Credit cards have many practical applications, apart from using them as light switch covers and golf putters. It is better to use a credit card rather than your debit card when shopping online, buying big-ticket items, booking travel, paying for fuel and hotel accommodation, and much more.
It is safer to charge items to a credit card when shopping online. Debit cards link to checking accounts directly and are more vulnerable to hijacking. Most credit card issuers offer cardholders voluntary policies that help reduce the liability to zero.
Using a credit card is safer when you buy big-ticket items such as furniture and household appliances. Canadian credit cards come with dispute rights in case something goes wrong with the purchase or merchandise. Another beneficial feature is the extended warranty which extends the merchant’s warranty. If you are to rent a car or buy electronics, some credit card issuers feature property insurance for these types of purchases. Carrying a balance should be avoided when buying big-ticket items. On the other hand, some cards offer additional benefits such as auto rental collision damage waver, common carrier travel accident insurance, lost luggage assistance, legal assistance, etc. With credit cards, cardholders can make emergency cash transfers and request emergency card replacement. In addition, low interest credit cards also go with identity protection and balance protection as well as purchase assurance, typically over a period of 90 days from the purchase date.
Using a credit rather than debit card is recommended if you are a new customer. If you will be buying an item which takes a couple of weeks to arrive, your credit card will offer better protection. Again, if the item does not arrive or has defects, you can take advantage of the dispute rights that come with the card. It should be noted that protection is extended over a specified period. Problems should be settled as soon as they occur.
Airmiles credit cards are recommended for use if you are booking a travel. When using a debit card, the hotel chain or travel agency will debit it immediately.
Finally, it is not a good idea to use your debit card for recurring payments because you lose track of the payments. You will face late payment fees if you don’t have enough money in your account. A low interest credit card should be used for recurring payments, especially by borrowers who carry a balance.
Friday, April 29, 2011
Monday, April 18, 2011
How to get a Secured Loan
It is usual for people to ask for bank loans without any proper knowledge. The process of secured loans is easy and benefits the banks a lot. Firstly, a person can take a large sum of money from the bank and deposit his home papers as security. For what so ever reasons, if you are not able to return loan, your house will be in the custody of bank then. This gives a cushion to the bank if the borrower is not in a position to pay back.
It looks difficult to manage but there are many advantages associated with these secured loans. You can get a large amount of money altogether since the loan is secured and the bank is sure that it won’t lose out. This money can be utilized by borrowers to spend on vacations or car insurance. You can even spend it on your university fees. The plus point about secured loans is that, banks have surety of taking possession of borrower’s house or any land property of equal worth, if repayments are not made in time. Full payments are not necessary to find secured loan. In exchange of the loan, you can pay partial amount. Also the repayments in this case are lower since the bank holds security rights.
The process of acquiring secured loans review is a simple process. You just need to fill out an application form. In order to be clear and concise about the loans, do take sometime out to have a meeting with your bank manager. He is the best person to guide you about the pros and cons of this entire policy. When you have made up your mind you can get hold of a good amount in little time.
The only disadvantage to obtain secured loan is that, your home will be possessed by bank if the payments are not made in time. Everyone builds his home with care, time, and efforts and spends a lot of money on it in the beginning and during its lifetime which makes parting with it a rather remorseful affair.
The best method for obtaining personal secured loans is to go via your regular bank where you have your valid bank account. Your documentation that needs to be submitted should be orderly, original and attested. There is no hard and fast rule associated with loan payment. If you ever demanded as high as $100,000, you can choose the option which makes it easier for you to pay keeping your monthly salary and budget in view. Ask for the amount that you know you can return back. This means you have to be careful not to ask for too large a loan which become a constant pest thriving on your monthly salary or pushes you into bankruptcy.
See also Unsecured Loans:
http://www.canadabanks.net/default.aspx?article=Unsecured+Loan
http://www.yourloan.ca/loan-articles/unsecured-loans-canada/
It looks difficult to manage but there are many advantages associated with these secured loans. You can get a large amount of money altogether since the loan is secured and the bank is sure that it won’t lose out. This money can be utilized by borrowers to spend on vacations or car insurance. You can even spend it on your university fees. The plus point about secured loans is that, banks have surety of taking possession of borrower’s house or any land property of equal worth, if repayments are not made in time. Full payments are not necessary to find secured loan. In exchange of the loan, you can pay partial amount. Also the repayments in this case are lower since the bank holds security rights.
