By Dennise Ryder
Ah, that's the $64,000 question!!!
There are a few ways to answer that question and it shouldn't be any surprise that the answers pretty much rest with you, your lifestyle and financial preferences, however, if you stay with me for a couple of minutes I can give you some "food for thought" that could have a bearing on your decision ...
Are ya with me??
Excellent!!!
If you want to modify the vehicle in some way, if you rack up the miles, if you want to own the vehicle and /or if you want to keep your vehicle for several years ... then .... finance.
If you want to keep your monthly payment down (I'll explain that in a second), if you don't put too many kms on in a year, if you want to get into a new vehicle every 2-4 years and/or if you have a business income where you can claim monthly payments for a vehicle ... then .... lease.
Sounds pretty reasonable, right??
Ok, let's go a little further ...
When you decide to finance a vehicle, what you are doing is paying on the full amount of the vehicle plus the tax and interest for the given period or term you have agreed upon, be it 3, 4, 5 or in some cases even 6 years.
When you lease a vehicle you are paying for the amount of the car that you are driving over a period of time. That time can be anywhere from 2-4 years depending on you. You are paying taxes on the monthly payment NOT the entire purchase price. In addition to that at the end of the term you have a couple of choices you can make, you can decide to:
A. buy the vehicle at the end of the term and drive it,
B buy the vehicle at the end of the term and sell it, or
C. give back the keys and get yourself into a new vehicle altogether
Now, I get people who say to me "but if I lease I don't own the vehicle." You are totally correct you don't own the vehicle, however, if you think about it, when you finance you don't own the vehicle either. It isn't "yours" until you have paid it off in full. Here is one more thing to think about ... let's say your family is getting bigger and you now need a bigger car. You still owe on your current car and when you went in to see about using it as a trade you find that you are upside down (you owe more for your car than it is actually worth). With leasing you don't have to worry about being upside down.
One more thing you should know. With a lease you have GAP protection and here is how it works. Let's say you are involved in an accident (heave forbid) and the car is totalled, you insurance company comes back and says the vehicle is valued at $20,000 but your lease at the time is sitting at $25,000. As long as you have met all the requirements with respect to the lease agreement, then you are totally covered. You are not out of pocket. It's the reverse for financing, reason being because "you own" the car. So, in the same scenario, you are responsible for the difference between what your insurance will cover and the value of the car.
Take this a step even further and let's do the math ... Let's see how the numbers work out on a 36 month lease and finance.
Lease Finance
Payment 486.39 x 36 Payment 764.84 x 36
= $17,510.04 = $27,534.00
So we see how the monthly payments break down between and lease and finance. If we look at the difference we can see that if we went the lease route over the 36 months we would have saved ourselves $9648.00 (764.84-486.39x36) that YOU keep in your pocket. In addition with the lease you have three options available, you can:
A. buy the balance owing on the car (residual) and keep the car
B. buy the balance owing on the car and sell it, or
C. give the keys back and get into something new
The decision rests with you in the end, however, models change, tastes change, even our needs change. Leasing certianly offers you much in the way of flexibility and doesn't tie you down.
Dennise Ryder is a Sales Consultant with Toronto Chrysler. Visit her blog At http://www.autotalk.wordpress.com for more information, email her at: dryder@torontododgechrysler.com. Avoid the pitfalls, get the straight talk about buying your next vehicle.
Article Source: http://EzineArticles.com/?expert=Dennise_Ryder
Wednesday, November 29, 2006
Monday, November 27, 2006
What is a Secured Credit Card?
A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1000, he or she will be given credit in the range of $500–$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account.
The cardholder of a secured credit card is still expected to make regular payments, as he or she would with a regular credit card, but should he or she default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit.
Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be credited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.
Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.
Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Secured credit cards are available with both Visa and MasterCard logos on them. Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards, however, for people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards can often be less expensive in total cost than unsecured credit cards, even including the security deposit.
The cardholder of a secured credit card is still expected to make regular payments, as he or she would with a regular credit card, but should he or she default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit.
Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be credited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.
Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.
Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Secured credit cards are available with both Visa and MasterCard logos on them. Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards, however, for people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards can often be less expensive in total cost than unsecured credit cards, even including the security deposit.
How Debit Cards Work
A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Physically the card is a ISO 7810 card like a credit card, however its functionality is more similar to writing a check as the funds are withdrawn directly from the cardholder's bank account; some cards are referred to as check cards.
The customer's card is swiped through a card reader or inserted into chip reader and the merchant usually enters the amount of the transaction before the customer enters their account and PIN. There is usually a short delay while the EFTPOS (Electronic Funds Transfer at Point of Sale) terminal contacts the computer network (over a phone line or mobile connection) to verify and authorise the transaction.
In some countries the debit card is multipurpose acting as the Automatic Teller Machine card for withdrawing cash and as a check guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers, where a customer can withdraw cash along with their purchase.
The use of debit cards
has become wide-spread in many countries and has overtaken the check, and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and internet purchases. Anyone doubting the ubiquity of debit card usage need only witness the inconvenient delays at peak shopping times (e.g. the last shopping day before Christmas), caused when the volume of transactions overload the bank networks.
Online and offline debit cards
There are currently two ways that debit card transactions are processed: online debit cards and offline debit cards. Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards. One difficulty in using online debit cards is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate keypad to enter the PIN, although this is becoming commonplace for all card transactions in many countries. Overall, the online debit card is generally viewed as superior to the offline debit card because of its more secure authentication system and live status, which alleviates problems with processing lag on transactions that may have been forgotten or not authorized by the owner of the card. Banks in some countries, such as Canada and Brazil, only issue online debit cards.
Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro) and are used at point of sale like a credit card. This type of debit card may be subject to a daily limit, as well as a maximum limit equal to the amount currently deposited in the current/checking account from which it draws funds. Offline debit cards in some countries are not compatible with the PIN system, in which case they can be used with a forged signature, since users are rarely required to present identification. Transactions conducted with offline debit cards usually require 2-3 days to be reflected on users’ account balances. This type of debit card is similar to a secured credit card.
Many debit cards are actually capable of accomplishing both types of transactions, depending on the availability of proper equipment at the POS.
In the United Kingdom, Solo and Visa Electron are examples of online debit cards, which are typically issued by banks to customers whom the bank does not want to go overdrawn under any circumstances, for example under-18s.
Cards for mail, telephone and Internet use only
Special pre-paid Visa cards for mail, telephone (MOTO) and Internet use only are made available by a small number of banks. They are sometimes called "virtual Visa cards", although they usually do exist in the form of plastic. Such cards can be used whenever the remote store accepts Visa cards. Before making the transaction, the customer transfers the required amount of money from his main account to the card's sub-account using the bank's website or the telephone. Next, the customer gives the card number and the CVV2 code to the merchant, who authorizes the transaction electronically, as with a regular Visa card. If there is enough money on the sub-account, the bank grants the authorization and locks the adequate amount on the sub-account.
Such a card prevents fraud by a card number thief even if the card is not blocked, because the customer normally does not store any money on the sub-account and fraudulent transactions do not get authorized by the bank. For extra security, the CVV2 code is not printed on the card but rather sent separately to the customer in a secured envelope.
The bank also rejects local transactions, that is ones that are not made over the Internet, mail or telephone. However, some merchants use software incompatible with Visa regulations and send authorization requests that wrongly tell the bank that the transaction is not a MOTO/Internet one, in which case the bank rejects the request. Additionally, some merchants do not use electronic authorization at all, in which case the transaction cannot be completed as well. For these two reasons the card is unusable with a small minority of Internet, telephone and postal stores.
Article Source : http://wikipedia.org
The customer's card is swiped through a card reader or inserted into chip reader and the merchant usually enters the amount of the transaction before the customer enters their account and PIN. There is usually a short delay while the EFTPOS (Electronic Funds Transfer at Point of Sale) terminal contacts the computer network (over a phone line or mobile connection) to verify and authorise the transaction.
In some countries the debit card is multipurpose acting as the Automatic Teller Machine card for withdrawing cash and as a check guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers, where a customer can withdraw cash along with their purchase.
The use of debit cards
Online and offline debit cards
There are currently two ways that debit card transactions are processed: online debit cards and offline debit cards. Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately. The transaction may be additionally secured with the personal identification number (PIN) authentication system and some online cards require such authentication for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards. One difficulty in using online debit cards is the necessity of an electronic authorization device at the point of sale (POS) and sometimes also a separate keypad to enter the PIN, although this is becoming commonplace for all card transactions in many countries. Overall, the online debit card is generally viewed as superior to the offline debit card because of its more secure authentication system and live status, which alleviates problems with processing lag on transactions that may have been forgotten or not authorized by the owner of the card. Banks in some countries, such as Canada and Brazil, only issue online debit cards.
Offline debit cards have the logos of major credit cards (e.g. Visa or MasterCard) or major debit cards (e.g. Maestro) and are used at point of sale like a credit card. This type of debit card may be subject to a daily limit, as well as a maximum limit equal to the amount currently deposited in the current/checking account from which it draws funds. Offline debit cards in some countries are not compatible with the PIN system, in which case they can be used with a forged signature, since users are rarely required to present identification. Transactions conducted with offline debit cards usually require 2-3 days to be reflected on users’ account balances. This type of debit card is similar to a secured credit card.
Many debit cards are actually capable of accomplishing both types of transactions, depending on the availability of proper equipment at the POS.
In the United Kingdom, Solo and Visa Electron are examples of online debit cards, which are typically issued by banks to customers whom the bank does not want to go overdrawn under any circumstances, for example under-18s.
Cards for mail, telephone and Internet use only
Special pre-paid Visa cards for mail, telephone (MOTO) and Internet use only are made available by a small number of banks. They are sometimes called "virtual Visa cards", although they usually do exist in the form of plastic. Such cards can be used whenever the remote store accepts Visa cards. Before making the transaction, the customer transfers the required amount of money from his main account to the card's sub-account using the bank's website or the telephone. Next, the customer gives the card number and the CVV2 code to the merchant, who authorizes the transaction electronically, as with a regular Visa card. If there is enough money on the sub-account, the bank grants the authorization and locks the adequate amount on the sub-account.
Such a card prevents fraud by a card number thief even if the card is not blocked, because the customer normally does not store any money on the sub-account and fraudulent transactions do not get authorized by the bank. For extra security, the CVV2 code is not printed on the card but rather sent separately to the customer in a secured envelope.
The bank also rejects local transactions, that is ones that are not made over the Internet, mail or telephone. However, some merchants use software incompatible with Visa regulations and send authorization requests that wrongly tell the bank that the transaction is not a MOTO/Internet one, in which case the bank rejects the request. Additionally, some merchants do not use electronic authorization at all, in which case the transaction cannot be completed as well. For these two reasons the card is unusable with a small minority of Internet, telephone and postal stores.
Article Source : http://wikipedia.org
It’s Not Me! Preventing and Dealing With Identity Theft
By: Joe Kenny
It’s one of the fastest growing crimes in the country, and most victims are unaware they’ve become a target until long after the crime is committed. We’re talking about identity theft. In today’s world, information travels faster than ever, and that includes your personal information. If it falls into the wrong hands, your personal info could be used to acquire credit cards, loans, or to open accounts.
Unknown to you, somewhere, someone could be using your good name for their own criminal purposes, and you’ll be the one held accountable. In 2004, 3.6 million American households had at least one person who was a victim of identity theft. Don’t let it happen to you.
Prevention is key
The best way to fight identity theft is to prevent it from happening
in the first place. Since you could be a victim right now and not know it for months, it’s important to check your credit report. Under an amendment to the federal Fair Credit Reporting Act, you have a right to a free copy of your comprehensive credit report once every 12 months. Take advantage. Visit annualcreditreport.com to get started.
Once you have your credit report in hand, check it carefully for any irregularities. It’s also a good idea to put a fraud alert on all of your credit reports. The three major credit bureaus—Equifax (800-525-6285), TransUnion (800-680-7289) and Experian (888-397-3742) will all put a free alert on your reports that will tell companies to call and inform you when someone tries to open an account in your name or tinker with an existing one. The alert lasts 90 days, so give yourself a reminder to call and update it every three months.
