Online application: when you need to apply for credit card urgently

Credit cards are like a contractual agreement that takes place between a borrower and a lender. The bank which is the lender provides or loans money to the borrower with the trust that the money will be reimbursed later within the time period agreed upon. Some people argue that credit cards create problems, but there are a lot of benefits to credit cards if one uses them well. There are many reasons why one should apply for a credit card. Some of them are given below:

For student loans
Loans can be taken against a credit card. Apply for one when in need of a student loan. Education comes at a high price and a credit card may come handy during admission.

For home loans
Another major investment for a better future and improved lifestyle is a home.  Houses do not come at cheap rates, but one cane secure a home loan easily with the help of a credit card. Apply for it today and start maintaining a credit history. 

For car loans
Cars are getting expensive day by day. Cars are considered as a luxury commodity and purchasing a car requires a lot of money. For this reason once again a credit card will help secure a loan if necessary.

To land a job
A credit card opens doors to several job applications. It is surprising but true. An individual with a credit card and a good credit history definitely comes across as reliable and responsible to a prospective employer.

To take a vacation
Busy schedules demand more time spent on work and less on family and pleasure. For this reason vacations become a necessity for every family. Breaks are also required to rejuvenate. An international credit card will help one make purchases and pay bills when holidaying with family and friends.

To make online purchases
For all the shopaholics out there who purchase off the Internet, a credit card comes extremely handy because there are many shopping websites that do not offer the cash on delivery option. This does not necessarily imply purchasing accessories and clothes but also the purchase of airline tickets or hotel bookings etc.

One should note that large amount purchases can be made at 0% interest using credit cards. Getting hold of a credit card and its use will reflect upon the credit history as well. This will make one eligible for certain perks and benefits. Hence, credit cards are essential tools that gives plenty of economic benefits and opportunities for a better life style.

First time loan applicant: tips to get an approval on your car loan application

Getting a car loan is not easy. A car loan is offered to only those who are able to prove themselves as loan worthy. Sometimes it may become difficult for loan lenders to give out loans to some prospective borrowers because of their financial background. Some things that one should keep in mind when applying for any loan especially when it comes to a car loan are given below:

1. Calculate a budget
 Before purchasing anything, it is important to know if one will be able to afford it or not. Therefore, the first point is to establish affordability or know the budget. This implies that the buyer should calculate their income after considering the tax deductions to find out how much is actually earned, how much money is used for living expenses, that is, for basic sustenance. The money that remains, may be considered as savings and spent on other goods and services. Efficient budget planning will create a good impression on lenders as it will indicate how responsible the borrower is.

2. Know your car
Another factor to take note of when applying for a car loan is the overall cost of the car. This includes additional instalments and additional prices, that is, expenses for the fuel, insurance and maintenance. Knowledge regarding these matters may improve chances of approval.

3. Pay a deposit
When applying for a car loan it is advisable to make a deposit even if it is not necessary because this can be beneficial. It definitely means that one will have to worry about lower repayment every month, and it also creates a good impression on the money lenders.

4. Know your credit account and clear debts
The credit profile reviews how an individual uses credit and how they make monthly payments. This shows if a borrower is a reliable or not. So it is better if one clears off all debts they might have, this will increase their chances to get approved for the car loan or any other future loans.

5. Trade car (for old car owners)
Owning a car for more than four years means that there is a chance for them to have a higher trade-in value. It is even more beneficial if all the deposits have been cleared off. If the trade-in value is lesser than the amount the person owes the bank, in that case the person should keep the car or the vehicle for a few more months or could use savings to settle the existing loan.

6. Know the best deal
Once the above mentioned points have been taken care of - the budgeting, calculating and credit checking, the final step is to find out the best car deals showrooms are offering. In the competitive global vehicle market, there are a lot of appealing offers. Compare discounts and offers in order to get the best deal in the market. It is also advised that one should look online for low interest rate deals before actually going to a dealer.

Many banks and financial institutions offer a car loan today, thus there are plenty of options to choose from.

