Money Management Tips

Best Ways to Enhance Your Credit Score

September 17, 2018

The credit score is the statistical number that is utilized by credit companies and banks to evaluate the creditworthiness of...

Best Ways to Enhance Your Credit Score

September 17, 2018

The credit score is the statistical number that is utilized...

Three Myths About Mortgages and Your Credit Score

March 27, 2018

There are a lot of myths out there regarding mortgage...

Best Ways to Enhance Your Credit Score

The credit score is the statistical number that is utilized by credit companies and banks to evaluate the creditworthiness of the borrower. It is one of the criteria used to know if the person will pay his personal loan. A good personal credit score is around 700 above. A bad credit score is below 600.

Enhancing your credit score is a must especially if you are planning to start a business. Borrowing money is an option that can help you begin or sustain it during the initial stage. Here are some simple ways to do it:

Pay your bills on time

Pay your credit card bills, utility bills, and other types of credits on time. A good credit standing will help you secure a bigger business or fast payday loan Singapore. It also helps you avoid paying additional interest for unpaid bills. To improve your personal credits, pay on or before the due date.

Eliminate balances on your credit card

If you have multiple credit cards, be sure to pay all your balances to improve your score ratings. When you pay them off, even if it’s just small amounts, you are saving yourself from ruining your own credit reputation.

Be aware of your credit card limit

According to financial experts, using lesser than 30% of your credit card limit speeds up your rating. Learning how to utilize your credit limit properly can improve or harm it. When you use more than 60% of your limit and do not pay the full amount of your balance on time every month, it can damage your personal credit standing.

Leave your old debt in your credit history

If you are a good debt payor, do not ask your personal money lender Singapore to remove the debt from your credit report. It can be helpful for your next personal loan.

Learning how to handle your payments for bills, personal loan, and other standing obligations boost your image in financial institutions.


The Truth About Savings Account

Opening a savings account can be a great idea for some consumers, but it may not be the right choice for all consumers.  For those who are new to banking services, a savings account is not the same as a checking account. They share some similarities, but they are different in terms and conditions.

In terms, a savings account is a type of account that you can open at a bank or credit union. With this type of account, you deposit money into the account and leave it there for it to earn interest. You can take the money out of the savings account, but that defeats the purpose.

A savings account is a great way for some people to save money and to earn some interest from that money. It is especially useful for those individuals who have limited amounts of cash to put away. Young people, especially younger married couples, often find that opening a savings account is the best way for them to save money. The reason for this is simple. Unlike some other types of investments which always demand a certain amount of money be deposited or maintained, a simple savings account allows you to deposit whatever you like, whenever you like.

Another reason a savings account is handy for those with limited funds is that the money you deposit into the account can be withdrawn immediately if you need to get it. Again, some other types of savings or investments instruments are not this fluid. Most savings accounts allow you to use the ATM as well, which offers even greater access to your money should an emergency arise. This is simply not the case with other types of accounts such as certificates of deposit or money market accounts.

Savings accounts are also safe for your money in two ways. No one should keep large amounts of cash at home; that is simply dangerous to do. The money could be stolen or if there were a fire, the cash could be destroyed. In both cases, you would completely lose your money with (probably) no way of getting it back.

The second safety feature that savings accounts have is that money that is deposited in a bank is protected by local government Insurance Corporations. If the bank is robbed or the bank burns down, you will still have your money. Even if the bank files bankruptcy, your money is safe.

And when you are ready to open a savings account do some research first. You want to find out which banks are offering the best interest rates available in the market.


4 Best Car Financing Options

Finally, you have found your dream car and can’t wait to drive it around the city, but there’s only one thing that has crossed your mind while staring at it: how can you finance the car purchase.

Nowadays, there’s a bigger chance that you’d be paying for your car through one of several financing schemes.

And understanding the basics of each car financing option is key to choosing the car financing strategy. Here’s some overview of car financing options that may be available to you.

Car Loans from Lending Institutions

You can get a car loan from a bank, credit union, or other online loan lending companies. The car that you purchase will serve as collateral for the auto loan. This means that the lender can repossess your vehicle if you default on the car loan. Car loans are a popular car financing option because they generally offer reasonable interest rates and are relatively easy to get.

Dealer financing

Like the traditional car loans, dealer financing is reasonably easy to get. Most dealerships have relationships with numerous lending institutions, so they can arrange car loans even for car buyers with blemished credit histories. To compete with traditional bank loans, many dealerships offer zero percent or very low interest on dealer loans. However, such loans are available to car buyers with stellar credit ratings. Consumer experts advise car buyers to get pre-approved for an auto loan from a bank or credit union before approaching the dealership for possible financing. By getting loan pre-approval from another lending institution, a car buyer gets the upper hand when bargaining for a lower rate on a dealer loan.

Home Equity Loans and Home Equity Lines of Credit

If you own a home and have accumulated substantial equity on your property, then you may consider getting a home equity loan or a home equity line of credit. Home equity loans are fixed or adjustable rate loans that you repay over a predetermined period. Home equity lines of credit are open-ended, adjustable-rate revolving loans with a maximum credit limit based on the equity of your home.

Home equity loans tend to have lower interest rates than credit cards and other types of personal loans. Interest payments on home equity loans may also be tax-deductible up to a certain extent. Home equity loans and home equity lines of credit use your home as collateral, so make sure you are financially capable of paying the monthly installments if you don’t want to run the risk of losing your home.

Credit Cards

A credit card advance or credit card draft from your credit card company can help you drive your dream car home. Like home equity lines of credit, credit card advances or credit card drafts are revolving lines of credit with variable interest rates.

To entice existing customers to avail themselves of credit card drafts, credit card companies waive cash-advance fees, guarantee low rates during the initial period of the loan, or offer high credit limits. However, because credit card drafts are unsecured, they generally have higher interest rates than home equity loans, traditional auto loans or dealer loans. Financing your auto purchase through credit cards could also leave you vulnerable to hefty penalty charges if you make a late payment or exceed your credit limit.


How to Get Your First Credit Card?

We all know that credit cards are starting to become one of the necessities that need to be inside our wallet. It has become the basic part of consumer life that it has defined what convenience is when it comes to purchasing and payments. But BDO credit cards are still personal loans. Being a loan, there is still a need for us to be responsible for the use of credit cards. Proper use and loan management must be taken to avoid getting deep into debt. Any charges applied to a credit card can grow out of hand if we are not responsible enough for handling it. Here are a few things to keep in mind when you plan to get a credit card.

  • Make sure you have a STEADY source of income

Although this is an obvious requirement, some people do apply even without a source of income. Credit card issuers do a check on requirements before they grant a cardholder the right to use and access credit from them. They are not very particular on the proof of income. It can be a bank, a tax return or even business documents to support a proof that there is income which you may get payment from. We often miss the fact that our income should be steady and stable enough to provide us a source to pay our creditors.

  • You are educated about finance charges, interest rates and other topics regarding loans

Always remember that the best way to avoid having a problem is knowing how the problem can arise. In cases of debt, you should know and understand how your debt can grow through finance charges and interest rates. How penalties arise and applied to your debt. Knowing these aspects will help you avoid the pitfall of being buried under debt.

  • You are disciplined

This final requirement is a very important key before owning a credit card. A credit card is there for convenience and not as a replacement for money that you do not currently have. When you use your credit card, make sure that your purchase is something you can pay with cash if you didn’t have your credit card around.

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