bad credit

6 Things Every Credit Card Owner Should Know

6 Credit Card Rules to Always Follow

Credit cards make purchases and paying your bills easier. Using a credit card is also a good way to boost your credit score. However, failing to properly manage your credit cards can lead to a lot of unnecessary expenses.

If you’re tempted to buy things you can’t really afford just because you can charge them on your cards, it will benefit you to leave them at home when you go shopping. When you have an emergency, rely on an emergency fund to avoid charging unplanned expenses on your cards.

Selecting a credit card that’s right for you is also important. This can be difficult, since the cards you qualify for are limited by your credit score. Compare credit card limits, rates, and other fees to figure out which card will work the best for your circumstances.

Follow these tips to avoid spending a lot on fees and interest while boosting your credit score:

 

  1. Pay your bill on time, and pay more than the minimum. Not only will you avoid late fees with this strategy, but you’ll also pay off your balance quicker, thus saving money on interest, too. 
  • For example, if you have a $500 balance on a card with a 15% Interest Rate, you would end up paying $595 over two years if you make the minimum payments of $20/month.
  • However, if you make payments of $50/month instead of the $20 minimum payment, you would end up spending a total of $528 to pay off your balance in a little less than a year.
  • Be consistent with your payments. Missing a payment or paying less than the minimum may negatively impact your credit score resulting in bad credit.
  1. Keep your balance as low as possible. Ideally, your balance should be less than 30% of your available credit limit.
  • Avoid maxing out your credit card or making large purchases unless you plan on making a significantly larger payment to cover these expenses.
  • Consider applying for a credit limit increase if you cannot pay off enough on your card to stay around the 30% mark.
  1. Read the fine print on rewards cards. Credit card providers typically charge higher rates and fees to compensate for the cash back and other rewards. 
  • The best strategy for using a credit card with rewards is to make enough purchases to qualify for the rewards, but then pay off your balance in full every month to avoid paying interest.
  1. Keep it simple. Owning too many credit cards can make managing your accounts difficult. You’ll be more likely to miss a payment.
  1. Be careful with balance transfers. This can sound like a good option if you qualify for a credit card with lower fees and rate. However, some credit card companies will charge you a transfer fee, which is usually a percentage of the debt you are transferring. Paying 3% of the amount you’re transferring to get a slightly lower rate might not save you money.
  1. Avoid cash advances on your credit cards. A cash advance can be a tempting option because this cash is very easy to get, but you’ll have to pay a fee and will have to make larger monthly payments to compensate for this charge. Cash advances often have a higher rate of interest as well.

These tips will help you stay on the right track with your credit cards. Keep in mind that you can easily avoid fees and spend less on interest by being responsible and planning your expenses and payments in advance.

Shop around for a better credit card every two years or so. You will qualify for better products as your credit score improves from following these strategies.

If you are looking to consolidate debt, or discuss any of your finance options, one of our expert lending specialists is here to help you.  Call or email us today!

bad credit, credit score, credit card

What Is Bad Credit?

When it comes to impaired credit, there are many kinds; the main ones include:

  • Bad Credit History – Negative marks like bankruptcy, defaults, court writs, judgments and an excessive amount of credit enquiries could lead to mistrust in your loan application…
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Selling Your Home – Don’t Be A Victim

Selling your home can be a complex process. If you make mistakes, you may be unable to sell your home or have seller’s remorse. There’s no need for this if you keep in mind the following.

Overpricing Your Home

It’s important to be realistic about the value of your home. Sellers should insist their real estate agents present them with objective criteria for pricing. Comparative information is the most critical in getting a house priced properly. If you ask for too much, it’s hard to ask for less later on in the process.

Not Displaying  Curb-side Appeal (I know – an American term – but it works!)

You don’t have to invest thousands of dollars into redecorating your home. But there some basic steps you must take to present your house in the most positive light.

