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Category: Money

  • Credit Card Debt Myths – Top 8

    Credit Card Debt Myths – Top 8

    Settle your debt for pennies on the dollar! Get rid of your debt quickly! These claims fill ads from debt settlement companies and guides that claim to teach you how to settle your debt. While settling your debt may be a way to get out of debt and pay less than you owe on your debts, do not buy into all of the claims and myths surrounding the debt settlement process.So here we are going to discuss about the top 8 Credit Card Debt Myths that is existing around us.

    Credit Card Debt Myths – Top 8

    On the process of debt settlement many of us are unaware about the pits and myths that is existing in this process .

    You Should Hire a Professional 

    Debt settlement companies advertise that they will negotiate with your creditors to reduce the amount of debt you owe. Often they charge hefty fees for this service and many require that you put money into a special account to pay off your debts as they are settled. While legitimate debt settlement companies have the time and experience needed to successfully negotiate debts, they do not do anything that you cannot do yourself. You can call your creditors yourself and attempt to negotiate with them. As long as you are patient, persistent and know what amount you are willing to pay, you can do the same job as a professional without paying any fees.

    Read Also : Exclusive Nest Egg building guide for painless millionaire dreamer

    This Debt Settlement Company is Legitimate

    When you work with a debt settlement company, you risk becoming the victim of a scam. A significant number of debt settlement companies prey on those who are in debt by charging them upfront fees, requiring that they put money into an account each month and promising settlements more than 50 percent off their actual debt. Do not enter a lengthy contract with a debt settlement company and do your research before you sign any paperwork. Choose an established company that has low fees and a history of strong customer reviews.

    It Does Not Cost A Lot

    Worst Credit Card Debt Myths that exist is these sort of spam things in the market.Working with a debt settlement company costs money. If you only have one or two insignificant debts to settle, the amount that you pay the company may outweigh the money you save by settling. If you choose to settle your debts yourself, it costs a lot of time to get the results that you want. Most creditors will not agree to a settlement the first few times you call and it could take months of calls to come up with a solution you both agree on.

    It Does Not Hurt Your Credit

    One of the common Credit Card Debt Myths , when you settle a debt, the creditor reports to the major credit reporting agencies that your debt was settled for less than was owed. While settling your debt may not hurt your credit as much as filing for bankruptcy or not paying your debt at all, it will hurt your credit more than working with your creditor to develop a payment plan and paying the full amount that you owe.

    It’s My Only Option

    Even if your debt seems overwhelming, settling that debt is not your only option. Many creditors will work with you to develop a payment plan that allows you to pay off the full amount that you owe and reduce any late payment fees to make that debt more manageable. Instead of settling, you may also consolidate your debts into a larger loan with a lower interest rate to make the payments more manageable and give you more time to pay them off. Filing for bankruptcy may be another option if you have significant debts.

    Read Also : Quickly increase credit score in just 12 months -Easiest hack

    You Only Pay Pennies on the Dollar

    Most creditors will not settle with you for pennies on the dollar. Their goal is to get as much money from you as possible. Most creditors will settle for 20 percent off your debt, although experienced negotiators may be able to get as much as 40 or 50 percent off. The older your debt is and the fewer recent payments you have made, the more likely you are to settle for less. When you are regularly making payments on a debt, a creditor will not be motivated to settle with you.

    Debt Settlement is Financially Beneficial

    Settling your debt may not be financially beneficial. In addition to the fees that debt settlement companies charge, the hit that your credit takes after settling debt can end up costing you a lot of money. When your credit score takes a dive, it will increase the interest rates you pay when you take out new loans or open new credit cards. That increased interest will cost you more money. Taking out new loans and opening new credit cards will also require you to spend more money and take on more debt to help rebuild your credit.

    I Won’t Go Into Debt Again

    Settling your debts has nothing to do with going into debt again. In order to avoid going into debt again after you settle your debt, you must develop positive spending habits, such as creating and following a budget and limiting the amount of credit you use. Do not think that just because debt settlement worked once, it will work again. When it comes to settling your debts, nothing is guaranteed and debt settlement should not be used as a backup plan in case you fall into debt again.

    These are the top 8 Credit Card Debt Myths that is existing which you need to be aware if you are in amid of debt .

  • Exclusive Nest Egg building guide for painless millionaire dreamer

    Exclusive Nest Egg building guide for painless millionaire dreamer

    A nest egg can be a big help to you in an emergency. A nest egg is a colloquial term for savings, either in the form of cash or as assets than can be converted to cash, such as retirement plans, savings accounts  or mutual funds. This may be money saved for retirement, but it can also be a source of emergency funds, a down payment for a home or a way to pay for a dream vacation. So here is your Exclusive Nest Egg building guide .

    Exclusive Nest Egg building guide for painless millionaire dreamers

    Some people find it difficult to build a nest egg ,no matter what its purpose . But with a bit of persistence and some creative thinking you can make your money grow. If you’re looking at making investments such as stocks and bonds, it’s a good idea to consult an expert before spending any money.Here is the Exclusive Nest Egg building tips for all the millionaire dreamers.

    Stocks

    If you purchase stocks, look for stable companies whose stocks offer the promise of solid returns. Stocks generally do well over the long term, but may let you down if you can’t afford to wait for the market to recover from the inevitable drops that occur from time to time.

    Read Also : Investment on Stocks and Shares -Pros and Cons

    BondsBonds, especially Treasury bonds, are historically stable, but the interest they earn often doesn’t outpace inflation. In spite of that, buying bonds can be one way to make sure your nest egg has a solid foundation and doesn’t lose value over time. It is one of the Exclusive Nest Egg building way .

    Diversify

    A well-diversified portfolio,one that includes a mixture of stocks, bonds and other investment vehicles that minimizes your overall risk because when one investment loses value another gains.

    401(k)

    Establishing a 401(k) at work can help you build a nest egg. Money may be withheld from your pay and diverted directly into a 401(k). Contribute the maximum allowable amount to build your nest egg quickly. Your company’s matching contributions — “free money” — will boost the speed with which you grow your retirement savings.

    Tax Refund

    Putting your tax refund directly into savings instead of spending it can give a big boost to your nest egg each year. You can also put the money into an IRA account, which will help it grow even more.

    Read Also : Tax clearance in Malaysia – A detailed overview of Malaysian Tax

    Cut Back

    Look for ways to cut spending, and then add the money you would have spent to your nest egg. You might accomplish this by stopping smoking, or cutting your smoking in half, and adding the cost of the cigarettes you didn’t smoke to your fund. Eat out less often and put the money saved in your nest egg instead. While each contribution might not seem like much, over a period of years you can add thousands to your nest egg.

    Bank the Extras

    If you get paid every week, or every other week, chances are that you base your spending and your bill paying on two or four checks per month. During those months where you get an “extra” check, add it to your nest egg instead of spending it.

