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Credit Tips

How to Use Your Credit Card Smartly?

Gone are the days when only a handful of people used these Cards. The present scenario narrates a different story and every individual today swipes his or her Credit Cards for making purchases. Executing transactions through these cards have become a common affair. Take a look around, and you will come across innumerable people swiping their respective cards. It’s here that individuals consider the positive impacts of using these cards.

Possibilities of rewards

When it boils down to making effective financial transactions, Credit Cards play a crucial role. This particular mode of payment can be useful, effective, and rewarding if the users know the art of using it. Try utilizing your card smartly, thus reaping the maximum benefit out of it. Here are some tips to help you out:

Tips to make the most of these Cards

If you are wondering about how to use your credit card, following the effective and smart tips will surely help you out. Seeking professional assistance will be the best thing to do, as that will help you spend smartly and earn more. Always try to strategize your expenses and spending behavior for smarter and better transactions. If you wish to make the most of your transactions, these suggestions can be useful:

1. Higher Credit Limits

While accepting Cards from a bank, you must check the credit and spending limits. Always look for highest limits, as that will help you emerge as qualified creditors. You will not only gain the flexibility to plan high-priced purchases but also get the opportunity to prove your credit worthiness.

2. Paying bills on time

Overdue amounts and card bills can affect your credit score negatively. If you fail to pay the overdue amount within stipulated periods, make sure you have adequate finances to pay off the pending amounts. It’s highly imperative to pay overdue on time, as that is the key to getting qualified for higher credits.

3. Understand rewards

Most of the individuals receive special gifts on their cards. However, they fail to understand the ways to use them. You should comprehend the clauses, understand them, and then redeem special discounts. Every Card owner must know his credit limits as that will give him the freedom to pay.

4. Clear, complete overdue amounts

At times, you might come across an option where minimum overdue can be paid. Steer clear of choosing such options as that won’t help you in any way. Try clearing the complete bill without keeping any pending amount. Minimum payments can lead to exorbitant interest rates on the remaining amounts.

5. Ensure complete security

Always keep your cards in secured places and make sure it is safe. The details related to the Card should be open to you and not to anybody else. Sharing such crucial details will pave the path for fraudulent practices. Be crystal clear about the usage of your card and keep it secure. That’s the key towards making authentic transactions.

Final thoughts

These suggestions can help you to a great extent. Other than these tips, you can also follow some of the other crucial strategies too!

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Credit Tips

Reasons Why Shouldn’t Use A Personal Loan To Pay Off Your Credit Card Debt

Many people in Singapore hold multiple credit cards at the same time as each card has its own unique benefits. Under such circumstances, people can potentially fall into a debt trap as he/she owes money to several creditors. There are multiple payments and due dates to keep track of, and the non-stop reminders about unsettled balance only adds to the tension. As you fall behind the due dates of making the payments, your debts will only become larger. One of the way out from this debt trap is having a personal loan known as Debt Management Plan or DCP.

DCP was introduced by Association of Banks in Singapore (ABS) in the early part of 2017 for all Singapore nationals and Permanent Residents who are facing difficulty in settling their debts. DCP is a type of personal loan where you can borrow a lump sum amount to pay off all your current debts right away. However, you can take the help of a DCP only for unsecured credit facilities such as personal loans, credit cards and other credit lines. Let us take a look at some of the benefits and drawbacks of a Debt Settlement Plan:

Benefits

  • You only have to make a single payment per month as a DCP consolidates all your debts into a single debt. This will help you save your energy and time and cutting the stress of missing a payment, as you no longer have to keep track of all the different creditors.
  • Lower interest rates with a DCP makes it easier to pay off all your debts and actually make visible progress.
  • When a DCP is managed well, you have a better chance of saving some money instead of spending your whole monthly earnings on paying bills.

Drawbacks

  • The biggest drawback of DCP is the potential of getting into more debt. People who are not careful about their expenses and have a habit of gambling are prone to get themselves further into debt.
  • Even with low interest rates, you may take longer to pay back your debt with DCP. In the long run, this will lead to more interest payment. To avoid this, you must concentrate on paying off your debt as early as possible.
  • If you fail to make timely payments, fines and interests will be imposed, which will only enhance your burdens.

