There is no doubt in accepting the fact that credit cards have made life a lot more simpler, convenient and hassle free in comparison to the times when one had to roam around carrying bundles of currency notes. With moving times and increasing expectancies the credit cards are now coming packed with incredible offers and schemes aimed to provide you the best services. Therefore in such times it becomes necessary to learn and understand the procedures and tips which can help one in deriving maximum benefits from these plastic cash options.
- I would say the first and foremost way is to ensure that one maintains a good healthy credit rating by paying all dues and monthly installments on time. This can be insured by staying within your credit limits and not using too many cards at the same time to make payments. The credit score is important as it gives your future potential lenders an idea as to if you are in a position to repay the loan that you desire to avail at any point of time.
- The use of credit card as means of payment for big purchases gives the owner the opportunity to stop payment for the purchased good if it turns out to be defective or damaged. The customer can avail this right under the provision of the Fair Credit Billing Act. If your initial trials to sort out the matter with the goods dealer fails to work out then the credit card company can intervene and if it finds your claim justified then it can go ahead and the block payment for the goods on your behalf.
- Using credit cards for online purchases too is a safer option due to the various facilities and protections provided for the same under the Fair Credit Billing Act. One can avail the use of the ‘one time use’ account number provided by many credit card companies to carry out online purchases. These accounts provide the user the security it desires for online transactions.
- One also has the option of using the credit card as a mean to obtain low interest loans. Free from most of the application hassles these fixed rate loans offered on your credit card are at time better than those given by banks.
- Transactions made on credit cards can be converted to easy equated monthly installments - EMI
Tags: credit card tips, credit cards, credit score, online credit cards
I would like to share some risks in credit cards from the card holders point of view through my personal experiences. Chances of frauds in credit cards are always more when the card is used at merchant establishment physically than when it is used in online purchases through merchant accounts. It is primarily because the merchant has all the information stored on the charge slip and while swiping the credit card he can always see the CVV (Card Verification value) number and memorize it for future. To add on to that, he has your actual physical signatures also (on the charge slip) which may easily be forged while committing any fraud. Although physical signatures may not required while using the credit card for online payments.
This situation has personally happened to me. I had gone for dinner with my wife. After a good and sumptuous meal, I paid the check through credit card . To my surprise, next day I received an SMS from my credit card issuing company that online purchases have been made for $ 798. Thank god, that at the time of application for credit card, I opted for mobile banking where each transaction of my credit card above $ 100 was to be reported through an SMS. So immediately I dialed my customer care number and got the card canceled.
So there are some learnings to avoid such kind of situation and losing money. First and foremost thing would be to erase the CVV number from your credit card so that it is not clearly visible to anyone. Just like the ATM PIN number, card holder should remember this CVV number also. So even if the merchant has your personal details on the charge slip he will not have the CVV number and without this there may not be any chance of misuse of the card.
Another thing would be to subscribe to mobile banking as I mentioned above. Most of the banking companies offer it free of charge so you would come to know about the credit card transactions on real time basis. Alternatively you can check about your credit card spends through online banking where by you will come to know about your last transaction made. Atleast you will not be waiting till the credit card statement which come as a shock to you. Lastly, I would recommend that you should use your credit card only when you dont have the enough cash. Try and settle your bills through cash only to the extent it is possible.
Tags: credit card risk, credit cards, free credit cards, online credit cards
It is essential for one to understand the importance of saving money. This is a habit which has to be inculcated in one’s lifestyle to make life smooth, easy and all ready for emergencies. The feeling of ending a month with all your dues paid and finding yourself with still some cash left is amazing. The feeling of remaining debt free does wonders to any individuals stress levels. Most people get scared with the idea of saving as they believe that it would mean bringing a drastic change in their life style, but this is not the case.
