How to make your trips abroad hassle free today?

When it comes to travelling abroad, no matter the purpose, there are several factors you need to take into consideration. Amongst the various factors, your financial investment and expenditures will be taken into consideration. While there are several options you can consider for these purposes, the travel card is one option you can consider.

Travel cards as the name suggests is a form of banking card that offers prepaid facilities providing you with a foreign currency of your choice. You can easily load a fixed amount of funds in your local currency on the card and withdraw or make transactions in a foreign currency. You can estimate your spending with these cards and invest the amount that satisfies your requirements. In this way, it makes your overseas trip hassle free and effective.

If you are planning to use the travel card for any of your upcoming trips, here are a few tip you can take into consideration:

• Before purchasing a travel card, ensure that you have sufficient knowledge about it. For example, you may not be able to use the card in certain countries to pay fuel bills or tools due to security issues. In this case, you should ensure that you have sufficient cash on your hand.

• As soon as you get the card, remember to change the default PIN before you travel abroad to prevent any misuse. Additionally, with a changed PIN you can also avoid the chance of getting a rejection overseas especially at ATM counters.

• If you need to withdraw funds, be aware of the withdrawal charges. In certain places or countries, there can be an extra fee on transactions. Look out for travel cards that offer you free withdrawals around the world to avoid these extra fees.

• Keep track of your available balance on your travel card. You can do this through the ATM, email statements or SMS updates. You can even get a mobile application downloaded to track all your transactions.

• Avoid using your travel cards for security deposits, especially if you need to clear up your hotel bills. In some cases, the balance amount in the travel card may get blocked for a certain period.

• Always check the current conversion value before proceeding with any transaction. This will help you gauge how much funds you will be actually spending with each transaction on your card

• If you have the option to pay in the local currency, avail it. In the event you don’t take advantage, your retailer may convert it into foreign currency.

• In the event, you lose your card, or it is stolen; you must block your travel cards immediately. Most cards come with a  replacement one, so you can always use this card as a backup.

• If you are planning to use this card for a long period, over different travel trips, ensure that you are aware of the expiry date of the card.

What are the different factors that contribute to the changes in forex rates?

The forex exchange market is a global market where the trading of currencies is done all throughout the day and night. As an investor in this market, the rate of which these currencies are exchanged is very important. This is because the currency is used to determine the economic status or growth of that particular country, in comparison to other countries. As these features change, so does the rate of the currency.

This rate is normally monitored and constantly evaluated, as it is a key to determine the factor for the country’s economic stability. As mentioned previously, forex investors and those who frequently send foreign funds abroad would need to constantly screen the exchange rate so as to know the appropriate time to make a transfer or transactions.
Given below are some critical factors that play an important role in determining the rise and fall of the exchange rate. This will go a long way to help you understand the suitable time to transfer or receive funds:

Inflation rates in the market: The variations in the market inflation rates is one of the critical aspects affecting the exchange rate of the country.  Country’s that possess a low inflation rate normally have a stronger value of currency, as compared to countries that have a high inflation rate. However, this is only applicable if the other factors are held constant. If the inflation rate is low, goods and services tend to appreciate at a slow rate as compared to countries that have a high inflation rate. If the low inflation rates are maintained for a longer period of time, the value of the currency appreciates steadily.

Interest rate charges: Forex exchange rates, interest rates and rates of inflation are always interrelated while playing a big role in determining the stability of the market. Any changes in the interest rate will affect the value of the currency and in turn, the exchange rate. Any increase in the interest rate will increase the value of the forex currency. This normally occurs, when the borrowers are charged a higher interest and in turn, attracts a foreign capital. This causes the exchange rates to go up.

Debt accrued by the government: Any unpaid dues by the central government are always considered as a civic debt and furthermore a liability. The bigger the debt, the less likely the government will negotiate to get a better foreign capital. This in turn, results in the increased inflation in the country. When this occurs, investors tend to trade bonds when the debts are too high. Consequently, this will always lead to the fall in the value of the current exchange rate.

Business Loan: All you need to know about defaulting and how to avoid it

All business, no matter big or small, will require financial assistance at some point in their lives. This is when the business loan will prove to be the ideal solution. This loan for business is designed in such a manner, keeping in mind the unique requirements and functioning of each business while ensuring all the financial requirements are met.

However, even the best run business can hit an unexpected cash flow problem, especially if a major customer of theirs fails to pay. In this case, the best of intentions can go out of the window. So if you find yourself and your business in a position where you’ve missed your payment on your loan you’ve taken on your business what can you do?

Normally, as soon as your lender realizes that you have defaulted, they will be in touch. Each lender will normally have a different policy on their issues. While some do offer a grace period if your payments are not too late. However, if the matter does not get resolved, your lender will report the late payment to the credit bureaus, which in turn can damage your credit score. This will in turn, make it more difficult for you to secure your finances in the future.