If you choose to transfer your DCP to other banks, you will have to do it three months after your DCP is sanctioned. You will be subject to penalty fees which the original bank may charge for early termination or transferring your DCP. Since a long commitment is required with a DCP, you should do your research extensively before applying for a plan.

Once you have taken a Debt Settlement Plan, all your prevailing credit cards and unsecured debts are adjourned. You will be offered a revolving credit equivalent to your one month’s salary. You will not be eligible to apply for any new unsecured cards during the time your DCP is active, unless you have repaid a part of your debt.

Eligibility criteria

To be eligible for a DCP, you must be a Singaporean or a Permanent Resident. You must have personal assets worth less than S$2 million or your earnings should be in the range of S$20,000 and S$120,000 a year. Your consolidated unsecured debts must exceed by over 12 times your monthly income.

Fees associated with a Debt Management Plan

There are a few banks in Singapore that charge a fixed processing fee while the others charge up to 3% of the sanctioned loan amount. You should opt for a personal loan to finance your crises if you can wait for a few days. Personal loans are better than cash advance because of fixed monthly payments and low interest rates.

A Debt Settlement Plan will help you pay lower monthly sum with low interest rates. As a result, it will help you focus on a single contribution every month and have less financial strain. A personal loan in the form of a Debt Management Plan will help you negotiate with your creditors for removal of penalties to make your loan amount lower.

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Credit Tips

Comments: Credit Card Swipe RFID Security – 3 Tips to Avoid Credit Card Theft

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Credit Tips

The Fast and Effective Tips For Reducing Credit Card Debt

It is vital that you should try to pay your credit card debt within stipulated period of time and you should try to improve your financial situation by all possible means. Otherwise, if you have unrestrained credit card debt, then there is every possibility that it will haunt you from time to time. However, it is vital that you should take the help of a proficient lawyer so that you can handle this type of issue in the best possible way. Even if you are sued by your creditor, the lawyer can help you to handle it in the best possible manner. This article will highlight on a few important tips that you should consider in order to reduce credit card debt as quickly as possible.

Before you take the initiative to resolve this kind of issue, it is important that you should be able to know where exactly you stand. You will not be able to handle it if you do not know the exact amount of debt that you need to pay.

The next step is to try to talk to your credit card organization about your financial situation without any kind of delay. Once you explain your financial scenario, the next step that you should follow is to find out if you can get any sort of help from the particular organization in this matter. If you do so, there is every possibility that your credit card agency will reduce the rate of interest for a particular period of time or it can even waive the current late fee amount in order to provide you with ample scope to clear off this kind of debt.

Once you manage to reduce it in the best possible way, it is advisable that you should track down all kinds of costs as much as you can. All you have to do is to write down different types of expenses such as insurance, phone, mortgage and so on. If you track down these expenses, there is every possibility that you will be able to understand the exact way your debt is accumulated in due course of time.

Your next step is to find out the appropriate strategy that you should follow to pay your credit card debt. For example, you can invest a low amount of money to pay credit card debt along with high interest rates and at the same time, you should try to curtail all the other expenses as much as you can.

You should check out if there is anything that you wish to clear up in order to get out of this type of problem. For example, if you have purchased an expensive car or you have bought an air conditioned machine, it is advisable that you should give it a thought if you at all have the ability to maintain such expensive items for a long period of time. If you get rid of this expensive item, there is possibility that this type of debt will be reduced and you do not have to face financial hardship at any point of time.

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Credit Tips

Credit Card Secrets: 3 Great Tips for Using Your Debt

Much like other financial investment vehicles, credit cards have a bunch of “secrets” that the average consumer never learns to take advantage of – and the companies like it that way. Indeed; if more people knew about and used these; lending via credit as an institution would eventually cease to exist as the margins shrunk.

In the following, we’ll uncover a handful of credit card secrets, so as to better position you to be able to take advantage of the many ins-and-outs of these ultra-competitive lenders. In just three tips, you’ll learn how to utilize credit cards in ways you might have never thought of.