The process of acquiring secured loans review is a simple process. You just need to fill out an application form. In order to be clear and concise about the loans, do take sometime out to have a meeting with your bank manager. He is the best person to guide you about the pros and cons of this entire policy. When you have made up your mind you can get hold of a good amount in little time.
The only disadvantage to obtain secured loan is that, your home will be possessed by bank if the payments are not made in time. Everyone builds his home with care, time, and efforts and spends a lot of money on it in the beginning and during its lifetime which makes parting with it a rather remorseful affair.
The best method for obtaining personal secured loans is to go via your regular bank where you have your valid bank account. Your documentation that needs to be submitted should be orderly, original and attested. There is no hard and fast rule associated with loan payment. If you ever demanded as high as $100,000, you can choose the option which makes it easier for you to pay keeping your monthly salary and budget in view. Ask for the amount that you know you can return back. This means you have to be careful not to ask for too large a loan which become a constant pest thriving on your monthly salary or pushes you into bankruptcy.
See also Unsecured Loans:
http://www.canadabanks.net/default.aspx?article=Unsecured+Loan
http://www.yourloan.ca/loan-articles/unsecured-loans-canada/
Monday, April 11, 2011
Get The Facts About Adjustable Rate Mortgage
Adjustable Rate Mortgage or ARM is the type of loan which is lent to finance the private ownership of the property with a floating or changing interest rate throughout the term. Adjustable Rate Mortgage is usually confused with another type of loan i.e. Graduated Payment Mortgage (GPM) which offers changeable payments but a constant rate of interest. ARM, and FRM are the two key types of mortgage loans. FRM offers a constant interest rate which is independent of market index. In ARM, the interest rate on the loan is so often attuned according to the market index. CMT, LIBOR and COFI are the major market indices for interest rate but some investors use their own investments as the scale.
Adjustable Mortgage, - the risk transfers from the lender to borrower as the interest rate varies, yet it is favorable in the situations where fixed rate mortgage loans are very expensive and difficult to obtain. The higher interest rates favor the lender and vice versa.
As the interest rate alters, the payments completed by the borrower may alter on each occasion. Interest rate may also change the duration of term if the payment amount is to be kept constant. Different kinds of ARM plans are available.
* Hybrid ARM: A combination of FRM and ARM is called hybrid ARM. Initially the interest rates are kept constant for some period and then later it is adjusted according to the market indices.
* Interest-only ARM: As the name suggests, the mortgagor only has to pay the interest in this type of ARM.
* Option ARM: The mortgagor can choose between the interest-only and lowest payments in option ARM. Minimum payment is lesser than interest-only payment but if the monthly payment doesn't cover the interest, the mortgage is negatively amortized. In the Option ARM, the interest rate is adjusted monthly but the payments are made annually.
The character of ARM is decided by the interest index and the limitation on charges. Few of the features of ARM are:
* All ARMs have the interest rates based on the indices. In some countries, prime lending rate is issued by the banks to use as indices. The indices may be applied directly, on a rate plus margin bases or depending on the index movement.
* If the mortgage payments made by the borrower increase with time increasing the financial difficulty risk on him, caps are applied. Caps are a significant trait of ARMs and restrict the repayment amount when applied to various factors that change it.
Selecting a good adjustable rate mortgage solution can be hard, to make informed decision visit variable rate mortgage.
Adjustable Mortgage, - the risk transfers from the lender to borrower as the interest rate varies, yet it is favorable in the situations where fixed rate mortgage loans are very expensive and difficult to obtain. The higher interest rates favor the lender and vice versa.
As the interest rate alters, the payments completed by the borrower may alter on each occasion. Interest rate may also change the duration of term if the payment amount is to be kept constant. Different kinds of ARM plans are available.
* Hybrid ARM: A combination of FRM and ARM is called hybrid ARM. Initially the interest rates are kept constant for some period and then later it is adjusted according to the market indices.
* Interest-only ARM: As the name suggests, the mortgagor only has to pay the interest in this type of ARM.
* Option ARM: The mortgagor can choose between the interest-only and lowest payments in option ARM. Minimum payment is lesser than interest-only payment but if the monthly payment doesn't cover the interest, the mortgage is negatively amortized. In the Option ARM, the interest rate is adjusted monthly but the payments are made annually.