Next, think about the passwords you use to access your credit card information, bank accounts, and other finances. Is it something like the last four digits of your Social Security Number or your mother’s maiden name? If so, change it. Identity thieves are a crafty bunch, and they’ll easily crack a simple password. Think about something that you can remember that includes a variety of uppercase and lowercase letters combined with numerals. If an institution asks for your SSN or mother’s maiden name, insist on another identifier.
Also, secure your personal information at home, at work, and while you travel. Don’t leave your wallet or any important receipts lying around the house or the office. Someone can easily pick it up, write down a few numbers, and set it back down without you ever being the wiser.
One man’s trash is another man’s treasure
Truer words were never spoken when it comes to identity theft. Thieves will do whatever it takes to get your personal info, including digging through your trash to get the numbers they need. Buy a shredder, and use it. Credit applications, receipts, bank statements, insurance forms, and any other document containing personal identification that you are tossing should always be shredded first. And about those unsolicited credit applications that clog up your mailbox every day—you can put a stop to them. Call 1-888-5-OPTOUT to stop receiving these offers.
Speaking of mail, hopefully you get yours out of a locked mailbox. If not, ask your postal worker about getting one. Never deposit your outgoing mail in an unsecured mailbox. Drop it in a collection box or run it by the post office if need be.
Joe Kenny writes for the Card Guide, a UK based credit card site, visit today for a balance transfer credit cards and clear your credit card debt today.Visit today: www.cardguide.co.uk/
It’s one of the fastest growing crimes in the country, and most victims are unaware they’ve become a target until long after the crime is committed. We’re talking about identity theft. In today’s world, information travels faster than ever, and that includes your personal information. If it falls into the wrong hands, your personal info could be used to acquire credit cards, loans, or to open accounts.
Unknown to you, somewhere, someone could be using your good name for their own criminal purposes, and you’ll be the one held accountable. In 2004, 3.6 million American households had at least one person who was a victim of identity theft. Don’t let it happen to you.
Prevention is key
The best way to fight identity theft is to prevent it from happening
Once you have your credit report in hand, check it carefully for any irregularities. It’s also a good idea to put a fraud alert on all of your credit reports. The three major credit bureaus—Equifax (800-525-6285), TransUnion (800-680-7289) and Experian (888-397-3742) will all put a free alert on your reports that will tell companies to call and inform you when someone tries to open an account in your name or tinker with an existing one. The alert lasts 90 days, so give yourself a reminder to call and update it every three months.
Next, think about the passwords you use to access your credit card information, bank accounts, and other finances. Is it something like the last four digits of your Social Security Number or your mother’s maiden name? If so, change it. Identity thieves are a crafty bunch, and they’ll easily crack a simple password. Think about something that you can remember that includes a variety of uppercase and lowercase letters combined with numerals. If an institution asks for your SSN or mother’s maiden name, insist on another identifier.
Also, secure your personal information at home, at work, and while you travel. Don’t leave your wallet or any important receipts lying around the house or the office. Someone can easily pick it up, write down a few numbers, and set it back down without you ever being the wiser.
One man’s trash is another man’s treasure
Truer words were never spoken when it comes to identity theft. Thieves will do whatever it takes to get your personal info, including digging through your trash to get the numbers they need. Buy a shredder, and use it. Credit applications, receipts, bank statements, insurance forms, and any other document containing personal identification that you are tossing should always be shredded first. And about those unsolicited credit applications that clog up your mailbox every day—you can put a stop to them. Call 1-888-5-OPTOUT to stop receiving these offers.
Speaking of mail, hopefully you get yours out of a locked mailbox. If not, ask your postal worker about getting one. Never deposit your outgoing mail in an unsecured mailbox. Drop it in a collection box or run it by the post office if need be.
Joe Kenny writes for the Card Guide, a UK based credit card site, visit today for a balance transfer credit cards and clear your credit card debt today.Visit today: www.cardguide.co.uk/
Why You Should Reject Most Credit Card Offers
By: Joe Kenny
A lot of credit card companies want you to think that their offer is a good one - without really offering you good features. For instance, this morning, a credit card offer came in the mail. After looking it over, it was rejected - because it lacked the "right features." It would have been unwise to sign up for that card. If you are thinking about getting a credit card - or maybe another one, there are some reasons why you may not want to fill out the next application that comes to you in the mail. Here are some things you need to look for to see if it really is such a good deal.
The Interest Rate
The first reason that this credit card was not a good one was because there were no introductory interest rates on the card at all. It was just for one rate - 9.9%. All purchases came into that interest bracket. Many cards will give you a 0% interest rate as their introductory offer for up to 15 months. That means that you pay no interest on your purchases for up to one whole year, unless your payments are late, or if you allow a balance to be carried over to the next month.
This particular interest rate, while not bad, is certainly not the best, either. Some credit cards go as low as 6.9% interest, and others may go as high as 17.9%. After the first year, though, your interest level becomes the regular amount of the card. Interest rates can change for many reasons - one of them being late payments. One of the things that will effect what interest rate you are able to get is your current credit rating.
Reward Options
Another reason why you should not accept just any credit card offer is because it may not give you the greatest opportunity to benefit from the rewards. Applications sent to you, or ads on the Internet may not cater to your particular needs. Find a card that offers rebates and rewards on the products and services that you use the most. Things like gasoline, air miles if you travel a lot, groceries, discounts on hotels, etc., will benefit you much more if you use these things on a regular basis. Things like air miles can actually help you to get enough air miles to make that trip that you have always wanted - just remember to find out how long they are good for - there is usually an expiration date after a couple of years.
Other Fees
This is one area where some credit cards can really take away a lot of your benefits. Look for things like processing fees, yearly fees, balance transfer fees, and fees for cash advances. The best cards, if you can get one, often will not have extra fees – or, possibly a minimal one.
In addition to the above, you need to know that things like only one late payment can remove your desired benefits and put you into the regular interest rate for the card. Other cards may require you to have a minimum balance in order to get their benefits.
Every credit card offer will always have some nice feature in bold print that will get your attention. That's not where you should look, though. Instead, focus on what is in the small print - that's where the nitty-gritty details really are, and you will want to read these first.
Joe Kenny writes for CardGuide.co.uk, offering the latest offers on UK credit cards, visit today to compare credit cards in the UK. Visit today: www.cardguide.co.uk
A lot of credit card companies want you to think that their offer is a good one - without really offering you good features. For instance, this morning, a credit card offer came in the mail. After looking it over, it was rejected - because it lacked the "right features." It would have been unwise to sign up for that card. If you are thinking about getting a credit card - or maybe another one, there are some reasons why you may not want to fill out the next application that comes to you in the mail. Here are some things you need to look for to see if it really is such a good deal.
The Interest Rate
The first reason that this credit card was not a good one was because there were no introductory interest rates on the card at all. It was just for one rate - 9.9%. All purchases came into that interest bracket. Many cards will give you a 0% interest rate as their introductory offer for up to 15 months. That means that you pay no interest on your purchases for up to one whole year, unless your payments are late, or if you allow a balance to be carried over to the next month.
This particular interest rate, while not bad, is certainly not the best, either. Some credit cards go as low as 6.9% interest, and others may go as high as 17.9%. After the first year, though, your interest level becomes the regular amount of the card. Interest rates can change for many reasons - one of them being late payments. One of the things that will effect what interest rate you are able to get is your current credit rating.
Reward Options
Another reason why you should not accept just any credit card offer is because it may not give you the greatest opportunity to benefit from the rewards. Applications sent to you, or ads on the Internet may not cater to your particular needs. Find a card that offers rebates and rewards on the products and services that you use the most. Things like gasoline, air miles if you travel a lot, groceries, discounts on hotels, etc., will benefit you much more if you use these things on a regular basis. Things like air miles can actually help you to get enough air miles to make that trip that you have always wanted - just remember to find out how long they are good for - there is usually an expiration date after a couple of years.
Other Fees
This is one area where some credit cards can really take away a lot of your benefits. Look for things like processing fees, yearly fees, balance transfer fees, and fees for cash advances. The best cards, if you can get one, often will not have extra fees – or, possibly a minimal one.
In addition to the above, you need to know that things like only one late payment can remove your desired benefits and put you into the regular interest rate for the card. Other cards may require you to have a minimum balance in order to get their benefits.
Every credit card offer will always have some nice feature in bold print that will get your attention. That's not where you should look, though. Instead, focus on what is in the small print - that's where the nitty-gritty details really are, and you will want to read these first.
Joe Kenny writes for CardGuide.co.uk, offering the latest offers on UK credit cards, visit today to compare credit cards in the UK. Visit today: www.cardguide.co.uk
Benefits of Online Banking
By: Joseph Kenny
The banking system has also changed adequately, with the changing times. Today, you need not visit your bank to conduct most of your banking transactions. Computer technology has made virtual banking possible and it is actually becoming a very popular way of banking. In online banking, you can transfer money, get or alter your account information, pay your bills, order debit cards or checks and even apply for a bank loan at the click of a mouse. The online services would not be the same with all banks.
One of the biggest advantages of online banking is conducting the transactions from the comfort of your home. It saves the hassle of going physically to the bank and spending the time that can be put to better use. Paying bills online becomes much easier. Many banks offer online calendars, which assist in the timely payment of bills and prevent default. However, all transactions cannot be done online. There are some that would require personal interaction with the bankers.
The online banking services are offered free to customers, by many banks. Some banks charge a certain amount for the use of this facility. Banks with a wide network of branches normally have the online banking facility, whereas smaller banks may not offer the service. In case you want to avail of online banking, it is better to find out directly from your present bankers if the facility is available and the charge associated with the service.
Online investment can be beneficial if conducted with a bit of caution. Familiarity with the system and procedure of online investment is essential. Investing small amounts initially helps to reduce the risk factor. Once you are confident enough, the amounts can be gradually increased.
Online investment should be made after thorough research. Online research can be done in the privacy of your home. Other resources, like newspapers and financial magazines also offer assistance in tracking investment opportunities. The information available online is usually accurate and reliable, to decide on the amount of investment. The websites are regularly updated and the available information may have been posted just hours ago. Some reputed financial websites offer quotes that are merely minutes old. Online information on investment is available 24 hours a day and 365 days a year.
There are financial websites that allow you to customize the information you want to see. By signing up with them you would be presented with selective information that you want every time you access your account.
Like every other system, online banking and investment also have disadvantages. One of them is having your information online, which is a security concern. Many people consider online information to be insecure. However, if your bank or investment company websites are available online, you can be sure that all information on your investment is secure. You can take extra precaution by using passwords at least six or eight characters long and alphanumeric in structure. Avoid replicating or keeping the same password for all accounts.
There are many benefits of Internet banking and investment. However, in view of the hi-tech cyber crimes these days, it is advisable to proceed with caution while conducting online transactions.
Joe Kenny writes for the UK Loans Store, offering applications to bad credit loans and also debt consolidation loans and other loan topics available on site.Visit Today: http://www.ukpersonalloanstore.co.uk
The banking system has also changed adequately, with the changing times. Today, you need not visit your bank to conduct most of your banking transactions. Computer technology has made virtual banking possible and it is actually becoming a very popular way of banking. In online banking, you can transfer money, get or alter your account information, pay your bills, order debit cards or checks and even apply for a bank loan at the click of a mouse. The online services would not be the same with all banks.
One of the biggest advantages of online banking is conducting the transactions from the comfort of your home. It saves the hassle of going physically to the bank and spending the time that can be put to better use. Paying bills online becomes much easier. Many banks offer online calendars, which assist in the timely payment of bills and prevent default. However, all transactions cannot be done online. There are some that would require personal interaction with the bankers.
The online banking services are offered free to customers, by many banks. Some banks charge a certain amount for the use of this facility. Banks with a wide network of branches normally have the online banking facility, whereas smaller banks may not offer the service. In case you want to avail of online banking, it is better to find out directly from your present bankers if the facility is available and the charge associated with the service.
Online investment can be beneficial if conducted with a bit of caution. Familiarity with the system and procedure of online investment is essential. Investing small amounts initially helps to reduce the risk factor. Once you are confident enough, the amounts can be gradually increased.
