Monthly Archives: August 2019

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When to withdraw cash with the credit card

With the credit card, you can pay for products and services and make cash advances. For experts in finance and wealth, you should only withdraw cash with your credit card in case of an emergency. Why?

Cash advances with the credit card are a great temptation. You can make them at the ATMs and in seconds have money to pay the rent, the children’s school or the maintenance costs. Easy. Quick. At any time of day or night.

It is a fantastic service. A very agile loan.

And yet, if you receive the advice of a financial expert, because you have an interest in the subject of wealth or more efficient financial management, they will insist that you do not use cash advances.

Why?

 

The rates of the credit cards

credit cards

Credit cards handle ranges for interest rates.

They are not always the same.

  • It depends on the bank or banking company, trade or cash that issues it, on the expected return of the product.
  • It depends on the category of the card, for example, Classic, Gold, Platinum, etc., which are granted according to the applicant’s ability to pay.
  • It depends on the franchise. Visa is not the same as MasterCard or Amex. The businesses of these franchises with financial institutions are different in each case and that negotiation is transferred to the users of the cards at interest rates.

If you already have a card, you can verify the ordinary interest rate agreed on the statement. Two possibilities appear:

  1. The ordinary annual effective interest rate for purchases or consumptions; Y
  2. The ordinary annual effective interest rate for money availability.

You will notice the difference between the two.

The interest rate for cash advances is higher. In fact, it is considered the highest interest rate offered by the formal financial market.

When you withdraw money from an ATM with your credit card, you are accepting a business that will be expensive. It’s that simple.

It is said that the cash arrangement of credit cards is the most expensive money there is.

Withdrawing a certain percentage of money from your credit line is nothing more than asking for a loan from the bank, just like plastic, it is not an extension of your salary.

The big difference between paying with the card and withdrawing cash from it is that the latter option automatically has a commission, while when you pay you can finance up to 50 days without necessarily paying interest.

The entities monitored by Rose Bank periodically deliver data on the rates of the financial products they handle. The data is average. For example, if the bank offers five credit cards, it will report the average rate of the five cards.

An example, in which on average you will be charged 5% of what you withdrew in cash, how much is that? If you have a thousand pesos the bank will charge you $ 50 pesos MX.

But that does not end there, when you have the cash they charge you daily interest for the use of it , if the average interest rates are 50%, it implies that the applicable daily rate would be 0.14 percent.

This means that you will also pay $ 1.37 pesos for interest until you settle the thousand pesos.

 

Withdraw or not withdraw cash with your credit card

Withdraw or not withdraw cash with your credit card

So, the next time you are tempted to use your card to withdraw cash, you have to make a decision:

  • If you can pay the entire loan on the next credit card payment date, it is justified. You will not pay interest.
  • If you need more time, think twice. The interest you are going to pay is high.

If you need much more time, think of other alternatives: a personal credit or a home equity loan. They are usually better deals.

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Borrowing without UC control | Compare loans online and borrow money quickly | Payday Loans

Many people wonder what it means to borrow without UC control, or maybe the opposite. Namely what a UC control really means and what the consequences and opportunities UC control entails.

UC control is a form of credit control or credit reporting

cash

All lenders who grant loans, whether they are larger loans or smaller loans, do a credit check to assess your ability to pay. Just UC control is a credit report that the lender buys from the company Upplysningscentralen AB so UC is an abbreviation of their company name.

UC uses a special scoring system that balances a number of factors such as number of credits granted, credits used, payment notes, income, capital deficit, etc. An important and perhaps most criticized part of the score is also the number of previous inquiries the person has. A number of inquiries mean that you are considered to be a greater risk to the lender than if you have a few inquiries.
Each of your previous requests remains in UC’s register for 12 months back in time.

Usually, some lenders can lend amounts up to SEK 50000 without UC control, while lenders are usually unable to find higher amounts that do not take UC control.

If you want to avoid that your credit rating is negatively affected by many UC checks, you should avoid the lenders who take UC and instead apply for loans from lenders who do not use UC for credit control.

