FINANCIAL HOUSEKEEPING | Opt out of prescreened credit-card offers
The more credit offers you ignore, the more it seems you receive. You could avoid the offers by having huge credit problems, so that no lender is interested in you, but a better plan is to contact the major credit bureaus to let them know you don’t want the junk mail.
Experian, Equifax and Trans-Union have created a website, optoutprescreen.com, that allows consumers to avoid credit and insurance offers for five years. Consumers can complete a request in writing to opt out of the offers permanently or can use the website to opt back in to offers if they change their mind.
The process should greatly reduce unsolicited inquiries, but it won’t end them completely, as some businesses do not consult the major consumer credit reporting companies when preparing their offer lists.
SHORT COURSE | Bridge loans
A bridge loan is a means for a homeowner to cover financing costs when selling one house and purchasing another. The loan provides financing to buy the new house before the proceeds from the sale of the old one become available. The risk on bridge financing typically is that the sale of the old home falls through, leaving the homeowner with payments on both the bridge loan and the old mortgage.
In corporate finance, a bridge loan – sometimes called “gap financing” or a swing loan – covers the time between redemption of one bond issue and its replacement by a new issue. Firms typically seek gap loans when replacing short-term debt with long- term financing. As a result, swing loans are essential in many corporate restructurings, mergers and leveraged buyouts.