All it needs is some substitutions, a realistic and feasible goal backed by a solid will power to implement it along with some money saving tips. It is very common to see people starting with a plan but then abandon it mid way. A solid financial foundation obtained through the efforts might be a little difficult to come by, but patience is the key here. There can be many small steps which can be initiated by you which go a long way in ensuring that you meet your credit saving goals. For starters, eating at home often is a wonderful way to keep a check on your spending and hence aid in saving money. Eating at home is not a dull option. Trying out new cuisines and delicacies and treating your loved ones with home cooked meal spreads love and helps in bonding the family. Asking your spouse to join in with you in the kitchen can make the experience all the more joyful and stress relieving.
Also, maintaining an old car could be seeping out more money from your account than the amount required for purchasing a new car. Compare the mileage of your old car and its maintenance costs against those of a brand new car along with EMI of the proposed auto loan and make a wise decision. Make use of the credit repair option to maintain good credit scores and then avail the refinance facility to get free of most of your pending debts. Instead of indulging in long vacations to distant places try checking out the neighborhood areas of your town. Small frequent picnics and hikes with your family will not only refresh you but will also spread love and closeness amongst your loved ones. Avoiding unnecessary shopping spree’s and keeping a check on your credit card spending too are very important to finally achieve your goal of saving money and living a debt free, carefree life!
Tags: money saving factors, money saving tips, save money
In the present times when there are opportunities galore there is enough of money around but the major problem with it is the way one handles their money and the spending pattern. People now a day are not been able to track their spending and are eventually leading towards inadequate management of their personal finances. It has been a shocking revelation that individuals are not aware of their financial situations and most of the time end up spending more than they earn and then they get into a situation of negative savings and do not have enough money for investments.
This alarming situation is catapulted further by the increasing wish lists which people want to acquire for themselves one way or the other. Before one can start on the path of taking control of their finances, one has to confront himself with the state his personal finances are in. Getting in terms with the reality of the state of our personal finances will smoothen the damage control process. Unconscious spending has been identified as the most important culprit. The way out of this is to cultivate the habit of planning and goal setting and then sticking to it. Also another way out could be to learn some money saving tips. Absence of financial goals allows one to self indulge in overspending without giving a hoot about saving.
Such a spree would never allow wealth accumulation and therefore make you live moment by moment. If business empires can stick to their annual budgets and still reap profits there is no reason why you too cannot succeed using the budgeting model. Budget provides an individual a financial goal and consists of a listing of all your important needs and at the same time allows us to control circumstances apprehending us along the way. Budgets may not be rigid and exact and is allowed to be flexible. They are supposed to be adaptable along with changes affecting our lives but at the same time help us in controlling our financial reins. Giving direction to our personal finances and thereby guiding us towards the right direction of wealth creation and wealth management is what budgets are supposed to do.
Financial management is all about managing your finances in order to create a strong financial foundation for oneself. A backing strong enough to be able to help us in times of financial need. Money management calls for patience, a right plan, an appropriate budget and most importantly the will to change. Once incorporated, all these factors will work together towards making you financially sound and knowledgeable about your personal finances.
Tags: finance, personal finance, Wealth Management
Everyday each individual is inundated with hordes of mails pertaining to offers for credit cards. With all these so called new credit card offers sounding same and offering similar products & financial services, choosing the credit card which best suits your need becomes a daunting task. So one always gets up with the question of how to choose the best credit card. With high pressure of achieving business targets, all credit card companies, try to target potential credit card users and in the process end up trying out all tactics including lower interest rates, higher credit period, various promotional offers in tie up with service providers, rebates, incentives, perks etc to lure you in. But one has to smart and equip oneself with all the knowledge available on these offers before opting for a card. It has been a widely prevalent practice on behalf of the credit card companies of smartly hiding the hidden fees and costs which comes along with the credit cards. What normally the modus operandi is that any credit availed beyond the normal credit period stipulated by the credit card company carries a huge interest cost. In some cases this rate of interest is even more than the interest on personal loans.
