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March 2020

7 Pros and Cons Loans

7 Pros and Cons of Unsecured Loans

7 Pros and Cons Loans

7 Pros and Cons Loans – Unsecured loans are loans that have no collateral, like a home or a car or stock, backing up the loan and available to the lender if the loan goes bad. These loans are issued solely on the promise of the borrower to pay it back according to agreed upon terms. These loans are also known as signature loans.
Usually unsecured loans are for one time expenses like a medical bill or help in meeting a down payment on a home or expensive auto or perhaps taking advantage of a lower interest rate to pay off other, high interest rate debts. Here are a few of the pros and cons of unsecured loans that you should be aware of. 7 Pros and Cons of Unsecured Loans.

1. IOUs

Perhaps the simplest of unsecured loans is the old IOU where the borrower gets funds from a friend or family member. There’s usually a reason why the borrower is going to a family member rather than a financial institution.

2. Credit Cards

The most popular form of unsecured loans is by far and away the billions in credit card debt that consumers rack up each year. You purchase an item with what is essentially a loan or credit and you sign a form promising to pay it back. While the credit card company is paying the merchant for your purchase. In the past, if your credit rating slipped, the card company could arbitrarily increase the interest rate you pay some going as high as 30%.

3. Banks and Credit Unions

How much you qualify for and at what interest rate depends on your credit worthiness. Credit unions typically have lower rates for unsecured loans and if you have good credit. Getting the loan should be no problem.

4. Astronomical interest rates

If you have bad credit and you go for one of the short term loans you could be paying as much as 400% APR. Consumers don’t really see it that way because those loans are usually so small (less than $1000) all they are really concerned with is what the payment is. For example a $250 loan for 2 weeks will require a total payback of $234. $34 doesn’t sound like much to a consumer who needs cash now but it is a huge profit for the lender.

5. Unsecured loans can be discharged in bankruptcy

If you have to file bankruptcy, chances are your unpaid unsecured loans will be totally discharged as they have the least rights to assets in a bankruptcy. Any loan that has collateral securing it, like an auto loan or mortgage is treated differently.

6. Unsecured consumer loans fall under the Fair Debt Collection Practices Act

Unsecured consumer loans like credit cards are covered under the FDCPA. The consumer is offered some protection from the behavior of collection agencies should the loan default. For example collectors can not make harassing calls. Call you at work, threaten law suits when they have no intention to sue and a host of other restrictions. The law also allows to sue collectors who violate the act and the consumer can receive up to $1000 plus attorney’s fees.

7. Know your number

Lenders will obviously want to see your credit report and FICO score when considering your application. The better the credit history. The better the FICO score the better position you are in to negotiate a lower interest rate. Federal law allows you to get a copy of your credit report free once a year. Download it from the free site and review it for accuracy.
Unsecured loans have their place but it is imperative you understand the terms and conditions before you sign. Always deal with a reputable lender when seeking out these types of loans. Selecting the wrong lender could end up costing you thousands.


Credit Card Usage

Credit Card Usage

Credit Card Usage

Credit Card Usage – Credit cards are a convenient form of credit and often provide an edge over other forms of payment. They save you from carrying around large amounts of cash and allow you to easily purchase products and services online. Over the phone and even on your travels. On the flip side, there are times when cards usage should be avoided to ensure unnecessary interest payments do not get out of control. In this article we will cover when is the right time to use a credit card and also situations where credit card usage should be avoided.

So when is the right time to use plastic?

Paying for goods and services online is certainly much easier with the use of a card but better still; some credit cards will even help protect you. When purchasing online, you can obtain product protection and extended warranties with certain credit cards. This is great peace of mind, especially in a world where many people are still developing trust in regards to making purchases online.
Travel is another great example for the right time to use a credit card.

Imagine you are tired from a long haul journey. You’re carting a heavy suitcase around. Your kids are hungry and the map you were given is about 10 years out of date. You’re lost in a foreign city. The last thing you want to be worrying about is dealing with a foreign currency to book your hotel room. Both MasterCard and Visa are global brands and recognised in most countries and make life a lot easier when travelling abroad.


