Sunday, November 18, 2018

5 Facts About Credit Cards Every Young Adult Should Know

Young adults falling between the ages of 21 and 25 are now entering the workforce. Many of them are turning entrepreneurs and taking more financial risks as the demand for credit cards grow year after year. However, young adults often lack financial wisdom and guidance.

One great piece of financial advice is to be cautious before availing a credit card. There are a lot of terms and conditions that one needs to fulfill and most youngsters are clueless about these. All new cardholders need to keep the following points in mind to reap maximum benefits out of their credit cards.

5 credit card features to remember:

Availing credit cards is very easy. Remembering the minute features and tips is a bit difficult but not impossible. Here are a few of those to consider:

  • Options of credit cards are plenty: There are several types of credit cards for user-specific purposes. Two common types are general purpose cards which are usable anywhere and private label cards that are usable at select stores and service stations. Again, some cards offer attractive reward points when transacted for specific purposes. There are also secured and unsecured credit cards. To avail an unsecured card, you need a good credit history. 
  • Apply for only 1 card initially: These cards are often tricky. Since you are a novice in this area, you may not know how to use a credit card wisely. Do not make heavy purchases initially and always settle your bills on time. This will teach you financial discipline besides enhancing your creditworthiness.

A great first card can be the Bajaj Finserv RBL Bank SuperCard. It combines the features of 4 cards into 1. Use it to withdraw cash from ATMs without incurring any interest for up to 50 days. Pay only a flat 2.5% processing fee.

  • Compare cards before availing one: You must gather detailed information about the financial products from official websites of different lenders. Compare their features and benefits before you finally apply for a credit card. This will help you get the best card suiting your requirements. 
  • Build an emergency fund: Emergencies strike without warning and can hamper your EMI payments. Medical emergencies, sudden home repairs, car repairs and a host of other issues corrode your credit. Hence, save as much as you can so that you don’t always have to rely on your card.
  • Maintain healthy credit habits: Many young adults have bad credit habits due to poor financial knowledge. These habits include never checking credit scores, defaulting on repayments, using too many cards simultaneously, utilising more than 30% of the card limit, and maintaining no independent savings. These habits can weaken your credit history, and hence, lower your CIBIL score.

Tips for credit card beginners

There are a few terminologies that you should remember.

  • Credit line/credit limit: It is the maximum amount on the card which a user can utilise. 
  • Grace Period: The grace period denotes the interest-free time period within which one has to pay off the dues. Interests start to accrue post this period. 

Make sure to clear all your doubts before availing a credit card. It will help you to better utilise the card and enjoy its various benefits fully.

Friday, November 16, 2018

How Spry Seniors Financially Protect Themselves

In order to financially protect yourself, you need to take steps to understand your current financial situation. You’ll also need to set goals about the things that you want to be able to do with your life. 

Here are some of the methods that you can use in order to financially protect yourself and safeguard your future.

Determine Your Means

You have to understand where your money is going in order to take control of it. Keeping tabs on your monthly expenses is the first place to start. Determine your assets and examine your debt load. 

Ask yourself what it would take to decrease or eliminate your debt and how that would impact your life. Learning to live within your means now will ensure that you have a better chance of doing so after you retire.

Plan for the Future

Create a long-term plan for your future so that you can live your life to the fullest. Use professional financial planners to help you plan for your retirement. This will help you to set long-term as well as short-term goals. 

A part of being financially independent is making your money work for you instead of you having to work for your money. This is sometimes referred to as lifestyle planning so that you can set the goals that are important to you.

Have a Contingency Plan

Create a fund for emergency purposes and other types of unforeseen events. This may include you getting life insurance or having a long-term care plan in place. Many health insurance companies offer this type of insurance so that you won’t get stuck with having to pay for these expenses out of your own pocket. 

Unexpected medical bills could derail your ability to retire and retain your financial stability throughout your life.

Balance Your Budget

Balancing your expenses with your income is the first place to start when it comes to balancing your budget. The second step is to have more money coming in than is going out. This strategy will allow you to set extra aside other than what you’re currently putting away for retirement. 

Medicare can be a big help, but it doesn't cover long term stays in memory care or assisted living facilities. Unexpected medical bills could derail your ability to retire and retain your financial stability throughout your life.

Once you decide to retire, you won’t have a steady income flow and will be relying on your retirement savings. Beef it up so that you can handle whatever life has to throw at you.

Protecting yourself financially can sometimes mean that you need a little bit of help to achieve your goals. Use these tips so that you can be ready for a future of being financially secure.

Thursday, November 15, 2018

Denied a Credit Card? Know How Long you Should Wait to Apply Again

It is not uncommon for your credit card application to get rejected even when your credit history looks clean. It is important to stay calm and carefully analyse the reasons for the rejection. If you are planning to reapply for the same card or to apply for another card, it is recommended that you wait for about 6 months before you apply again. This would give you sufficient time to take corrective actions and ensure that your application is fool proof and gets approved the next time.

