Prepaid Debit Cards: How to tell if they're right for you

If you want to add some plastic to your pocket, it's a good time to consider a prepaid debit card. This type of card lets you first load money onto it. The amount that you put on the card becomes your spending limit. If you think this might be an option for you, read through the following guidelines. They'll help you decide whether or not this is right for you.

You have a low credit score

Customers with no credit history, or those that have a rough financial past, may find it difficult to get approved for a regular credit card. This is due, in large part, to the changing standards in the credit card industry. Some issuers now require a high score or solid history in order to approve an application.

Prepaid debit cards, however, are available to nearly everyone, regardless of score. Some of them even guarantee that you will be approved. So if you'd like to have a credit card but have been unable to get one, your next option might be a prepaid version.

You want to know what you spend

One of the benefits of a prepaid debit card is that you can look at your account every month and see where your cash went. This will give you a good reading on where you are spending your money. You may find that you want to cut back on certain expenses. Or you may see that you are spending within reason in certain areas.

You want some help budgeting

With a prepaid debit card, you won't spend more than you load on to the card. When you make a deposit on the card, the total amount becomes your limit. This can help you figure out just how much money you have to work with. It can also help you decide how to spend it.

If you use the card for a number of months, you can keep track of how much money you put on the card, how much you spend, and where it goes. All of these can, in turn, be used to build a budget.

Since prepaid debit cards are especially valuable for those with low credit scores, you may find that you want some help in the budgeting department. So take the time to track your money. Doing so will make it easier to manage your money.

You want to use it like a credit card

Prepaid debit cards work just like a credit card in many situations. You can use them online, in supermarkets, the mall, or really any place that accepts credit cards. This can be very convenient, especially when you want to do some shopping on the Internet.

If the above scenarios describe your situation, a prepaid debit card might be right for you. As you look online for one, be sure to compare the different offers available. Read through the fine print and understand the fees involved before you apply. Then fill out an application and get ready to get approved right away. Making the most of the card is then up to you.

Reduce Your Monthly Debt Payments

Reduce Your Monthly Debt Payments

A known term commonly used in these customer addict-spending status quo is debt consolidation. Where in everything that is accessible in the market is most frequently offered with the option of a hire purchase agreement.

Although the products that we would like are all simply accessible to be bought through this, we need to take into consideration the economic circumstance we could be in if taken to excessive advantage.

Upon buying of a certain product through the aid of a loan or hire purchase agreement, you should be more cautious to evaluate his/her present financial status, income and expenditures included, to foresee how one purchase would affect your present financial situation.

You can put side by side the APR (annual percentage rate) presented by shop against other accessible types of credit like credit cards or bank loans. Lots of credit cards are presently giving very reasonable rates for every new item bought; others are even offering no interest rate of interest which could significantly give great reserves and in effect decrease the amount of monthly dues.

But if you are currently in a circumstance wherein you are having concerns regarding how to pay your monthly dues or general expenditures then it is most imperative that you take necessary measures to solve the circumstance right away.

Spend time recapitulating total monthly expenditures and put most important in the number one spot. And if feasible, strive to settle high percentage rated loans rather than those with low percentage rated loans.

If you do not have the capability to produce the arranged sum to the loan or credit companies call them and give details of your current situation and attempt to settle an agreement that you will be paying a minimum amount every month, you will discover that numerous companies are open to such appeal if feasible.

When you still find yourself not capable of fulfilling your responsibilities after doing the essentials then it may be significant to consider the likelihood of consolidating your loans and debts. Fundamentally consolidating your debts just means that you will just find a credit or loan provider who is prepared to lend you a certain amount that is adequate enough to pay all your debts and loans and just pay a certain amount in one month at a span of time agreed upon. You can arrange a generally low monthly expenditure amount during the span of time for your new consolidated loan.

Credit Check

Credit Check

There are three credit reference agencies in the UK, Callcredit, Equifax and Experian. When you apply for credit potential lenders can conduct a credit search with these companies to determine if you are credit-worthy or not.

These credit reporting companies keep detailed information relating to your credit history which is supplied on a monthly basis by all those you have credit accounts with. For example, what loans and credit accounts you have, whether you have kept up to date with payments or defaulted on accounts and if you have any county court judgments or bankruptcies against you.

They also record your date of birth, name and address, any previous names and addresses and any joint applications for credit that you may have. All the information on your credit file is kept for a period of six years.

When lenders conduct a credit search they will use the information in your credit report to determine whether to accept your application for credit, in other words they will assess how much of a risk you are.

Different lenders have different criteria for offering credit so you could be rejected by one lender but accepted by another. However, don't be tempted to apply to too many lenders in a short space of time as all credit searchers are recorded and too many credit searches will worsen your credit score.

What is a credit score?

