How will you use your credit card?

The first step in choosing a credit card is thinking about how you will use it.

	If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don’t interest you--your best choice may be a card that has no annual fee and offers a longer grace period.
	If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
	If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.

The Basics You Need to Know for Personal Auto Loans

Personal car loans are an excellent option for those who are looking to purchase a new vehicle. Fast personal car loans are provided by a number of lending institutions today. Individuals can borrow with this loans without any hassle even if you are looking for a bad credit personal car loan.

In order to get home auto personal car loans you will need to have an income proof that can be verified. You will also need a residential address that can be verified by the lender. For some personal car loans you will need a good credit history unless you are going for a bad credit personal car loan. In the case of bad credit loans the lender may require that you provide personal references such as phone bills, bank statements and tax returns. A first time auto buyer may be nervous about signing for a personal loan, but often times these have lower interest rates than other methods of credit. There are a few factors that go into determining your interest rate.

Many lenders will determine the interest rate for personal car loans and refinancing personal car loan by considering the borrowers credit history, the type of car they are considering purchasing and what the duration is for the loan. Typically personal car loans will have a duration between one and four years. In addition to this another aspect to consider is that there are two ways to finance fast personal car loans.

Direct and indirect are two ways that you can finance a personal auto loan. The direct personal auto loan comes from institutions such as banks or lenders. On the other hand, the indirect personal car loan comes directly from the dealer you are purchasing the car through. Both this options are available for those who want a bad credit personal car loan. However, these personal car loans will come with a higher interest rate due to a poor credit rating. Another thing to consider is the different between car loan personal secured and unsecured

A Personal Loan would vary according to certain factors

• The amount that is to be borrowed
• The rate of interest
• Whether it is a fixed or a variable rate of interest
• Loan repayment term( in months or years)
• The down payment or deposit
• The associated fees or costs- broker fees, prepayment fees, origination fees.
• The insurance that the lender would require

In other words, you are buying a sum of money for more than it would cost the lender. It would be a mistake to consider only the rate of interest before taking a personal loan. There are also arrangements fees and penalties of prepayment that you would have to consider. Many of the "no-fee" credit lines carry with them a prepayment penalty. This is the way the lender/broker makes his profit. Please work out the total expenses of your small or big personal loan before signing up for the loan agreement.

Personal Loans are of various types, mainly Secured Personal Loans and Unsecured Personal Loans.

Secured Personal Loans

These loans are given by the lender upon the pledge of collateral by the borrower to secure the loan- like property, or a car. Subsequently as the lender stands to recover his money if there is any default in repayment, the rate of interest charged on the loan is less.

Unsecured Personal Loans

Such loans are given to the borrower with no pledge of collateral or security. As the lender faces a very high risk of losing his money should the borrower default on repayment, the interest rate is quite high.

Unsecured Bad Credit Personal Loan

Here again the borrower with a history of bad credit rating is being given a loan without forwarding any collateral on his part. All the lender has is the borrower's signed promise to repay the loan. Therefore such personal loans are also called signature loans. Signature loans would be issued in full entirety upon the receipt of a signed activation letter or a letter of commitment from the prospective borrower. Consequently to protect the lender's money, the rate of interest charged would be high.

Guaranteed Personal Loan

A guaranteed personal loan comes with a requirement from the lender that the borrower must be having a certain level of income and a good credit rating. He should provide the lender with sufficient proof of his ability to make the repayment.

My Choice of a Life Insurance Policy

I recently read a two part article on milliondollarjourney.com in reference to life insurance policy. I thought I would add to it by sharing my own experience in regards to life insurance policy. Estate planning and insurance are parts of financial planning that we often forget if we are not dealing with a financial planner. Nobody wants to discuss about death, especially when we are talking about their own death! Unfortunately, this will be the last chapter of the book of our lives. Trust me, you are better off if you leave money for your family behind you than financial problems!

I first realized that when I got married three years ago. As my wife and I were now making one, I thought that I could not let her down if I pass away. We then decided to subscribe to our first life insurance policy. We were living in an apartment, no debts beside a car lease and no children. We didn’t need much to cover for each other’s death. We took 100K each universal life (UL) insurance policy. I found the premium expensive but the UL would last forever and we would always get 100K each when we pass away.

