Business and Finance

Archive for May, 2011

Don’t spend more money than you make. We’ve all heard that basic rule but many of us have a hard time following it. Sometimes it’s because we just had to have the latest gadget but for others, the rule is broken simply to put food on the table.

Regardless of the reason, many consumers have made mistakes and have a damaged credit score. Not only does bad score cause problems with securing new lines of credit, many employers are checking this too.

The problem is that in order to repair this, you have to demonstrate better financial habits. However it’s hard to do this if you can get any new finances to show this. This is where a secured account can help.

The idea is simple. You must make a deposit with a bank. You will then be extended a card with a limit equal to your deposit.

You are guaranteed approval and it will report to the major bureaus. It is secure through your deposit. This is unlike a traditional account that will allow you to spend before you pay.

This is the perfect way to build positive marks on your report. Here’s a way to do it. Have your paycheck deposited in to this new account and pay all of the essentials with it.

Often you can pay your phone, electric, gas, and cable just to name a few with card. You may want to pay in cash for any of your wants but use your card for the essentials and your report will look better over time.

Of course, there are some negatives. First, there is almost always an annual fee. Next, the interest rate is often high, and last, because these are often catered to those with past mistakes, some banks will try to get customers to buy insurance policies that cover the debt.

Remember that the money that you keep in that savings account is the insurance policy. Don’t give a second look to an offer with required insurance.

Like anything else, when looking shop around. Make sure to compare different cards and make an informed decision.

Many people assume that because the card is issued by their banking institution, their debit card must be completely safe. Although a debit card seems the same as any credit card and is advertised by all the banks as “easy”, “secure” and “simple to use”, this is far from the case. There are underlying similarities and of course, in appearance, they seem exactly the same.

Similarities are not all that you need for the credit protection and security that you are guaranteed through any major credit card. The main difference between these two types of cards had some serious disadvantages for the user.

While credit cards are a financial tool wherein the consumer makes a purchase and borrows money directly from the credit issuer. Debit cards present a whole new financial picture. When using a credit card, the consumer is aware that each time they are charging anything, he or she is incurring debt along with that purchase.

The borrower has the option of whether to pay off the balance in full right away or pay it off over a period of time and pay the additional interest. This is a simple way of borrowing with set rules, simple to follow terms and the consumer is always aware of any fees or interest rates.

Debit cards, on the other hand, work in a completely different way. These debit cards are also a financial tool wherein the consumer makes purchases using the money they currently hold in their linked bank account that already has funds available.

This presents a number of disadvantages for anyone aware of the underlying problems that these newly created debit cards hold. The first and foremost problem that can be seen easily with the use of debit cards is that they offer virtually no protection against fraudulent use.

While they may offer more protection than they did in the past, the amount of protection and types of protection can vary depending on the banking institution and their regulations. This is especially true if a debit card has been stolen and is not reported in a timely manner.

Most banking institutions will only cover a very small amount of what is fraudulently charged when a debit card is stolen and used. While with your average credit card, you are fully protected for the full amount of the fraudulent charges.

This puts you, the consumer, in a much weaker position when using your debit card instead of your credit card. When a thief makes a fraudulent charge on your debit card, the merchant who sold the item already has the money in their account transferred as soon as the transaction takes place. With a credit card this is not the case and the merchant has to wait for the credit issuer to make the payment to them.

That means for the consumer, that if a dispute has to be filed because of a fraudulent charge, that while the dispute is in process, your money remains with the merchant and not back in your bank account.

What this means for the consumer is that bills might bounce, payments might not be paid on time and your account has less money than you figured until the dispute is settled. How many of us, in this day and age and with the economy in the state that it is in, can afford to have our money on hold?

With a credit card however, as soon as you file the dispute, the charges are removed from your account, you are protected as the consumer and the immediate fault is found in the fraudulent charge instead of in your bank account.

While using money from your own bank account does not seem like a problem, it can have a huge impact when fraud or any type of disputes arise. Even though the fraudulent charge may be decided in your favor in the end, it takes some time to resolve the problem and who wants the worry of having your money in limbo in the meantime?

Even though the debit cards are starting to offer more rewards and trying to keep consumers charging away, luckily consumers are wising up and stopping the madness. These debit cards, no matter how attractive they seem because of the marketing hype, still have far less valuable rewards and benefits than credit cards can offer.

While ideally we are all looking for credit cards that offer low interest rates, no annual fees and no money down, unfortunately that isn’t always an option. If your credit has taken a down turn during this economic down turn, then secured credit cards are an option that may be worth examining. It’s important to know the cons and also the benefits of a secured credit card. Secured credit cards are also a consideration for those who haven’t yet established a credit.

How is a Secured Card Different from Other Cards?

The name tells the tale. The security is really for the credit extender but extends to you the cardholder as well. The reality is that these lenders offer cards to users that are considered a “high risk.”

To obtain, the applicant must make an upfront payment that is sometimes equal too, or sometimes less than the credit limit.

These may be of interest to those who have no or less than perfect credit including:

-Those with damaged credit

-Those with no credit

-Those who have declared bankruptcy

What fees can you expect?

-You can expect a higher than usual interest rate, at least 20% or more.

-You can also expect an annual fee of at least $50.00 or more.

In general, everything about this card is something that most of us want to avoid. However, if you are in one of the unfortunate situations listed above, it can be good to know that there credit options available that help you to rebuild your credit.

Strategies for building credit with a secured card:

You’ll have to pay to play but if you play the game right then you can win by building positive credit.

1. You’ll have to use it to build credit.

2. Make all payments on time by mailing at least 7 days before the due date of your payment.

3. Avoid going over the limit.

It’s not for everyone but if you need one, a secured credit card can help you rebuild credit and also help you to gain money management skills that will benefit you in general. If you cannot obtain a traditional loan or credit card, then check out secured options and as always read and follow all of the fine print to ensure that a secured credit card helps you rather than hurts you.