    Read Also : Mutual Fund A Complete Guideline – All You should Know

    Little Things

    Set up a change jar, and drop all of your change in it every night, but give it a twist and also add at least one bill every day. You can boost this even more by adding all of your single dollar bills every day. If you never leave home carrying ones, don’t spend ones during the day except for tips, and put all of your singles into the jar every night, you can easily add $600 to $1,000 or more to your nest egg every year.

    Pay Yourself

    Pay off a recurring bill, such as one or more of your credit cards or your car. The month following the payoff, continue paying the same amount, but instead of sending it to a creditor use it to pay yourself. Deposit the amount of the payment you have been making in an individual retirement account, a savings account or another nest egg account.

    Leave the Car

    Instead of driving your car everywhere, find ways to leave your car at home. Carpool, take the bus or ride your bike. Take the money you would have spent on gas every week and add it to your nest egg. If you have a long commute, this can add up quickly, but even for short drives this can save you a lot of money over time.It is not just an Exclusive Nest Egg building way but a great deal to save energy.

    Well this is going to be your Exclusive Nest Egg building guide for all millionaire dreams.

     

     

     

     

  • Best Green Cars For Known To Be The Most Eco Friendly

    Best Green Cars For Known To Be The Most Eco Friendly

    The car owners in the London nowadays usually faced with the decision of continuing their status of buying the vehicles which are totally dependent on the oil which is been imported from other countries. Moreover, it is better to invest in the environmental future by purchasing the new technological hybrid vehicles. Well, this choice is not just easy but takes the time and thus there are various advantages of choosing the eco-friendly car or the Best Green Cars.

    The eco-friendly cars or green cars run on the electricity or combination of the electricity and hydrogen based fuel. These eco-friendly cars due to the demands are constantly being enhanced and get redesigned by reducing the pollution and waste. This results in the require less maintenance than the fuel powered vehicles.

    Best Green Cars For Known To Be The Most Eco Friendly

    Here is the list of the eco-friendly cars to be buying in the UK 2017. This list is been selected according to the unique green car rating. The environmental impact of a vehicle across whole life cycle as each car has a score of ranging for the greenest vehicle. Use this car list and get your eco-friendly cars using the whole criteria such as technology such as price, MPG, NGC, Ratings and much more. Here is the list of Best Green Cars.

    Read Also : Used Car buyer’s checklist -Exclusive guide for buying used cars

    Toyota Prius c:

    This vehicle comes up with a combination of the extraordinarily high gas mileage and low price, something Prius v, doesn’t do quite well. This is not a luxury car but if you viewed it as alongside other subcompacts, with an impressive package.

    Read Also : Go green idea-10 Simple Ways to Go Green in Your Home

    Nissan Versa Note:

    In this highly competitive market the high technology vehicles reduce the pollution and did not use fuel but it comes at a price. This is one of the most affordable eco-friendly vehicle the Versa note automatic. This uses nothing more than 1.6 liters four cylinder.

    Read Also : Top Luxurious Cars in the world and their specifications

    BMW X3:

    This car is one of the best examples with its EPA mileage estimate of 27/3430 mpg/city/highway/combined with 6 mpg most efficient all wheel drive gas x3. This car is much impressed with the price of $1500 such you can make your money back.

    Chevrolet Malibu Hybrid:

    The price of this car is $28,750 and serves up a roomy cabin and crisp acceleration. Its midsize sedan is a highly stylish choice in its segment, and its sleek modern exterior commands attention. This car achieves the total mileage of the 46 mpg.

    Ford C-Max Energi:

    This car plugs in hybrid travel up to 100 miles solely on the electric power before switching over to the gas or hybrid mode. This car best choice for the individuals with the short commutes.In the electric mode, this car gets 88 MPG and in the hybrid mode, it gets 38 mpg combined. This model base pricing just starts at $27,995.

    Read Also : Luxurious SUVs for Sport Maniacs – Latest Update

    Toyota Camry Hybrid:

    This car is one of the superior choices of the individuals who are seeking for family transportation. The pricing of this car starts from the $27,655 and has an EPA rating of 40 mpg.

    Toyota Prius v:

    This car is one of the best choices for the individuals who prioritize fuel economy. This car has the forgiving ride quality shield passengers from bumps and joints on the tough roads. This car gets 41 mpg and this base model starts at $27,540.

    Hyundai Sonata Hybrid:

    This car model just delivered the starting price at just $26,835 and deliver up the value which has made this brand much favorite among car shoppers. this car has the abundance of standard features and 42 mpg combined city/highway at a pump.

    As you have seen the Best Green Cars that are really classy and affordable .

    Previously, when the eco-friendly cars were not there in the world, motorists around the world were used to drive the big, heavy gas guzzlers which spouted out the enormous amount of unhealthy exhaust emissions. Some of the individuals were aware that this types of cars are much harmful to the environment as well as to mankind. But now when the Best Green Cars have been coming into the existence various advantages have been acknowledged as well as the media started to continuously talk about going green now.

    Read Also : Incandescent Vs LED Vs CFL Vs Halogen : Choosing the right bulb guide

    Advantages of Using the Best Green Cars

    Here is some of the advantages of using Best Green Cars:

    Better Gas Mileage:

    One of the major benefits of using up the eco-friendly cars is that they are been manufactured as such that they deliver better gas mileage. The automotive manufacturers have to make the drivers enables to grasp greater gas mileage. Having the improvement in the gas mileage not only means to not having filled up so often but means that the drivers can travel further on a single tank of fuel. this fuel is not same as in the non-eco friendly cars but they are a combination of liquefied petroleum gas and electricity.

    Foreign Oil:

    The eco-friendly car requires much less fuel so as to power them across the same distances which mean that the US as well ass other various major does not need to get rely on the expensive foreign oil from which come from specific countries around the globe. this will give the monetary benefit to the country so as to not rely on the foreign oil anymore now as well ass it provides substantive potential benefits.

    Reduced Exhaust Emissions:

    The eco-friendly cars with its electrical batteries as well as the electrical engines will produce a considerably decreased in the amount of the harmful exhaust emissions while driving at any speed or in any kind of the weather. This car just directly helps to keep up the nature cleaner and healthy. This also decreases the number of the pollutants released while driving.

    Saves Drivers Money:

    Driving the green vehicles used to allow the owners of these cars so as to save up the amount amounts of money that they were formerly spending on unleaded or premium unleaded gasoline for their non-eco friendly vehicles. Everyone can get the benefit by being able to save up huge amounts of money at the gas station or by never having gone to the gas station at all if their eco-friendly vehicle is 100% electric.

    Hope this article motivates the readers to think about Go-Green and getting benefited by switching to the Best Green Cars.