Comparing the APR and the fees of all the various cards should be the first step of action. Since the APR determines the interest rate applicable on your card it is a very important data. Cards a with exceptionally high APR calls out for an immediate ruling out as it leads you on the fast track of credit debt which may eventually end you in a debt trap. There are primarily 3 types of credit cards available namely, Visa, Mastercard and American Express. Cards are not issued by Visa and Mastercard who in turn have collaborated with banks and companies to issue their credit cards on their behalf. Credit card business is now considered an important portfolio of a banking company with in their retail banking division. American Express though issues its own cards and does not depend on any other network. Opting for a Visa or a Mastercard credit card would be a suitable option for those who frequently travel. This is because these cards are widely accepted worldwide. Discover is another credit card on the anvil which though does not have enough world wide acceptance is a great option for local credit card use.
With a huge number of companies and banks issuing credit cards in the market the final decision of choosing the best option is entirely dependent on you and your credit needs. To get your chosen card you can either approach through a bank or a company or apply online for the same. A credit card is meant to help you take care of sudden financial emergencies so use it with caution as reckless and uncontrolled use of your card won’t take long to find oneself entangled in a credit card debt.
Tags: cards online, credit card factors, credit card limit, credit cards, credit cards online, free credit cards
Availing credit or loan now a days is not a tough job but what has to be kept in mind is that one possesses a good credit rating. A credit rating is a person’s financial report card being provided for use to the lenders. The report provides the person’s bill listings, bill paying patterns and whether or not you are in a situation to repay the loan you are applying for.
Any negatives in this report in the form of missed payments, frequent availing of credit, or bankruptcy would scar the rating and make any credit seeking process in the future difficult. This would very well help understand the importance this report carries.
Keeping in mind certain point would go a long way in helping you maintain a healthy financial rating. A regular complete scrutiny by you of your credit report to keep a check of your credit rating is very essential. One must be regular in clearing due payments or debts and hence taking a consolidated step in keeping the ratings high. Starting with the lowest debt amount one can progress to the higher amounts and therefore not burden also oneself by paying off all the debts together. In the scenario of a very bad rating going for debt consolidation to clear off the backlog debts could be a good solution.
After clearing the debt by suing the loaned amount you only have one payment to worry about. Stay away from malicious promotions offering aid to improve your ratings as this generally with high service charges leave you in a much worse financial state. Another sensible idea is to avail various credit card promotions wherein you are provided 0% interest on transfer of your credit balance to these special credit cards. Making full use of this credit free tenure to payback your debts is the best you could get. Making use of such promotions or loans like a consolidated loan also adds credibility to your credit report by putting forward your efforts to obtain a credible financial position.
Tags: bad credit, consolidate debt, consumer credit, credit limit, debt, pay off debts
People now a day’s are hooked on plastic money like never before. The ease and flexibility which comes with these credit cards surely does make life easier but at the same time reckless and out of control use of them makes plenty sink under the weight of credit card debts. It is much easier to find one trapped in the vice of these pending balances and in such situations zero interest balance transfers comes as a major relief.
So what exactly is this too good to be true sounding option? Zero interest balance transfer are simply special credit cards which offer you an interest free period when you transfer your credit card balances on this card. Ordinary credit cards charge you a certain fixed amount as interest on the balance which keeps on accumulating on your card thereby increasing the total amount payable by you.
When using the services of these special zero interest balance cards what you are simply getting is a fixed time frame when the credit card balance which you have transferred on this card does not get any interest amount added to it. So effectively you can pay for the existing balance while in this period and not have to carry the burden of additional charges in the form of the interest.
These cards do take a sizeable amount of pressure off the shoulders of the payee’s finances but the cards defer interest only for a certain time frame after which they have their own fixed interest rates which will be applicable. Therefore, finding an offer which entails the longest interest free period become’s the foremost information to be pondered on. This interest free period should be used judiciously if not for completely clearing your balances then for at least paying a large part of it or else you would find yourself in the same mess once the interest charges start getting applicable again.