Tip 1: Get Cards with a Beneficial Rewards Option

This may seem obvious. But the truth is, far too many people obtain credit cards that have rewards which don’t really apply to their lifestyle. After all, if you hate the cold, then what good is it to get a trip to Moscow as an end-of-the-year reward?

With this in mind, when you get a card that provides you with frequent flyer miles; make sure you don’t pay cash for things such as groceries, department store purchases or even gas – put it on your card!

Of course, in order to truly take advantage of this offer, you must avoid carrying a balance – head to your house and pay off the purchase right away. Then, the credit card companies don’t get to take advantage of the interest, but still, of course, have to pay out the promised rewards and points.

Fact is; this only works out so well for them because the majority of people carry their credit balances from one month to the next. Many people every year take advantage of this and get free trips to Europe or Canada, etc, at the end of the season, for their entire family. You can truly rack up the frequent flyer miles with this disciplined approach.

All card companies love it when you carry a balance – this is, after all, how they make money. If everyone followed this tip, then the companies would have to close down because they’d go bankrupt and couldn’t fund their operations.

Tip 2: Put All Business-Related Purchases on Credit

This next credit card secret involves some really high-level, bankers-type knowledge; as such, we’ll use an example of how to take advantage of it. Let’s say you want to purchase repairs on a home; it will be difficult to get a loan in the post-2008 housing collapse market.

There’s no way that lenders want to risk shelling out money after the subprime mortgage collapse, which happened, after all, because they sold loans to people that couldn’t pay them back.

So what do you do? Put the repairs on a credit card. Even if this card has a 12% APR, if you borrow $50,000 or so, and hold it for just a couple of months, then you actually only owe 2% on the total amount if you pay it back.

Of course, in order for this to truly work, you need to be in the business of flipping homes. In short, you’ll be paying a tiny fraction of the usual amount needed to fund business projects with the necessary capital.

Tip 3: Use Multiple Lines of Credit Wisely

If you’re like most people, then you’ve probably got several credit cards, right? If so, then you can use the competition that exists between bankers to your advantage with this next credit card secret.

First off; ask your bank if they’ve got a balance transfer option available. If so, make sure it’s a zero-percent balance transfer. For example, if you have a balance on a Capital One card, and then you sign up for a Bank of America card, then either email or call them regarding the terms of their balance transfer offer.

If it makes sense, then pull the trigger and move your debt. Plan to pay it off fully within the next 6-9 months (usually) to come out ahead.

Obviously, if a bank can get you to transfer your debt from the competition to their own coffers, then they get you to pay the interest on that debt for a long time. This means, in order to sweeten the deal, they often give you several months free of interest on that debt. It’s literally like giving away money!

So if you move your debt from one lender to another, receive a 9-month reprieve on interest payments, and manage to pay off your debt in those nine months, then you’ve effectively received a free loan from your new lender.

Using Credit Cards Wisely

In conclusion, especially with the last “secret”, you can move your debt from one bank to another for a period of several years! You’ll save the equivalent of several years’ worth of taxes on a sum that’s large enough if you manage to finally pay off the loan within the reprieve period.

Keep in mind that all credit card companies are in competition with each other; in the free market, this means they make the most money by providing the consumer with the better deal. Take advantage of it!

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Credit Tips

4 Tips To Easily Earn Credit Card Reward Points

Credit cards are well-known for giving their users a number of useful rewards. Unfortunately, many cardholders still think that overspending is necessary in order to qualify for these rewards. This is another myth that is simply not true.

Anyone can make the most out of their rewards card. You just have to follow a set of rules. You won’t even have to go over your budget. This article presents a couple of easy tips to help you do just that.

Choose the Right Card

It is of paramount importance that your rewards card should be perfectly suited to your spending habits. After all, your lifestyle dictates the way you use your card. Of course, this is easier said than done.

There are a number of different factors that go into the selection process. You should also take the different card categories into consideration. For instance, should you get a student card or a business credit card? These card types were made with specific demographics in mind.

Ultimately, you need to make sure that you weigh your choices carefully so that you end up with the best one.

Settle Routine Expenses with your Credit Card

Many newbie cardholders try to inflate their total spending in order to earn additional reward points. It is important to state here that this is the wrong method. Overspending is never the way. It will only lead to financial ruin and excessive credit card debt.