  • Exclusive 1st home buyers checklist – Must read

    Exclusive 1st home buyers checklist – Must read

    Buying a new home is always wonderful but when it comes to buying a home for the first time , then it is very special . Moreover its not an easy task when it comes to look into all the criteria for buying brand new home for the very first time. So here is our exclusive 1st home buyers checklist to help you take easy and clear decisions.

    Exclusive 1st home buyers checklist – Must read

    Here we will give you point by point first home purchase checklist and the section will be detailed by highlighting the important checklists.

    1. Location to Buy the first home
    2. Right time to buy
    3. Type of the dream home in your mind
    4. Consider what factors matters you
    5. Check your cash reserve on hand
    6. Think about the source of down payment
    7. Check your credit score and loan eligibility
    8. Type of mortgage you need and time to get it sanctioned
    9. Calculate your bills to afford a new home
    10. Prepare list of your new home expenses
    11. Calculate your insurance cost
    12. Source to pay when any ill luck occurs
    13. Get an idea about your long term expenses
    14. Resale value in future
    15. Good real estate agent

    These are some of the most important 1st home buyers checklist.Now lets see all in a brief .

    Location – Where you want to live ?

    You should consider whether you want to live by considering the facts like your easy access to job place , facilities that you need utmost etc. When considering where you want to live you should look about whether you want to be in a busy life city or a serene place in outskirts.Also knowing the neighbours also falls as a great matter when buying home.

    Time – Right time to buy

    Think about the future when you’re ready to buy a new home . You should know the right time on which you will have the capacity to afford a new home with the existing bills in your life. Buying your first home requires adequate thought about your potential future living needs rather than just your current wish list. With a little planning, you can purchase the right home for your current needs, potential life changes and a house that will be easier to sell when you’re ready to upgrade.

    Type -What’s the dream home in your mind

    First home buyers will be having the best dream about their home. Mostly due to budget constraints making the exact blueprint of the dream house is not always possible. But definitely you should know the basic like what type of house you long for , what style of architecture , contemporary or traditional . All these you should think about and have a better idea on this.

    Configuration -Consider what factors matters you

    A key consideration for your first home is the number of bedrooms and baths you want to fit your lifestyle. This is a must first time home buying checklist . If you want a guest bedroom, an office and workout room, you’ll either need a four-bedroom house or one with three bedrooms and a bonus room, attic or basement you can make over. If you don’t mind going up and down stairs every day, a split-level house is fine. Ranches usually provide less square footage, but they let you live on one floor.

    Initial Source – Check your cash reserve on hand

    When it comes to buying anything certainly its a matter of money . So when buying a new home the most important thing you have to do is to calculate the cash you have by hand . This is advised because the process of mortgage loans will take time to get sanctioned but you can’t postpone your down payment till you get loan . Also usually even if you are getting mortgage loans hold 25% of money as cash on hand . Don’t put all this on down payment make sure you keep a good portion for meeting the sudden unexpected bills.This is a must 1st home buyers checklist.

    Down payment – Think about the source of down payment

    Even if you have not made ample saving on hand then you should think about the available sources of down payment options before you. Usually in the case of buying a home there the down payment is the very minimum 5 % to 25 % .When thinking about down payment the major source can be any of the assets which you can pledge or any bonds that can be liquidated, also any source of assistance that can be managed from friends or family , Check with your city about DPA (Down payment assistance) schemes there. Also talk with your Human resource section at your company and inquire the options and scope there.

    Credit score – Check your credit score and loan eligibility

    Loan eligibility is based on your credit score . You must have a valid credit score to get quick loans.One among the most important and unavoidable 1st home buyers checklist.

    Credit score >750  –Excellent
    700-749               –Good
    650-699               –Fair
    550-649               –Poor
    <550                    – Bad

    This is a short overview of CIBIL score . For home loans sanctioning always a credit score of minimum 700 is must .

    Read Also : Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

    Mortgage Type – Type of mortgage you need and time to get it sanctioned

    Choose the ideal type of mortgage for buying your new home.So for your understanding just briefing the three options of mortgage loan for home buyers ,as we can’t describe the entire details here giving a short update about that –

    Option 1 –

    Fixed Rate or Adjustable Rate mortgage loan you need , so you will be wondering what these two are and which is going to suit you. Here i explain it in nutshell for your convenience . If you are a monthly salaried person who leads life by fixed monthly expense calculation then you should choose Fixed Rate Mortgage loan . This is because the EMI of your loan will remain same even in long tenure with fixed rate of interest . But when you take ARM loan then the interest rate will be low for first few years but it will keep changing as the interest rate is floating . Business people can take ARM loan as they usually look for short term loans and they don’t mind the floating rates of EMI.

    Option 2 –

    Conventional Home loans or Government-insured home loans , this is the next option in deciding the type of mortgage you need for buying first home . Conventional loans are not insured loans while government insured home loans are accepted by federal government with insurance.

    Read Also : Quickly increase credit score in just 12 months -Easiest hack

    Option 3 –

    Jumbo or conforming loans which is the third type of mortgage home loan option.If you look for a jumbo loan then your credit score should be fairly high as the lender is providing loan on high risk so the document process and time of sanction will not be liberal as in the case of the conforming loans.

    Calculate your bills to afford a new home

    The first step in buying your first home is to determine how much house you can afford. Working with a qualified mortgage broker or lender, you’ll easily be able to determine what you can afford based on your current income. A typical guideline recommended by many lenders is that no more than 28 percent of your gross income should go to your monthly mortgage payments and no more than 36 percent of your monthly gross income should go to all debt. So if you’re currently paying 12 percent of your monthly gross to pay credit card, auto or student loan debt, that would leave you with 24 percent of your take-home pay as your mortgage guide. Depending on your lender, you might need to put down 20 percent of the sale price of the home as the down payment along with several thousand more in closing costs. Check your credit reports and scores several months before you think you’ll be applying for a mortgage to see if you need to correct any errors on your report or take any steps to raise your score. This is an important 1st home buyers checklist.

    Prepare list of your new home expenses

    Your first home doesn’t have to be perfect, especially if you’re on a budget. If you don’t mind doing small projects such as repainting walls, refacing cabinets or putting in new carpet, you might be able to get more house for your money. Even if you’re not a DIY expert, many upgrades aren’t going to cost thousands of dollars, and you can make them a year or more down the road. Also a new home will rise new expenses like furniture , new utensils etc.One of the mandatory 1st home buyers checklist.

    Insurance -Calculate your insurance cost

    Your first home insurance should be taken with lot care and understanding the policy in the depth .Understand clearly what exactly your policy will cover and valuate its premium with more than 3 companies at least. You can escrow the insurance payment with your mortgage loan payments.This is considered to be an ideal way when choosing your first home insurance.

    Source to pay when any ill luck occurs

    Everything in life , including this life is not with a guarantee of what would happen tomorrow.So considering a future plan which will provide a revenue source to your family like any early retirement plans as well a healthy insurance plan that meets all your future financial expense that can’t be prevented in future . A happy home should be less stressed , so do anything that can curtail the anxiety caused due to fear of future.