Here are some of the default scenarios that can occur to your business:

• Defaulting on a secured loan: If the business loan is secured on an asset, there is a high chance your lender will claim the said collateral to repay the debt. This can be anything from your business to your home or any other similar asset of high value.

• Defaulting on an unsecured loan: An unsecured loan will be completely different from the secured loan scenarios. For one, you lender won’t be able to seize any asset of yours. However, they will charge a late payment fee, and possibly increase your interest rate. If you further cannot repay back the borrowed funds, they can purse a legal solution against your company. In this case, you may be forces to liquidate your assets to pay the settlements.

• Defaulting on a personal guarantee: If you fail to repay a loan for business wherein which, you stand as a personal guarantee, the lender can pursue you personally and not just your company itself. If the court upholds your claim, the lenders can seize your personal assets and liquidate them to cover the debt.
So what can you do to avoid getting into this position?

As you can see, the consequence of defaulting on your loan can be either extremely sever or mundane. Therefore, you should very cautious about taking on a new loan, in order to avoid increasing your debts. You must pay close attention to your cash flow, ensuring that you will have the required funds on your hands to make the loan payments in a timely manner. If you find yourself in a position where you will be unable to meet a payment, you must contact your lender immediately and explain your situation. In this case,  most lenders will work with your in your interest and their own.

Factors you need to keep in mind when opting for used car loan

When it comes to purchasing a car, whether new or old, there are plenty of factors you need to consider. One of which includes the financial aspect of the purchase. In such a case, several individuals prefer to opt for a used car loan to facilitate the purchase.

These used car loans offer several benefits, one of which includes a loan amount that will be equivalent to the purchase of the car. Additionally, it offers the ideal repayment procedure wherein which, you will be able to repay back the loan amount over a flexible period.

However, before you opt for this loan, you will first need to consider certain factors like any other loan. They include the following:

Know the seller: It is crucial that you are aware of the individual who is selling the vehicle to you. You must ensure that seller is the actual title holder. Ensure that you collect and verify the seller’s credentials by collecting the contact details. You can even request a copy of the title and match the seller’s name to ensure that you are aware of the rightful owner of the vehicle. You should be aware of anyone who is selling a vehicle without the title or on behalf of someone else as it could be a duplicitous transaction.

Know the vehicle: Before you purchase the vehicle, you will first need to check how the well does the vehicle perform. A simple test drive may not be able to reveal what’s really going on. However, you can opt for online tools and resources that will help you investigate maintenance and accident history. You can even get a trusted mechanic to conduct a thorough inspection.

Know your options: Consumers will often pay cash for a purchase of a private party vehicle. Alternatively, they will also obtain an auto finance, similar to used car loans, to facilitate the purchase. In this case, it may require the buyer to provide information about the vehicle and seller information along with the copy of the title. If there is a lien on the vehicle by the financial institution, you may need to take appropriate steps to get it released after the sale.

Know the paperwork: All the elements of the vehicle such as the hood, driver door, dash and other similar elements possess a vehicle identification number. You need to match the title and the paperwork keeping in mind these vehicle identification numbers (VIN) as very often car thieves often replace these VIN’s from stolen cars from those that belong to a legally registered vehicle. This is normally done through a process known and cloning or retagging, wherein which the car’s true history is covered through the forging of title documents. This titling process is a crucial step, especially when it comes to applying for the used car loan, as the financial institute will verify the documents before processing the loan.

Car Loan: Co – Signer versus Co - Borrower

When it comes to opting for a loan, terms like co – signer and co – borrowers have slowly become popular over the last few years. This is no different from the car loan. These two profiles share similar traits, and yet possess different features. For one, the co – signer improves your chances for your vehicle loan approval. A co – borrower can be a concern, especially when considering the income. This co – borrower will also have distinctive rights the asset being purchased, where in this case, is the car.

Given below is all that you need to know about the auto loan, and how this two profile will affect them:

What is the role of the co – signer in an auto loan?

A co – signer for an auto loan is considered to be a ‘silent partner.' In this case, the primary applicant ‘borrows’ the best of the credit scores in order to get the required approval for the car loan approval. Additionally, in some cases, the co – signer can be used if the primary applicant does not have garnish able income. In this case, the co – signer’s income is verified but the funds are not joined. Once the co – signer signs the loan, they are not expected to be actively involved with the repayment unless something goes wrong.  In the event the primary borrower defaults on loan, the co – signer will be responsible for making payments. Additionally, the co – signer’s credit score will also be affected, especially if there is a delay in payment or payments stop completely. Once the loan approval has proceeded, the co – signer has no ownership rights when it comes to the car. This is also inclusive of the situation where the co – signer will be required to pay for the repayments. 

What is the role of the co – borrower in a vehicle loan?