Online investment should be made after thorough research. Online research can be done in the privacy of your home. Other resources, like newspapers and financial magazines also offer assistance in tracking investment opportunities. The information available online is usually accurate and reliable, to decide on the amount of investment. The websites are regularly updated and the available information may have been posted just hours ago. Some reputed financial websites offer quotes that are merely minutes old. Online information on investment is available 24 hours a day and 365 days a year.
There are financial websites that allow you to customize the information you want to see. By signing up with them you would be presented with selective information that you want every time you access your account.
Like every other system, online banking and investment also have disadvantages. One of them is having your information online, which is a security concern. Many people consider online information to be insecure. However, if your bank or investment company websites are available online, you can be sure that all information on your investment is secure. You can take extra precaution by using passwords at least six or eight characters long and alphanumeric in structure. Avoid replicating or keeping the same password for all accounts.
There are many benefits of Internet banking and investment. However, in view of the hi-tech cyber crimes these days, it is advisable to proceed with caution while conducting online transactions.
Joe Kenny writes for the UK Loans Store, offering applications to bad credit loans and also debt consolidation loans and other loan topics available on site.Visit Today: http://www.ukpersonalloanstore.co.uk
The Benefits of Cash Back Credit Cards
By: Joseph Kenny
Cash back credit cards offer customers cash benefits on certain purchases. The offers differ for different cash back credit card companies. Some offer higher rewards on purchase of selected items while some provide benefit on almost any purchase. Cash back credit cards are an alternative to saving money. The cash back credit card users benefit from the cash refund, on spending a particular amount.
Cash back credit card rewards vary from creditor to creditor. 1% is the lowest reward on cash back credit cards and 6% is generally the highest limit of cash back benefit. Credit card companies and banks generally place rewards on the purchase of some selected articles. Generally purchases made at gas stations, drug stores and grocery stores carry higher cash back percentage rewards, varying from 4% to 6%. Some cards require the user to spend a certain stipulated amount on the cash back credit card to be able to avail of the cash back facility.
Various Types of Benefits of Cash Back Credit Cards: Cash back credit card rewards can be of three types -'Discounts', 'Points' and 'Air Miles'.
Several credit card companies tie up with certain brands and companies and their customers avail of discounts when making purchases from these companies.
Credit points are points earned by the card user on or above the purchase of a certain amount. These points can then be used to shop at select stores.
Air miles are the bonus miles rewarded to the credit card users. Many airlines team up with the credit card companies to extend 'Travel Rewards' to patrons. After that, card users are rewarded with 1 mile for every dollar spent on the card. This again varies from one company to another. Some credit card companies even offer two miles for each dollar spent on the card. Some travel rewards include free hotel accommodation, discount on car rentals and credit to buy a new car.
Cash back credit cards provide special benefits to customers for a year. It is therefore advisable to choose one with a low rate of interest. Timely monthly payment of bills is equally important, to avail of the card rewards. Late payments have a negative rating on your 'Intro APR'. This may lead to the special benefits being lifted from your card.
0% Interest Rate: Cash back credit cards generally the enable card user to receive 0% balance transfers for a year, after the user signs on. Many credit card companies charge balance transfer fees up to 4%.
0% APR: Under the 0% APR scheme, some credit card companies provide only balance transfers at 0% APR, while some offer both balance transfers and purchases. The time period for which the 0% APR is valid is again very important to identify. The best credit card companies generally offer 0% APR for 12 to 15 months.
Users must read the small print carefully when applying for cash back credit cards. It is better to compare the rewards offered by the different credit card companies and then invest in one that offers the best deal.
Joe Kenny writes for CardGuide.co.uk, where visitors compare credit cards, and also offer many cash back credit cards to earn you cash as you spendVisit today: http://www.cardguide.co.uk/
Cash back credit cards offer customers cash benefits on certain purchases. The offers differ for different cash back credit card companies. Some offer higher rewards on purchase of selected items while some provide benefit on almost any purchase. Cash back credit cards are an alternative to saving money. The cash back credit card users benefit from the cash refund, on spending a particular amount.
Cash back credit card rewards vary from creditor to creditor. 1% is the lowest reward on cash back credit cards and 6% is generally the highest limit of cash back benefit. Credit card companies and banks generally place rewards on the purchase of some selected articles. Generally purchases made at gas stations, drug stores and grocery stores carry higher cash back percentage rewards, varying from 4% to 6%. Some cards require the user to spend a certain stipulated amount on the cash back credit card to be able to avail of the cash back facility.
Various Types of Benefits of Cash Back Credit Cards: Cash back credit card rewards can be of three types -'Discounts', 'Points' and 'Air Miles'.
Several credit card companies tie up with certain brands and companies and their customers avail of discounts when making purchases from these companies.
Credit points are points earned by the card user on or above the purchase of a certain amount. These points can then be used to shop at select stores.
Air miles are the bonus miles rewarded to the credit card users. Many airlines team up with the credit card companies to extend 'Travel Rewards' to patrons. After that, card users are rewarded with 1 mile for every dollar spent on the card. This again varies from one company to another. Some credit card companies even offer two miles for each dollar spent on the card. Some travel rewards include free hotel accommodation, discount on car rentals and credit to buy a new car.
Cash back credit cards provide special benefits to customers for a year. It is therefore advisable to choose one with a low rate of interest. Timely monthly payment of bills is equally important, to avail of the card rewards. Late payments have a negative rating on your 'Intro APR'. This may lead to the special benefits being lifted from your card.
0% Interest Rate: Cash back credit cards generally the enable card user to receive 0% balance transfers for a year, after the user signs on. Many credit card companies charge balance transfer fees up to 4%.
0% APR: Under the 0% APR scheme, some credit card companies provide only balance transfers at 0% APR, while some offer both balance transfers and purchases. The time period for which the 0% APR is valid is again very important to identify. The best credit card companies generally offer 0% APR for 12 to 15 months.
Users must read the small print carefully when applying for cash back credit cards. It is better to compare the rewards offered by the different credit card companies and then invest in one that offers the best deal.
Joe Kenny writes for CardGuide.co.uk, where visitors compare credit cards, and also offer many cash back credit cards to earn you cash as you spendVisit today: http://www.cardguide.co.uk/
How Much Does That Sofa Really Cost You?
By: Leo J Quinn, Jr.
So, your sofa is looking pretty nasty. It's covered with Kool-Aid stains,and throw pillows are hiding threadbare spots where the tufting peeks through. You even had to throw down some plywood to keep the pillows from sagging.
Time to go out and buy a new one, right?
Not if you don't have the cash.
Here's why that new sofa is going to cost you a lot more than the $800 sticker price if you go into debt for it.
Let's assume you buy the sofa as well as matching loveseat and end tables for a grand total of $2000. You finance your purchase through the furniture store for three years at an interest rate of 21.45% (let's leave out the "no interest for two years" deal for a minute).
Your monthly payments will be…drum roll, please...$75.
"Wow", you think. "That's pretty affordable." Sure it is.
Until you count the true cost of that sofa.
Let's assume you're 30 years old and you're going to retire at 65. Let's also assume you have access to a 401(k) that your employer matches at 50%, you can earn a 10% average return on investments, and your combined federal and state tax brackets are 20%.
If you pay for your furniture with cash and invest the $75 a month in your 401(k) for three years instead, you'd have $4,330 more in your account at the end of the three years (plus your sofa). Now keep that $4,330 in your 401(k) without any additional investment and in another 32 years, at retirement, it will have grown to $83,112.
So, basically, your sofa cost you $2,000, plus $700 interest, plus $83,112 that would have grown over 32 years in your retirement account.
Final sticker price: $85,812.
Yikes.
Here's an alternative plan: hang on for another two years, save $80 a month in a money market mutual fund or savings vehicle that earns at least 4%, and use cash to pay for your new living room set.
Final sticker price: $1,920
Here's an even better alternative plan: hang on for another two years, save $80 a month, and after you buy the sofa, put $80 a month in your 401(k) instead (you were already living without it for two years).
Final sticker price: $1,920, plus an extra $815,699 in YOUR bank account by age 65.
Now what about those "no interest for two years" deals? Well, you can certainly take advantage of those, if you're disciplined enough to pay off the balance in less time. Most people aren't.
You can use this strategy for every major purchase you make.
The cost of debt is a big deal, when it's compounded by time, interest and 50% employer matching.
So next time you hit the furniture store and the salesman is telling you, "It's only going to cost you $75 a month"...you'll know better. Tell him or her, "Nope! It's actually going to cost me around $800,000. See you in two years."
A financial educator for over ten years, Leo Quinn Jr. specializes in helping people get out of debt and stay that way. His “How to Own Your Paycheck Again” program has helped thousands of families improve their finances and escape the debt trap. Learn more at www.OwnYourPaycheck.com.
So, your sofa is looking pretty nasty. It's covered with Kool-Aid stains,and throw pillows are hiding threadbare spots where the tufting peeks through. You even had to throw down some plywood to keep the pillows from sagging.
Time to go out and buy a new one, right?
Not if you don't have the cash.
Here's why that new sofa is going to cost you a lot more than the $800 sticker price if you go into debt for it.
Let's assume you buy the sofa as well as matching loveseat and end tables for a grand total of $2000. You finance your purchase through the furniture store for three years at an interest rate of 21.45% (let's leave out the "no interest for two years" deal for a minute).
Your monthly payments will be…drum roll, please...$75.
"Wow", you think. "That's pretty affordable." Sure it is.
Until you count the true cost of that sofa.
Let's assume you're 30 years old and you're going to retire at 65. Let's also assume you have access to a 401(k) that your employer matches at 50%, you can earn a 10% average return on investments, and your combined federal and state tax brackets are 20%.
If you pay for your furniture with cash and invest the $75 a month in your 401(k) for three years instead, you'd have $4,330 more in your account at the end of the three years (plus your sofa). Now keep that $4,330 in your 401(k) without any additional investment and in another 32 years, at retirement, it will have grown to $83,112.
So, basically, your sofa cost you $2,000, plus $700 interest, plus $83,112 that would have grown over 32 years in your retirement account.
Final sticker price: $85,812.
Yikes.
Here's an alternative plan: hang on for another two years, save $80 a month in a money market mutual fund or savings vehicle that earns at least 4%, and use cash to pay for your new living room set.
Final sticker price: $1,920
Here's an even better alternative plan: hang on for another two years, save $80 a month, and after you buy the sofa, put $80 a month in your 401(k) instead (you were already living without it for two years).
Final sticker price: $1,920, plus an extra $815,699 in YOUR bank account by age 65.
Now what about those "no interest for two years" deals? Well, you can certainly take advantage of those, if you're disciplined enough to pay off the balance in less time. Most people aren't.
You can use this strategy for every major purchase you make.
The cost of debt is a big deal, when it's compounded by time, interest and 50% employer matching.
So next time you hit the furniture store and the salesman is telling you, "It's only going to cost you $75 a month"...you'll know better. Tell him or her, "Nope! It's actually going to cost me around $800,000. See you in two years."
A financial educator for over ten years, Leo Quinn Jr. specializes in helping people get out of debt and stay that way. His “How to Own Your Paycheck Again” program has helped thousands of families improve their finances and escape the debt trap. Learn more at www.OwnYourPaycheck.com.
Holiday Shopping Without Debt
By: Thomas Martucci
It would be nice to wake up after the holiday season without dreading the receipt of our January credit card statements. Don’t you wonder how your parents and grandparents paid for holiday gifts before credit cards? Although my parents were not rich, there were always presents at Christmas. How did they do it? Were they better at budgeting than us?
As I was pondering this notion, it came to me. Christmas clubs! My parents had a coupon book that was brought to the bank each week and they deposited $5 or $10 and that week’s coupon got stamped. They would start the process in November and then in the beginning of the following November they would get a check from the bank for whatever was saved during that year. That is how my parents and grandparents paid for Christmas presents. They knew exactly how much money they had available for presents and they didn’t have to worry about that dreaded January credit card statement.
It used to be that you could walk into a bank any time of the year and see advertisements to open up your Christmas club account. “It’s never to early to start thinking about the holidays” or “It’s never to late to open your Christmas club”. Why would banks stop advertising this service to people? They have not stopped offering it but they have stopped promoting it. Banks stopped promoting these accounts because they would rather see consumers use credit cards with which they make money rather than you use a savings account with which they pay you.
