November 26, 2016
Low credit ratings often increase the interest rates on various financial products, such as home loans or credit cards. Borrowers with higher credit scores are able to save significant amounts on their loans when compared to individuals with lower credit scores.There are several ways that help people to improve their credit scores given by credit rating agencies like Credit Information Bureau (India) Limited (CIBIL). The agencies do not treat all types of debts in the same way while calculating the credit score. The ratings are affected negatively if the outstanding balance on the card increases.
Here are five ways that help improve credit scores.
1. Lower the Credit Card Balance
The best way to improve credit rating is to lower the outstanding balance on the card. The rating agencies make a downward revision to the score if the credit utilization ratio exceeds a certain percentage. This ratio is the amount used by the cardholders as a percent of the overall credit limit. Reducing card balance may seem to be a difficult task but is achievable with the help of discipline. Users must adhere to stringent limits to reduce the balance and improve the credit score. If possible, individuals may ask the issuing company to increase the limit on their cards. This may also help improve the credit score provided the users do not increase their spending because of the higher limit.
2. Convert Card Debt to Personal Loan
With some diligent planning, card users may be able to improve their credit ratings even before paying off the debt. They are advised to consider converting the card debt to a personal loan. Higher outstanding balance on card reduces the credit score much more than personal loans. Loans with fixed installments are not considered by the agencies while calculating the credit ratings. Therefore, availing a personal loan instead of maintaining a high balance on the credit card is advisable. In addition, to improve credit score, such conversion is beneficial in reducing the cash outflows. The interest rates on personal loans are often lower than the card interest rates. It is important that the cardholders discontinue the use of their credit cards after such conversion to ensure the ratings are not affected.
3. Selective Accelerated Debt Payments
Repaying loans in a timely manner has several benefits. However, individuals who want to improve their credit scores must consider postponing such pre-payments. The money should instead be used to pay off the card outstanding because this kind of debt affects the scores more than loans.
4. Keep Regular Checks on Credit Report
Research shows that a significant percent of individuals have errors on their credit reports. It is possible that errors have severe results on the credit scores. This further impacts their borrowing capability and rate of interest that is levied on their loans. It is recommended that borrowers check their credit report prior to applying for any kind of loan. If any errors are found, they must immediately contact the rating agency and seek rectifications. This would help improve their credit score and enable them to borrow at a lower rate of interest.
5. Make Timely Repayments
Credit scores are significantly affected due to delayed payments. Lenders report delays to the agencies after 30 days from the payment due date. Such late payment reports are reflected in the credit score for many years, which impacts the individuals negatively. To avoid this, making timely payments is recommended.
Unfortunately, several people in India are not aware of the importance of good credit ratings. They fail to understand that even a slight improvement in their credit score may help them save huge amounts and get a lower interest rate on their borrowings.
, personal finance
October 31, 2016
Private lending companies will provide the facility of merging several loans into one and charge a lower monthly interest rate than the prevailing one. But it should always be carefully noted that federal loans provide better interest rate than the private ones and hence these two should be kept separate. Detailed information has been provided below regarding the advantages of consolidation and refinancing of student loan to have a better view of the two.
Advantages of Federal Student Loan Consolidation
Getting hold of an experienced and knowledgeable company equipped with a streamlined online application process provides its borrowers with an opportunity to save well before the subsequent loan amount is up for due. The hassles of searching for a reputed company has been solved by online service providers like financial hot seat who after comparing among several possible alternatives provides a list of the top six companies who have a good reputation in the market regarding student loan consolidation and refinancing. Unlike the traditional ways of borrowing money, the student loan consolidation facility provided via internet substantially reduces the loan amount to be repaid at the end of the term by keeping a check on the rate of borrowing. This is a big help for students who are the budding face of an economy and has been newly introduced in the job market.
Advantages of refinancing
There are several benefits of consolidating or refinancing a student loan, be it private or federal, which each and every borrower must know in order to derive the maximum possible benefit from its use. The advantages are briefed as under:
Convenience – Students who opt for loan refinancing needs to make only a single payment every month instead of multiple payments since refinancing combines all the existing loans of the borrower into a single loan amount.
Market fluctuations – The rate of interest prevailing in the market is quite volatile and is prone to frequent changes every year. Borrowers who have been paying higher interest on their existing loan have the opportunity to take advantage of any fall in the rate of borrowing which was not available at the time of initial borrowing.