You can do it online and get an answer to the application directly

bank

UC is far from the only company whose business and business concept is to provide credit information. Special permits are required in order to conduct such activities and the rules that you have to adhere to are formulated by legislation.

Ordering a credit report that relates to private individuals can be done for a variety of reasons, but the person who obtains a credit report will have to pay a fee for conducting an information check on a private person or company. There are also different levels of information with different degrees of detail.

The most disclosure information is available at UC, while other companies in the same business area have a simpler form of information to provide. The more extensive information requested, the more expensive it is to order the information.

Several companies in the industry

bank

It is extremely important to remember that a UC check is just one of the various credit reports that exist in Sweden. You should not be able to borrow without any credit information being made, since all serious credit companies are in principle forced to obtain written information.

If you find loans that market themselves as loans without credit information, it is time to look at that lender with a very critical eye. We also want to take the opportunity to warn against online fraud.

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How does the top 1% handle your money?

Have you ever wondered why rich people have more money? Most people think that they were fortunate enough to come from a rich family or to gain their fortune by fraud. I’d rather be honest, money isn’t that important, right?

For most rich people, these statements are not true. They worked very hard to achieve their goals, which enriched them. Most importantly, they have learned how to manage their money and know what to do to save and grow their wealth.

We have to admit that money is a very important part of our lives because it affects every area .

  • We can’t buy the baby the toy you’ve been dreaming about for a long time.
  • We do not have the opportunity to travel abroad and see the world.
  • We cannot renovate the apartment or it is very difficult to get the money together.

How good it would be if these things were ever possible.

The secret to managing money is not taught at school. This can be learned through books or the Internet.

Today we will look at how the top 1%, that is, the financial habits of the richest people, differ from ours .

Let’s not push the word any further. Let’s see what the top 1% does in order to have a good financial position . You can take these easy steps into your life, and if you do them continuously over the long term, you can get into that 1%.

Cost monitoring and budgeting

This is the first and most important thing you need to do. How can you change something you don’t know? You can only create a better financial situation for yourself if you know what you’re spending your money on.

Most people do not pay attention to this. He doesn’t know how much he spends and what. All you know is how much you will be paid in a month, and will manage that amount until you receive your next payment. This is how it goes from month to month. Successful people do not manage their money this way.

In the next two months, follow your incoming and outgoing spending.

You can do this with a piece of paper, but you have a better chance of forgetting certain things. The easiest and most effective way to track your spending is to use a phone application. You can easily add in how much you spend on a purchase and assign a category to the release. Using this information, the program generates various statistics to help you identify where you are spending most.

  1. Make a note of each forint you spend.
  2. At the end of each month, look at what you spent on your money.
  3. Do you really want to spend on things you need, or are there areas where it’s better to spend less? Did you buy something on impulse or buy something you didn’t need?

You can save at least 10% of your revenue by keeping track of your expenses and avoiding spending on things that are unnecessary.

Create an emergency fund

Create an emergency fund

Every rich person has an emergency fund to cover at least 3 to 6 months of expenses. Use the money saved to create an emergency fund.

If you keep track of your expenses, you will know exactly how much you are spending each month. This way you can determine how large this emergency fund should be. Your goal should be to save this money as soon as possible.

Do you see a nice television that you wanted to buy a long time ago and it’s just been shipped? Is your phone going slow and will the new iPhone launch this month? Do not use the Emergency Fund Reserve for such expenditures!

Only save money when you have unexpected, urgent costs and no other solution. The ones you would borrow.

For example, if you spend $ 100,000, you won’t starve, defer your rent, and you won’t need a loan. It won’t be easy to save the equivalent of 3-6 months of spending, but if you do, you will surely be covered in difficult times.

Repay your high-interest loans

Repay your high-interest loans

If you have bad credit, that is, that you did not borrow for investment and they are not making money for you (most people have such credit), get rid of them as soon as possible.

Once you have established an emergency fund, begin to fully repay the loans. There are two ways to do this:

This is the best way to repay your loans, as this is the best way to get away with it. The point is to settle the loan with the highest interest rate. The one that is the most expensive. If this is successful, continue with the second until you pay off the last lowest interest rate loan.