    Get an idea about your long term expenses

    Expansion is the identity of future. So except that everything will command a high cost , so think about the long term expenses. Like if your children are so young when you are buying home then the expenses for them , aged parents etc can be unavoidable future expense. Why it is necessary to think about this point at the beginning stage is because in the long run , the savings will more gone in the form of mortgage loans.I don’t say that you should buy your first home only by meeting this as an important checklist, but it can assure you a more relaxed future.This is not a mandatory 1st home buyers checklist.

    Read Also : Short term Investment Plans – Pros & Cons

    Realtor

    If you have no real estate experience, it’s a good idea to hire a realtor to help guide you through the process and find the right home for you. An experienced realtor can give you a rough estimate of how much house you can afford, what features will cost you more or not affect your budget and which neighborhoods will best suit your needs. Realtors can pull reports on comparable properties in a neighborhood to see if a house you’re considering is overpriced or not, and they can find other information about prospective homes, including past sale prices.

     Resale

    Think of how long you might be in your home and think about how easy any house you’re checking out will be to resell. A standard configuration for most homes is three bedrooms and two baths, which is the most desirable layout for families. Look at the prices of other houses in the neighborhood with the same layout and determine if yours is in the same price range. Comparable homes are used by real estate agents and buyers to value many homes.

    So we have seen many of the factors that is to be looked upon by a first home buyer. Don’t take that you should meet all the listed elements in 1st home buyers checklist. But try to ensure you are meeting the basic and most important elements in the list.

  • Quickly increase credit score in just 12 months -Easiest hack

    Quickly increase credit score in just 12 months -Easiest hack

    Credit Score is a term popularly used in the western countries especially in USA. If you are living in USA, you must have heard the name and know its importance already. Credit score plays a major role in your personal finance decisions in USA.Not just in US ,everywhere nowadays credit score matters . So everyone is in  search of ways to quickly increase credit score .

    Credit score is nothing but a three digit number assigned to an individual to evaluate his/her financial ability for repaying loan / mortgages. It can have a minimum value of 0 and maximum value of 850. The higher the value of credit score, the person’s ability to repay is good. If the credit score is lower, it means the person’s financial ability is not great.

    Quickly increase credit score in just 12 months -Easiest hack

    Given below are the values of the credit scores and their meanings.

    Credit score >750  –Excellent
    700-749               –Good
    650-699               –Fair
    550-649               –Poor
    <550                    – Bad

    It is always advisable to keep your credit score in Good or Excellent i.e your credit score must be greater than or equal to 700.

    Read more : Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

    Why your credit score should be good?

    You may be wondering why your credit score should be good and how it helps. A good credit score is very important in getting personal financing like car loan, housing loan, mortgages etc. For eg. If you want to buy a house or car, you will be applying for a loan. If your credit score poor or bad, your loan application will be rejected and you won’t be eligible for a loan. If your credit score is fair, you may get a loan but with higher interest rates. On the other hand, if your credit score is good or excellent, you will get a loan with reduced interest rates which will save you a lot of money. That’s why it is very important to maintain a good credit score.In short, if you want to get any personal finance from any provider, your credit score needs to be good or excellent.

    How credit scores are calculated?

    You need to know how credit scores are calculated before you try to improve it. The various criteria used in the calculation and their percentage are given below:

    • Your History of payments – 35%
    • Total amount owed by you – 30%
    • Length of your credit history – 15%
    • No of new credits – 10%
    • Various types of credits used by you – 10%

    How to increase your credit score from 550 to 750 in Twelve months?

    Now the biggest question is how to increase your credit score from poor to excellent quickly. If some company or person tells you, that they can help you to increase your credit score within a month or 3 months, don’t believe that. It is not true. It will take at least an year to build your credit score from poor to good and it takes lot of steps which has to be followed correctly and on time.

    You might have seen lot of advertisements in internet saying “Get your free credit report within 30 minutes”. Check those advertisements and obtain a free copy of your credit report from them. After going through the report, go through it completely with patience and make sure all the information in the report are accurate. For eg. A payment entry might be missing or printed on a wrong date. If there is any error, you can raise a complaint with the credit bureau and get help. If there are no errors, follow these below points to Quickly increase credit score in just 12 months .

    • Pay credit card bills / loan repayment on time:

    You should never miss a payment or pay it very late to keep your credit score good as the payment history contributes the maximum in the credit score calculation. Make sure of the auto pay facility from your banks or you can set payment reminders / alarms using any app. Or simply make a note of your payment dates in a calendar or a sticky note.

    • Don’t use too many credit cards:

      Many people get new credit cards to increase their credit score quickly. But in the long run, if the credit cards are not used regularly it will affect your credit score. If you want to Quickly increase credit score then you should be very much careful about the usage of credit cards. To build your credit score, you cannot keep your cards idle for long time. Don’t open new credit card accounts unless there is really a need.

    Read Also : Pros and cons of credit cards – All the Hidden Facts on Credit cards

    • Clear debts and Keep minimum balances:

    Clearing your debts regularly and keeping only minimum balances in your credit card will improve your credit score. You only have to pay less interest as the debt amount is low. Check the amount you owe for each credit card every month and make plans to pay it quickly. If you are not repaying the amount and keeping it same will reduce your credit score.

    • Don’t close credit cards:

    Closing your credit card will not help you in increasing the credit score as it will still reflect in your credit report. Instead of closing it, use occasionally or for small regular purchases.

    • Organize usage of credit cards:

    The best way to manage credit cards is to use it regularly.Organizing credit card is one of the best way to Quickly increase credit score. You will definitely have a regular expenses every month like paying rent, electricity, water, mobile etc. Prepare a table of all your regular expenses and allot your credit cards against them so that all your credit cards are used and nothing is idle.

    • Pay your bills more than once if needed

    If you have used your credit card to the near limit, it is good to repay two times in that month so that you won’t get much interest for the remaining amount and will also help to improve your credit score as you have made the repayment quickly.

    • Increase your credit limit

    If you have some financial problem and have used the maximum limit for your card, but could not repay it, then request your credit card company to increase your credit limit and keep the increased amount idle till you repay the debt. In that way, you can avoid a decrease in your credit card score.

    It is not a giant task to maintain a good credit score. Anyone can do it provided you spend some time regularly for organizing your credit cards, planning and making payments on time.

  • Mutual Fund A Complete Guideline – All You should Know

    Mutual Fund A Complete Guideline – All You should Know

    Here we will discuss all about mutual fund including basically what is a mutual fund and the different types of mutual funds. Also we will focus on how to analyse the performance of the mutual fund investment , mutual fund table . By knowing all this you will yourself have an idea about it but still we have given what you should know to choose the best mutual fund.

    So now lets start with the basics of our topic.