The character of ARM is decided by the interest index and the limitation on charges. Few of the features of ARM are:
* All ARMs have the interest rates based on the indices. In some countries, prime lending rate is issued by the banks to use as indices. The indices may be applied directly, on a rate plus margin bases or depending on the index movement.
* If the mortgage payments made by the borrower increase with time increasing the financial difficulty risk on him, caps are applied. Caps are a significant trait of ARMs and restrict the repayment amount when applied to various factors that change it.
Selecting a good adjustable rate mortgage solution can be hard, to make informed decision visit variable rate mortgage.
Thursday, April 7, 2011
Mortgage Calculator Overview
Exclusive calculators are available for calculating loans and mortgages. With a mortgage calculator you just have to feed in some numeric information to calculate mortgage payments as well as the amortization timetable. It is very easy to use this calculator instead of wasting time in complicated statements. There are two kinds of mortgage calculators; online and physical. The manual calculator is used by finance experts whereas the common man uses the online mortgage calculator. However, remember one thing that a mortgage and loan calculator can give an accurate approximate, not a determined figure, as interest rate dealings etc. often face a change.
With a mortgage loan calculator you can get figures of future interest costs, and any other extra payment that you would have to pay in order to complete the mortgage loan. A mortgage calculator helps you keep track of the length of time for which payment is due. It is important that you maintain this calculation on a weekly or monthly basis based on your package plan so that you can maintain a proper budget. Most people tend to be completely ignorant of any calculations and when they are charged with any extra amount, they are caught off guard. With proper calculation in hand, you can easily deal with creditors or lenders and have a systematic record of every payment deal.
You need the following information for the downpayment mortgage calculator.
Mortgage Amount
The basic calculation is done by subtracting down payment from the actual price of the home. After this you are left with only the mortgage that has to be paid. People who have resorted to mortgage refinancing the value is the outstanding balance of the mortgage loans.
Mortgage Term
The mortgage term refers to the time of the mortgage, either a 15 year or a 30 year mortgage. Refinancing often has 15 years as the average mortgage term.
Interest Rate
The current interest rate of the Bank must be known to calculate your mortgage payments. You should never rely on the same interest rate month after month as it keeps changing and you must have knowledge of any change to get accurate results.
Online Mortgage Calculator
There are special sites online that help people deal with mortgage calculations, either in full detail or just in basic calculations. Detailed calculations include the salary that you have, the term of the loan, the payment mode, the interest rate, tax rate, start date, close date, down payment etc. If calculating in a physical calculator is too time consuming for you, choose any of these online mortgage calculators to help you understand all loans and mortgages to be paid. With a good mortgage calculator, you can be on a good budgeting track, and also getting on a good financial management path.
With a mortgage loan calculator you can get figures of future interest costs, and any other extra payment that you would have to pay in order to complete the mortgage loan. A mortgage calculator helps you keep track of the length of time for which payment is due. It is important that you maintain this calculation on a weekly or monthly basis based on your package plan so that you can maintain a proper budget. Most people tend to be completely ignorant of any calculations and when they are charged with any extra amount, they are caught off guard. With proper calculation in hand, you can easily deal with creditors or lenders and have a systematic record of every payment deal.
You need the following information for the downpayment mortgage calculator.
Mortgage Amount
The basic calculation is done by subtracting down payment from the actual price of the home. After this you are left with only the mortgage that has to be paid. People who have resorted to mortgage refinancing the value is the outstanding balance of the mortgage loans.
Mortgage Term
The mortgage term refers to the time of the mortgage, either a 15 year or a 30 year mortgage. Refinancing often has 15 years as the average mortgage term.
Interest Rate
The current interest rate of the Bank must be known to calculate your mortgage payments. You should never rely on the same interest rate month after month as it keeps changing and you must have knowledge of any change to get accurate results.
Online Mortgage Calculator
There are special sites online that help people deal with mortgage calculations, either in full detail or just in basic calculations. Detailed calculations include the salary that you have, the term of the loan, the payment mode, the interest rate, tax rate, start date, close date, down payment etc. If calculating in a physical calculator is too time consuming for you, choose any of these online mortgage calculators to help you understand all loans and mortgages to be paid. With a good mortgage calculator, you can be on a good budgeting track, and also getting on a good financial management path.
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