When you apply for a credit card, you may get approved right away if you apply online. If you’re not approved, you may get a notice after you send your online application, saying that the credit card company can’t extend credit to you at that time. You’ll also receive an adverse action notice in the mail that will explain in detail why you were denied for a credit card....
A common type of alienation clause found in many trust deeds is as follows, from the U.S. Securities and Exchange Commission: Alternate name: Due-on-sale clause How the Alienation Clause Works If a mortgage contract has an alienation clause, as most do, the full loan balance is due as soon as the borrower completes a sale of the property or a transfer of the title. Essentially, what this means is that the proceeds from the sale will first be used to pay off the loan before any money goes directly to the seller....
Many small businesses purchase insurance policies that contain an anti-assignment clause, which may affect their ability to conduct certain routine business transactions. For instance, if your property is damaged and you hire a contractor to make repairs, the clause may bar you from allowing the contractor to collect loss payments directly from your insurer. In addition, some restrictions found in anti-assignment clauses may be overridden by state laws. Below, we’ll explore further what an anti-assignment clause is and how it works....
Alternate name: When a property “didn’t appraise.” “An appraisal gap is a term that describes when the appraisal comes in below what is being offered,” Woody Fincham, an appraiser and founder of Fincham & Associates, told The Balance in a phone interview. “It’s a common thing in a heated market.” Appraisal gaps become more common when there is low housing inventory and high demand for properties, which has occurred in the U....
An order book is often included in what is known as “Level 2” market data—in-depth data on bids and asks for a particular security. Orders can be listed by order volume or price and are updated in real time. Alternate name: Continuous books Suppose you want to determine the amount of interest other investors have in a particular security. You can look at the order book to view all the open orders, including their respective prices and the volume of orders at each price....
An overdraft can be triggered by any action that results in a negative account balance. This might include: An automatic payment deducted from your account when you don’t have enough money to cover the cost A check you wrote being deposited and deducted from your account later than expected, and you don’t have the available funds to cover your next purchase Making a debit card purchase in person or online and it is approved, even though there isn’t enough money in your account to cover it...
MoMo Productions / Getty Images Annual renewable term (ART) life insurance provides one year of life insurance coverage, with the option to renew after 12 months for another year of coverage without having to take a medical exam or provide evidence of insurability. It can be included in your policy as an option to continue coverage once the original term expires, bought as a stand-alone policy, or purchased as a rider on a permanent life insurance policy (so you can increase the death benefit temporarily without having to reapply for coverage)....
The Department of Education chose not to renew ACS’s servicing contract in 2012. Direct loans serviced by ACS were transferred to other federal student loan servicers. ACS Education Services continued to service some Federal Family Education Loans (FFEL), Perkins loans, and private student loans. How the Termination of Conduent Loans Worked After an investigation initiated in 2015, the Massachusetts Attorney General alleged that ACS Education Services had failed to properly handle borrowers’ applications for income-based repayment plans....
First, let’s go over the relationship between bond prices and interest rates and explain how bond duration works. Bond prices respond to a number of factors, including credit risk, market risk, and maturity date, but no factor affects bond prices as much as interest rates. Investors buy bonds to receive the yield, called a coupon payment, that comes with the bond. Each bond’s yield is calculated by dividing the annual coupon payments by the bond price....
Definition and Example of Duty-Free Duty-free essentially means you will not be charged a government tax on goods that will be transported across borders. Customs duties are a type of tax imposed on products that end up transported across international borders. This tax helps control the flow of goods that go in and out of a country. When you shop at a customs duty-free shop, you don’t have to pay any duty taxes for the country the shop is located in....
Since there will always be workers searching for new jobs, there will always be frictional unemployment. Frictional unemployment and structural unemployment are the two types of unemployment that naturally occur. This “natural” type of unemployment is calculated as the natural rate of unemployment. To estimate the unemployment rate, the U.S. Bureau of Labor Statistics (BLS) uses data on the employment status of the U.S. population from a monthly survey of approximately 60,000 households....