Greater cash flow – Refinancing a number of loans into a single one will require lesser payment per month than each one being paid separately. This will indirectly lead to more cash to spend at the end of the month thereby ensuring improved cash flow.
Better credit history – Making a timely payment for a single loan is easier than individual payments being made. This creates a higher chance to improve the credit worthiness of the borrower increasing his chances to obtain more loans from the market easily.
Improved savings – The last but not the least is the advantage of saving a substantial amount of money when it comes to loan consolidation and refinancing.
A more detailed information about the beneficial effects of refinancing can be gathered from the internet and reliable sites like the financial hot seat to explore and experience its benefits in case the situation demands for exercising such facility.
, financial planning
, Interest Rates
, personal finance
October 19, 2016
Budgeting doesn’t need to be hard. It can be as simple as you want to make it. However, there are a few things that you can do to make sure you have a positive experience with your budget. Here are four tips to make sure you have a great experience and start to feel the “magic” of budgeting.
Tip #1 – Write it Down
Budgets can come in many shapes and sizes. They can be created for individuals, families, and households. You can even create them to help you find the funds to go on a service mission, have a wedding, or have another specific event. The biggest issue, however, is not that people don’t want to do a budget…it’s that they never write it down. Writing it down brings a level of commitment. Putting it out on paper or a spreadsheet, or even using an app of software allows you to see it and commit to it. So take a second and write your budget down, if you haven’t already!
Tip #2 – Create a Savings Plan
Along with a budget, consider having a separate document that goes along with your budget that will work hand in hand. That document is a savings plan. Creating a specific savings plan will enable you to keep your mind on the long game… that is saving for the future and for future emergencies. It doesn’t need to be hard. Just specify how much you want to save and then make specific, action goals so that you can make sure and accomplish what you are striving for.
Tip #3 – Make Goals
Speaking of goals…while you are writing down your budget and savings plan, make sure that you make S.M.A.R.T. goals. Specific, Measurable, Attainable, Relevant, and Time oriented. Setting goals allows you to look into the future and make plans. It will also become a benchmark and allow you to feel successful when you hit those goals. Look at the next six months or a year and make some goals and then do everything that you can to strive to hit them!
Tip #4 – Keep the Long Term in Mind
We all have times when we have an emergency or situation in which we need to spend money to survive. Whether it’s medical bills, or the car breaks down, we all have times when this happens. Don’t let it bother you. Pay what you need to pay, and then get back up and keep striving to hit your goals. If you can keep the long term in mind, then you will forever be able to accomplish your goals (even if it takes a bit longer than you thought).
If you can keep these four tips in mind, then you will have a positive budgeting experience. Put it out on paper, create a savings plan that compliments your budget, and make specific goals to help you get where you want to go. If something happens in the middle of your plans, keep the long term in mind. Following these four tips will increase your level of financial confidence and ultimately help you find financial peace in the months and years to come.
, financial planning
, personal finance
October 5, 2016
It is one of those timeless conundrums which has tested the thinking of man for centuries. If you had to, would you do something you know was very dangerous.
If you saw a child about to be run over, would you step in front of a car to save them? If you are dying of thirst, would you drink filthy water to survive? If you house is on fire, would you jump out of the window to escape.
We have all pondered these kinds of questions at some point, but fortunately most of us never have to contemplate the dilemma in reality.
But there are other everyday dilemmas that we do have to confront which, whilst perhaps not involving the same danger, can still expose us to significant risk.
One such example of this is when we use online banking. We know online banking is insecure. It doesn’t matter which bank you use, and how many trendy keypads and other gadgets they give you, we all know there is still a risk when we log into our online account which isn’t there if we want into a branch.
The popularity of online banking suggests two things about this. Either we don’t fully understand the extent of the risk, or we have decided it is a risk we are willing to take. For most of us, it is a combination of both.
But make no mistake, online banking does pose a significant risk. The level of security used by all banks is extremely weak and the techniques of online hackers gets ever more sophisticated. And often we don’t help ourselves, making basic errors like using easy-to-break passwords or logging on while connected to public Wi-Fi networks.
The ramifications if you are hacked can be significant too. Of course, you can lose a lot of money. However, as most banks will compensate you in those circumstances that is sometimes not a big worry. But going into overdraft or losing a sizable amount of money can affect things like your credit cards, and premium accounts you may hold, and of course run up charges with your bank that can take months to sort out.