Instead, you need to start paying for your recurring expenses with your card. Keep in mind that everything you need can be easily charged to your credit card. This would include your groceries, rent, and utilities. This is probably the best way to earn reward points since you won’t need to go over your monthly budget. Just make sure that you settle your statement in full at the end of the month.

Use Your Card to Settle Other Outstanding Debts

Most of us have debt. This can be in the form of student loans, mortgage, car financing, and insurance. You may not realize it, but you can also use your credit card to pay for these. This may seem like a bad idea, but the concept behind it is very similar to paying your recurring expenses with a credit card. You have to pay for these things monthly anyway, so why not do it in the most efficient way possible?

As you pay for your outstanding debt with your card, you will also be able to earn reward points, even cashback. Nothing could go wrong just as long as you settle your bills on time.

Use Your Card To Make Large Purchases

Let us be clear: you shouldn’t make large purchases just to earn rewards. However, if you were already planning to spend money then try using your card to make these purchases. This will be like hitting two birds with one stone. Not only will you be getting the items you wanted, but you will also be adding reward points.

Aside from this, you will be also be able to maximize the benefits that come with using your credit card. This would include fraud protection as well as an extended warranty service.

Maximizing your reward card is the right financial move. As illustrated above, you can earn reward points without having to overspend. You will still be able to follow your monthly budget. The tips presented above are simple enough for anyone to follow. Just make sure that you always keep them in mind.

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Credit Tips

The Fast and Essential Tips For Defending Yourself in a Credit Card Debt Case

If you do not pay your balance on your credit card, there is every possibility that your credit card agency will file a lawsuit against you. Even if you are sued by it there is possibility that you can get the opportunity to fight against it in the court even when you actually owe a debt. This article will highlight on the important tips that you should follow to defend yourself in the lawsuit that is issued by the credit card agency.

You should ask for an answer from the credit card agency and the court

If a credit card agency sues you, there is possibility that you will be served with a court summon and you will also be served with a complaint. This type of summon contains the necessary details of your case such as the date of hearing and so on. The complaint that you receive contains the details of the total amount of money that it claims that you actually owe. If you wish to defend yourself in your court, you should first answer the court summon as well as the complaint and you should also give one copy of your reply to your credit card agency and the court as quickly as possible.

You should defend yourself successfully in court

The next step is to develop effective defensive technique to win the lawsuit. Unless and until you do not develop your defense properly, there is possibility that you will lose the case and that the judge will pass his judgment in support of it. If you do not owe your debt, you may use it as your own defense. Plus, you can make use of the statute of the limitations that has expired as your own defense in the court. In fact, it gets a restricted period of time within in which it needs to file a lawsuit against his debtor who fails to repay it within a stipulated period of time. If that period of time has already passed and if it has issued a lawsuit, it is advisable that you should immediately inform about the termination of the statue of the limitations. If you do so, there is possibility that the judge may dismiss the lawsuit against you without any sort of delay. Although the court does not make it mandatory for you to hire a lawyer for your defense against this type of lawsuit, it is advisable that you should hire a proficient lawyer who can handle this type of lawsuit in the best possible way.

Let your creditor bears burden of your proof

When you are able to prove that you do not owe this type of debt, then the onus to prove that you actually owe it lies in this type of agency. If it does not possess relevant documents that are necessary to prove that you actually owe debt, then there is possibility that you can use this particular fact in order to defend yourself in court. If it realizes that it does not have the necessary documents and if you ask for a reply from it, there is possibility that it may often dismiss the lawsuit as quickly as possible.

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PayDay Loans

Direct Payday Lenders Online: Payday Loan or Credit Card?

Direct payday lenders online offer a valuable resource for consumers who find themselves experiencing short-term financial difficulties during tough economic times. When a car breaks down, a tooth needs to be filled, or bills are higher than expected, getting an advance on your paycheck may be a better option than reaching for a credit card. Having options is what helps us make good choices but when it comes to money, it’s important to know all of your options and what kind of effect your choices will have on your finances.

