There are plenty of benefits to having a student credit card, such as enabling cardholders to pay their gas and food bills, textbooks, furniture, and more. College students need credit cards in many cases, but applicants stand a higher chance if they have a cosigner.
What should you do now? You first need to find someone close who agrees to cosign for you. This person can be your parent, guardian, relative, or just someone close to you. You do not have to be related to the person who will cosign for you; so, you can ask a colleague or a friend as well. What is important here is that this person has a very good or excellent credit score, holds a credit card, and has outstanding repayment history. Ask this person to become your cosigner but be sure to make it perfectly clear that he or she will be responsible for debt repayment in case of default. Do your best to convince your friend or relative that this will not happen. Discuss your sense of financial responsibility and maturity.
If you have a cosigner already, it is time to shop for college credit cards. Check with the big banks (CIBC, Bank of Nova Scotia) and your local bank. When checking credit card offers, look at two things - whether you meet the requirements and whether the card in question meets your needs. Important considerations are annual fees, interest rate, rewards programs, etc. In the ideal case, the credit card you choose is offered with no annual fee. Even if you do not find such a card, some credit card issuers will waive the annual fee, provided that you are charging items on the card within a period of one year. Find out what fees go with your chosen credit card. Most credit card companies impose late fees and over-the-limit fees. You should avoid cards with unfair fees like an account maintenance fee.
Keeping this in mind, back to applying. The application process for Canadian student credit card is much similar to when you apply for other credit card types. The only difference is that your cosigner should dial the number on his credit card and talk to customer service. They have to explain that they have decided to cosign for you.
Bear in mind that only some credit card companies let clients apply with a cosigner. The reason is that some issuers are unwilling to service joint accounts. Other issuers will ask that you have a cosigner, even when they have mailed you an offer. But do you really need a cosigner? You will be more responsible if you have one. Thus, you are more likely to pay off your balance knowing that a friend or relative of yours would have to pay the bill instead of you.
What else to consider? With student credit cards, it is best to start out with a lower credit limit than you would like to. This way, you will learn not to overcharge. If the credit limit is set high, you may overcharge and accumulate excessive debt.
Hesitating which Mastercard for students solution to choose? Visit student and bonuses to make informed decision.
Tuesday, September 27, 2011
Saturday, September 10, 2011
Liquidity Problems With Personal Line Of Credit
To examine the concept of line of credit along with liquidity, it is necessary to explain the difference between a line of credit and a personal loan. In many cases, you can use both for the same things. However, there are some contrasts. For instance, loans may be extended to consolidate debt, while lines of credit are intended to help clients whose monthly income is not sufficient or stable.
Personal line of credit is a good idea if one seeks to reduce monthly payments into one single payment, which has a low interest rate. In addition to this, you can borrow only the funds you need, and you do not have to apply again during the term of the line of credit. You can go online or call to inquire how much credit you have. The principal amount can be repaid any time over the credit line's term and in some cases, variable rate applies which is lower compared to the interest rate on loans. However, in some cases the line of credit just adds to the bills you are paying already. This is where we come into liquidity problems - the credit line itself is one. This is why it is important to use personal lines of credit wisely. If you want to purchase some expensive item, which you don't need, you should not buy it using a credit line. A line of credit is good to use when you face a cash emergency.
In fact, experts claim that personal lines of credits are emergency cash. At the same time, lines of credit come with some drawbacks as well. The interest rates may be lower than those on loans, but much higher than on HELOCs. In addition, lenders are more cautious when they determine whether to issue lines of credit. Personal credit lines are easy to access once you have been approved, which tends to lead people into the temptation of borrowing too much money. People borrow money from their personal lines of credit for things they could save money for, such as furniture, car repair, insurance and education costs. At the same time, many Canadians use personal credit lines to make home improvements, cover medical costs, consolidate debt, and buy used vehicles. The money is usually repaid in a year to a year and a half. Naturally, in Canada as everywhere, personal credit lines are more popular than HELOCs because not everyone wants to buy a home.
In terms of liquidity problems, risk-based pricing is another problem when determining interest rates. Some financial institutions do not use this factor, for example, certain credit unions do not factor it in. This means the interest is a bit lower (around 10 percent) if the payment is automatically deducted from the client's paycheck or account and slightly higher (around 11 percent) if another method is used to make payments.
Other establishments use risk-based pricing, which means the interest rates vary considerably - from 9 percent to 18 percent.
Personal line of credit is a good idea if one seeks to reduce monthly payments into one single payment, which has a low interest rate. In addition to this, you can borrow only the funds you need, and you do not have to apply again during the term of the line of credit. You can go online or call to inquire how much credit you have. The principal amount can be repaid any time over the credit line's term and in some cases, variable rate applies which is lower compared to the interest rate on loans. However, in some cases the line of credit just adds to the bills you are paying already. This is where we come into liquidity problems - the credit line itself is one. This is why it is important to use personal lines of credit wisely. If you want to purchase some expensive item, which you don't need, you should not buy it using a credit line. A line of credit is good to use when you face a cash emergency.