Then there is your credit score. If you are hacked and miss payments as a result, it can affect your credit score which might cause you to be unable to get credit and secure mortgages and other financial services.
So, the question I am often asked is whether there is a way to protect ourselves when using Online Banking. Is it possible to make the process more secure?
Encouragingly, the answer is yes. And in this article I will give you my tips as to the top 3 ways to keep your online banking secure in 2016:
1. Use an ‘Anti-Spy Privacy Screen:
For all the high-tech ways that people get hacked these days, there are still a significant number of incidents where data is stolen simply by watching over people’s shoulder as they use their online banking account in public.
It might seem silly, but it happens a lot and it is unnecessary because there is a cheap and simple bit of kit which can prevent it: an Anti-Spy Privacy Screen.
There are available for all devices these days and work in the same way as a regular screen protector. However, they are a little thicker and a little darker, and this means that when you look at the screen of a device from an angle, you can see nothing.
Only the person directly facing the screen can make out what is there, so when you log onto your online banking on the go, you can be sure that the only person looking, is you.
2. Change your Password Regularly:
Passwords are another big vulnerability of online banking. Often they are easy to guess, simple to crack, and offer little or no real protection.
One way around this is to use a Password Manager such as Last Pass which can make it easy for you to use complicated passwords without having to remember them all.
But another relatively effective approach is just to change your password on a regular basis. If you are an occasional user, making a password change every few months is a sensible precaution, but if you are logging into your account regularly and from different locations, every few weeks would be more sensible.
3. Use a VPN:
Perhaps the most important tip on this list is to use a VPN. A VPN can help ensure your online banking is secure in a variety of different ways.
Encryption is vital to keep your data secure online and whilst all banks will encrypt their online banking data, some are more secure than others. A good VPN will ensure all of your online activity, including online banking is encrypted securely.
They also protect you when you are using public Wi-Fi. Again the encryption they offer means even the weakest of Wi-Fi connections becomes secure.
Indeed, VPNs are so good at encrypting your online activity that you can even access otherwise inaccessible online services, like being able to log onto Gmail while in China, where it is usually blocked.
With a VPN in place, and using these other precautions as well, you can be pretty confident that your online banking will be secure, no matter who you bank with.
, Financial Securities
, Online Banking
September 21, 2016
Experience is an important ingredient to success in any kind of investment trading. However, it is not the only thing that will enable you to trade successfully. Even if you have never trading in any financial market before, you will be able to quickly understand what is involved in this type of trading and start making successful trades. In essence all you need to do is calculate whether the price of an item will go up or down. Some of the best traders use the simplest strategies for binary options trading and have excellent results.
Long Term Investing
The most important part of binary trading is to learn which of the available strategies best meets your needs and risk tolerance. Once you have established this you will be able to refine and improve your technique and obtain consistent, favorable results. When first starting in this industry it is best to stick to an area you already know something about and to stick to one asset type:
Trading with the Trend
One of the most straightforward approaches is to look at a price chart and see which direction the price is current moving in. If the general trend is up then place a call option, if down go with a put. Most traders place a trend line alongside the chart; from this you should be able to pick a price that the asset will not reach and utilize the no touch trade strategy.
When the market is particularly volatile you may be expecting some rapid rises and falls in price. This chart will highlight when these events are likely to happen and allow you to trade accordingly. Alongside the usual price movement trades you can opt for a one touch trade where the asset drops (or rises) significantly and hits your expected price. This is higher risk but can be lucrative.
Sitting on the Fence
This is also known as straddling and is another good technique for a volatile market. Instead of trying to decode which direction a market is likely to move in you place two trades; one for it to go up and one for it to go down. The profit on either of these trades should cover the costs of both trades and generate a small profit. You are effectively decreasing your risk.
This is very similar to the straddling technique. However, with this strategy you need to place both trades, up and down, at the same time. You are guaranteed to get one of the trades right, but unlike the straddling technique you do not have a chance of getting both right.
This technique is very similar to the reversed risk approach, and serves to protect your funds and reduce risk whilst still generating a small profit.
An important strategy which should never be overlooked and works well in conjunction with any other technique is the analysis of the general economy and the specific situation of your chosen company. You will then be able to assess what the price is likely to do on the strength of the company and the economy.
We also suggest you to check 15 minute binary options strategy in order to rise the profitability of your trading.
Tags: Best Forex Trade
, Foreign Exchange