The first step that you need to take is talk to the credit card company in order to find out the reasons for your rejection. The reason could be any of the following:

Credit card eligibility

Different credit card companies have different eligibility criteria for issuing credit cards. There may be restrictions with respect to age, annual income, employment stability, and so on. 

If your credit card application was rejected due to non-eligibility on any of those counts, it would be pointless to reapply for the same card. You need to shop around for a card that is right for you. You need to find a card that you are eligible for and apply for it.

Error in filling out the credit card application

A credit card application may get rejected due to errors in the application form. If the rejection is due to such errors, you can talk to the credit card company and re-apply after waiting for a few months.

Error in the credit report

An error in the credit report is another common reason for rejection. An old non-payment may be reflecting in your credit score. Nowadays, it is very easy to get your credit report through any of the four credit bureaus, for free once a year. If you are planning to reapply for a credit card it is important to keep track of your credit score and work towards a better score

Too many credit card or loan applications

If you have applied for many loans or credit cards, it gives the impression that you are credit-hungry. It is important to time your applications well to ensure that only one or two applications are pending for approval at any given point of time.

Employment history

If you have changed your job many times or have been in the current employment only for a short period, it could result in rejection of your credit card application. Apply for a card only after you have been in a stable job at least for a year.

Work on your credit score before you apply again

If your credit card application has been rejected due to a low credit score, it is important for you to work on enhancing your credit score. You can do this by closing some of your loans, ensuring timely payment of bills and by maintaining a low credit utilisation ratio in your existing cards.

Once you do this, you can look for the best credit card in the market and apply again. For example, Bajaj Finserv offers industry-first features with the Bajaj Finserv RBL Bank SuperCard. Enjoy interest-free cash withdrawal from ATMs for 50 days, easy EMIs and a pre-approved loan limit that can easily be converted to an interest-free personal loan for 90 days. You can also earn up to 20,000 reward points as a welcome gift.

Availing finance is easier than ever with pre-approved offers on loans and other financial products. With easy and quick processing and disbursal of funds, you can utilise your time to focus on the important things. Simply share a few, basic details and check out your pre-approved offer.

Author Bio:

Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.

Wednesday, November 14, 2018

Understanding Importance & Benefits of Home Insurance

Home Insurance

We spend years accumulating money for creating our dream home. That is why keeping it well maintained and away from danger is usually our first thought. Most people like to add various layers of security to keep their home safe.

It can include things like having a pet dog, installing window alarms, or even fencing the compound. But one of the most critical types of safety feature that we missed out on is getting a home Insurance.

Home insurance might not be able to save you from uncertain situations. However, it can definitely extend financial assistance after the case has passed.

Whether you talk about a natural disaster or a robbery; property insurance is always a good idea to save yourself from financial loss. If you still want to know more about the importance of home insurance policy then continue reading.

1. Complete protection

One of the most significant home insurance benefits is that it covers many different types of situations. In other words, it means whether your home gets damaged due to a natural disaster, fire, or any other factor; it will be covered under home insurance in India.

This gives you total protection against any uncertainty and allows you to be peaceful. However, there are different types of policies created. That is why you need to purchase one which offers complete coverage against any unfortunate situation.

2. Household belongings

Another reason why you should apply for home insurance is that it can protect your household belongings. There are many valuable things that we collect while creating our dream home. It can include assets like large appliances, furniture, electronics and gadgets.

To keep them secure against unfortunate disasters and damage, home insurance policy is always a good idea. Even if your household belongings get ruined because of one of the situations mentioned in the policy; you would claim for the registered items.

3. Damage assistance

Another benefit that encourages people to purchase home insurance is the damage assistance. Most insurance providers give you coverage against such situations in their basic policies. If your home gets damaged due to a flood, fire, or something similar, then you will be able to get financial assistance in return.

It will make sure that you do not suffer extensive financial loss, due to the damage caused to your home. It even gives you an opportunity to get all the damages fixed using the money provided by the insurance company.

4. Medical assistance

Imagine that you have guests over and a natural disaster strikes your house. Under such a situation, if any of the guests get injured; then you can also pay their medical bills, with the help of your home insurance.

Since the guests have injured themselves on your property, it becomes your liability to pay for the medical treatment. This additional financial load can easily be reduced with the help of a home insurance policy.

5. Detached structures

The last reason why home insurance is of great importance is that it covers damage costs for other architectures as well. If there is damage made to someone else's property due to your home; you will be able to pay for their maintenance with your home insurance.

This will keep you away from having to go overboard with your budget. Besides, home insurance will even reduce your liability against damages caused to others. It provides you with a sense of security, to cover unexpected expenses.

The Bottom Line

Home is one of the most valuable resource you possess. It not only offers the solace and security for you and your family but it is also a long term financial investment. To protect your home you should consider vital things while buying home insurance plans . These policies will make sure that the efforts gone into creating your home do not go waste.