As a side note: in discussing this with a group of colleagues, we’ve come to the realization that the Christmas club was how the Friday after Thanksgiving became the biggest shopping day of the year. All the retailers were aware that people just received their Christmas club checks and they wanted to be sure it was spent in their stores.
There is a way to manage your money for the holiday season without going into debt and taking 6 months to pay it off. There is not much you could do for this season, however now is the perfect time to start thinking about next season. The first step is to determine the total amount of money you will spend on next season’s holiday gifts. Then you should contact your local bank and inquire about a traditional Christmas club or similar account.
Seventy five percent of banks we contacted offer an automatic transfer holiday club account even though they don’t advertise it. You choose the amount and the transfer schedule and your money is automatically taken out of your checking account and put into the club account. When the middle of October hits, the money is then transferred back into your checking account or you are mailed a check. Today’s holiday club accounts are a modern twist on an old fashion way of saving. Next time you think your parents are behind the times in their thinking, remember that they understand the basic principal “Cash is King”.
Opening up a holiday club account is the first step to financial freedom next season. You will have the cash ready for all your gifts because you took the effort and planned ahead. Next holiday season will be relaxing and joyful because you don’t have to worry about that January credit card statement. Remember: Cash is King and credit cards are the number one budget killer!
Article Source: http://www.articles4free.com
Thomas Martucci started developing the BUDGETkeeper SYSTEM in 1999. As a business owner for 20+ yrs, he understood the need for a budget in business. At home however, it was never a necessity until a financial firestorm hit and made home budgeting a task that had to be done, like it or not. Thomas labored for several years to perfect a home budgeting system that worked for anyone. Visit our website at www.budgetkeepersystem.com for more information about the BUDGETkeeper SYSTEM.
It would be nice to wake up after the holiday season without dreading the receipt of our January credit card statements. Don’t you wonder how your parents and grandparents paid for holiday gifts before credit cards? Although my parents were not rich, there were always presents at Christmas. How did they do it? Were they better at budgeting than us?
As I was pondering this notion, it came to me. Christmas clubs! My parents had a coupon book that was brought to the bank each week and they deposited $5 or $10 and that week’s coupon got stamped. They would start the process in November and then in the beginning of the following November they would get a check from the bank for whatever was saved during that year. That is how my parents and grandparents paid for Christmas presents. They knew exactly how much money they had available for presents and they didn’t have to worry about that dreaded January credit card statement.
It used to be that you could walk into a bank any time of the year and see advertisements to open up your Christmas club account. “It’s never to early to start thinking about the holidays” or “It’s never to late to open your Christmas club”. Why would banks stop advertising this service to people? They have not stopped offering it but they have stopped promoting it. Banks stopped promoting these accounts because they would rather see consumers use credit cards with which they make money rather than you use a savings account with which they pay you.
As a side note: in discussing this with a group of colleagues, we’ve come to the realization that the Christmas club was how the Friday after Thanksgiving became the biggest shopping day of the year. All the retailers were aware that people just received their Christmas club checks and they wanted to be sure it was spent in their stores.
There is a way to manage your money for the holiday season without going into debt and taking 6 months to pay it off. There is not much you could do for this season, however now is the perfect time to start thinking about next season. The first step is to determine the total amount of money you will spend on next season’s holiday gifts. Then you should contact your local bank and inquire about a traditional Christmas club or similar account.
Seventy five percent of banks we contacted offer an automatic transfer holiday club account even though they don’t advertise it. You choose the amount and the transfer schedule and your money is automatically taken out of your checking account and put into the club account. When the middle of October hits, the money is then transferred back into your checking account or you are mailed a check. Today’s holiday club accounts are a modern twist on an old fashion way of saving. Next time you think your parents are behind the times in their thinking, remember that they understand the basic principal “Cash is King”.
Opening up a holiday club account is the first step to financial freedom next season. You will have the cash ready for all your gifts because you took the effort and planned ahead. Next holiday season will be relaxing and joyful because you don’t have to worry about that January credit card statement. Remember: Cash is King and credit cards are the number one budget killer!
Article Source: http://www.articles4free.com
Thomas Martucci started developing the BUDGETkeeper SYSTEM in 1999. As a business owner for 20+ yrs, he understood the need for a budget in business. At home however, it was never a necessity until a financial firestorm hit and made home budgeting a task that had to be done, like it or not. Thomas labored for several years to perfect a home budgeting system that worked for anyone. Visit our website at www.budgetkeepersystem.com for more information about the BUDGETkeeper SYSTEM.
Thursday, November 23, 2006
Defining Identity Theft
By Sky joe
A concise definition of identity theft is the appropriation of an individual’s personal information to impersonate that person in a legal sense. Stealing someone’s identity enables the thief to make a frightening number of financial and personal transactions in someone else’s name, leaving the victim responsible for what might turn out to be mind-bogging turmoil in his or her life.
Identity theft is not new. It has been around for a long time. There was a time when an individual could flee his or her life, town and mistakes, and go somewhere far away, pretending to be someone else. The ramifications of stealing someone’s identity then did not have the far-reaching implications that they do today for the person whose identity is stolen. Those were the days before credit reporting and high-tech methods of tracking and sharing information were commonplace.
Identity theft can still be done by such low-tech means as previously described – knowing someone else’s basic identifying information and initiating personal transaction in that person’s name. Today, identities can be stolen using highly technical and sophisticated means of obtaining the confidential information of a stranger. Whatever method is being used, it only translates to one thing: an individual can become someone else very easily. The difference today is what an identity thief does as someone else reflects very quickly on the victim’s reputation. An individual’s life can be devastated by the loss of his or her good name and the financial or personal mess that results.
Identity theft criminals usually take your personal information and use it to harm you in a number of ways including opening new credit card accounts in your name, gaining access to your credit card account or bank account, buying new cars and taking car loans in your name, buying cell phones using your name or even committing crimes. Though you may not be responsible for fraudulent charges, the damage to your credit as reflected in your credit report can affect your employment, loan applications as well as any future credit arrangements you may wish to establish in future.
Identity theft is always personal-after all, it is one’s own identity that is stolen! Someone literally assumes your identity and leaves a damaging trail of credit card abuse and exposed personal information all over the internet ( to your creditors). Thieves can be just beside you: relatives, friends, roommates, boyfriends, estranged spouses or even your best buddy!
For more information on Identify Theft Monitoring, Identify Theft Prevention, Identify Theft Protection or Identify Theft Shields, please visit the following website: http://identity-theft.mygeneralknowledge.com/Articles/Identity_Theft_Help.php
A concise definition of identity theft is the appropriation of an individual’s personal information to impersonate that person in a legal sense. Stealing someone’s identity enables the thief to make a frightening number of financial and personal transactions in someone else’s name, leaving the victim responsible for what might turn out to be mind-bogging turmoil in his or her life.
Identity theft is not new. It has been around for a long time. There was a time when an individual could flee his or her life, town and mistakes, and go somewhere far away, pretending to be someone else. The ramifications of stealing someone’s identity then did not have the far-reaching implications that they do today for the person whose identity is stolen. Those were the days before credit reporting and high-tech methods of tracking and sharing information were commonplace.
Identity theft can still be done by such low-tech means as previously described – knowing someone else’s basic identifying information and initiating personal transaction in that person’s name. Today, identities can be stolen using highly technical and sophisticated means of obtaining the confidential information of a stranger. Whatever method is being used, it only translates to one thing: an individual can become someone else very easily. The difference today is what an identity thief does as someone else reflects very quickly on the victim’s reputation. An individual’s life can be devastated by the loss of his or her good name and the financial or personal mess that results.
Identity theft criminals usually take your personal information and use it to harm you in a number of ways including opening new credit card accounts in your name, gaining access to your credit card account or bank account, buying new cars and taking car loans in your name, buying cell phones using your name or even committing crimes. Though you may not be responsible for fraudulent charges, the damage to your credit as reflected in your credit report can affect your employment, loan applications as well as any future credit arrangements you may wish to establish in future.
Identity theft is always personal-after all, it is one’s own identity that is stolen! Someone literally assumes your identity and leaves a damaging trail of credit card abuse and exposed personal information all over the internet ( to your creditors). Thieves can be just beside you: relatives, friends, roommates, boyfriends, estranged spouses or even your best buddy!
For more information on Identify Theft Monitoring, Identify Theft Prevention, Identify Theft Protection or Identify Theft Shields, please visit the following website: http://identity-theft.mygeneralknowledge.com/Articles/Identity_Theft_Help.php
Creating A Budget
By Joseph Kenny
Many people do not consider the importance of a budget. They indulge in spending according to their earning and do not leave room for emergencies. This usually ends up in the incurring of debts and sometimes, personal bankruptcy. A budget helps to counter these consequences.
The essential calculations in a budget are income and expenditure. The purpose of a budget is to ensure that the expenses do not exceed the income and also provide for savings for the future.
A budget needs to be documented in the form of a chart or table. This needs to be easily comprehensible and provide a quick summing up of the relevant details. The chart needs to effectively reflect the different heads of expenditure. Suggested heads are housing and utilities, entertainment, health and beauty, transportation, communication and household. These can be further subdivided as follows:
Housing and utilities
- Mortgage payment or rent
- Insurance
- Taxes and electricity
- Natural gas
- Water and garbage pick up
Entertainment
- Cable television or satellite service
- Internet access
- Dining out
- Bars clubs
- Sporting events, parties, lessons and recitals
Health and Beauty
- Hair-cuts, perms etc.
- Make-up
- Medical, dental, vision, weight loss, diet products
- Nutritional supplements
Transportation
- Car payments, insurance
- Gas
- Routine maintenance, repairs
- Air travel
- Rental cars, public transportation
Communication
- Telephone
- Cellular phone
- Voice mail
Household
– Groceries
- Cleaning supplies
- Laundry, dry cleaning
- Home improvement Projects, towels, linens
Others
- Credit card payments
- Other loan payments
- Child care, items for baby/elderly
- Allowances for children, book clubs, magazines, music, etc., fast food
- Investments, vacation, spending money, donations to church or charity
- Gifts (Christmas, birthdays, anniversary, etc.)
- Emergency fund
- Cigarettes.
If you have any other expenses that are not covered, you could add them to the list.
Next, try to reflect all expenses on a monthly calculation. For example, if you pay yearly taxes, calculate the monthly expense by dividing the yearly amount by twelve. Having done this, add up all the figures to arrive at the total monthly expense figure. Then subtract this amount from your take home salary amount. If you find the remainder in negative, you need to look for expenses where you ought to cut down. For example, if your take home salary is $1000 and your expenses total to $1150, you would need to trim down $150 each month, from the expenses.
If you need to cut down on your expenses, you would be the best judge to decide where to make the changes. However, it would be prudent to cut back on the extra subscription channels of the television. If you are smoker, cut down on smoking instead. Take home cooked lunch to office instead of eating fast food. Economize on power consumption by avoiding unnecessary use of the air conditioner and heating and make less use of the phone.
Creating a budget is absolutely necessary to manage your finances and is not dependent on the size of your income. It helps to prevent overspending and personal bankruptcy, allowing you keep track of your income and expenditure.
About the Author:
Joe Kenny writes for SelectLoans.co.uk, a bad credit loans comparison site, visit us today for information on all loan topics including secured loans and links to leading UK providers.Our Site: http://www.selectloans.co.uk/
Many people do not consider the importance of a budget. They indulge in spending according to their earning and do not leave room for emergencies. This usually ends up in the incurring of debts and sometimes, personal bankruptcy. A budget helps to counter these consequences.
The essential calculations in a budget are income and expenditure. The purpose of a budget is to ensure that the expenses do not exceed the income and also provide for savings for the future.
A budget needs to be documented in the form of a chart or table. This needs to be easily comprehensible and provide a quick summing up of the relevant details. The chart needs to effectively reflect the different heads of expenditure. Suggested heads are housing and utilities, entertainment, health and beauty, transportation, communication and household. These can be further subdivided as follows:
Housing and utilities
- Mortgage payment or rent
- Insurance
- Taxes and electricity
- Natural gas
- Water and garbage pick up
Entertainment
- Cable television or satellite service
- Internet access
- Dining out
- Bars clubs
- Sporting events, parties, lessons and recitals
Health and Beauty
- Hair-cuts, perms etc.