Therefore it is clearly visible that a good and sound plan is needed to make the most of these zero interest transfers. Living in a pre meditated budget and stacking enough cash for emergencies will surely go a long way in keeping you away from credit debts.
Tags: credit cards, debit cards, Debt consolidation, free credit cards, interest free money
As the industrial activity has been increasing over a period to time and disposable income at the hands of individuals is also rising so there has been increase in credit offtake or in other words we say money supply in the market. Banks / NBFCs have been aggressively lending both to the industry as well as individuals for their various needs like business loans, commercial loans, consumer loans etc. However, this aggressive lending has resulted into deterioration in the asset quality portfolio of the organization over a period of time which is evident from the recent sub prime crises. Most of the big investment banks have suffered huge losses due to this. So one wonders what essentially went wrong? It was just that the loans were made available to the borrowers whose default chances were higher than the average in return of a higher interest earnings.
As soon as there was a slow down in the economy, the income levels reduced which resulted into defaults in repayment of mortgage loans. Now how is it that the banks could have avoided this situation? One mitigant would have been availability of credit report of the borrower. Credit reports have emerged as one of the most important tools of assessing the quality of the borrower. Credit report can of an individual or an entity also. There are many agencies (Credit rating agencies) which are into making of credit reports. For entities, another terminology is used which is known as credit rating. Credit rating agencies do an unbiased and objective credit rating of the borrower which helps the lender in decision making.
Credit reports reflect the borrower’s past track record in terms of financial discipline, expected capability and intention to repay the debt. Credit reports help the lender to differentiate credit quality amongst different borrowers and identify what are the risk involved. However, one point to be noted is that a positive credit report does not necessarily means that lender should grant loan to the borrowers although a positive credit report helps the lender to decide rationally about the lending decision. Further opinion in the credit reports is not to be used for long term purposes, credit reports need to be updated on regular basis.
In developed countries almost all the data is available on real time basis so it is necessary that one should always make sure that the EMIs of the various consumer loans such as auto loan, mortgage loan, education loan, personal loan etc are paid on time so as to avoid any reporting of delayed payment. Similarly dues of credit card should also be paid on time. Credit report is nothing but a past conduct of your repayments. If the same has been on time, then certainly it will help you to score better in the credit report and a better credit report will make you eligible for a higher amount of loan. So our advice is the be careful about repayments.
Tags: consumer credit, credit, Credit quality, Credit rating agency, Credit reports, Loans
Want to buy that gadget you have wanted to have but at a price you chose or have some clutter waiting to be disposed off in exchange for a profit?? No problem, help is now just a click away. Welcome to the world of virtual auctions, welcome to the grand world of Ebay. Ebay is characteristically an online auction house where individual items are bided for and the person with the highest bid gets claim on that particular item. The payment is done online either by using credit cards or by the online account portal of Pay-pal and you get your item packed and shipped at your address. It’s as simple and convenient as that.
The silver lining in this case is that with the internet being the medium, the choice of items ready to be bided is enormous ranging from simply funny options to homes and airplanes. You name it they have it there ready for you to set your eyes on. With such a varied list at stake there is no limit to the amount of money which can be made on Ebay. What is required is to keep in mind certain strategic points which would surely go a long way in giving you access to profits of unprecedented levels.
- When putting up any item on the biding list try and attach it with an actual picture of the item. Getting to look as to how the item looks in reality leaves an impression on the potential buyers. The photograph should be clear and recent.
- Like in any other form of trading the reputation of the seller makes up an important chunk for the buyers. Having a clean selling or buying history which is augmented by the reviews given by others for you would surely help in sealing your deal quickly and reliably.
- The price quoted for any item depends largely on the demand of that item in the market. Higher the demand higher is the initial quoting price. Therefore thorough research should be carried out to ascertain the price which can be quoted.
This simple yet effective checklist will surely generate more online traffic to your item which in turn will capitalize in getting you cash ringing registers! Till then its Happy Bidding!!
Tags: ebay, online shopping, shop online