It was surely not the best choice by far. When you seriously think about it, 100K in 50 years (I’ll be 75) will not mean much! With inflation rate, the price of a 2067 Mustang Shelby 10.0 Limited Edition will probably be more than that! Not only that, but are we really going to need 100K at that time? When we signed for the policy, my wife was 23 and I was 22. We are already planning our retirement at that age. I do not think that a 100K will be significant in 30-40 years from now.

Archive for the ‘Improve your credit score

As a banker, I often hear remarks about ones Beacon Score being low because of poor credit management. The Beacon Score (also called Fico Score) is one of the major factor in a credit analysis. Whenever you apply for a credit card, a mortgage, a personal loan or a line of credit, the financial institution will pull out a credit report and look at your score. If it’s not high enough, you could be declined base solely on this information. Your credit score is not only about paying your bills on time. As there are several factors that influence your Fico Score, I am presenting for easy ways to increase this magic number.

#1 Verify what lies in your credit bureau

This may seem stupid at first as what is supposed to be in your credit bureau should be your own debts and nothing else. However, this is not the case for many individuals. The first reasons would be because people think that when they stop using a credit cards or cut them and thrown them in the garbage, the account is closed. Well it’s not until you take the time to call the financial institution and request the account to be closed. The second reasons would be related to the fact that people tend to forget small bills and they could completely ignore a $25 balance on their latest furniture financing bill. The third reasons would be caused by fraud attempts under your name. This can damage your credit score for a long period of time if you do not catch it in a short period of time. For these three reasons, I strongly recommend that you order your credit bureau from Equifax (equifax.ca or equifax.com) once a year.

#2 Apply for a credit card now

As I previously mentioned on this blog, it would not be a bad idea to have three to five credit cards. Credit cards are the easiest way to build a strong credit history. All cards are reported on a monthly basis to the reporting agencies which is not the case for other loans held at the bank. While you benefit from a periodic reporting, you can show financial institutions that you are able to manage revolving credit. The best things to do with credit cards is to use them so their owing balance fluctuates over time.

#3 Use it on a daily basis

Yep, you just read “use your credit cards on a daily basis” on a personal finance blog. Put as much as possible of your recurring expenses on your credit cards. I am talking about groceries, restaurant, transport, utility bills, clothes… basically everything that is already on your monthly budget. It is important to not look at credit cards as a gift from God (it’s not!) but really a tool to build a stronger Beacon Score and get rewards from your regular expenses. At the end of the day, you have to pay for these expenses, why not using them to get something out of it?

#4 Pay your bills in full and on time

While I am telling you to use your credit cards on a daily basis, you must keep in mind that you will have to pay the full balance when your bill will come at the end of the month. This is the perfect trick to improve your Fico Score; use your credit as often as you can while paying the entire balance at the end of the month. If you can not make the full payment, make sure that the one you make is one time. A late payment on a $10 bill has the same impact on your credit bureau than not making a $1000 payment. Credit is based on trust, no matter what is the amount.

Apply for Best Credit Cards Online

We are glad to see you at our site ApplyForBestCredit.com! This is a web resource for consumers who want to be financially literate and be in the know of the latest credit card offers from the most authoritative banks. At our site you can get professional assistance in choosing credit cards and make an online credit card application. For instance, the first thing we tell our visitors is, "You cannot transfer your balance until your credit is good or excellent". Read other important tips on our pages.

Learn more about credit cards, go to corresponding sections of our web-resource. Get new information about financial products from our Credit Room. Find credit tips and solutions in the Help Center. Feel free to navigate through the main menu to find numerous credit card offers.

Small Business Finance

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Our credentials?

I'm Neil Best, an accountant with over 15 years experience in business finance. I've worked in all areas of industry, from manufacturing to service, banking to technology, and have dealt with rapid growth start ups and mature companies struggling to make a profit. I've worked with companies with just a handful of employees, and those with thousands.

Its my personal mission to give you the benefit of this valuable experience with the simple aim of helping you succeed.

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