Looking for the best debit credit card from Visa or MasterCard online is not an easy task these days as it has been compared to not being able to see the forrest for the trees. There are so many offers and tons of different providers. Like with rewards credit cards, it might be a good idea to select a card that you can actually acquire some sort of money saving advantage and/or rewards. In this article we will go over several offers highlighting their various features. The debit cards we will review will be branded with either MasterCard and/or American Express. Please note that the details of the following reviewed offers were accurate at the time each card was reviewed. Card terms and conditions can change at any time; so it is best to be certain to review any particular offer directly from the issuer’s website prior to applying.

The All-Access Visa Prepaid Debit Card is a card with a 100% approval rate. There are no credit checks and bad credit is not a problem when applying for this debit card. This prepaid debit card comes with a $10,000 load capacity and is reloadable at retailers nationwide at many spots across the country from coast to coast. With this prepaid debit card there are no upfront payments and no minimum balance requirements to worry about. You also get a free savings account with a higher interest rate paid to you than at most of the national banks. You can enjoy free instant transfers and also transfer money to other cardholders. You will also be able to get free account alerts in your email or text messages on your account activity. You will not have to pay a dime to set up your direct deposit into your card (optional). This feature in itself will make paydays faster and much safer. Also, you have access to online bill paying so you wont have to lick anymore bad tasting stamps.

The BuyRIGHT Pre-Paid Debit MasterCard is also another fine choice. This debit card offers free direct deposit to make your paydays more enjoyable with no waiting in line at the bank or a check cashing charge. Also, this card is reported to at least one major credit bureau, so this may be a fine choice in a debit card for those wishing to establish and/or reestablish their credit. Free account activity alerts also come with the card as it also has a flexible money saving fee structure. You also have other great money saving features as well like the BuyRIGHT rewards program and the cash back referral program.

The Wired Plastic Prepaid Visa Debit Card is another great outstanding option for those in the market for a debit card that is loaded with features. They have recently designed a new type of card for convenient “Tap-n-Pay” purchases at merchants and stores across the country. With the Wired Plastic Prepaid Visa Debit Card, you will not have to suffer from any bounced check, NSF and account overdraft fees. With their free rewards program, you can earn 1 point for every $1 spent with your debit card. Feel free to use your points to get rewarded with prepaid wireless airtime, music downloads, and LD calls. The card comes with a free bill pay service that allows you to pay anyone either via the internet or by phone. The Wired Plastic Prepaid Visa Debit Card also comes with the “Credit Builder” program and overdraft protection. You can also take advantage of free direct deposit to help you eliminate those pesky check cashing fees. You also have the ability to instantly add cash at over 100,000 retailers nationwide.

The daily expenses always take an upward motion when ones family increases in numbers. At such a time, it is not possible for the people of fixed income group to meet these expenses. Fast cash till payday loans can be availed if one requires lucrative financial alternative. With the help of this monetary service, the borrower can get short term credit help for all interim needs.

One can use the borrowed money till the time he gets his next month earning into his bank account. Fast cash till payday loans provide the borrower with small financial aid that falls in the range of $80 to $1500. One return the borrowed amount in the comfortable time duration of 1 to 30 days and till the time can meet various expenses. Plan a family outing, send your car for a repair job, get small house modifications done, make payment of your credit card installments and so on.

You can apply by filling a simple and easy online application form from the comfort of your home or office. be sure that whatever you are filling in correct and not false, if found so, then you would not get the money at all. After the verification, the money lender gives an approval. Within a day time, the finance gets transferred to the bank account of the borrower.

The money lenders do not follow the process of credit check, thus, a borrower with issues of debts and defaults can also apply with giving a second thought to it. Apart from this, they also do not require much of paperwork. Also there is no requirement of pledging collateral such as house, car, stock papers and so on.

In order to apply, the applicant should be an adult citizen of the country with a current bank account and a fixed source of monthly income

Getting a business loan with less than perfect personal credit may seem like an impossible feat. Even though a business loan is used to expand, maintain, or kick-off a business, lenders still use an applicant’s personal credit history as a determinant of whether or not a borrower will be able to repay a business loan.

Therefore, straying away form traditional methods of business financing may be a necessary step for a small business owner to take.

A business cash advance is an innovative way to acquire business funds without having your credit score get in the way. Rather than lending money with the hopes that you (the borrower) will pay it back, and using collateral to secure the loan, business cash advance lenders purchase your business’s future credit card sales. They can give you a certain amount of money up front, on faith that your business will process enough credit card sales to repay the loan.

Of course, this money is not lent completely on good faith. Lenders review your business’s previous months’ credit card statements before deciding what amount to lend, and your business must process at least $2,500 per month in credit card sales in order to be eligible for receipt of a business cash advance.

After all of these items have been reviewed, lenders will then determine what percentage of your future credit card sales will be deducted, going towards the repayment of your business cash advance. Your cash advance then becomes one step closer to being completely repaid every time one of your customers makes a credit card purchase.

With a business cash advance, it never matters how quickly or slowly your loan is repaid. There are never any interest rates, only a flat, unchanging fee that is explained before the deal goes through.

Business cash advance borrowers have the peace of mind in knowing that their cash advance is being repaid while they work. They don’t have to make fixed monthly payments because when they agree to receive their business cash advance, the lenders make all of the necessary adjustments to make sure that the small percentage from the business’s daily credit card sales is automatically deducted.

Business cash advances don’t just make business financing with less than perfect credit scores a possibility. They make the entire process from application, to repayment, to renewal easier, catering to the needs of the small business owner.