While credit cards may seem “easy”, paying them off after you have relied on them one too many times can be just the opposite. Of course, the decision you make may be a matter of economics. Using plastic credit is an option but remember, unless you want to incur interest charges you must pay back in full what you charge when you receive your statement. If you aren’t able to do so, your balance will only grow as interest (and possible fees) are tacked on over time. Credit cards are known to carry some of the highest interest rates of all types of credit and can ultimately cause what you to pay double for something, depending on how long it takes for you to pay them off. While the credit card companies do nothing to discourage you from “charging it”, you may be putting yourself into a dangerous position financially. This type of credit can end up turning into long term debt when all you really wanted was some short-term help.

Fast cash payday loans, on the other hand, can help with emergency cash needs but close the door on an open-ended line of credit when used responsibly and wisely. These types of small-dollar loans are meant to be acquired and paid off quickly; strictly for temporary financial needs. While credit card companies require only a minimum payment every month, potentially causing you to be in debt to them for months or even years, payday loans require you to pay back what you borrow the next time you get paid. Therefore you are able to take care of that last minute trip to the dentist or that unforeseen car repair when needed, but pay back what you borrow as soon as possible. So often it seems like these financial mishaps happen a few days before payday, when there is nothing left to draw from you bank account. There are even times when a utility bill or insurance premium will come due before you get paid because of the fact that the billing cycle has fallen out of sequence with your pay cycle. Turning to a payday loan may be just the boost your checkbook needs to see you through until your paycheck goes in the bank.

There is also the issue of the fees and/or late charges that can be tacked onto your credit card should you be unable to payoff your balance in a timely manner. If these charges assessed by your credit card company are going to be more than those of a payday loan, it may be the wiser choice to take out a short-term loan with a payday lender and pay it off quickly versus being charged a small fortune because it took so long to pay off that credit card.

The bottom line? There will be times when using your credit card is the most appropriate choice for your particular financial scenario. Keep in mind that paying the balance off every month is essential to successfully managing your expenses. In doing so, you can use credit to your advantage while taking care of that last minute bill or emergency expense. However, if you are looking for fast cash but don’t want to turn to your credit card, seeking the help of direct payday lenders online may be the most economical choice in the long run.

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Ethics

Business Ethics Case Study; Unbelievable Government Credit Card Abuse

In business management classes across the country MBA students study business ethics. In fact, there are now MBA degrees available that are called Ethics MBAs. But in the real world how ethical is the business community? How ethical is our own government?

How many business travelers for their corporations charge personal items to their credit cards of their corporations? Corporations watch this very closely to make sure everyone follows the rules. Not everyone follows the rules and often there are people who go to extreme lengths to hide their misdeeds.

From a business ethics standpoint corporations and their workers are much more honest and forthright than those who work in government. In fact government credit card abuse at all levels of government is at an all-time high. It is so bad that the federal government actually had to make another law to try to curb the abuse of government credit cards. Has this new law helped?

Actually it looks as if it has on paper audits but in reality those fine folks in government still abuse their government credit cards, which is taxpayers money. The problem is so severe and the punishment so little that nothing is really being done. That is to say the problem is running rampant still.

Simply instituting controls and checks and balances on government credit cards does not alleviate the fraud. Dishonesty in government is the norm and although many people believe that those who work in government are of less IQ they are still clever enough to beat the system and steal taxpayers money.

From an MBA standpoint of fiscal management this is a good case study. A piece of corporate credit cards or government credit cards must be followed up on. It is essential to make sure that the purchase is made by government employees are indeed for a facial government business and not personal pleasure; such as gentlemen's clubs, personal car washes or a dinner for a family of four for personal use.

It appears we cannot trust those fine folks in government and it is about time that we enforced the letter of the law on to the government and the workers who think they are above it. Consider this in 2006.

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Leasing

How To Get Out Of A Lease On Credit Card Equipment

A Leasing Nightmare

Leasing can be a very frustrating experience. I once called on a merchant who had 3 different leases and he wasn’t even sure what they were for. Upon examining his business checking account statement I was able to help him identify who the leases were to and what they were attached to.

It turns out he had a lease for his terminal, another separate lease for a pin pad, and a third lease of $89 a month which he’d been paying for 6 years and wasn’t even sure what it was for. This particular lease had expired after 5 years, but he was still unsuccessful getting the leasing company to stop taking money out of his checking account.