- Make-up
- Medical, dental, vision, weight loss, diet products
- Nutritional supplements
Transportation
- Car payments, insurance
- Gas
- Routine maintenance, repairs
- Air travel
- Rental cars, public transportation
Communication
- Telephone
- Cellular phone
- Voice mail
Household
– Groceries
- Cleaning supplies
- Laundry, dry cleaning
- Home improvement Projects, towels, linens
Others
- Credit card payments
- Other loan payments
- Child care, items for baby/elderly
- Allowances for children, book clubs, magazines, music, etc., fast food
- Investments, vacation, spending money, donations to church or charity
- Gifts (Christmas, birthdays, anniversary, etc.)
- Emergency fund
- Cigarettes.
If you have any other expenses that are not covered, you could add them to the list.
Next, try to reflect all expenses on a monthly calculation. For example, if you pay yearly taxes, calculate the monthly expense by dividing the yearly amount by twelve. Having done this, add up all the figures to arrive at the total monthly expense figure. Then subtract this amount from your take home salary amount. If you find the remainder in negative, you need to look for expenses where you ought to cut down. For example, if your take home salary is $1000 and your expenses total to $1150, you would need to trim down $150 each month, from the expenses.
If you need to cut down on your expenses, you would be the best judge to decide where to make the changes. However, it would be prudent to cut back on the extra subscription channels of the television. If you are smoker, cut down on smoking instead. Take home cooked lunch to office instead of eating fast food. Economize on power consumption by avoiding unnecessary use of the air conditioner and heating and make less use of the phone.
Creating a budget is absolutely necessary to manage your finances and is not dependent on the size of your income. It helps to prevent overspending and personal bankruptcy, allowing you keep track of your income and expenditure.
About the Author:
Joe Kenny writes for SelectLoans.co.uk, a bad credit loans comparison site, visit us today for information on all loan topics including secured loans and links to leading UK providers.Our Site: http://www.selectloans.co.uk/
A Guide To Applying for Credit Cards over the Internet.
Over the last few years the internet has become your one stop to finding credit cards, comparing APR(annual percentage rate), rewards programs and incentives. And the best part is you can apply for all of them online and with a secure connection. Just from searching google you can find millions of credit card resources.
One of the the best ways to find a credit card comparison website is to go to your favorite search engine and simply search "credit cards" and press "enter". Now before you jump on the first one you see there are a few things you should remember when looking for a credit card online.
1.Pick a website that offers comparisons.
2.Choose a website that offers all of the banks/issuers(American Express, CitiBank, Chase etc.).
3.Make sure the website offers more details on each individual credit card.
4.Find a site that is professional and updated often.
5.After you find a few cards that interest you make sure you compare the introductory APR, fixed APR, cash advances, balance transfers and fees, bonus or award programs, cash back programs, credit limit, annual fees, etc.
One website you may find helpful is creditcards.com. creditcards.com has a large database offering cards from, advanta, american express, bank of america, citibank, chase, discover, HSBC as well as visa. The site is easy to navigate and also tells you what type of credit rating you will need for each card. You can apply directly from the comparison page by clicking "apply here" under the corresponding card.
In essence when comparing credit cards online be sure you are looking for cards that are going to meet your daily needs. If you don't fly often then why apply for an airline credit card. If you are driving quite often and with how gas prices are these days pick a gas rebate card. Also be sure to pick a card that offers a low fixed rate. For instance some cards may offer a 0% intro apr, but 6 months later will jump to 14.99%. Lastly remember to have all of your personal information with you when you begin to fill out the online applications.
All of the above information is vital when searching for a credit card online. Be sure to remember this information when searching for a credit card comparison website and it will save you lots of money in the long run. You may also find a site you can use in the future for all of your credit card needs.
Richard Gilliland offers advise on comparing and searching for credit cards on the net.Get more advise from Richard at http://www.credit-wisdom.com and http://www.jetclient.com
One of the the best ways to find a credit card comparison website is to go to your favorite search engine and simply search "credit cards" and press "enter". Now before you jump on the first one you see there are a few things you should remember when looking for a credit card online.
1.Pick a website that offers comparisons.
2.Choose a website that offers all of the banks/issuers(American Express, CitiBank, Chase etc.).
3.Make sure the website offers more details on each individual credit card.
4.Find a site that is professional and updated often.
5.After you find a few cards that interest you make sure you compare the introductory APR, fixed APR, cash advances, balance transfers and fees, bonus or award programs, cash back programs, credit limit, annual fees, etc.
One website you may find helpful is creditcards.com. creditcards.com has a large database offering cards from, advanta, american express, bank of america, citibank, chase, discover, HSBC as well as visa. The site is easy to navigate and also tells you what type of credit rating you will need for each card. You can apply directly from the comparison page by clicking "apply here" under the corresponding card.
In essence when comparing credit cards online be sure you are looking for cards that are going to meet your daily needs. If you don't fly often then why apply for an airline credit card. If you are driving quite often and with how gas prices are these days pick a gas rebate card. Also be sure to pick a card that offers a low fixed rate. For instance some cards may offer a 0% intro apr, but 6 months later will jump to 14.99%. Lastly remember to have all of your personal information with you when you begin to fill out the online applications.
All of the above information is vital when searching for a credit card online. Be sure to remember this information when searching for a credit card comparison website and it will save you lots of money in the long run. You may also find a site you can use in the future for all of your credit card needs.
Richard Gilliland offers advise on comparing and searching for credit cards on the net.Get more advise from Richard at http://www.credit-wisdom.com and http://www.jetclient.com
Sunday, November 19, 2006
Use Your Credit Card Sensibly
By: Joseph Kenny
A credit card is a wise option if you wish to make frequent purchases and keep a track of your expenses. The facilities could even be used to postpone payments on certain articles, thereby earning more interest on your money. It enables you to shop without carrying large amounts of money, thus eliminating the risk of theft. However, the credit limit on the card should be used sensibly, to avoid a bad credit rating.
Ways to use your credit card wisely:
Listed below are some tips on how to manage your credit card sensibly:
Select the right credit card: It is essential to choose a credit card that meets your specific requirement and adds significant value to your monetary assets. You need to shop around and compare cards, before selecting one that offers the best rewards at low interest rates.
Don’t buy if you can’t afford: Credit cards make provision for you to ‘buy now and pay later’. However, you should buy only those articles with the credit card that you are sure to afford paying back, within the time limit allotted. You should be aware that most credit cards charge an additional fee and a relatively higher rate of interest on late payments. You need to carefully analyze the pros and cons of the offers, to increase your credit card limit.
Avoid paying extra fees: Banks charge an annual fee on credit cards and so the use of fewer cards would mean less annual charges and minimized interest rates. Before opting for a credit card, you need to compare the benefits offered with the fees charged by the credit card company.
Pay on time: It is important to make a regular monthly payment, without crossing the credit limit. You ought to try and pay more than the minimum amount. The faster you pay, the quicker you minimize your debt on the credit card account. This helps to avoid the extra fees charged and the high interest rates applicable.
Manage debt wisely: It is important to manage your debts in a responsible manner. It would be beneficial to discuss your financial issues, if any, with the company and bank. You could adopt a payment schedule to help manage and curb your credit card debt.
Don’t use a credit card for long-term borrowing: Funding long-term borrowing through a credit card is not advisable. This would only increase the rate of interest on your credit card account.
Utilize the interest- free period: Most credit cards offer an interest-free period. The period could be anything between forty-four to fifty-five days. You are promised additional interest-free days if you make purchases at the beginning of the month. A comparatively lesser number of interest-free days are offered on purchases made at the end of the month. You are expected to pay the entire credit card closing balance within the time limit specified, if you wish to avoid paying interest on your expenses during the interest-free days.
Credit cards are a great help to those who wish to avoid paying by cash. However, you need to make use of the facilities offered judiciously.
About the Author:
Joe Kenny writes for CardGuide.co.uk/, visit to compare UK credit cards, and also many 0% balance transfers to transfer your debt to an introductory 0% credit card deal.Read more articles by: Joseph Kenny
Article Source: www.iSnare.com
A credit card is a wise option if you wish to make frequent purchases and keep a track of your expenses. The facilities could even be used to postpone payments on certain articles, thereby earning more interest on your money. It enables you to shop without carrying large amounts of money, thus eliminating the risk of theft. However, the credit limit on the card should be used sensibly, to avoid a bad credit rating.
Ways to use your credit card wisely:
Listed below are some tips on how to manage your credit card sensibly:
Select the right credit card: It is essential to choose a credit card that meets your specific requirement and adds significant value to your monetary assets. You need to shop around and compare cards, before selecting one that offers the best rewards at low interest rates.
Don’t buy if you can’t afford: Credit cards make provision for you to ‘buy now and pay later’. However, you should buy only those articles with the credit card that you are sure to afford paying back, within the time limit allotted. You should be aware that most credit cards charge an additional fee and a relatively higher rate of interest on late payments. You need to carefully analyze the pros and cons of the offers, to increase your credit card limit.
Avoid paying extra fees: Banks charge an annual fee on credit cards and so the use of fewer cards would mean less annual charges and minimized interest rates. Before opting for a credit card, you need to compare the benefits offered with the fees charged by the credit card company.
Pay on time: It is important to make a regular monthly payment, without crossing the credit limit. You ought to try and pay more than the minimum amount. The faster you pay, the quicker you minimize your debt on the credit card account. This helps to avoid the extra fees charged and the high interest rates applicable.
Manage debt wisely: It is important to manage your debts in a responsible manner. It would be beneficial to discuss your financial issues, if any, with the company and bank. You could adopt a payment schedule to help manage and curb your credit card debt.
Don’t use a credit card for long-term borrowing: Funding long-term borrowing through a credit card is not advisable. This would only increase the rate of interest on your credit card account.
Utilize the interest- free period: Most credit cards offer an interest-free period. The period could be anything between forty-four to fifty-five days. You are promised additional interest-free days if you make purchases at the beginning of the month. A comparatively lesser number of interest-free days are offered on purchases made at the end of the month. You are expected to pay the entire credit card closing balance within the time limit specified, if you wish to avoid paying interest on your expenses during the interest-free days.
Credit cards are a great help to those who wish to avoid paying by cash. However, you need to make use of the facilities offered judiciously.
About the Author:
Joe Kenny writes for CardGuide.co.uk/, visit to compare UK credit cards, and also many 0% balance transfers to transfer your debt to an introductory 0% credit card deal.Read more articles by: Joseph Kenny
Article Source: www.iSnare.com
Friday, November 17, 2006
5 Ways to Fund Your Child's College Education
By edmondj
A degree level education is probably the most expensive single cost in bringing up children today. Unless parents take action early the chances of their children graduating without substantial debt are minimal - that's if they can afford to go to college at all.
Did you know that the cost of a 4 year degree program is around $20,000 dollars per year.
The cost of a college education is probably the most expensive item in bringing up children today. When you take into account tuition fees, exam fees, living expenses, accommodation, books and computers it's not surprising that the average cost of college education is over $20,000 per year and that's before the social side of college life.
Today we live in a world where only the best educated and most prepared can succeed. The Job market is probably the most crucial and competitive element of our society and having a college education and degree goes a long way towards succeeding in it.
When our children are ready to enter the world of work it will be even more difficult and a college education will be essential to succeed. Here are 5 ways to fund your child's college education.
1. The usual method of parental funding of college education is out of current income, that is out of your weekly or monthly salary.
Whilst this is the most common method of funding college education it is one that only the very rich or highly paid can afford to do with ease. Even if there are 2 salaries most families find it difficult and will require sacrifices, even more so if you have more than 1 child. At best most parents can only afford to contribute part of the costs of college education out of current income. Additional sources of income will be required.
2. Your child can work his or her way through college.
Many students have to work whilst studying but many find the experience of juggling a job, lectures and a social life very difficult. Often the result is that students drop out of college education, fail their exams or don't do as well as they could.
