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6 Reasons Why Students Should Have Credit Cards

studentThere has been much debate on sites like CreditCard.info about whether or not students should be allowed to apply for credit cards.

Some experts argue that it isn’t a very good idea, mainly because it just puts them under more financial pressure, especially if they already have a student loan.

That’s just one side of the argument though. Below you will find 6 reasons why students should have credit cards.

Build a good credit score

When used responsibly, a credit card is an excellent tool to help any student build up a good credit score. This means in a few years time they will find it easier to get accepted for things like car loans and mortgages.

Security when buying online

Perhaps one of the main reasons why credit cards are a good idea for students is because of security. If they get scammed when buying something online or don’t receive the product they paid for, then they are protected by the credit card company and will be reimbursed.

Cashback and deals

Let’s face it, the life of a student is often financially tough, and this is why taking every advantage possible is essential. Luckily, credit cards come with many bonuses such as cashback and special deals from selected partners, which means students will be able to save money and get essential purchases cheaper.

0% interest deals

There are now many credit card companies that offer 0% interest deals for a selected period of time, so when students are prepared to use them responsibly they can easily take advantage of this by using multiple cards.

Safer than carrying cash

If a student gets some cash stolen then it is gone and probably won’t be seen again. However, if their credit card is stolen or lost then everything is protected, and it’s a simple phone call to the credit card company to cancel the card.

Unexpected financial emergency

Sometimes there is just no getting away from the fact that unexpected financial emergencies will happen. Maybe the car needs fixing or the rent needs paying? In situations like this it’s handy to have some cash saved away to take care of it, but if this is not possible then a credit card is there to save the day.

Conclusion

So there we have it, 6 reasons why students should have credit cards. Maybe you agree or disagree with this article? Let us know in the comment section below.

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When to Get a Loan (and When Not to)

loans signWhen you need cash quickly, applying for a personal loan is often one of the best ways to have funds in your bank account by the end of the day. However, there seems to be an alarming trend of people getting a loan when they don’t really need one, and once someone starts to get into this habit then it can lead to money problems and even bankruptcy.

For this reason, it’s a good idea to understand exactly when you should get a loan and when to avoid one completely Keep reading to find out more.

When to get a loan:

Pay your bills

If you’re in a situation where you can’t pay your bills this month then a short term loan such as a payday loan could be the answer. This allows you to borrow a small amount until your next “payday,” where you can then instantly pay the money back once the wages hit your bank account.

Fund a major purchase

Buying something like a new car or house usually requires some form of a loan to help you complete the purchase, and without it you probably wouldn’t be a car or home owner. For example, a car dealership will finance you for a new car, or a mortgage company will loan you money when buying a house.

Start a business

As the old saying goes, “it takes money to make money,” and if you are thinking about starting up a new business then you’ll probably require some startup capital.

In order to reduce your risk, make sure you completely understand the business you are entering and have a business plan that shows exactly how you are going to get customers and make money.

When not to get a loan:

Buy consumer goods

The quickest way to get yourself into money trouble is to start taking out loans to buy consumer goods. Let’s say that you need $500 to buy the best coffee maker on the market right now, but you just don’t have that kind of cash in your bank account…do you get a loan for it?

Absolutely not, mainly due to the fact that it’s not an essential purchase and you will be fine without it. There is nothing wrong with buying consumer goods when you can afford them. Just don’t get a loan.

Go on vacation

Everybody needs a break now and again, but is it a good idea to apply for a loan in order to get the cash so you can on vacation? The answer is no, due to the fact that you don’t really have to spend any money on a vacation.

As an example, you could easily go camping for very little cost or even go to visit family or friends. Only go on an expensive vacation when you can easily afford it.

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4 Different Loans Found Online

dollarThere are various reasons why you might require a loan. Perhaps you need some fast cash to cover this months rent? Or you could do with a large amount to buy a new house? Whatever your situation, you will find what you’re looking for below.

4 different loans found online:

Bridge loan

A bridge loan, also known as bridge financing is a way to unlock the value in a property while it is still on the market.

For example if you want to buy a new house before selling your old one, then a bridge loan is a great solution. Even better, bridge loans are easily found online, so you are only a few clicks away from securing the finance you want.

Payday loans

In a hurry for a small short term loan? Payday loans are the answer. Online payday lenders are everywhere these days, and with a bit of searching around you can easily find low interest rates and favorable repayment terms.

The average payday loan amount is $500, which is more than enough to cover a gap in your finances. Just make sure you pay back the money by the deadline date in order to avoid extra fees and charges.

Secured personal loan

When you require a large amount of money for a major purchase, then a secured personal loan might be your only option. In the past, your local bank was the place to go for a secured loan, but in recent years there are now many lenders to be found online.

Simply type “secured personal loan” into Google or Bing and you will find many different options to choose from. Just be aware that secured loans are risky in nature. If you fail to make the repayments then you could lose your house, which is why you should put in a lot of thought before signing on the dotted line.

Bank overdraft

A quick and easy way to unlock extra funds is to apply for a bank overdraft online. The main benefits to going down this route is that you get an instant decision and the interest rates are usually reasonable.

In order to get a bank overdraft, simply log-in to your online bank account and follow the on screen instructions.

The final word

Hopefully, you now have better idea of the different loans to be found online. Take your time, assess the options, and choose the best loan for your situation.