    What is a Mutual Fund?

    Mutual fund is basically a type of investment fund which is formed by combining various stocks and shares. It is generally safer than shares and provides good returns as many of the funds have a locking period of three years. i.e Like a Fixed deposit. Mutual funds provide a higher interest than traditional fixed or recurring deposits.

    In India, mutual Funds are becoming more popular as they are used for tax saving purposes in. They provide quick returns compared to the Life Insurance Policies which were used mainly for tax purposes before.

    Read Also : Investment on Stocks and Shares -Pros and Cons

    Different types of Mutual Fund

    There are basically four types of mutual funds available in the market and they are given below.

    1. Fixed Income funds
    2. Money market funds
    3. Hybrid funds
    4. Equity funds

    Fixed Income funds – These funds are also called bonds or bond funds. As the name indicates, the money is invested in such a way to provide the investor a fixed income. Mostly the money are invested in government based organizations as they are more stable.

    Money market funds – In these funds, money is invested for a short period of time but can yield a decent amount of return compared to the traditional fixed deposits in banks. Your money is very secure in this type of fund and you don’t have to worry about losing it.

    Hybrid funds – As the name indicates, here the money is invested both in bond funds and equity funds. We can call this fund as “Funds of Funds” .

    Equity Funds –See the below section , we have detailed it.

    What is Equity Fund?

    Equity Fund is the most popular type of mutual fund where the money is invested in stocks and hence it is also known as Stock Funds.  It can be open end or close end fund. Money is invested in the stocks of various types of companies.

    Different types of Equity Funds

    There are many types of equity funds available in the market and the most popular ones are below.

    International / Global Equity Funds – As the name indicates, these funds invest in stocks of companies outside your country.

    Sector Equity Funds – These funds invest in different sectors like telecommunication, banking, IT etc.

    Index Equity Fund – This type of fund follows a predefined set of criteria and tracks specified investments. E.g. S&P 500 Index Fund.

    Read Also : Short term Investment Plans – Pros & Cons

    How to choose a mutual fund?

    There are thousands of mutual fund schemes available in the market and you should be careful in choosing the right fund according to your needs.

    Low Expense ratio

    Find out the expense ratio of the mutual fund you are planning to buy.  Expense ratios include the administrative fee, annual fee, management fee and other expenses. It varies from 0.25% to 1% of the assets. It is advisable to choose a fund that has expense ratio less than 1% as it will perform well when compared with funds having higher expense ratio.

    Low or No fees

    Usually mutual funds will have two major fees namely front load fee and back load fee. Front load fee is the amount deducted when you buy the mutual fund whereas Back load fee is the amount deducted when you sell the fund. The value of this fee may vary from 3% to 8% of the total invested amount. To avoid this, you can buy mutual funds with no load fees called no-load funds as this will save some money.

    Analyze the past results

    Before finalizing the mutual fund, make a complete analysis of the results of the fund over the past few years. In this way, you can find out whether the fund is performing constantly and making profit.

    Know your objective

    Why you are investing in mutual funds? Are you expecting a short term gain or you have a long term goal? Definitely you should have a concrete answer for this question for choosing the right fund. If you have a long term goal, you can invest in volatile funds with some risks but can yield a high profit in the long run. If you are expecting a quick return, then it is better to invest in stable funds like government companies.

    Read Also : Gold purity and hallmark -Buyer’s Guide to choose the Pure Gold Jewellery

    What is a Mutual Fund Table?

    You can find the mutual fund table in financial related websites or newspapers. Understanding the mutual fund table helps in knowing more about the performance of the mutual fund. A sample mutual fund table is given below.

    52W high & 52W low – This represents the highest and lowest value of the mutual fund over the past 52 weeks or one year.

    Fund – Name of the mutual fund

    Spec. – It explains the various characteristics of the mutual fund. For eg. N means No-load, FR means front end load.

    $chg – Subtracts the current price with the price of the previous day. If it is -, then price has decreased, else it has increased. (Currency denoted in dollars).

    %chg – Same as $chg. The difference is expressed in percentage.

    high & low – These two fields represent the highest and the lowest prices of the mutual fund in the past week.

    cls – Closing price. i.e final price of the fund at the end of the day.

    $chg – Change in the price of the fund from the past week. (Currency denoted in dollars).

    %chg – Change in the price of the fund from the past week.

    How to know the performance of a mutual fund?

    • Find out the returns the mutual fund can offer in 1 year, 3 year and 5 year time period. It can give a good idea about how much returns we can expect. Also find out the record of the mutual fund for the past 5 to 10 years.
    • Try to understand the investment strategy of the particular fund. i.e where the fund is going to invest the money.
    • Find out the history of the mutual fund. i.e how long it is in the market. If it is old, then it should be a safer mutual fund as it has survived for long time.

    Mutual funds is a very good option of investment with high returns compared to the conventional fixed deposits provided we choose the right type of funds.

  • Tax clearance in Malaysia – A detailed overview of Malaysian Tax

    Tax clearance in Malaysia – A detailed overview of Malaysian Tax

    Tax payers always will have one or other questions that will be with unclear answer for them. So here we will focus on our best to help you with Tax clearance in Malaysia . Hopefully this will give you a better idea.As we would discuss the important aspects you should know about the Malaysian Tax system and the procedures .

    Malaysian Tax – What is tax clearance in Malaysia 

    Tax clearance is nothing but a letter or certificate issued by the Malaysian Inland Revenue (LHDN – Lembaga Hasil Dalam Negeri Malaysia) which says that if have any dues with the income tax department of Malaysia. This letter is issued for local people as well as expatriates in Malaysia.

    Tax clearance letter will also indicate if you have paid any taxes in extra or any pending amount is there. If you have paid in excess, you can contact your employer to get a borne letter from them. Once you give the borne letter to the LHDN office, you will receive the refund to your bank account in few weeks of time.

    Tax clearance letter is needed to get any sort of final settlement from the company. Legally any company can hold up to 3 months of your salary till you get the tax clearance certificate.  So it is very difficult to think of changing jobs without a tax clearance letter.

    Tax clearance is not needed if you are residing in Malaysia and working in a job. This is a brief of Malaysian Tax system.

    Who has to pay tax in Malaysia?

    Income tax is available in all countries throughout the world and Malaysia is not an exception. So according to Malaysian Tax system ,if you are an expatriate (An expatriate or expat is a person who is living temporarily or permanently in a country other than his home country) working in Malaysia for less than 2 months or 60 days, then you will not be taxable.

    If your stay is more than 182 days, then you will be considered as a resident. Otherwise you will be considered as a resident. The tax percentage varies between residents and non-residents.

    What an expatriate should do for getting tax clearance-certificate in Malaysia?