Overdoing Home Improvements

Don’t go overboard staging your home. It should feel warm and inviting. Lawns should be freshly cut, plant some flowers, organise the home’s interior, rid the home of foul smells and apply new coats of paint to all walls and doors.

Not Understanding The Buyer’s Offer

Carefully reviewing and understanding the offer or purchase contract is imperative. Here are a few things to look for:

1. Has the buyer agreed to pay down a significant deposit?

2. Is the offer contingent upon the owner selling his or her present home? If so, how is the selling process transpiring?

Home Inspection/Open Houses

Have general inspections done in advance. Even though buyers will often have the house inspected again, it’s best to prepare for any potential problems.

Withholding Information

While it is tempting to hide or fail to mention the snafus of a home for example, it’s a hotel for cockroaches or termites, located in an area that’s prone to floods or fires, it is best to give buyers full disclosure. This kind of information can greatly affect the value or desirability of the property.

Be Objective:

While you may think your pink walls or roman columns are fabulous, it is best to keep that opinion to yourself.

Poor Real Estate Agent Communication

Sellers should take a pro-active approach to the selling process and not rely completely on the agent. Sellers should insist upon regular updates about the house and never assume the agent has taken care of everything. It is the seller’s responsibility to ensure everything is running smoothly.

Investigate Buyers

Once you have an offer on the table, it is imperative to secure confirmation of loan approval from the buyers (or their conveyancer/lawyer). Many do not ask about this – you are well within your rights to do so – and generally the buyer will have a finance clause in the contract that they must adhere to (unless you sell at auction and that is another article entirely!).

If you follow these steps, you will go a long way towards avoiding being a victim in the home selling process.

Author: Melanie Burns

To discuss this article or anything else to do with your finances, please call our office today on 0434 087 735 or email us and we will be happy to assist you.

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How NOT to get a Commercial mortgage loans!

Commercial mortgage loans : Here are a few tips on how not to get a mortgage, and underneath each one, the smart thing to do instead.

1. Don’t haggle.

A mortgage or a house is just another consumer product. A few clever words can get you a sweeter deal.  So haggle!

2. Don’t look at the small print.

Companies may offer very low rates upfront, but hide additional costs in the small print. Beware of additional costs not immediately apparent.

3. Go for a long term.

Try to keep the term of the mortgage as short as possible. The shorter the term the less you pay in interest. Consider a twenty or twenty five year term instead of thirty years if you can afford it.

4. Buy the most expensive property you can (barely) afford.

Resist the urge to splurge. Some lenders will offer up to six times your salary. They’re not doing you a favour. Get the minimum the missus will be happy with. Divorces can be triggered by loan defaults.

5. Ignore your credit rating.

Improve your credit rating as much as you can. Pay off old loans, and once they’re paid off, check your credit report. Ensure you pay all your bills on time (or before time); never later than the due date. Pay off credit cards and keep their balances low. Close unnecessary credit card accounts.  Open a savings account at your bank if you don’t already have one.

6. Focus on the interest rate.

Don’t get too caught up in comparing interest rates and various special offers; they may not reflect what you will get if you apply. Everything depends on your own financial circumstances and the types of features of a loan that are important to you.

7. Ignore your outgoings.

Write up a budget of your monthly expenses; factor in daily, weekly, monthly and yearly outgoings. See how much you can truly afford to put towards repayments.

And …

8. Rush to take the time-limited-one-time-only-discount-special-offer.

The deal that seems too good to be true probably is. Avoid jumping straight into what could be the biggest purchase of your life. Check it out first.

To discuss this article or anything to do with your finances, please call our office today on 0434 087 735 or email us and we will be happy to assist you. commercial mortgage loans

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Commercial mortgage loans : Here are a few tips on how not to get a mortgage, and underneath each one, the smart thing to do instead. 1. Don’t haggle. A mortgage or a house is just another consumer product. A few clever words can get you a sweeter deal.  So haggle! 2. Don’t look at the small…