Credit Card Guide
Credit cards are a really convenient method of payment. What's more they enable you to spread the cost of purchases if you can't afford to pay for them in full.
However, with hundreds of different cards to choose from, how do you know which is right for you?
What type of card is best for me?
There isn't a single credit card that is perfect for every individual so before you apply think about how you'll use the card:
Are you looking for a card to spend on and if so will you be able to clear your balance in full each month? Maybe you've already got an outstanding debt on another card and are looking to make a balance transfer, but do you want to spend on the card as well? These are all vital questions which will help identify the best card for your needs.
How credit cards are used
There are basically three ways of using a credit card: straightforward purchases, moving an outstanding debt over from another card (known as a balance transfer), and withdrawing money from a cash machine.
Providers tend to charge a different rate of interest for each, and then implement a payment system whereby the cheapest debt is cleared first, leaving you accruing interest at the highest rate.
If you plan to use your credit card for more than one purpose the order of payments is really important - it is also often referred to as the payment hierarchy.
Top tips
If at all possible, try and pay more than the minimum - otherwise it could take years to clear your debt.
It's a good idea to pay by direct debit - that way you will always pay on time and avoid incurring a late payment fee.
It may be tempting, but try not to use a credit card to withdraw cash from an ATM - you'll probably be charged a higher rate of interest than on purchases and be charged a withdrawal fee.
Credit cards are a really convenient method of payment. What's more they enable you to spread the cost of purchases if you can't afford to pay for them in full.
However, with hundreds of different cards to choose from, how do you know which is right for you?
What type of card is best for me?
There isn't a single credit card that is perfect for every individual so before you apply think about how you'll use the card:
Are you looking for a card to spend on and if so will you be able to clear your balance in full each month? Maybe you've already got an outstanding debt on another card and are looking to make a balance transfer, but do you want to spend on the card as well? These are all vital questions which will help identify the best card for your needs.
How credit cards are used
There are basically three ways of using a credit card: straightforward purchases, moving an outstanding debt over from another card (known as a balance transfer), and withdrawing money from a cash machine.
Providers tend to charge a different rate of interest for each, and then implement a payment system whereby the cheapest debt is cleared first, leaving you accruing interest at the highest rate.
If you plan to use your credit card for more than one purpose the order of payments is really important - it is also often referred to as the payment hierarchy.
Top tips
If at all possible, try and pay more than the minimum - otherwise it could take years to clear your debt.
It's a good idea to pay by direct debit - that way you will always pay on time and avoid incurring a late payment fee.
It may be tempting, but try not to use a credit card to withdraw cash from an ATM - you'll probably be charged a higher rate of interest than on purchases and be charged a withdrawal fee.
Keep an eye on your spending and make sure you stick within your agreed credit limit.
It's well worth using a credit card for purchases of £100 or more because you have greater protection than if you pay with cash or a debit card. Under Section 75 of the 1974 Consumer Credit Act credit card issuers and retailers take joint responsibility for faulty purchases. This applies to purchases between £100 and £30,000. If the retailer goes bust or the goods are faulty when they arrive you can claim a refund from the card provider.
View our Guide to Credit Cards Source: http://www.moneysupermarket.com/credit-cards/
It's well worth using a credit card for purchases of £100 or more because you have greater protection than if you pay with cash or a debit card. Under Section 75 of the 1974 Consumer Credit Act credit card issuers and retailers take joint responsibility for faulty purchases. This applies to purchases between £100 and £30,000. If the retailer goes bust or the goods are faulty when they arrive you can claim a refund from the card provider.
View our Guide to Credit Cards Source: http://www.moneysupermarket.com/credit-cards/
Loans:
Article below is using UK Pounds, apply same concepts using your country currency
Five Questions To Consider When Thinking Of Applying For A Short Terms Loan:
by: BMA Editorial Team B
If you need cash fast and are considering using the services of a payday loan company there are some fundamental questions you should be clear of before you make your final decision to borrow money.
1. What are short term loans?
These are loans which are, as the name indicates, a cash loan which is taken out for a short duration of time, typically until your next pay-day. They are not designed to be long term loans, however, it is possible to roll over short term loans or re-apply month after month. If you are looking for a long term loan it would be advisable to speak to your bank or building society.
2. How much can you borrow?
This will be dependant on your monthly take home pay. That is to say the money which is paid to you after you have paid tax and national insurance contributions. Reputable lenders will carry out an eligibility check to ensure you have the funds to pay back the loan, plus the fees, once you have been paid again.
The initial amount you can borrow is not always very high, typically approximately 400 pounds will be the maximum. This is due to the high risk that the lenders are taking. Once you have successfully paid back your first loan on time and in full, many lenders will then increase the amount they will lend you in the future. Although there are no restrictions for those with a poor credit history applying, responsible lenders will want to have some certainty that the risk they are taking is realistic.
3. How is the money paid?
Many online lenders use two different ways of paying you the cash. One is referred to as CHAPS, which is the fastest method for which there are additional charges, but this method does have the potential of transferring money with an hour into your bank account. The other method used is referred to as BACS, this type of transfer is slower and can take approximately 3 days.
You should also realise that money transfers cannot be made unless the banks are operating, therefore weekends and public holidays will need to be taken onto account as no money transferring will take place which can delay the money being paid into your bank account.
4. Are credit checks carried out?
This will be dependant on the lender you use. Some do carry out credit checks, but just because you may have a poor credit history does not mean that you will be denied short term loans.
5. What qualifying criteria is needed to be able to apply?
Payday lenders who are licensed and responsible lenders will have qualifying criteria which includes:
* Applicants must be at least 18 years old.
* You must be resident in the UK
* Applicants must be in regular employment, with a minimum take home pay of 750 pounds per month.
* Applicants must have a valid bank account which receives direct deposits, they must also have a valid debit card.
Article Source:
http://www.bestmanagementarticles.com
http://business-loan.bestmanagementarticles.com
About the Author:
Richard Waterstone is an expert on a range of financial subjects. To find out more about Short Term Loans visit his recommended website at http://www.lendingstream.co.uk/
This will be dependant on the lender you use. Some do carry out credit checks, but just because you may have a poor credit history does not mean that you will be denied short term loans.
5. What qualifying criteria is needed to be able to apply?
Payday lenders who are licensed and responsible lenders will have qualifying criteria which includes:
* Applicants must be at least 18 years old.
* You must be resident in the UK
* Applicants must be in regular employment, with a minimum take home pay of 750 pounds per month.
* Applicants must have a valid bank account which receives direct deposits, they must also have a valid debit card.
Article Source:
http://www.bestmanagementarticles.com
http://business-loan.bestmanagementarticles.com
About the Author:
Richard Waterstone is an expert on a range of financial subjects. To find out more about Short Term Loans visit his recommended website at http://www.lendingstream.co.uk/