    According to Malaysian Tax system , if you are an expatriate working in Malaysia, then you need to inform the Malaysian Inland Revenue (LHDN) within two months after your arrival and register with them for paying income tax. The financial year in Malaysia is from 1st January to 31st December and the income tax returns have to be submitted before 30th April every year.So being an expatriate in Malaysia your tax clearance happens in this way.

    Read More – Gold purity and hallmark -Buyer’s Guide to choose the Pure Gold Jewellery

    When tax clearance is needed in Malaysia?

    You need to apply for tax clearance certificate under any of the circumstances below.

    • Leaving Malaysia for a period of more than three months.
    • You have resigned from your job.
    • You are terminated from your job.
    • Your contract period has come to an end.
    • You have retired from your job.
    • Leaving Malaysia permanently.
    • If a person dies while he is working, his immediate blood relation or kin should apply for tax clearance within 30 days from the date of death.

    If you satisfy any of the criteria above, you can get your last month salary only after getting the tax clearance letter. Also you will not get your settlement money like overtime pay, gratuity, leave salary, provident fund or any other compensation till you get the tax clearance letter from LHDN and your employer will retain the money.

    For resignation, retirement, ending of contract or leaving Malaysia you have to apply for the tax clearance letter at least one month before your final day of work.

    How to apply for a tax clearance in Malaysia?

    For applying tax clearance letter, you have to contact your employer and they will give you appropriate forms depending on the criteria.

    • Form CP21 : This form also called ‘Leaver form’ is applicable for expatriates leaving the country for a period of more than three months. The form should be sent to LHDN at least a month prior to your departure date.
    • Form CP22A : This form is applicable for expatriates or locals working in the private sector and needed when they resigned, retired or terminated from their job.
    • Form CP23A : This form is applicable for expatriates or locals working in the public sector and needed when they resigned, retired or terminated from their job.
    • In case of death of the tax payer, then the employer should be immediately informed and they in turn should inform the LHDN.

    After filling the appropriate form, you can submit it online or in person to the LHDN office where your income tax information is registered along with the necessary documents. Online facility can only be done through your employer by using e-SPC.

    Late submission of tax clearance in Malaysia

    The Malaysian law is very strict on tax clearances. So please make sure that the tax clearance form is submitted on time as there is penalty fee depending on the time of delay.  The fees may vary from 200 to 2,00,000 Malaysian ringgit (MYR). There is also a chance of imprisonment for the individual if the tax clearance form is not submitted on time and it may be from 1 month to 6 months. For companies who did not submit tax clearance on time, LHDN will take legal measures against them.

    Read Also – Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

    Processing time of tax clearance in Malaysia

    The processing time for your tax clearance letter is 10 working days from the date the application was received by LHDN. You may receive the letter within a week also.

    Documents needed for tax clearance

    To apply for the tax clearance certificate according to Malaysian Tax system, you need the following documents.

    • Original Passport ( This will be returned back immediately after the copy of the passport is verified)
    • Copy of all pages of your current passport
    • Form CP21/22A/23A: The form appropriate for your need with all the information completely filled and duly signed.
    • EA form – Company will give this form every year .Keep form for all the years you have worked in Malaysia.
    • BE form for current year
    • NR 51: List of stampings made in Malaysia in your passport.
    • Pay slip (Not mandatory)
    • PCB II Letter

    Before submitting the documents you need to find out the LHDN office that is processing your income tax returns. You cannot submit the documents to any other LHDN office as they won’t process your application.

    Make sure you follow all the above points and apply for the tax clearance on time without fail. So as you can get your tax clearance in Malaysia easily .

  • Purchase without credit card top hacks

    Purchase without credit card top hacks

    In a world of online transactions many people fall short of the payment options they have to their disposal. Online transaction when thought of the first thing that pops out of our pocket is our credit cards, isn’t it ? Well good news people, out there we have got a plenty of options to get debited from and credited by the product or services we ordered.For some making purchase without credit card is “Taboo” involving a lot of risk and complication. As a matter of fact paying through any option other than credit card is as easy as to pay it through credit card, Confused huh? Here are quite a few options and facts to go through and enhance the shopping experience without a credit card yes you heard it right.

    Excellent hacks to Purchase without credit card 

    Here we are discussing about the 10 excellent ways to make payment without credit card. So this will expand your world of online transactions really. For masters in internet and cash dealings online this is not going to be a great deal but still have a look ,what if you could found something new here . And for newbies to online transaction world just go through it as you can find it quite relaxing and helpful i guess.

    So here is the top 10 ways to Purchase without credit card :- 

    1. Debit card

    Debit card can be considered as primitive mode of transaction and feels like it is with us since ages easy, involves less risk and identical twin of credit card is widely acceptable. Debit card hold a whopping 45.7% of total online transactions made globally since 2010, technically speaking if 1000 transactions are made 457 will be accounted by debit cards. Huge!

    Debit cards are easy to use payment options and almost every online platform supportive, user should know the Card Number, Expiry Date, CVV code and Card Holder Name to initiate a debit card transaction and guess what all the details are very well printed on the card you are using.

    1. Cash On Delivery

    “Cash on Delivery” is very hassle free way to get the payment done. Order the product in the stipulated time delivery men swoops in gets the product and demands cash, in no time transaction is complete, provided if you pay the cash. Also referred as COD is a secured mode of payment as it is much of a hand-to-hand cash transfer. COD is also supported by most of the platforms out there.It is a method of not just Purchase without credit card but its like no need to know about card purchases at all. Just like you buy and you pay the paper cash .

    Read Also – Pros and cons of credit cards – All the Hidden Facts on Credit cards

    3. Bank transfers (EFT)

    EFTs otherwise known as Electronic Fund Transfer is yet another mode of payment which takes place using a internet account provided by the respective banks. For example XYZ bank will provide username and password which can be used for internet banking to login, it is a virtual account through which user can make payment to specific website, seller or individual. As far as security is concerned the transactions are encrypted from bank’s end hence provides trustworthy security.

    4.Virtual wallets

    A range of wallets are available online to cater the need. Virtual wallet works in a way similar to a physical world wallet, user needs to en-cash the wallet post which it can be used for online transactions. Virtual wallet can be used without the bank account being involved while the transaction which is a bright side, most of this wallets also back you up with mobile application. In terms of security virtual wallets are pretty tight, virtual wallets are a good way to pay because user need not input data and fill up forms which makes it easy to pay option.One of the excellent and risk free way to Purchase without credit card.

    Companies like Google, Apple, PNC, Samsung, PayPal are few of the companies which provides virtual wallet, in a need to be the best in the market companies shell out a lot of offers which in a way can help users save a few bucks.

    1. Virtual Credit Cards

    Virtual credit card can be used rather than a physical credit card as it involves risk and fraud, virtual credit cards can’t be stolen, lost or cloned as they are issues for a period of two and twelve months. Virtual credit cards have a limit of transactions and the credit card numbers generated are either by a web application or client software making it more secure. It is a best alternative to credit card .