How can this be, you ask?

That’s a good question, one you’ll be able to answer by the time you’ve read all of this post.

Your Processor Is Not Your Leasing Company

Many merchants are surprised to learn that the credit card processor and the leasing company which owns the leasing contract a merchant signs are two entirely different business entities.

This means you are free to switch processors at any time (unless your card processor has you locked into one of those manipulative “Early Termination Fee” contracts I often rail against), and it will have no bearing whatsoever on your credit card terminal. Your new processor will simply download new software into your existing terminal.

Why Leases Are So Hard To Get Out Of

Something merchants don’t stop to consider when signing a merchant agreement (especially for the first time), is the lease they are signing is non-cancellable, with very few exceptions. What this means is you WILL make the payments for the full amount of the term, unless you violate the contract or negotiate your way out of it.

Why?

One reason is because the leasing company has already paid an upfront commission, which can be as high as $1,000+, to the salesperson who got you to sign a lease. So they’re definitely going to recoup what they’ve paid. But it goes beyond that.

Another reason it’s so hard is because they have a recording of your voice over the phone agreeing to the contract terms, before you can get the equipment.

I hate leases. Yes, I’d make a great upfront commission. But if I did that I’d also be forcing my merchant to pay as much as 10 x’s the value of the equipment by the time the lease expires. Forget that. I still want to be my clients friend 5 years down the road.

The Eternal Lease

Not only will you pay for the full term you agreed on for your lease, but the majority of leases will never end unless YOU STOP THEM. This is true even after the initial term of the lease has expired.

How can this be?

Simple.

The contract usually states it will remain if effect for ____ number of years, and continue beyond that until either party stops it. Often, they’ll insert a clause stating it will automatically renew itself in 1 year increments, unless the merchant stops it, in writing, at least 30 days prior to the expiration date. Meaning the contract will perpetually renew itself, until the merchant ends it..

This means that unless you have read your contract and written down when it ends you can end up being “eternally bound” to it. (What an ugly way to do business).

How To Legally Get Out Of The Lease

To end the lease you will need to know the terms and exactly what’s written in the contract. Here are 4 ways most of the leases I’ve encountered are structured to release you from further obligation – from “good” to worst.

  1. A $1.00 buyout. This means when the lease expires you can get out of it by paying $1.00 and you now own the equipment. As far as leases go this is the one that’s the most fair (other than outright owning it, which a few rare contracts allow)
  2. Fair market value This is saying that at the end of the lease term the leasing company will determine the current market value and require you to pay it to keep the equipment and end the lease.
  3. Send it back. I find this one particularly disgusting. After paying possibly 10 x’s the value of the machine over a 4 or 5 year period the leasing company demands you return the equipment to them or they’ll continue to debit your checking account – “eternally”.
  4. Lease buyout This is where they want you to pay for the remaining months of the contract and then the lease is over. I’ve listed this as the worst, but it’s only the worst if you’ve just started the lease, meaning it can potentially cost thousands of dollars, and again – at up to 10 x’s (or more) of the value of the terminal.

In Summary

With options like those listed above it’s no wonder they make sure to get your voice on record over the phone agreeing to the terms they state before you get the equipment. Unfortunately, they don’t disclose all the facts. If they did you probably wouldn’t go through with it.

Basically, they only get you to verbally commit to a “non-cancellable” lease, at “x” amount of dollars, for “x” number of months.

My suggestion? If I was obligated to an equipment lease I would immediately get out my contract and do the following:

  • Understand the terms of ending it… i.e., $1 buyout?, fair market value?, return equipment? etc.
  • I would find the exact month the lease was scheduled to expire – and
  • I’d get out my calendar and mark it for 60 days before the expiration date, upon which time I’d –
  • Send a certified letter stating that I want out of the lease on the expiration date

NOTE: Something most merchants don’t understand is that in the majority of cases the lease WILL NOT END UNLESS YOU TAKE ACTION. That means even if it’s called a “36 month” or “5 year” lease the timeline is only to state when you are eligible to end it – not when it will end.

Just writing about how these companies do business is almost enough to make my blood boil. And it should be enough for you to proceed with caution when leasing credit card equipment!