In fact, experts claim that personal lines of credits are emergency cash. At the same time, lines of credit come with some drawbacks as well. The interest rates may be lower than those on loans, but much higher than on HELOCs. In addition, lenders are more cautious when they determine whether to issue lines of credit. Personal credit lines are easy to access once you have been approved, which tends to lead people into the temptation of borrowing too much money. People borrow money from their personal lines of credit for things they could save money for, such as furniture, car repair, insurance and education costs. At the same time, many Canadians use personal credit lines to make home improvements, cover medical costs, consolidate debt, and buy used vehicles. The money is usually repaid in a year to a year and a half. Naturally, in Canada as everywhere, personal credit lines are more popular than HELOCs because not everyone wants to buy a home.
In terms of liquidity problems, risk-based pricing is another problem when determining interest rates. Some financial institutions do not use this factor, for example, certain credit unions do not factor it in. This means the interest is a bit lower (around 10 percent) if the payment is automatically deducted from the client's paycheck or account and slightly higher (around 11 percent) if another method is used to make payments.
Other establishments use risk-based pricing, which means the interest rates vary considerably - from 9 percent to 18 percent.
Thursday, September 1, 2011
Choosing from a variety of cash loans
Cash loans represent short-term loans which can be used for emergency situations. The loan can be extended for the purpose of covering medical expenses, pending bills, home repairs, etc. The payday loan comes with relatively short terms, and creditors charge interest over the loan's term.
Lenders offer different cash loans, known as fast loans. Some loans can be categorized as bad credit loans No credit check is usually required, meaning that even borrowers with poor credit qualify.
With many creditors, the funds will be transferred to the borrower's bank account within one business day. The reason is namely that credit check is not required and therefore, these loans are also known as no credit check loans.
Payday loans are short-term loans, which serve to cover cash emergencies until the borrower's next paycheck. This loan type is also called cash advance and is unsecured, meaning that collateral is not required. The creditor may request some evidence of http://www.blogger.com/img/blank.gifemployment or income in order to extend the loan. These may be bank statements orhttp://www.blogger.com/img/blank.gif pay stubs, but not all lenders require them. Franchises and financial companies have established their underwriting criteria. Canadian financial institutions are restricted by usury laws, with interest rate over sixty percent being a criminal offence, as established under the Criminal Code of Canada. Some provinces, for example, Saskatchewan and British Columbia have established additional regulations on payday loans, which include lower interest rate caps.
Those who want to apply for a cash loan with a Canadian loan provider can choose from various financial institutions. Many offer cash loans online, featuring instant approval. Some companies even offer to transfer the cash to your account in just thirty minutes. Cash loans are also featured with 99 percent approval rate, professional and fast service, and easy qualification requirements, which almost everyone can meet. Additional benefits include safeguards against unauthorized access to one's personal details and high security standards and procedures.
Borrowers can choose to apply for a loan over the Internet, with the application process taking just a couple of minutes. Depending on the province of residence, the applicant should meet certain requirement.For example, applicants may have to be employed with their current employers for 3 or more months and be of legal age. An active phone number may be another requirement. Typical questions a payday loan provider asks are whether customers get paid by direct deposit and if they have a checking account. Another requirement can be that your income is $1,000 a month or more.
Cash loans go with a fee, which may be $10 for every $100 weekly. First-time borrowers may be extended a lower amount (e.g. 300), while existing clients can get a cash loan of up to $1,000.
Lenders offer different cash loans, known as fast loans. Some loans can be categorized as bad credit loans No credit check is usually required, meaning that even borrowers with poor credit qualify.
With many creditors, the funds will be transferred to the borrower's bank account within one business day. The reason is namely that credit check is not required and therefore, these loans are also known as no credit check loans.
Payday loans are short-term loans, which serve to cover cash emergencies until the borrower's next paycheck. This loan type is also called cash advance and is unsecured, meaning that collateral is not required. The creditor may request some evidence of http://www.blogger.com/img/blank.gifemployment or income in order to extend the loan. These may be bank statements orhttp://www.blogger.com/img/blank.gif pay stubs, but not all lenders require them. Franchises and financial companies have established their underwriting criteria. Canadian financial institutions are restricted by usury laws, with interest rate over sixty percent being a criminal offence, as established under the Criminal Code of Canada. Some provinces, for example, Saskatchewan and British Columbia have established additional regulations on payday loans, which include lower interest rate caps.
Those who want to apply for a cash loan with a Canadian loan provider can choose from various financial institutions. Many offer cash loans online, featuring instant approval. Some companies even offer to transfer the cash to your account in just thirty minutes. Cash loans are also featured with 99 percent approval rate, professional and fast service, and easy qualification requirements, which almost everyone can meet. Additional benefits include safeguards against unauthorized access to one's personal details and high security standards and procedures.
Borrowers can choose to apply for a loan over the Internet, with the application process taking just a couple of minutes. Depending on the province of residence, the applicant should meet certain requirement.For example, applicants may have to be employed with their current employers for 3 or more months and be of legal age. An active phone number may be another requirement. Typical questions a payday loan provider asks are whether customers get paid by direct deposit and if they have a checking account. Another requirement can be that your income is $1,000 a month or more.
Cash loans go with a fee, which may be $10 for every $100 weekly. First-time borrowers may be extended a lower amount (e.g. 300), while existing clients can get a cash loan of up to $1,000.
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