    Virtual credit cards are also famous by the names : “Substitute credit Card Number” , “One-Time Use Credit Card” , “Disposable Credit card”.

    1. Bitcoin

    Cryptocurrency are a new and innovative way to make online payments. Bitcoin is one of those currency option which is in use. Invented by Satoshi Nakamoto on 31st October 2008, bitcoins; since then many platforms do not provide support for the same however they are constantly developing methods to get the currency in implementation. Bitcoin are a peer-to-peer transfer technology where in there is no regulation of bank in between.Its one of the effective way to choose to Purchase without credit card system.Bitcoin have a equivalent value to the real currency. Bitcoin can be stored in a virtual wallet provided by the bitcoin organisation and can be paid to any particular or organisation. Bitcoin is currency of future.

    Read Also – Safe Online transactions Tips & top 12 safe online transactions methods

    1. Gift Cards

    Gift card can serve two purpose at a time one being the method to pay for a product or service and the  later being gift to someone special. The user can use the gift card  in the specific website that has issued the card or they can use it across the platforms. Gift cards have a specific value attached to it, gift cards come with a expiry date so be cautious with the time they will be valid.

    Many platforms namely Amazon, E bay and many other companies provide these gift cards.

    1. Redeem Points or Rewards

    Who wouldn’t like rewards or points to redeem? This payment mode is personally my favourite because it is the reward that one gets against purchase made. Points or rewards are loyalty programs initiated by companies in a way to retain customers and making an effort to reward customer as a result of continual purchase.

    These points can be redeemed as and when they reach specific value fixed by the companies providing the points.

    1. Pay near me

    As the name suggests user can order the product or service online and can choose a spot nearby and go and make the payment. Pay near me is beneficial when the user is in a place where pay near me location is near by. User can get the product and then make the payment in fixed time at the location.This is like just safe on hand and one most loved way to Purchase without credit card.

    Read More – How to secure bank account from hackers

    1. Cheques or Money Orders

    Last but not the least, some might call this methods old school however they are still alive and robust mode of payment. User can buy product online and send a cheque of the amount and once the cheque is cleared and amount is received by the seller the items are shipped. Money orders works in a similar fashion once you get them issued by the banks or post office they should reach seller and post cash is drawn from them items are shipped. These methods are on average of extinction as they involve a lot of time to complete. But still just to remember something which was popular old school trick i thought to add it .

    Hope i have discussed about something worth related to methods to Purchase without credit card . If i have missed out any of the important methods i really apologize for the same as well , may be sure i will post on those i miss in this shot.

  • Safe Online transactions Tips & top 12 safe online transactions methods

    Safe Online transactions Tips & top 12 safe online transactions methods

    Doing a safe online transactions is the ultimate need of today’s society. Our lifestyle and economy demands for an online transaction while how safe your transaction is the primary question in most of the people.

    Safe Online transactions – Detailed overview 

    Before heading towards the exact title you should know a brief about online transaction to get a clear idea . I am not going to say something which you don’t know , its all many of you will be knowing but i write this for those who are really newly to online transaction . They will surely have so much confusion along with fear of how to do safe online transactions.

    What is online transaction?

    Online transaction is nothing but a simple way to avoid longer queues, travel, transportation etc for doing our regular activities which includes sending money to someone, purchasing groceries, booking train/bus/air tickets etc. Online transaction can be accomplished by using our credit/debit card or payment support systems like PayPal.

    safe-online-transactions-tips

    Time saving is the major advantage of doing online transaction and it really helps working people as they don’t have much time for going in person. Even though online transaction is easy and comfortable, we have to take all the necessary steps so that our transaction is 100% safe and no information is stolen.

    Different kinds of online transaction

    The most common varieties of online transaction are –

    • Online Shopping
    • Paying Utility Bills (Electricity/Insurance)
    • Making reservations for travel (Air/Train/Bus)
    • Sending money (Local / Overseas)
    • Receiving money (Local / Overseas)
    • Net Banking ( Checking transactions with your bank account)

    How to do safe online transaction –Safety tips to online transaction

    Even though online transaction has many advantages, the major drawback is security as there is a chance that your information can be stolen and misused. To avoid that, please keep the following these points / safety measures in mind while doing online transactions to have a smooth and safe online transactions.

    • Say ‘No’ to public and shared computers –

    tips-to-stay-online-on-free-wifi-and-public-networks

     This is the most important safety measure that you have to take while you want to have safe online transactions . Don’t do any online transaction using computers in internet browsing centers as the cookies, passwords etc. are stored in them. It is better to avoid doing online transactions using computers that are shared with your friends / relatives unless you trust them completely.

    Read Also : How to secure bank account from hackers

    • Review certificates –  

    If you are doing any online transaction in your bank or other financial websites, check the certificate of the website. You can find a small lock symbol on the address tab. Check it and make sure that the certificate has a valid expiry date and it is the original one as there are many false websites with same domain name and appearance are available.

    review-certificates If the certificate is valid, you can see a green color text which means extended validation. Red means the certificate has expired or invalid. Yellow means the certificate cannot be verified. White indicates that the certificate has normal validity.

    • Difficult Passwords –

    difficult-passwords

    Keep your passwords a little bit difficult and complicated and not easily identifiable. Don’t use your name, age, date of birth etc… in your passwords. It is better to avoid any information about you which are known to others while creating passwords. Keep changing your passwords often. Many banks are offering 3D codes for doing safe online transactions. Subscribe for that.

    • Use Virtual keyboard –

    use-virtual-keyboard

    Many banks offer virtual keywords for logging in to their website. You can make use of that as it is safer than normal keyboard even though it takes a little long to type with it.

    • Third party payment / VCC –

    It is advisable to use third party payment systems like PayPal, AlertPay or Virtual Credit Card (VCC) for doing online shopping as there is no need to share your personal bank information with the merchants. VCC stands for Virtual Credit Card that can be created for any amount and can be used only once. Check with your bank whether they are offering VCC feature.

    Read Also : Best Low Cost Fund Transfer Methods An Overview

    • Use renowned websites –

    If you want to shop anything online, make sure that the merchant site is popular and can be really trusted. Read customer reviews about the website and make sure they are genuine and delivers the goods as promised. Popular online shopping sites are Amazon.com, Ebay.com, Flipkart.com, Snapdeal.com etc.

    Watch this Useful Video for Safe Online Transactions Published by Axis Bank : –

     

    Top 12 ways to do safe online transactions

    Here are the Top 12 ways or payment gateways for doing safe online transactions.

    1. PayPal

    PayPal is the most popular and reliable way of safe online transactions for Money transfer / Shopping. It is accepted by majority of the merchants worldwide who sell their goods online.

    paypal-safe-fund-transfer-method

    PayPal is very good for shopping goods online and small money transfers. PayPal is not good for sending huge money because of its high transaction fees and wire or direct transfer is the best way for sending large amount.

