I can look at credit and narrate if I can increase it sometimes and have help people incease score, but you need a professional.
I don't know what piece of the country that you are in so I can't provide you beside the name of an agency.
Word of watchfulness: Sometimes paying off confident debt will decrease your score.
How do I take my credit evaluation?
Question:
I know I can go online and adjectives that, but a while back I have my wallet stolen (including drivers liscence, bank cards, ss card) so I have to put an alert on my file. so in a minute I can't even check my own credit history or anything... what can I do?
Answer:
Government passed legislation a few years ago allowing for every American citizen to be able to receive one free copy of their credit report respectively year. Go to annualcreditreport.com. It is very in safe hands and quick and it will provide you an online copy of everything in your report. The lone downfall is it does not give you your score, you have to reimburse for those, a good site is myfico.com. The identity alert should not be an issue you lately have to answer a few more question.
freecreditreport.com
A credit score is not the final determination contained by all things credit related. Your credit ranking will actually oscillate depending on the agency that is checked. There are 3 bureaus, Experian, Equifax, and Transunion and they will provide you a copy of your credit bureau upon request. There may be a charge, unless you be declined by a bank/financial institution for credit. If you check them out on-line they will offer you an address to submit by mail. Include your levy and they will give you your current credit rack up.
Your credit score is a number base upon your credit report. As you grow in life span you will find that it is one of the most important number affecting duration and finances. The higher the credit ranking, the better it is. A higher rack up can help you find loans beside low interest rates and quick turnaround times for approval. The more you grasp your credit score and the factor that affect your credit score the easier it will be for you to hang on to your financial health contained by order. The following 5 critical factor affect your credit score surrounded by a major path. By knowing these you can keep a check on them and cause your credit score a fit one.
1. Re-payment history
This factor carries the untouchable weight within your credit report. How steadfast are you in repaying your loans, make your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit gain. So, if you falter on repayment front it is sure to be reflect poorly on your credit score.
2. Outstanding debt
The subsequent comes your debt burden. How much you owe is a factor that according to experts carries just about 30% weight surrounded by your credit score. This is
30% is base upon outstanding debt. To get a better ranking it is advised that you save your outstanding debt to a minimum.
3. Length of your established credit history
The time for which you have a credit history also matter. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the reality that they have more notes to analyze your financial position. Experts give it a 15% substance in determining your credit evaluation. Read more about it at: http://www.credit-card-gallery.com/artic...
Credit evaluation at 614?
Question:
i have a 614 credit chalk up with transunion, equifax does not hold a score for me because the secured credit card i use does not report to them but i am interested within credit card and was wondering what credit card i can find with a 614 gain that would report to all 3 bureas and hopefully serve me improve my win
PLEASE HELP!!!!
Answer:
check out different cards on the web...they recount u which creditbureau they report to
score 614 is upright not excellent but good
dance to orchard bank and achieve a unsecured credit card and they report to all 3 bureaus
The best source is your local dune or credit union. They will hold a vested interest in you and guide you contained by the right direction. A 614 is not terrible, so a secured card should not be within your future. A lot of bank offer a better choice call a credit builder loan, that is primarily financing a CD. You win the CD after the loan is salaried, gain interest on the CD when it mature and builds credit fast while giving you a low recompense (normally less than $50). The interest you compensate is mostly offset by the interest you gain. Keep a loan for 23 months to maximize the credit building potential
What you really stipulation to do is to check your correct Fico score. Credit card companies don't run by what one reporting agency says because they are adjectives different.
Here are my 10 steps you can use to build your credit score at the double. I raised mine to all right over 700 points fro 500 using these steps in smaller number than a year -- :
# Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring planned on the article below. It really helped my bring my score up.)
# Never Miss a Payment, Starting Today
# Never use more than 20% of your Available Credit
# Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
# Extend Your Credit Limit on Cards You Already Have past You Get New Ones
# Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
# Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
# If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
# Take out a Small Personal Loan and Repay it Over a Year
# Ask Someone With Good Credit if They will Account Shadow you
Read the full article here, it give you an overview of credit scores.. If you hold any more questions you can ask me on my blog. Good luck!
What is the best and easiest opening for debt consolidation?
Question:
A while back, I get a line of credit to wages off other loans beside higher interest rates. It have helped a large amount, until now. All of a sudden, we hold more bills. I feel resembling I'm over-loaded with bills, bills, and more bills lately. Is in attendance another type of loan with a low interest rate that I can newly use to pay bad what I currently have so that adjectives I have is the bill for the trial loan? I don't really understand how APR's work. All I know is the complex your balance is, the more you income in interest. Can anyone please support with explanations and/or suggestions?
Answer:
ehmm. why could you circuitously email me for this question instead of spending 5 points...=(
Go to http://www.americanfinancialservice.org/...
Helped my wife formerly we got married. She be in alike situation as you. And as of last month, she is in a minute Debt Free.
Good luck!
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you own paid and the amount you owe. If the amount you enjoy paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also catch tax benefit on this type of loan. Consult your levy advisor before opt for this loan.