Tuesday, November 13, 2018

Should You Still Have Life Insurance After Retirement?

We tend to hear most about life insurance when you’re a young adult up until before retirement. What about after retirement though, do you still need life insurance then?

The importance of life insurance as a young adult is quite apparent. You want the protection for your loved ones in case you unexpectedly passed away. Your policy would then quick in to cover your funeral expenses, and additional costs your family would have, as well as the loss of income if you had any dependents. Your life insurance coverage provides that peace of mind for those you would leave behind.

When it comes to after retirement, it’s no longer a question of do you have life insurance. Instead, it changes to should you have life insurance? Depending on your financial situation and where you are at in life upon retirement, that will help determine if you should continue with your life insurance coverage. It is not a one-size-fits-all kind of answer. If your friends still have life insurance after retirement, that doesn’t mean you should have it too, and vice versa.

Do You Have Debt?

A common goal for retirement is to reach your golden years without any debt. Upon retirement, although you have different payouts still coming in through the government and your workplace pension plan, it still will not be as much as what your actual income was. So, the idea of being debt-free so that you can use your money how you want to during retirement, that sounds very appealing.

Unfortunately, that is not the case for everyone. In 2016, the average debt amount for a family who’s head of the household was 75 years or older was over $36,000, which is significantly higher than the last look in 2010. With that amount of debt, it can make retirement quite tricky.

If you have debt upon retirement, then life insurance may still be something to consider. If you were to pass away suddenly, someone would still have to pay your debt. That burden would fall onto your family. Your life insurance policy would help to cover the cost of any remaining debt.

Do You Still Have Dependents?

Just as your financial situation is significant in determining if you should still have life insurance, so too is it if you have any dependents. If your spouse or if you have children who still need help from you, then having life insurance after retirement is a good idea.

It’s important to remember that when you get life insurance, you are getting it more for your family, not yourself. So, if you have members that rely on you to support them, your insurance policy would benefit them greatly if you suddenly passed away. However, if you have no dependents whatsoever, you can consider terminating your policy.

We looked at two significant factors that help determine if you should still have life insurance after retirement. In the end, it comes down to what your personal situation is like and if you want to continue having the additional monthly expense. There are different options of coverage that could be more suitable for where you’re at in life. Learn more here about other life insurance policies and if it suits your family’s needs.

Monday, November 12, 2018

Reasons Why You Should Perform Forex Trading Through ECN Brokers

Store Forex currency trading is normally executed by means of either market makers or electronic communications networks, furthermore referred to as ECNs. A lot of Forex trading traders favor ECN brokers as a result of its several natural pros.

What is an ECN?

ECN brokers could be thought of as the bridge connecting participants within the forex market directly to one another, eliminating the particular need for a dealing desk. 

ECNs acquire prices from multiple market individuals, such as banks and market makers, and other traders who are people of the network, plus stream the best bid/ask prices on their investing platforms.

What are the features of using ECN agents?

Trade in invisibility

Oftentimes, trading with the application of ECN brokerage companies can be done in an anonymous manner. It enables traders to deal on neutral prices. Being able to execute a number of trades anonymously is attractive for some traders, specifically those who desire to complete large trades. 

It is because it allows them in order to trade without drawing interest to their strategies or recent market positions that will could influence market costs.

Better prices

Considering the fact that a good ECN broker gets cost quotations from numerous market participants, it will offer you with tighter bid/ask costs than what you can acquire from other varieties associated with Forex brokerage firms. 

Furthermore, ECNs do not perform any role in establishing prices, and therefore, there is usually a much-reduced risk of price manipulation.

Propagates aren't fixed

In comparison to market makers, ECN brokers have no control over the bid/ask prices plus so cannot give the fixed spread at almost all times. Throughout very active trading periods, you can get little or no spread from all, especially for extremely water currency pairs including the majors. 

A tighter spread is usually sought after by some market participants, day investors specifically, as it allows them to fill their particular orders at the prices they desire.

Better marketplace access

Apart from retail Forex traders, ECNs also relay bid/ask prices through numerous institutional market manufacturers like banks, financial establishments, and other prominent organizations.

Instantaneous trading

Utilizing an ECN broker permits you to definitely business immediately. As an ECN client, you get to enjoy reliable live loading of best executable prices, and you receive instant confirmation of trades since they are dealt. Because said before, there is no middleman, so re-quotes are unlikely.

They are not necessarily going to trade towards you

Since an ECN broker directly matches market participants, there is just no possibility of them trading against you - a criticism that is normally directed towards some market makers. A good ECN broker will merely pass your orders to a loan company or one more client on the opposing ending of the transaction.

There are lots of Forex traders are putting their orders via ECN brokers. This preference can be explained by numerous advantages inherent to this sort of broker, which include tighter spreads and much better market access.

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