    2. Google Walletgoogle-wallet

    Google Wallet is becoming popular these days and competing with PayPal in safe online transaction. But currently Google Wallet is used and accepted mostly in USA. There is no fee for sending money to someone else using Google Wallet. You can keep any amount of money in your google wallet by transferring from your bank account and use it for online transactions.

    1. Skrillskrill

    Skrill is previously known as Moneybookers and is being used worldwide for safe online transactions. It can be used to send money as well as for shopping online. The transaction fees of Skrill is very low when compared with other payment systems and is highly secured.

    1. Payoneerpayoneer

    Payoneer is also a good payment gateway for safe online transactions and is accepted globally. It is used to send / withdraw money but the transaction fees for withdrawal is little high. You can create an imaginary US based account with the help of Payoneer which helps users to do transactions with US based merchants or companies.

    5. Stripestripe

    Stripe is a good payment gateway for receiving money and it is really useful for freelancers or people who work online. But currently the sender should be only from the designated countries like USA, UK, and Canada etc. The receiver can be located anywhere in the world.

    6. Payzapayza

    Payza is nothing but the new name of the popular payment gateway AlertPay. It is widely accepted in many countries next to PayPal. It can be used to Send / receive money and has low transaction fees.

    7. Dwolladwolla

    Can you send money to someone using their Facebook or Twitter account? Yes. Dwolla is the best choice for doing such online transactions. The best part of Dwolla is zero transaction fee for small amounts. It is accepted worldwide in many countries.

    8. WePaywepay

    WePay is a popular payment gateway for receiving money and is very useful for anyone who sells their goods online. But it is currently available only in USA.

    1. Authorize. Netauthorize

    Authorize.Net is one of the oldest payment gateways available since the 90s. It is accepted worldwide for safe online transactions. It is widely used for payments with credit card.

    1. 2CheckOut2checkout

    2CheckOut is a very good option for receiving money and is most suited for the merchants or anyone who sell the goods online. It is accepted worldwide in many countries and has reasonable transaction fees.

    1. Amazon Paymentsamazon-payments

    From the name itself, we can trust this payment gateway as it is owned by the popular online giant Amazon.com. It offers different types of accounts for money transfer or shopping and a secure environment for safe online transactions.

    1. ACH Paymentsach-payments

    ACH Payments is a trusted and popular payment gateway for safe online transactions and is accepted worldwide in many countries. It can used for sending as well as receiving money.

    So that’s all on the brief section of safe online transaction methods and tips .

     

     

  • Pros and cons of credit cards – All the Hidden Facts on Credit cards

    Pros and cons of credit cards – All the Hidden Facts on Credit cards

    Credit cards are widely used by common people nowadays. Most of us are eagerly waiting to get a credit card so that we can purchase something that is in need whenever required. The credit cards can be used in a very controlled manner and it is a blessing when we need money urgently. Before we think about applying credit card, we should know the Pros and cons of credit cards as well. As the coin has two sides each and everything will have pros and cons. Credit cards should be used only after planning your purchases wisely, otherwise this will become a burden for you. Everybody will be so happy buying things which they like whenever they feel like shopping, but it’s not that simple to pay the huge bill that is coming after a while.

    Pros and cons of credit cards

    Lets have a look on the Pros and cons of credit cards.

    credit-cards-pros-and-cons

    Not only the people who are working, even the college students are using credit card, which may be owned by their parents. This may not be a good option for the students as they are not that serious about the value of money. They are getting the best option for buying whatever they need just by an online/offline transaction. Parents may not be aware about how much they are spending and for what and all they used credit cards. At the end of the month you will get the bill and any way we must repay it. Not only it’s the matter of money, students are getting the chance to just pay and own whatever they need. This may lead to big problems in their life. When we consider checking about the pros and cons of credit cards usage , there comes a lot of scenarios where we can use the credit card as a blessing also. When we go through the pros and cons of credit cards, we will be able to understand more about it.

    Pros Of Credit Cards

    Purchase Option: When you are going to purchase some household things like TV, Refrigerator, Furniture, etc., we may need to carry a stack of cash for paying the bills. If you have a credit card, then it’s very easy to just swipe and pay whatever amount they need in total.

    Promotions and Vouchers: The credit card  may provide you with a list of vouchers every month with your bill or as a separate email. Also, you will be able to enjoy some rebates while you purchase from selected shops.

    Points To Earn: Some of the banks are providing the benefit of crediting some points for each purchase through credit cards. Each purchase will get some points and that can also use for purchases in future by converting each point equivalent to some amount.

    Extra Bit Of Cash: Most important cons of credit card is it helps when you need an extra bit of cash. When you are lacking with some amount and you can’t take money at a sudden from anywhere, credit cards help a lot in this situation.

    Read Also : Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

    Instant Loans: If you are a credit card holder then it’s very easy to get loans. There may come situations like it’s very urgent to get some huge amount of money and you don’t have it as savings, then taking a loan is the only thing you can think about. In this situation, banks may not be able to sanction loan in a short period. At the same time if you are a credit card holder they will approve within a day.

    pros-and-cons-of-credit-cards

    Cons Of Credit Cards

    Unnecessary Purchases: The chance of purchasing something that is not needed is the primary disadvantage of having a credit card. The control over the online purchases will affect as we are having a credit card with enough money to buy whatever we feel like buying.

    No Idea About Total Expenditure: We may not have any idea on how much we spent from the card and there is a high probability in spending more than what we plan. This will end up in getting a bill with huge amount. Once you realize that you don’t have a sufficient amount to repay the bill, it will be too late and the extra charges for late fee with interest will be very high.

    Interest Rates: It’s not that easy to handle the bills of credit cards as it is having a high interest rate. Most of the banks are having an interest rate of minimum 10%. Once you fail to repay the amount within the target date, they will start calculating the interest on a daily basis and that will become a huge amount within a week. For common people, it’s hard to handle such situation and this will end up in taking other loans to repay the bill.

    Read Also : How to secure bank account from hackers

    The credit cards should be used with extreme planning. If you pay the bills on time, then you will get increased in ratings and the credit limit will get increased. Credit cards are helping us a lot in fulfilling our dreams like purchasing a mobile phone or a laptop when we need it and we are getting an option to repay the amount as EMIs. The bank will credit the whole amount to the seller and split the amount and interest to 12 or 24 month installments.

    So, as a conclusion, make sure you are aware about the pros and cons of the credit card before you start using the same. More important is make sure you are purchasing for an amount that you can for sure repay within a month. Don’t fail to repay the bill in any case since they will charge interest on the amount which will be difficult for you to repay later. All we should keep in mind is that while using the benefits of credit cards, we should also keep in mind the consequences that are on the way. While choosing the credit for you, make sure it is one with the, lowest interest rate and is having the best offers among others.