Let’s face it, we all have them and they always seem to crop up at the most unfortunate of times. Your hot water system blows up, your car tyres need urgently replacing. The garden fence blows down and your insurance policy does not cover it. These things do happen and it’s comforting to know that with a credit card. You won’t be left stranded until your next pay day. When the emergency is over and you’ve found your feet again. Try to pay off your credit card as soon as possible to avoid excessive interest payments. At least switch to a low interest rate card.

When not to use a credit card

I t’s important to use them wisely so they do not become a problem or source of worry. Some situations, as mentioned above, are unavoidable but where poss ible we have listed situations where you should ideally opt for an alternative payment option.
The biggest trap to avoid is withdrawing cash at ATMs. Most cash machines will let you draw out cash using your card but this can lead to disaster. A3dvances are also usually charged at a much higher rate of interest than purchases. If this is your absolute last resort, tread with care. The best possible scenario is always to withdraw cash from a debit or savings account where the money is already yours.

Impulse spending

Most of us are guilty of this and often live to regret it or hasty decision. Often what seemed like a good idea at the time can end up costing you in interest payments so think twice before committing to a purchase. Sleep on it over night or even leave your plastic at home if you are going shopping without a specific purchase in mind.
Paying your bills with a credit card is often easier than physically going to the post office. But it’s only a good idea if you are 100% sure you can pay your bills off in full the following month. If you are using your card to pay bills because you can’t afford to pay by other means. Now is a good time to seriously look at your personal financial situation and seek help.

Finally, don’t pay off other debt using your credit cards. Credit cards are not the cheapest form of borrowing and unless you are looking at consolidating debt by transferring to another credit card provider on a 0% balance offer or low interest card, you will find yourself in trouble. If you need to borrow a substantial sum of money, a loan may be a cheaper option.
Credit card usage really comes down to common sense and your own individual circumstances. Try to keep borrowing to a minimum, keep a level head and remember that when used wisely, credit cards are your friend.

Fast Credit Repair and Rebuild

Fast Credit Repair and Rebuild

Fast Credit Repair and Rebuild

Fast Credit Repair and Rebuild – It used to be that you could only accept credit card payments if you had a card machine in your store or office; however, technology has evolved, creating many more applications and ways of processing credit cards. If you have a business that is constantly on the move, these systems can help you streamline your operations by allowing you to accept credit card purchases wherever you are and then link them back to your merchant account. This means that sales representatives, street vendors, market stall owners and a wide variety of people can now process credit card transactions. Having this facility makes it more convenient for customers and often results in the merchant enjoying a higher sales volume. When people can pay using credit cards, they are often less conscious of how much they spend.

NURIT 8020

This wireless card processing machine is compact and easy to use. It has a keypad and screen that features a touchscreen display. You can swipe credit cards and get authorization on the transactions wherever you are. The electronic signature capture facility means that you do not need to take an imprint of the card. It also has a store and forward mode that you can use when you are in an area that has a low signal or no signal at all. Perhaps the feature that most users like is that it has a built-in printer.

Once you process the transaction, you can immediately get a signature on the credit card slip. This ensures that you have greater protection against possible fraudulent transactions as you can immediately verify the cardholder’s signature by checking the signature on the back of the card. This is one of the more expensive wireless options but if you are looking for a machine that provides you with absolutely everything you need to process a credit card, this is the best option for you.

WaySystems MTT 1531 with Printer

This system can be held in the palm of your hand and is moderately cheaper that the NURIT 8020. It looks like a cell phone but has a card swipe facility and printer to process card transactions. The machine is simple and easy to use and can be transported in your jacket pocket or briefcase. This makes it ideal as a lightweight card processing option for business people who travel a lot.

WePay SC30

If you want to limit the amount of additional hardware you purchase then the WePay SC30 may be the solution for you. A strong feature of the WePay SC30 is that you can easily download, export and email receipts and transaction data. The system also has some of the best security protocols to ensure top-quality fraud protection. Fast Credit Repair and Rebuild.