3. Your child may have the opportunity to take out student loans to fund their college education.
Today the vast majority of students are forced to take out student loans to fund all or part of their college education. Usually to subsidize parental contributions, student loans
are the most common way of students funding their own college education. Many students however, leave college with substantial debt and even with interest rates at historically low levels today's students can expect to have to pay substantial monthly repayments for many years.
4. Your child may obtain a scholarship or be entitled to grants from either federal or local funds towards the cost of their college education.
There are many sources
of student scholarships or grants and with a bit of research most students today can find some grant funding. These sources however cannot be guaranteed for the future. Whilst scholarships and grants do not have to be repaid and as such are preferable to loans they are not guaranteed or predictable and therefore relying on them for our children is a risk.
5. Take out an education savings plan to fund college education.
An education savings plan is a regular saving plan into which you and your children can contribute. The plans are administered by colleges or state authorities and can be taken out for any child including a newborn babies. Because of the effects of long term compound interest the earlier you take out your plan the easier it will be and the lower your contributions will be. Because the funds are built up prior to going to college students do not have to rely on scholarships, grants or loans and they can concentrate on their studies.
There are a number of options to fund your child's college education but the only way funds can be guaranteed is by you taking out an education savings plan. With the education savings plan you decide what you can invest and your child can also contribute to his or her college education. With luck scholarships and grants will still be available as will loans to top up if necessary. If your child does not go to college the fund can be cashed in.
Taking out an education savings plan early will give your child the real opportunity of a college education and the best prospects for a job when they leave college.
About The Author:
John worked for many years in insurance and finance and recently completed a degree in Creative Writing. He now writes on a number of topics including education. For more information on college financing go to Grants and Scholarships or go to In Education for a selection of articles on education for all ages.
Article Source : www.articleavenue.com
A degree level education is probably the most expensive single cost in bringing up children today. Unless parents take action early the chances of their children graduating without substantial debt are minimal - that's if they can afford to go to college at all.
Did you know that the cost of a 4 year degree program is around $20,000 dollars per year.
The cost of a college education is probably the most expensive item in bringing up children today. When you take into account tuition fees, exam fees, living expenses, accommodation, books and computers it's not surprising that the average cost of college education is over $20,000 per year and that's before the social side of college life.
Today we live in a world where only the best educated and most prepared can succeed. The Job market is probably the most crucial and competitive element of our society and having a college education and degree goes a long way towards succeeding in it.
When our children are ready to enter the world of work it will be even more difficult and a college education will be essential to succeed. Here are 5 ways to fund your child's college education.
1. The usual method of parental funding of college education is out of current income, that is out of your weekly or monthly salary.
Whilst this is the most common method of funding college education it is one that only the very rich or highly paid can afford to do with ease. Even if there are 2 salaries most families find it difficult and will require sacrifices, even more so if you have more than 1 child. At best most parents can only afford to contribute part of the costs of college education out of current income. Additional sources of income will be required.
2. Your child can work his or her way through college.
Many students have to work whilst studying but many find the experience of juggling a job, lectures and a social life very difficult. Often the result is that students drop out of college education, fail their exams or don't do as well as they could.
3. Your child may have the opportunity to take out student loans to fund their college education.
Today the vast majority of students are forced to take out student loans to fund all or part of their college education. Usually to subsidize parental contributions, student loans
4. Your child may obtain a scholarship or be entitled to grants from either federal or local funds towards the cost of their college education.
There are many sources
5. Take out an education savings plan to fund college education.
An education savings plan is a regular saving plan into which you and your children can contribute. The plans are administered by colleges or state authorities and can be taken out for any child including a newborn babies. Because of the effects of long term compound interest the earlier you take out your plan the easier it will be and the lower your contributions will be. Because the funds are built up prior to going to college students do not have to rely on scholarships, grants or loans and they can concentrate on their studies.
There are a number of options to fund your child's college education but the only way funds can be guaranteed is by you taking out an education savings plan. With the education savings plan you decide what you can invest and your child can also contribute to his or her college education. With luck scholarships and grants will still be available as will loans to top up if necessary. If your child does not go to college the fund can be cashed in.
Taking out an education savings plan early will give your child the real opportunity of a college education and the best prospects for a job when they leave college.
About The Author:
John worked for many years in insurance and finance and recently completed a degree in Creative Writing. He now writes on a number of topics including education. For more information on college financing go to Grants and Scholarships or go to In Education for a selection of articles on education for all ages.
Article Source : www.articleavenue.com
Term Life Insurance vs. Permanent Life Insurance
By: Bill Mason
Choosing a life insurance plan is difficult; it takes a lot of time and research in order to ensure that all aspects are thoroughly examined before making a final decision. There are basically two forms of life insurance to choose from: term life insurance and permanent life insurance.
Below you will find valuable information regarding both forms of life insurance as well as other helpful information which will assist you in deciding which form of life insurance is best suited for you and your situation.
The first thing to do is to research and understand the concept of both forms of life insurance. These two forms of insurance have been compared to buying or leasing a car. Term life insurance is much like leasing a car, you can purchase insurance for a specific number of years, but once those years are up, so is your insurance coverage. Permanent life insurance is similar to buying a car. When you buy a car, it’s yours and you can drive it forever if you like. Permanent life insurance stays with you until you die.
Depending on your situation, each form of insurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of insurance providing advantages and disadvantages of both.
Term Life Insurance
Benefits
• Term life insurance is inexpensive and can cost a considerable amount less than permanent life insurance.
• There are no strings attached with this form of insurance and you are free to stop paying whenever you want.
• You can begin using term insurance and if you feel like you want more coverage, you can then convert to permanent life insurance if you wish.
Downfalls
• Term life insurance only provides coverage. There are no other rewards and there is no cash value.
• Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any life insurance coverage.
• Term prices increase at a rapid pace as you get older and as you get older, your need for this type of insurance will become more and more crucial.
Permanent Life Insurance
Benefits
• Permanent life insurance can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.
• There is no risk involved in this form of insurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term life insurance will only pay out if you happen to be covered when you die.
• You can borrow the cash value you receive to pay for college, a vehicle, etc. You can do this without receiving a penalty for doing so.
Downfalls
• The most noticeable disadvantage to permanent life insurance is the cost. This form of life insurance will cost you a great deal more than term life insurance.
• Should you decide to forgo your permanent life insurance coverage, you will be required to pay a large penalty which will be bounded by law.
Bill Mason is a retired insurance agent who now writes as a freelance writer for insuranceguide101.com – a site that offers information on auto insurance, pet insurance, boat insurance and more.
Choosing a life insurance plan is difficult; it takes a lot of time and research in order to ensure that all aspects are thoroughly examined before making a final decision. There are basically two forms of life insurance to choose from: term life insurance and permanent life insurance.
Below you will find valuable information regarding both forms of life insurance as well as other helpful information which will assist you in deciding which form of life insurance is best suited for you and your situation.
The first thing to do is to research and understand the concept of both forms of life insurance. These two forms of insurance have been compared to buying or leasing a car. Term life insurance is much like leasing a car, you can purchase insurance for a specific number of years, but once those years are up, so is your insurance coverage. Permanent life insurance is similar to buying a car. When you buy a car, it’s yours and you can drive it forever if you like. Permanent life insurance stays with you until you die.
Depending on your situation, each form of insurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of insurance providing advantages and disadvantages of both.
Term Life Insurance
Benefits
• Term life insurance is inexpensive and can cost a considerable amount less than permanent life insurance.
• There are no strings attached with this form of insurance and you are free to stop paying whenever you want.
• You can begin using term insurance and if you feel like you want more coverage, you can then convert to permanent life insurance if you wish.
Downfalls
• Term life insurance only provides coverage. There are no other rewards and there is no cash value.
• Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any life insurance coverage.
• Term prices increase at a rapid pace as you get older and as you get older, your need for this type of insurance will become more and more crucial.
Permanent Life Insurance
Benefits
• Permanent life insurance can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.
• There is no risk involved in this form of insurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term life insurance will only pay out if you happen to be covered when you die.
• You can borrow the cash value you receive to pay for college, a vehicle, etc. You can do this without receiving a penalty for doing so.
Downfalls
• The most noticeable disadvantage to permanent life insurance is the cost. This form of life insurance will cost you a great deal more than term life insurance.
• Should you decide to forgo your permanent life insurance coverage, you will be required to pay a large penalty which will be bounded by law.
Bill Mason is a retired insurance agent who now writes as a freelance writer for insuranceguide101.com – a site that offers information on auto insurance, pet insurance, boat insurance and more.
Thursday, November 16, 2006
It's Your Credit. Take Care of It!
By debtmanage
Thanks to the Fair and Accurate Credit Act, American consumers can receive a free annual credit report from each of the three major credit bureaus—Experian, TransUnion and Equifax. You can order your free credit report by visiting http://www.annualcreditreport.com or calling 1-877-322-8228.
Monitoring your credit report regularly will ensure that you can clear up any incorrect information and prevent identity theft. It is recommended that consumers review their credit reports at least once a year. Being that consumers are now eligible to receive three free credit reports a year, you can actually keep track of your credit report year round by ordering one report at a time every four months.
If you are ordering your credit report because you are going to make a large purchase—for example a house or a car—and you want to know where your credit stands, then it is recommended to order all three reports
and compare them at least three months before you intend to apply for the loan. Each credit report might contain slightly different information so your credit score could vary by as much 100 points from one report to the next.
If you are simply monitoring your credit report to prevent identity theft and other fraudulent activities, then ordering one at a time may be enough.
Reviewing your report
Once you receive your credit report, set aside some time to review it carefully. Eighty percent of credit reports contain errors, and a quarter of those are serious—late payments that do not belong to you, debt that is not yours, or accounts that you did not open. If you do not take the time to correct these mistakes, they can seriously affect your ability to acquire favorable credit terms in the future.
There are four main categories you need to review in your credit report:
personal information, account history, public records and credit inquiries.
1. Personal Information
Information contained:
- Full name
- Social security number
- Date of birth
- Current and previous addresses
- Current and previous employers.
Check this information closely and make sure that it is all correct. Common mistakes occur among family members with similar names who reside in the same address. Variations of your name are ok as long as you have previously applied for credit using the variations. Incorrect information can result in another person’s accounts reported on your credit report.
2. Account History
Information contained:
- Home loans
- Auto loans
- Student loans
- Personal loans
- Credit cards
Pay close attention to the account numbers, statuses, balances, and payment statuses. Make sure all accounts listed are actually yours.
3. Public Records
Information contained:
- Bankruptcies
- Tax liens
- Lawsuit debts
- Collections
- Other civil and financial judgments
Make sure all of this information is correct and updated. You should realize that certain bankruptcies and other negative information can remain on your credit report for up to 7 years.
4. Credit Inquiries
Information contained:
- Who requested to view your credit report
There are two types of inquiries that you will see on your credit report. Hard inquiries are those that you initiated when you requested your credit report or authorized a lender or credit card company to view your credit report.
Soft inquiries are those made by credit card companies that send you pre-approved promotions for their credit card. Soft inquiries are only visible to you. A lender cannot see them when they review your credit report. There is much speculation as to how much inquiries affect your credit score.
Soft inquiries do not affect your credit score at all. According to Fair Isaac Corporation, each hard inquiry can subtract no more than five points from a person’s score. Often no points are subtracted. Since it is normal for a consumer to shop around for interest rates when applying for a home or car loan, multiple auto or mortgage inquiries in any 14-day period are counted as just one inquiry.
The subject matter contained in our educational publications is for informational purposes only. We suggest that you consult your financial or other advisors when planning for your specific needs or requirements.
Thanks to the Fair and Accurate Credit Act, American consumers can receive a free annual credit report from each of the three major credit bureaus—Experian, TransUnion and Equifax. You can order your free credit report by visiting http://www.annualcreditreport.com or calling 1-877-322-8228.
Monitoring your credit report regularly will ensure that you can clear up any incorrect information and prevent identity theft. It is recommended that consumers review their credit reports at least once a year. Being that consumers are now eligible to receive three free credit reports a year, you can actually keep track of your credit report year round by ordering one report at a time every four months.
If you are ordering your credit report because you are going to make a large purchase—for example a house or a car—and you want to know where your credit stands, then it is recommended to order all three reports
If you are simply monitoring your credit report to prevent identity theft and other fraudulent activities, then ordering one at a time may be enough.