The form is similar to the Form W-4 that employers require employees to complete. In addition to the taxpayer’s identifying information, Form W-9 asks that the contractor state whether they operate as a sole proprietorship, a corporation, a partnership, or a single-member limited liability company. Form W-9 also asks the contractor to certify whether they’re a U.S. citizen or a resident alien. They may need to complete Form W-8 instead if they’re a resident of another country....
Alternate name: Car repair insuranceAcronym: MBI Mechanical breakdown insurance isn’t designed to pay for damages from accidents. Instead, it covers defects or failures to your vehicle’s parts and systems. Depending on your policy, it might cover more than what’s specifically listed in your dealer’s car warranty. This type of coverage usually is only available for newer cars and those under a certain mileage. For example, Geico, which is one provider of mechanical breakdown insurance, only offers new policies for cars younger than 15 months with fewer than 15,000 miles (although you can renew your policy until your car is seven years old or has up to 100,000 miles)....
Moody’s Investor Service is a credit rating agency that provides investors with credit ratings for debt. Moody’s Analytics provides software and tools that help with risk analysis and economic research. Learn how Moody’s can be a useful tool to help investors, organizations, and government entities understand and evaluate potential risk. Definition and Example of Moody’s Moody’s is a financial services company and the holding company for Moody’s Investor Service and Moody’s Analytics....
As noted, insurance companies turn to reinsurance for their own coverage. So when you take out a homeowners policy, your insurance company insures your policy with a reinsurer. That reinsurer can even buy coverage with yet another reinsurer. The reinsurers help cover a claim, should it occur. The major reinsurance companies include Lloyd’s of London, Munich RE, and Berkshire Hathaway. How Reinsurance Works Before offering you a policy and rate, an insurance company reviews your age, location, driving history, credit history, and other variables to determine how likely it is that you’ll cause an accident or otherwise be an expensive risk....
There are many cases where a lessor may consider pursuing rent escrow. Some examples include a lack of heat in the winter, a rodent infestation, or structural defects. Rules for rent escrow tend to vary by state. In most cases, though, you may consider pursuing rent escrow if your landlord fails to maintain a “dwelling in habitable condition,” and one of the following conditions are met: You have appealed to your landlord in writing to make the repairs to the unit at hand....
Investors generally follow the principle that risk is correlated with returns, and the greater the risk, the greater the potential returns. Risk-averse investors can still earn returns, but they prioritize capital preservation and lower-risk assets. Let’s go over what it means to be risk averse, and evaluate a few potential investing strategies for the risk-averse investor. Definition and Examples of Risk-Averse Investing Risk-averse investing is investing that prioritizes asset preservation over earning returns....
Understanding the importance of this document can help homeowners retain the correct documentation on the off chance that a wire gets crossed and someone thinks they still owe mortgage payments to a lender when they have already completed the mortgage. Definition and Example of a Satisfaction of Mortgage A Satisfaction of Mortgage is issued when the full term of your mortgage is complete or when you’ve paid ahead on your mortgage to the point where the entire balance is paid off....
Who Owes Self-Employment Tax? Self-employment tax applies to income earned as a freelancer, consultant, or independent contractor, such as if you work for a food delivery or ridesharing app. If the company you work for doesn’t withhold payroll taxes and you’re not classified as an employee, your income would typically be considered self-employment income and you would owe self-employment tax. For example, a graphic designer who works full time at a software company might have Social Security and Medicare taxes withheld from each paycheck, along with other taxes like federal income tax....
For example, in the U.S., the idea of single-payer healthcare has been coined “Medicare for All.” This name comes from the idea of expanding Medicare. Medicare is the tax-funded single-payer healthcare system designed for older people or those with disabilities. Medicare could expand to provide healthcare coverage for all people in place of private health insurance companies. This expansion would make it the nation’s single-payer health insurance system. How Does Single-Payer Health Insurance Work?...