Touch Tone Capture

To simplify the procedure even further, you can use your existing cell pone to process credit card transactions. This is the most cost-effective card processing solution because it does not require any additional equipment. You can simply key in the credit card details into your phone and get an immediate authorization. It is the ideal choice for business people who frequently travel. Essentially, you use your existing cell phone as a credit card terminal. The software integrates with most cell phones and wireless networks providing a broad range of coverage.

Laptop Wireless Processing

If you travel with your office on your laptop then this could be the ideal solution for you. Rather than having an additional credit card terminal that you need to transport with you, you can simply get the card processing machine that links to your laptop. The card swipe facility operates wirelessly and transfers data to your laptop as soon as you have processed the transaction. This means that you can review the transaction and related data immediately after completing the transaction.

If you need to export data, or provide customers with receipts, you can do so easily. The receipts can be emailed and any other transaction data can be easily verified. You can manage your transactions and export the information directly into your accounting system. Being able to keep all your client data on one machine ensures a greater level of security. Using this system, you can process credit card transactions anywhere you have a wireless connection.

5 Tips For Credit Repair

5 Tips For Credit Repair

5 Tips For Credit Repair

5 Tips For Credit Repair – For college students, getting access to a credit card just got a little bit more difficult. The credit overhaul legislation that passed in 2009 and went into effect in early 2010 contains a provision that states that college students must have an adult co-sign their application with them. This means no more running up credit card bills without their parents knowing about it.
And of course, there are other options besides credit cards, such as prepaid debit cards. Here’s how they work: prepaid debit cards carry the symbol of major credit cards like Master Card, American Express, Discover and Visa. In fact, from the outside, they look like a regular credit card. But, they actually work in a very different way.

With prepaid debit cards, the card is purchased with a balance already on it. Instead of taking out a mini-loan every time you make a purchase and paying interest on it (as with a credit card), when you use a prepaid debit card you are basically just burning through the balance already on the card. Once it runs out, you cannot use it anymore until you refill it.

But, which is better? Should you get prepaid debit card or a credit card for a college student? Here are 5 insights:

1. Despite the new law, college students are still obtaining credit cards:

Of course, some college students have found ways around the new law that restricts their ability to get easy access to credit.
Meanwhile, many other college students are still able to convince their parents to co-sign their applications, rendering the law fairly meaningless in terms of their being able to qualify for a card. All of this means that students and their parents still need to face the question: are credit cards good for college students?

2. Credit cards still have their advantages:

A recent Sallie Mae study concluded that the average graduating college student carries $4,100 in high-interest credit debt. And, college students are also known to pay a disproportionate amount of money in fees due to late payments. This means these cards are all-bad, right? Not necessarily.
While many students just are not financially sophisticated enough yet to responsibly use credit cards on an ongoing basis, having a credit card nearby can be smart to be used in emergency situations. After all, with a debit card, once the balance runs out, that’s it. There is no safety net.

3. Prepaid cards may be a better solution for managing day-to-day finances:

However, for managing monthly expenses such as food, books, and clothing while in college, prepaid debit cards can be a more responsible way to go. After all, with these cards, a student can manage exactly how much they are willing to spend each month. They can do this by only loading up the card with the budgeted amount, and no more.

4. Prepaid cards can be refilled through direct deposit:

But, what happens when the prepaid gift card’s balance goes to zero? Simple: the card can be refilled via direct deposit. This means that you will also have real cash backing the balance on your card – unlike with the other types of card. And, with a prepaid gift card, there is no interest to pay, which can save college students thousands of dollars in interest payments versus when using a credit card.

5. The perfect solution is likely a hybrid:

The ideal solution? Maybe having both. One way to go is to apply for a credit card with the parent co-signing. The student and parent can agree to a certain amount that the student is allowed to spend with the card each month, but that amount must be paid down. Doing this can help the student build their credit history (which a prepaid card cannot help with). But, for managing monthly expenses responsibly, the student can use the prepaid debit card.

Consider these 5 insights for answering the question: which type of card is better for college students?