Reviewing your report
Once you receive your credit report, set aside some time to review it carefully. Eighty percent of credit reports contain errors, and a quarter of those are serious—late payments that do not belong to you, debt that is not yours, or accounts that you did not open. If you do not take the time to correct these mistakes, they can seriously affect your ability to acquire favorable credit terms in the future.
There are four main categories you need to review in your credit report:
personal information, account history, public records and credit inquiries.
1. Personal Information
Information contained:
- Full name
- Social security number
- Date of birth
- Current and previous addresses
- Current and previous employers.
Check this information closely and make sure that it is all correct. Common mistakes occur among family members with similar names who reside in the same address. Variations of your name are ok as long as you have previously applied for credit using the variations. Incorrect information can result in another person’s accounts reported on your credit report.
2. Account History
Information contained:
- Home loans
- Auto loans
- Student loans
- Personal loans
- Credit cards
Pay close attention to the account numbers, statuses, balances, and payment statuses. Make sure all accounts listed are actually yours.
3. Public Records
Information contained:
- Bankruptcies
- Tax liens
- Lawsuit debts
- Collections
- Other civil and financial judgments
Make sure all of this information is correct and updated. You should realize that certain bankruptcies and other negative information can remain on your credit report for up to 7 years.
4. Credit Inquiries
Information contained:
- Who requested to view your credit report
There are two types of inquiries that you will see on your credit report. Hard inquiries are those that you initiated when you requested your credit report or authorized a lender or credit card company to view your credit report.
Soft inquiries are those made by credit card companies that send you pre-approved promotions for their credit card. Soft inquiries are only visible to you. A lender cannot see them when they review your credit report. There is much speculation as to how much inquiries affect your credit score.
Soft inquiries do not affect your credit score at all. According to Fair Isaac Corporation, each hard inquiry can subtract no more than five points from a person’s score. Often no points are subtracted. Since it is normal for a consumer to shop around for interest rates when applying for a home or car loan, multiple auto or mortgage inquiries in any 14-day period are counted as just one inquiry.
The subject matter contained in our educational publications is for informational purposes only. We suggest that you consult your financial or other advisors when planning for your specific needs or requirements.
Credit Reports and Credit Reporting Agencies
Max Hunter
We all know that our financial transactions are reported to credit agencies that track how well and how quickly we pay our debts and that when we apply for a loan for one reason or another, those agencies report our credit history to prospective lenders. However, most of us don't know a great deal about how that actually happens and how our credit is rated.
The fact is that credit reporting has evolved to an industry all of its own. Just a few short years ago, when someone applied for a loan, he or she put down credit references - retail stores, banks, or other people or places with whom they had done business in the past. As a matter of course, the lender checked the references and decided whether or not to grant a loan based on an amalgamation of the responses from them. That really isn't the case any more.
Instead, there are three major agencies that track everyone's credit and provide a credit rating when contacted by a potential lender. The three agencies are Equifax, located in Georgia; Experian, located in Texas; and Trans Union, located in Pennsylvania. When someone applies for a loan, the lender generally contacts one of these three agencies and obtains a credit score and the score helps the lender decide whether or not to make a loan.
Credit Scores
How is a credit score calculated? Until recently, that was one of life's great mysteries, but over the past few years new rules and regulations have made the information more readily available. Your credit score is a number that ranges from 300 to 900, although the exact formula for determining that number is proprietary and is not released. This is how it works in general.
· 35% of the score is based on the history of how you have (or have not) paid your bills. The agencies track how many of your bills have been paid on time and how many haven't, as well as whether or not any of them have been referred for collection. The more recently you have had a collection or failed to pay something on time, the worse your score will be.
· 30% of the score is based on the debts you have at the time of the rating. It is includes car and home loans, credit card debt, retail store debt and the like. If you have several credit cards and they are all limited out, your credit score is lower.
· 15% of the total score is based on how long you have had credit. If you have never had credit or have only had credit for a short time, the lower your score will be.
· 10% of the score is based on the number of inquiries that have been received about your report, particularly if there are several in the past year.
· 10% of the score is based on your current credit and the types of credit you have. The number of credit cards and loans you have, as well as the available credit you have on your credit cards and considered.
Because your credit score is based on these factors and they are constantly changing, your credit score changes along with them. Therefore, there are things you can do to change your credit rating and bring it up.
Changing your Credit Rating
The first thing to do is get a copy of your credit report and make sure there aren't any mistakes on it. If there are, take steps to get them corrected. Errors in reporting do occur, although the credit bureaus would like for you to think they are foolproof. Here are a few more tips to improving your credit rating.
· Don't pay off the entire balance on your credit card. Keep about 75% of it paid and keep a 25% balance. This applies to multiple credit cards as well.
· Don't get rid of your older accounts. Keep them open. The credit reporters look at the age of your accounts and the longer you have had a particular account in good standing, the better.
· Pay your bills on time. Experts say that this is probably the most important factor of all.
· Prevent inquiries to your credit report whenever possible. Your score drops with the number of inquiries.
The real key, however, is to only get credit when you need it and when you do get it, use it wisely. You can damage your credit rating with just a few late pays or collections and it may take up to a year of paying everything on time to build up a better rating.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Payday loan or any type of faxless loans please visit us at http://www.PaydayLoanChoice.com
We all know that our financial transactions are reported to credit agencies that track how well and how quickly we pay our debts and that when we apply for a loan for one reason or another, those agencies report our credit history to prospective lenders. However, most of us don't know a great deal about how that actually happens and how our credit is rated.
The fact is that credit reporting has evolved to an industry all of its own. Just a few short years ago, when someone applied for a loan, he or she put down credit references - retail stores, banks, or other people or places with whom they had done business in the past. As a matter of course, the lender checked the references and decided whether or not to grant a loan based on an amalgamation of the responses from them. That really isn't the case any more.
Instead, there are three major agencies that track everyone's credit and provide a credit rating when contacted by a potential lender. The three agencies are Equifax, located in Georgia; Experian, located in Texas; and Trans Union, located in Pennsylvania. When someone applies for a loan, the lender generally contacts one of these three agencies and obtains a credit score and the score helps the lender decide whether or not to make a loan.
Credit Scores
How is a credit score calculated? Until recently, that was one of life's great mysteries, but over the past few years new rules and regulations have made the information more readily available. Your credit score is a number that ranges from 300 to 900, although the exact formula for determining that number is proprietary and is not released. This is how it works in general.
· 35% of the score is based on the history of how you have (or have not) paid your bills. The agencies track how many of your bills have been paid on time and how many haven't, as well as whether or not any of them have been referred for collection. The more recently you have had a collection or failed to pay something on time, the worse your score will be.
· 30% of the score is based on the debts you have at the time of the rating. It is includes car and home loans, credit card debt, retail store debt and the like. If you have several credit cards and they are all limited out, your credit score is lower.
· 15% of the total score is based on how long you have had credit. If you have never had credit or have only had credit for a short time, the lower your score will be.
· 10% of the score is based on the number of inquiries that have been received about your report, particularly if there are several in the past year.
· 10% of the score is based on your current credit and the types of credit you have. The number of credit cards and loans you have, as well as the available credit you have on your credit cards and considered.
Because your credit score is based on these factors and they are constantly changing, your credit score changes along with them. Therefore, there are things you can do to change your credit rating and bring it up.
Changing your Credit Rating
The first thing to do is get a copy of your credit report and make sure there aren't any mistakes on it. If there are, take steps to get them corrected. Errors in reporting do occur, although the credit bureaus would like for you to think they are foolproof. Here are a few more tips to improving your credit rating.
· Don't pay off the entire balance on your credit card. Keep about 75% of it paid and keep a 25% balance. This applies to multiple credit cards as well.
· Don't get rid of your older accounts. Keep them open. The credit reporters look at the age of your accounts and the longer you have had a particular account in good standing, the better.
· Pay your bills on time. Experts say that this is probably the most important factor of all.
· Prevent inquiries to your credit report whenever possible. Your score drops with the number of inquiries.
The real key, however, is to only get credit when you need it and when you do get it, use it wisely. You can damage your credit rating with just a few late pays or collections and it may take up to a year of paying everything on time to build up a better rating.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Payday loan or any type of faxless loans please visit us at http://www.PaydayLoanChoice.com
How to get more than safety with Certificates of Deposit
Dennis Gregory
This may come as a surprise, but Certificates of Deposit, like those you see on that chalkboard at the bank every week, actually have the potential to yield higher than the advertised rate.
What you may already know: Certificates of Deposit come in all shapes and sizes.
You can buy CDs for as little as $1,000, all the way up to $100,000, in multiples of $1,000, and still be insured by the FDIC. This makes them one of the safest investments you could possibly find. They also have different expiration periods, such as 1 month, 6 months, 1 year, all the way up to 5 years. Naturally, the more time your money is invested, the better the certificates of deposit rate you can expect.
Traditionally, the difference in Certificates of Deposit rates between a 6-month CD and a 5 year CD was around 1.0 whole percent, but nowadays the margin is much closer, with interest rates on the rise as they are in 2006. At the time of this writing, the highest CD rate for both a 6-month and a 5-year CD is almost the same, around 5.50% APR each.
There is one other major factor that sets CDs apart. Some CDs are labeled "equity-linked," which means that they are tied to a portfolio that the issuing bank put together.Doing this offers the possibility of an even higher-yield return than advertised, but it also increases the risk in the case that the bank's portfolio goes down.
In my experience, this is almost always the case, even in growth markets. For much the same reason that I don't let brokers pick my stocks, I refuse to buy equity-linked CDs and do not encourage you to purchase one, despite the possibility of higher returns.
So how do I use non equity-linked CDs to get higher-than-advertised returns?
I build what is referred to as a laddered portfolio. This is where you can purchase a few different CDs with different expiry periods, traditionally one year apart, to combine and pay me the best rate of the day, every year. A major bonus is that you'll have access to a portion of your cash while you enjoy the longer-term rates.
That in itself was a major reason to ladder your CDs when the rates were structured the typical way. But now, as federal interest rates are going up, the tactics are a bit different.
There may not appear to be anything to gain at first by the fact that we're achieving a long-term rate while receiving cash out in shorter intervals, since the long-term and short-term rates are now so similar.
The twist is using the ladder at smaller intervals, to approximate a 1-month CD!
A closer look at laddered CDs in 2006
A couple of years ago, when Greenspan was busy and interest rates were still declining, anyone speaking about a laddered CD portfolio was describing 5 or more FIVE year CDs, bought with expiry periods one year apart. (Example: the first CD expired in October '02, the second in October 03, etc...)
This gave the traditional investor the ability to obtain the five-year rate but still have access to his money, at least a fifth of it, every October.
Today, however, you can simply buy 1-year CDs to achieve the same effect, because there is no difference in the 1-year and 5-year rate of return. (So I doubt anyone is even buying 5 year CDs right now.)
Therefore, the game has to be played differently, and it still works great on the monthly, instead of yearly cycle. Now you can walk into your bank and buy 4-month & 6-monthCDs, although you may need to purchase once every other month to keep the cycle seamless. Doing so will give you access to a portion of your cash as often as monthly, but you'll be getting the 4 or 6 month rate of return instead!
I highly encourage you to read all you can about Certificates of Deposit and draw your own conclusion before making any investment in these, or any other, form of investment. In keeping with that tradition, I would like to invite you to drop by my free website for Certificate of Deposit resources. It offers a large volume of facts and figures on CDs that isn't published anywhere else on the web at all.
When was the last time someone showed you a way to beat the bank with 100% safety on your money?
http://www.valuablecontent.com
This may come as a surprise, but Certificates of Deposit, like those you see on that chalkboard at the bank every week, actually have the potential to yield higher than the advertised rate.
What you may already know: Certificates of Deposit come in all shapes and sizes.
You can buy CDs for as little as $1,000, all the way up to $100,000, in multiples of $1,000, and still be insured by the FDIC. This makes them one of the safest investments you could possibly find. They also have different expiration periods, such as 1 month, 6 months, 1 year, all the way up to 5 years. Naturally, the more time your money is invested, the better the certificates of deposit rate you can expect.