Reasons you need to avoid unauthorised lenders

Unlicensed or unauthorized moneylenders are those lenders or traders or people or groups or firms who loan money illegally or outside of the law. They maybe referred to as loan sharks or unlicensed traders or lenders. These lenders are unsanctioned by the government and therefore by law. These people are best avoided for they can cause a lot of problems or harm naive citizens, who are not aware and may borrow money from them.
One should take heed of some of the consequences of borrowing money from these illegal lenders. They are:
• These so called loan sharks charge high interest rates on the loan amount. Therefore it is practical to go to a legal money lender or to a bank where one can find appropriate, legal and low personal loan interest rates. A higher interest rate can make it more difficult for one to repay the amount.
• Another fact to note is that if one gets involved with unauthorized money lenders, that person will not get access to the Financial Ombudsman services or the Financial services Compensation scheme, nor will they be covered by the Payment Protection Insurance or PPI services.
• They mistreat and harass the borrowers until they pay back the funds. This can cause harm not only to the borrower but also to the borrower’s family and friends. If someone is unable to repay the loan, these loan sharks may take the person’s possessions or belongings or destroy them.
• Suing them leads to no avail as these lenders con borrowers constantly and are extremely equipped in escaping the hands of the law. A law suit only results in further loss and waste of time and energy.

• Most importantly, borrowers do not receive any protection by signing any form of contract nor are they provided proper terms and conditions in some cases. Hence, the borrowers do not get any guarantee on such deals or contracts.

• Previously, these loan sharks and money lenders were considered to be involved in illegal or extra-legal activities but in recent times they seem to have even become a part of the criminal underworld and coming into contact with such men can lead to dire consequences.

The above mentioned reasons should provide enough cause for people to avoid illegal money loan givers. The repercussions of getting involved with such illegal lending can be bad. When it comes to borrowing money, one should always go through banks or financial institutions. They offer competitive personal loan interest rates, and authentic legal papers to borrowers. They also expect timely returns in the course of the loan term that has been decided.

Protecting yourself from fraud when using credit cards

A credit card is used by a card holder to pay for all the goods and services that he purchases or enjoys by virtue of his salary in the bank account. Credit cards have become a valuable asset to all. Thus, it is a very important card which should be kept with optimum security for if it goes into the hands of the wrong person, they might misuse it, while the consequences will have to be paid by the victimized original credit card owner.

Some measures that one can take in order to protect their credit card from miss use are given below:

• It is very difficult to shield all our private and personal information but it is important to take some precautions when we go online be it for shopping or for net banking or other purposes. Here are a few things that you can do to protect yourself when shopping online-
*Try to clear all logins and passwords.
*It is advisable to pay via credit cards rather than debit cards as they are guaranteed under the federal law.
* Avoid providing information to any fake unrecognizable company advertisement that asks for personal information.
*It is better if one secures their email and verifies the mailing address whenever possible with the post office in order to avoid the credit card thieves from changing it. This prevents any notice from reaching your residence.

• A small way to avoid the loss of credit card is by keeping it in a different more secure place rather than your wallet so that even if the wallet gets stolen, the credit card remains safe.

• Report any kind of questionable purchases that may have been made by the credit card that you are not aware of.

• Monitor all the bank and credit card statements and reports regularly so that any unfamiliar purchases can be noticed immediately and be reported.
If someone has already become a victim of credit card identity fraud or identity theft where one individual card holder’s ownership has been assumed by some other individual, it is important to know that that person whose identity has been stolen is entitled to free credit monitoring.

• Avoid keeping any form of private records or statements. These records should be disposed as soon as possible. Most preferably they should be shredded, so that they do not fall in the wrong hands.

It is very important to take such preventive measures while handling credit cards for precaution is always better than cure. It is better to be safe rather than sorry.

What are the different tools that will help you get an ideal personal loan?

A loan that is unsecured, in other words a loan that is borrowed by individuals from a bank or a money lender without securing it against any asset like a car or a house is called a personal loan and is also known as an unsecured loan. In order to get an ideal personal loan, there are some things or tools that a person should refer to and keep in mind before applying or during the application of a loan.

Loan tools help calculating the personal loan effectively. One can also make comparison between the interest rates offered by different banks with the help of loan tools. They are-

• Loan calculator or an EMI calculator the personal loan EMI calculator is very efficient in comparing different types of loans. EMI stands for equated monthly instalment, which is the fixed amount that is to be paid to the bank or any lending institution until the entire amount loaned is completely paid off.

The personal loan EMI calculator makes complicated calculations easy and simple.

• Budget calculator- it is very difficult to keep track of all the monthly expenses that one has and this is where a budget calculator comes in handy. The budget calculator breaks down the person’s finances and then offers tips to help the person make optimum utilisation of his total income.

• Credit Report-Several credit bureaus gather data and information regarding a person’s credit history to create credit reports on the basis of which the money lenders or banks often determine whether they can sanction a loan or not and how much interest rate should be offered on the loan sanctioned. These reports are available online and even at different credit report companies.