A credit score is a mathematical calculation based on the information contained in your credit report and is an indication of how much of a risk you are to potential lenders. Even if your credit score isn't particularly good, a lender may still decide to offer you credit but at a higher interest rate.

How can you improve your credit rating?

If you are not on the electoral roll then it is unlikely you will be able to get any credit at all so make sure that you are and that you complete the forms each and every time they are sent out.

By obtaining a copy of your credit file you will be able to check to make sure it is accurate and if it is not, to have any errors corrected and you will also have a good idea as to what you need to deal with to improve your rating.

At the very least:

- Make sure that all your payments are made on time every time as each time you are late with a payment or miss a payment your credit rating will be affected.

- If you have several credit cards with payments to make at different times of the month it might be a good idea to consider setting up a direct debit for the minimum amount each month so that you don't forget and then try to pay more by other means each month.

- If you have savings then consider using your savings to pay off any debts you have, particularly those with high interest rates as the overall amount of debt you have influences your credit rating.

It's important to remember that if you have a substantial amount of debt it is never too late to take steps to sort it out. If you are worried seek advice. No matter how poor your credit rating is, it can always be improved.

Best Place To Invest Money

The best place to invest money really depends on the individual doing the investing. To determine which place to park your funds depends on how much risk you can handle and what type of time frame you are working with. This article will describe a few low risk options for investing funds along with a few high risk options for investing.

If someone asked me what the best place to invest money was, I would present them with a few different investment strategies and explain the expected return and the risk of each of those investments.

For someone who is very risk averse (one who avoids risk), I would recommend a fixed income security or a money market account. A money market account is similar to a normal bank account except it pays a higher interest rate. ING Direct offers money market accounts and sometimes offers a sign-up bonus. The interest rate from these types of accounts are normally around the rate of inflation.

For someone who can accept a moderate amount of risk, they should consider an index mutual fund. An example of this would be the Vanguard 500 mutual fund. This fund has extremely low fees and is a basic copy of the S&P 500. The reason this carries moderate risk is because it is a diverse mix of fairly conservative stocks. This specific fund has an average annual yield since inception of 10 percent.

For someone who can accept a high risk, they should consider trading individual stocks. This option takes a great deal of research and a strong heart. Stocks can jump or crash 20 percent or more on a single day. If you are not careful it can turn into a form of gambling. There are many online stock trading brokers to choose from (Etrade, Charles Schwab, Trade King, Sharebuilder.com). The key to success in stock trading is research, have a strategy and don't emotionally invested in a certain company.

If risk doesn't matter at all, there is also the Forex market. This is the foreign currency exchange. In this type of trading, you can open an account with a broker who will provide you a margin of up to 200 times your original investment. Small swings in currency rates can lead to huge profits, but it can also wipe out your entire investment in a matter of seconds. For a comprehensive guide to investing in the Forex markets see www.babypips.com. It should be noted that most traders recommend using a practice account for at least six months before deciding if the forex market is right for you. To sign up for a practice account see www.forex.com.

The most important thing to think about before you begin trading is what you can afford to lose. If you are working with funds that your family will need in the near future, stick to something safe. It will not provide the return of stocks, but it will also not wipe out your family's quality of life.

Take Charge of Your Credit Debt Consolidation Loans

Currently looking for ways to merge credit card and other financial liabilities? Have a dreadful credit history? With the Internet, you can go online and find various options to aid you in consolidating your debts. Whether it’s resolution from credit card debts or any other debts, it’s rather hard to choose the best consolidation plan with so many options popping up online. Below is just an overview of the different debt management offers you can find.

Getting a loan is one way to consolidate debts. But, before applying for a loan, you need to meet all required criteria same to those with other loaning companies. If you own a house, there is a possibility that your equity can be used in attaining an equity loan. Or, your house is evaluated for its value to in order to get your financial needs.

There are also unsecured loans that merge your debts into one low monthly payment with no attachments with your assets.

In addition, other companies give you the option of managing your own debt without having to get a loan. Usually, these companies will charge for their services and aid you in negotiating with your creditors in lowering the interest rates as well as managing monthly expenditures. Different companies utilize different methods. Most of the time, these methods will help you save and pay on the principle of your credit card balances.

Numerous companies offer good services and worth the monthly charges that enables you to save as much than the charges they impose. However, some companies are not legitimate. They will get monthly expenses and hoard them for a month or so before making the payments (accumulating the money interest). This will lead to an accumulation of late charges and collections. This causes you to lose quite a bit of money and even worsen your situation.

Be cautious in availing services from these debt management companies. Always check for its legibility and it should be a long standing company before you sign in on those agreement forms. Check our list of suggested debt consolidation lenders posted below by just clicking on the link.

Managing debts is a great way to give you relief from those surmounting bills especially when it’s time for payment. Occasionally, when all your debts are too overwhelming, it’s just to distressing by just keeping up that it halts you from finding methods to start paying all your debts down.