Traditionally, the difference in Certificates of Deposit rates between a 6-month CD and a 5 year CD was around 1.0 whole percent, but nowadays the margin is much closer, with interest rates on the rise as they are in 2006. At the time of this writing, the highest CD rate for both a 6-month and a 5-year CD is almost the same, around 5.50% APR each.
There is one other major factor that sets CDs apart. Some CDs are labeled "equity-linked," which means that they are tied to a portfolio that the issuing bank put together.Doing this offers the possibility of an even higher-yield return than advertised, but it also increases the risk in the case that the bank's portfolio goes down.
In my experience, this is almost always the case, even in growth markets. For much the same reason that I don't let brokers pick my stocks, I refuse to buy equity-linked CDs and do not encourage you to purchase one, despite the possibility of higher returns.
So how do I use non equity-linked CDs to get higher-than-advertised returns?
I build what is referred to as a laddered portfolio. This is where you can purchase a few different CDs with different expiry periods, traditionally one year apart, to combine and pay me the best rate of the day, every year. A major bonus is that you'll have access to a portion of your cash while you enjoy the longer-term rates.
That in itself was a major reason to ladder your CDs when the rates were structured the typical way. But now, as federal interest rates are going up, the tactics are a bit different.
There may not appear to be anything to gain at first by the fact that we're achieving a long-term rate while receiving cash out in shorter intervals, since the long-term and short-term rates are now so similar.
The twist is using the ladder at smaller intervals, to approximate a 1-month CD!
A closer look at laddered CDs in 2006
A couple of years ago, when Greenspan was busy and interest rates were still declining, anyone speaking about a laddered CD portfolio was describing 5 or more FIVE year CDs, bought with expiry periods one year apart. (Example: the first CD expired in October '02, the second in October 03, etc...)
This gave the traditional investor the ability to obtain the five-year rate but still have access to his money, at least a fifth of it, every October.
Today, however, you can simply buy 1-year CDs to achieve the same effect, because there is no difference in the 1-year and 5-year rate of return. (So I doubt anyone is even buying 5 year CDs right now.)
Therefore, the game has to be played differently, and it still works great on the monthly, instead of yearly cycle. Now you can walk into your bank and buy 4-month & 6-monthCDs, although you may need to purchase once every other month to keep the cycle seamless. Doing so will give you access to a portion of your cash as often as monthly, but you'll be getting the 4 or 6 month rate of return instead!
I highly encourage you to read all you can about Certificates of Deposit and draw your own conclusion before making any investment in these, or any other, form of investment. In keeping with that tradition, I would like to invite you to drop by my free website for Certificate of Deposit resources. It offers a large volume of facts and figures on CDs that isn't published anywhere else on the web at all.
When was the last time someone showed you a way to beat the bank with 100% safety on your money?
http://www.valuablecontent.com
Saving With The Lump Sum Method
By Martin Lukac
There are so many things that we need to be saving for. You need to have an emergency savings, special goals saving, long term saving and all the other savings accounts for your future. These savings can result in a lot of different accounts. Besides, most people find that they have a hard time getting to where they need to be with just one savings, not five.
Most advisors will tell you to spread your savings out among all of your different needs. This can result in a lot of savings accounts. And yet, you still have the same amount of money.
The lump savings method might be a good solution for you. You just open one savings account. It can be low interest, but needs to be fairly available. Put all of your savings accounts into it for the entire month (except for retirement investments).
How much do you need to put in it? Take all of your goals into consideration. You know that you need an emergency savings. If you are already have it then don't worry about it. If you don't, set yourself a time limit and decide how much a month you should invest. Also consider all of your non-monthly bills. These annual bills can really take a bite out of your budget. For example, if you know that you spend $300 a year during the winter on propane, divide that amount by 12 and put $25 a month towards your propane savings.
Add all the monthly savings up and then put this in your account for the month. I suggest that you keep a list of how much is going towards each savings goal. After a few months, look at what you have saved. Are you close enough to your emergency savings to skip the rest of the categories and put it all towards that this month? Do you need to change some amounts?
This is where you list comes in handy. Put things in order of priority for you. Choose what it most necessary and put a little more towards it. If you can, devote all you can and then do the others in the next few months. Once you have your emergency fund built up, you can take that out of the savings account and put it in another account and forget about it. Then you move on to concentrating on other savings goals.
This really helps you save time in that you aren't writing out five checks to your different savings accounts and trying to manage it all. If you stick with it, the money will be there. You just have to keep track of what you need to save and what you are saving.
This method isn't for everyone. But those with little time could actually benefit from it. Many people find it easier to keep saving when they see the lump sum growing, as opposed to a lot of little accounts barely moving up.
The idea is that you are saving. No matter the method, the saving is the important part. Do it regularly and keep with it. In the end, you will find that it really pays off.
Martin Lukac represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and San Diego loan portal http://www.LendingSanDiego.com
There are so many things that we need to be saving for. You need to have an emergency savings, special goals saving, long term saving and all the other savings accounts for your future. These savings can result in a lot of different accounts. Besides, most people find that they have a hard time getting to where they need to be with just one savings, not five.
Most advisors will tell you to spread your savings out among all of your different needs. This can result in a lot of savings accounts. And yet, you still have the same amount of money.
The lump savings method might be a good solution for you. You just open one savings account. It can be low interest, but needs to be fairly available. Put all of your savings accounts into it for the entire month (except for retirement investments).
How much do you need to put in it? Take all of your goals into consideration. You know that you need an emergency savings. If you are already have it then don't worry about it. If you don't, set yourself a time limit and decide how much a month you should invest. Also consider all of your non-monthly bills. These annual bills can really take a bite out of your budget. For example, if you know that you spend $300 a year during the winter on propane, divide that amount by 12 and put $25 a month towards your propane savings.
Add all the monthly savings up and then put this in your account for the month. I suggest that you keep a list of how much is going towards each savings goal. After a few months, look at what you have saved. Are you close enough to your emergency savings to skip the rest of the categories and put it all towards that this month? Do you need to change some amounts?
This is where you list comes in handy. Put things in order of priority for you. Choose what it most necessary and put a little more towards it. If you can, devote all you can and then do the others in the next few months. Once you have your emergency fund built up, you can take that out of the savings account and put it in another account and forget about it. Then you move on to concentrating on other savings goals.
This really helps you save time in that you aren't writing out five checks to your different savings accounts and trying to manage it all. If you stick with it, the money will be there. You just have to keep track of what you need to save and what you are saving.
This method isn't for everyone. But those with little time could actually benefit from it. Many people find it easier to keep saving when they see the lump sum growing, as opposed to a lot of little accounts barely moving up.
The idea is that you are saving. No matter the method, the saving is the important part. Do it regularly and keep with it. In the end, you will find that it really pays off.
Martin Lukac represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and San Diego loan portal http://www.LendingSanDiego.com
Savings at Your Bank- 5 Ways to Cut Costs
By Deirdre Jones
It seems that no matter where you turn, banks are coming up with fees on top of fees, but that does not mean that you cannot save. The key to saving money at the bank is doing your homework.
Does Your Bank Offer Incentive Programs?
Banking is a competitive industry, and with people becoming more and more fed up, many banks are offering incentives to their customers. For example, Bank of America recently came out with a great little savings program called "Keep the Change". It works in conjunction with your checking account and debit card.
Let's say you use your debit card and spend $2.31. Well, the bank would round this number up to $3.00 and the $.69 would be transferred from your checking to your savings account. It helps you save without any effort on your part, but you must remember that this occurs to avoid overdraft fees in your checking account.
Plus, they match your "Keep the Change" savings at 100% for the first three months and 5% thereafter. You have got to admit that beats that paltry interest many other banks give you. Free money is always great, so take advantage of it.
The point is that you should check to see what incentive programs your bank may offer.
Check Ordering
Never purchase checks directly from the bank. It is always going to be an expensive proposition. There are many companies out there that offer great deals on check orders, such as Check Gallery, Checks in the Mail, Checks Unlimited and many more. You can often pick up 200 checks for as little as $8 or $9. Just do some quick research online and you will be saving in no time.
Credit Unions
Credit Unions often charge much lower fees than standard banks. This may be an option you would like to explore, especially if there are conveniently located branches in your area.
No Fee Checking
Many banks offer some variation of this particular theme. If you qualify, by all means, sign up, but pay attention to the stipulations. Some banks will offer no fee checking if your paycheck is directly deposited into your account. This is a pretty good deal.
Many banks also offer free checking to students. You may want to take advantage of this one, whether you are an undergrad or if you are pursuing post graduate studies.
Some banks offer no fee checking if you maintain a savings account with a specific minimum balance, but charge if you go below this balance. Be careful with this one. The monthly fees are often higher than the fees on regular or basic checking accounts. So if you know that you will constantly dip into your savings, then this may not be such a great deal for you.
ATM Fees
Be sure to choose a bank that has lots of conveniently located ATMs if you visit the ATM frequently. Always try to use your bank's ATM to avoid the ridiculous fees you are charged for accessing your money from an out of network ATM. If you must use another bank's ATM, try to locate one with no surcharge. At least, in this way, you are not charged twice - once by that bank's ATM and once by your bank for using another bank's machine.
There are countless ways of saving money at the bank if you really put your mind to it. So be a smart consumer and be sure to shop around when choosing your bank.
If you would like to discover how to totally eliminate yor debt and reclaim your finances, grab your debt reduction kit today. You will also receive a copy of our exclusive debt reduction software.
Article Source: http://EzineArticles.com/?expert=Deirdre_Jones
It seems that no matter where you turn, banks are coming up with fees on top of fees, but that does not mean that you cannot save. The key to saving money at the bank is doing your homework.
Does Your Bank Offer Incentive Programs?
Banking is a competitive industry, and with people becoming more and more fed up, many banks are offering incentives to their customers. For example, Bank of America recently came out with a great little savings program called "Keep the Change". It works in conjunction with your checking account and debit card.
Let's say you use your debit card and spend $2.31. Well, the bank would round this number up to $3.00 and the $.69 would be transferred from your checking to your savings account. It helps you save without any effort on your part, but you must remember that this occurs to avoid overdraft fees in your checking account.
Plus, they match your "Keep the Change" savings at 100% for the first three months and 5% thereafter. You have got to admit that beats that paltry interest many other banks give you. Free money is always great, so take advantage of it.
The point is that you should check to see what incentive programs your bank may offer.
Check Ordering
Never purchase checks directly from the bank. It is always going to be an expensive proposition. There are many companies out there that offer great deals on check orders, such as Check Gallery, Checks in the Mail, Checks Unlimited and many more. You can often pick up 200 checks for as little as $8 or $9. Just do some quick research online and you will be saving in no time.
Credit Unions
Credit Unions often charge much lower fees than standard banks. This may be an option you would like to explore, especially if there are conveniently located branches in your area.
No Fee Checking
Many banks offer some variation of this particular theme. If you qualify, by all means, sign up, but pay attention to the stipulations. Some banks will offer no fee checking if your paycheck is directly deposited into your account. This is a pretty good deal.
Many banks also offer free checking to students. You may want to take advantage of this one, whether you are an undergrad or if you are pursuing post graduate studies.
Some banks offer no fee checking if you maintain a savings account with a specific minimum balance, but charge if you go below this balance. Be careful with this one. The monthly fees are often higher than the fees on regular or basic checking accounts. So if you know that you will constantly dip into your savings, then this may not be such a great deal for you.
ATM Fees
Be sure to choose a bank that has lots of conveniently located ATMs if you visit the ATM frequently. Always try to use your bank's ATM to avoid the ridiculous fees you are charged for accessing your money from an out of network ATM. If you must use another bank's ATM, try to locate one with no surcharge. At least, in this way, you are not charged twice - once by that bank's ATM and once by your bank for using another bank's machine.
There are countless ways of saving money at the bank if you really put your mind to it. So be a smart consumer and be sure to shop around when choosing your bank.
If you would like to discover how to totally eliminate yor debt and reclaim your finances, grab your debt reduction kit today. You will also receive a copy of our exclusive debt reduction software.
Article Source: http://EzineArticles.com/?expert=Deirdre_Jones
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