If the co – borrower is made to be a part of the auto loan, it is most likely the cause of two different situations. One situation implies that the primary borrower lacks the qualifying income for the required approval. Secondly, it could include a loan requirement by a married couple, who individually may not be able to qualify for the loan. In this profile, co – borrowers are permitted to combine funds wherein which, both of their names will appear on the title to the vehicle, permitting ownership to both individuals when it comes to the vehicle. In the event the couple splits, the ownership of the product will need to be determined before the payment proceeds henceforth. However, both individuals are equally responsible for making payments on the vehicle. In the event, a co – borrow has the requirement to declare bankruptcy; the other individual will receive protection during the filing process.

Personal loan and co – signer: What are the questions you need to answer?

Amongst all the loan options available in the financial market, the personal loan has always been a viable option.  Not only does it provide you with financial flexibility, but it also offers you the means to opt for a loan amount that is not restricted. Additionally, since you can also apply for personal loan online, you can enjoy a convenient loan application.

However, to enhance your chances of getting a better loan amount, while enjoying a flexible repayment procedure, you can opt for a co – signer. A co – signer is another individual, who would share the same responsibility as a sole owner and whose financial profile will be combined with the primary applicant to increase the overall financial profile.

This facility is available to most loan options. But before you apply for this loan along with a co – signer, here are a few questions you need to answer before you proceed with the application.

Are you aware of the responsibilities as a co –signer?

If you are going to take on a co – signer for your personal loan, both individuals must be aware of the responsibilities. The co – signer should understand that it would be their responsibility if they primary applicant fails to repay back the borrowed funds. If the co – signer has a better credit score, the lending institute may approach this individual for the repayment.

What is the appropriate payoff plan?

Regardless of a co – signer, you must have a plan to pay off the loan. This is even more crucial if you have a co – signer as it is crucial that you have a plan that matches each other’s requirements. Additionally, it should not affect your co – signer’s credit history. Something as simple as a missed payment of a defaulting on loan will affect both the primary applicant and the co – signers credit score. Alternatively, if you make timely payments, it will help increase your credit score.

Are you planning to borrow more than you can afford?

Whether you are planning to apply for personal loan online or at the bank, you and co – signer should ensure that each of your monthly loan payment amounts should not exceed your reasonable pay. Even though having a co –signer will help qualify for a larger loan amount, it is recommended that you opt for a limited amount. In other words, borrow only as much as you need and can afford.

Can your relationship survive?

You’ll be surprised how co – signing a loan can affect more than your credit score. It can also risk your relationship. Placing a financial issue between two individuals can change a relationship either in a good or bad way. Either the stress of the borrowing funds can strain a relationship or provide a means to strengthen it through open communication and mutual responsibility.

Home Insurance: Why getting one will make more sense

When it comes owning any financial product, a home will always be one of the most prized and high-value assets for all individuals. Not only does it offer an emotional satisfaction, but it also comprises of nearly 60 to 70% of an individual’s wealth investment. Consequently, it comes as no surprise that, a home is the second most reliable investment asset.

With over 200 million plus homes in the country, India has become the second largest country in terms of home inventory. With the economy expected to grow at a healthy pace shortly and a reduction in borrowing costs due to the demonetization move, the home purchase will continue to witness an increase in the coming years.

While owning a home will always be a dream if not a priority for individuals, when it comes to home insurance, it does not feature at all on the priority list. The reasons may vary, but in today’s time, it will benefit you if you invest in a home insurance policies.

Here are some of the benefits you can enjoy through this type of insurance:

Vulnerability to natural disasters: It may come as a surprise that India is a vulnerable country to plenty of natural disasters. Research has indicated that more than 58.6% of the landmass is prone to earthquakes of moderate to high intensity. At least 12% of the land in India is prone to floods and river erosions. Even 5,700 km of the 7,516 km long coastline of India is prone to cyclones and tsunamis. Additionally, the hilly areas are also facing risks of landslides and avalanches. However, the awareness of home insurance is relatively slow. It is estimated that only a small fraction of Indian homes have some form of home insurance. This insurance will cover damages caused by these natural disasters. In the event this disaster affects your home, you do not have to bear the entire cost of reconstruction of the house.

Provides the ideal coverage for homes within your home too: Having a majority of your wealth such as your home or any of your household articles insured can put you at a risk of significant losses. This, in turn, can result in emotional setbacks. Home insurance plans will not only protect your immovable wealth from such perils and natural calamities, but it will also protect your home items. In other words, it will also offer the ideal protection against items such as jewelry, clothing, electronics and much more. The ideal home insurance policies will provide you with the ideal protection for both your and your home items.

Various options available: Just as your financial needs and habits will differ from person to person, there are plenty of home insurance plans available in the financial market. You can easily opt for one that will suit your needs while offering you the ideal protection for the right price.