There are other ways of acquiring an ideal personal loan. A person may not receive the same rate as advertised by a company or bank as it is based on individual credit scores. A person may apply for the best rate loan in order to find out the rate of interest he is eligible for. Opt for a best rate loan that doesn’t use risk-based pricing. If there’s any way to repay the loan early, one should opt for the best-rate loan which does not have any early repayment charges.

Borrowers may also take help from debt advice agencies or get official help from the pension’s ombudsman service, which will take into consideration all the complaints that the person might have regarding his or her loan. The agency will also give suggestions as to how to repay the loan and effectively use the tools.

What is the key difference between mobile banking and internet banking

Internet banking, also known as online banking, is part of the many e – banking channels. This channel has gone on to create a change in banking operations, providing virtual banking facilities to its customers all year and day long. Through this channel, customers can now access their bank account through the online portal.

In addition to internet banking, mobile banking is another channel that allows customers to access their bank account. However, in this case, customers can specifically operate their bank accounts through specific devices, with the help of customized websites or mobile applications.

The service provided by both these facilities may resembles a lot. However, there are instances when people assume they are one and the same facility. This often leads to confusion in terms of the facilities offered and the benefits you can gain through each channel.

The difference between mobile and internet banking can be drawn clearly on the following grounds:

• With internet banking, the banking transactions can be carried out over the net. This can be done via respective bank or financial institution’s website under a personal profile. It can also be done through any device that supports an internet connection. On the other hand, mobile banking is a service that enables customers to perform banking transactions using a cellular or tablet device.

• Internet banking will need an independent connection along with a device like a computer and laptop. With mobile banking, very often the mobile network provides the relevant network connection, through telecommunication devices such as the mobile or tablet. In each case, the network communication will have different features and function differently. It will also have different speeds, security and protocols.

• Mobile banking normally utilised ‘apps’, that are custom made for specific purposes and more precise in terms of functionality and access. On the other hand, internet banking offers the usage of bank’s website to access the bank’s functionality. 

• Through mobile baking, you can transfer funds with the help of IMPS (Immediate Payment Service), NEFT (National Electronics Funds Transfer System) or RTGS (Real Time Gross Settlement). With internet banking, you can transfer funds from a bank or a branch to another, with the help of NEFT (National Electronics Funds Transfer System) or RTGS (Real Time Gross Settlement).

• The number of functions performed by mobile banking, is often limited. While it does offer a custom like service, it is often restrictive, especially with limited services. On the other hand, internet banking offers the perfect pathway for a wide array of services to their customers.

Banking apps versus Browsers: Which is the best option?

While the smartphone trend and app usage is still taking root, several individuals are still opting for the old fashioned web browser to satisfy their requirements. After all, there are several benefits that the website offers that the app may not, and vice versa.

This is no different for the banking institutions that have offered their services through the website and mobile apps. Options such as the SBI, Axis and HDFC Bank are some of the various banking institutes that have offered their services on the website as well as their apps.

Given below are pros of each of these options and how they can benefit you:

Mobile website: The mobile website is designed in such a manner that is not a separate website like the mobile apps. In fact it is designed in such a manner for all screen sizes. Visitors will be able to access most of the content on the full website, which is often optimised for smaller screens. Given below are the pros of the mobile website:

• Functions on all phones: If you need to access any of the SBI, Axis and HDFC Bank websites, you only need to access your browser and visit the website of your choice. This is often a challenge for apps as the programming needs to support the OS of the phone, which requires considerable difference between an Android platform and iOS platform.

• Save on space: One thing about accessing the website through the browser is the space you will save on your phone. You need not download a platform, such as the app, to access the services on your phone. This will help avoid downloading a platform, which will constantly take up space on your phone.

Mobile apps: Mobile apps are separate program features that required to be installed on your phone. They are custom built perform a specific function, or in the case of banks, offer specific functions and services. Given below are some of the pros of the app:
• Push notification: You can easily get text messages if you subscribe for the push notification service. Axis and HDFC Bank net banking push notification service are some of the notable ones.
• Offline access: You can easily read about offers, browse the available product services when you are offline.
• Faster performance: As compared to the website, you can get a faster service.
• Less cluttered: Depending on the website design, apps can be very interactive and informative.

As you can see, the mobile banking app has a lot more to offer, that a website would offer. You would stay updated with the current trends that will allow you to take advantage of financial deals or make calculated decisions. You would also get a user experience which is clutter free and faster, as compared to the website browser.