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Improve Your Credit Score in 3 Short Months

diaryOne of the most asked questions on the internet is “how do I improve my credit score?

If you are in the same situation as millions of other people, then this article will be one of the most important that you ever read.

Quite simply, we are going to walk you through, step by step, how to improve your credit score in 3 short months.

Let the fun begin…

It starts with a credit repair company

Unless you are an expert in all matter related to credit repair, then it’s a good idea to leave the majority of the work to experts. This is why you need a credit repair company on your side, so they can repair your score without you having to lift a finger.

Just make sure you choose one of the best credit repair companies out there, so you are positive they will do a good job.

Errors on your credit report

Another way to improve your credit score is to check your report for any errors. In a recent newspaper article, a financial expert made the shocking claim that 81% of all credit reports contain at least one error that is severely impacting their credit score.

For this reason, don’t delay checking your credit report for another second. Luckily, you can now see your credit report online, which means there is no reason to put it off any longer.

Stop getting in debt

The further you get into debt, the lower your credit score drops. This means you should stop applying for new credit cards, payday loans, or personal loans.

Start getting out of debt

Once you stop taking on new debt, it’s important that you begin the process of getting out of your existing debt.

Ultimately, the only real way to do this is by good old hard work and persistence. Pay more than the minimum payment every month, and try to free up as much cash as possible to keep chipping away.

Be patient

Unfortunately, there are many unrealistic claims out there about how long it takes to completely repair your credit. Know this – You will not be able to improve your credit score overnight or in a few days. It just isn’t possible.

Instead, if you follow the tips we have laid out for you above, then you should start to notice significant improvements in around 3 short months. Obviously, this depends on your own unique situation, but in the majority of cases this is the average time line.

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5 Effective Credit Repair Tips

Rising credit ratingIn order to be approved for a mortgage, personal loan, credit card, or car loan, it’s essential that your credit rating is in good standing.

When your credit rating gets too low, then it effects your reputation with lenders, which ultimately leads to being declined.

Fortunately, this situation is easily reversed. Pay attention to the following 5 effective credit repair tips to find out how…

Compare credit repair companies

In order to give yourself the a good chance of repairing your credit in the shortest amount of time possible, it essential that you look for the best credit repair companies out there.

Hiring a credit repair company is by far the easiest way to get your credit rating back to where it belongs, as you don’t have to do any of the hard work yourself.

Keep an eye on your credit report

Your credit report lists all of the major items that are probably currently hurting your credit rating. For this reason, it’s a good idea to get a copy of your credit report every few months, so you can keep an eye on what has been listed, and also look for any mistakes.

If you do find any mistakes, then it’s actually a simple process to contact the credit agency to get them removed.

Always make payments on time

When you make payments after the deadline date, then this information is listed on your credit report and has a major impact on your credit rating.

With this in mind, you should aim to always make payments on time, so you can avoid doing any further damage to your credit rating. Things such as bill payments, credit card payments, and payday loan payments are the main items to watch out for.

Check your personal data closely

Another good tip is to check your personal data closely. For example, sometimes it’s entirely possible for another persons details to appear on your credit report if they have a similar name to yours.

Double check every last detail, so you don’t end up paying for another persons mistakes.

Identity theft is also becoming a serious problem. This is where someone steals your identity, and then proceeds to get loans and credit cards under your name. Remain vigilant at all times, and if something doesn’t seem right don’t be afraid to challenge it.

Avoid getting further into debt

The real key to repairing your credit in the shortest amount of time possible, is to simply live within your means and avoid getting into further debt.

Not only that, but you should also aim to eliminate any current debt as fast as you can, so your financial situation starts to look brighter.

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Bad Credit Loans? Your Questions Answered…

businessmanMillions of people in America currently have bad credit, which means loans for bad credit are very popular all around the country.

Let’s face it, your bank is not going to give you a loan if you have bad credit. Their lending criteria is extremely strict, which means you shouldn’t even waste your time applying, as it’s very common for people to get rejected on the spot and even spend hours filling in applications only to be declined.

Instead, you should look online for the independent lenders that specialize in supplying loans to people with bad credit.

With this in mind, here are some common questions answered about bad credit loans…

Where can I find a bad credit loan?

Bad credit loans are everywhere. You can find them on the internet and on the high street. However, it’s a much better idea to seek out one of these loans online, as the lenders typically offer cheaper interest rates and better terms.

How much can I borrow?

This really depends on the lender and your own personal circumstances. Once you have applied for a bad credit loan, then the lender will look at factors such as your employment status and current income level.

What happens if I don’t pay the money back?

If you miss the payment deadline on a bad credit loan, then expect to receive a late payment charge and even a higher interest rate. If you still don’t pay, then the debt will probably be passed onto a collection agency, who will then start phoning you and visiting your house until they get the money.

Are bad credit lenders regulated by the government?

Yes, the vast majority of bad credit lenders operate within the law and are closely watched by the government to make sure they are playing by the rules. This means you can feel completely safe and secure when taking out a bad credit loan.

Should I get a bad credit loan to pay for my vacation?

Ultimately, only you can be judge of this. However, experts recommend that you only take out a bad credit loan for expenses that are essential. As an example, if you are struggling to pay the electricity bill or your rent, then a bad credit loan can come in handy.

On the flip side, is a vacation really an essential expense? Instead, it’s probably a better idea to skip the vacation for now, and wait until you have the money saved up.

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