Prepaid Debit Cards Make Budgeting Easy

Some shoppers simply can not resist the temptation of becoming a credit card user. Unfortunately, traditional credit cards are a known cause of debt for thousands of people. When it comes to purchasing goods and services, a prepaid debit card is a far better option. Here are some of the advantages of owning a prepaid debit card.

Prepaid Debit Card

Prepaid Debit Card

Restricts spending

A prepaid debit card does not allow the user to overspend. If the person does not have the required funds in their bank account, they will not be allowed to purchase the particular item. This is a major benefit to people who have a difficult time in sticking to a budget.

Privacy

A traditional credit card company tracks every expense of the customer. On the other hand, a prepaid debit card allows the user to shop anonymously. Although the person will be able to track their own transaction history, no marketing companies will be able to invade their privacy.

Simplicity

Prepaid debit cards are very easy to use. Although some people still use checks and money orders to make payments, these methods are becoming less popular with each passing year. The prepaid debit card can even be used to make online purchases.

Use at surcharge-free ATMs

A Kaiku prepaid debit card can be used to obtain cash at various ATMs across the country. Although the prepaid debit card can easily be swiped at a store, there are times when a person may need paper money.

How to pay for your car

Car Finance

Car Finance

If you are considering buying a new or used car, you don’t need to be told about the huge variety on offer. City cars, SUVs, saloons, hatches and crossovers all vie for your attention and your hard-earned cash. Now you also have a choice of the traditional fuels of petrol or diesel or the newer power systems like electric cars, hybrids or fuel-cells. It is a vast market and most buyers will spend some considerable time evaluating many different options before making their choice. Sadly, having done so, far too few drivers spend a similar amount of effort in deciding how to finance their car. This can mean spending too much money, negating any good deal that was negotiated on the car. Looking at the main types of car finance on offer can help decide which type of finance produces the best deal.

Cold, hard cash

If you have sufficient funds, simply putting down a pile of notes (or more likely a debit card) has many advantages. You will be paying absolutely no interest on your car, and you will own the vehicle outright from the first day. There are no credit checks or agreements to worry about. Should you decide to part company with the car, the proceeds from the sale are yours. You are completely free to decide to sell the car whenever you want, and there are no restrictions at all on your car. This may all sound perfect, and for some it is, but there are some things to consider before parting with all of that cash. Firstly, you need to make sure that you are not over-committing, especially on larger purchases. If you leave yourself short of cash you could become exposed financially and be forced to sell the car at a considerable loss. Next, you need to decide if your money can work harder for you elsewhere. If your dealer is offering you a zero percent or low interest deal on your new car and your cash is happily making a bundle of interest elsewhere, paying in cash is costing you extra money.

Hire Purchase

This is a very well-known way of paying for a car and something many of us are comfortable with. Here, you will pay a deposit and then pay off the balance of the purchase price with monthly instalments. The loan is secured against your car, which can make the terms more competitive than an unsecured loan. There are a few things you need to check and be aware of. A major consideration is the interest rate or APR. This is how much borrowing the money is going to cost you. Make sure that you understand the amount of interest you are paying and that you are happy with that. Always ask for the APR of the deal and the total amount payable on the deal. Compare this with the cash price of the car to see how much you are paying and make sure that total price includes any administrative or one-off charges. You should also consider the terms of the agreement. You are committing to having the car for this period and any cancellation could incur penalties. You do not own the car until the final payment is made, and if you sell you will have to pay off the finance company in full.

Personal Contract Hire (PCH) and Personal Contract Purchase (PCP)

PCP and PCH deals have become very popular of late. This is largely due to the big car makers having large amounts of inventory that they need to shift and consumers finding it harder to get loans on the High Street. A PCH deal is simply a form of leasing. Many deals will see you making a larger initial payment, perhaps equal to three monthly instalments, and then a period of monthly payments spread over a few years. The key attraction here is that those payments only have to cover the depreciation of the vehicle over the duration of the agreement, making them sometimes cheaper than a car loan. It is important to realise, though, that PCH is a form of rental. You do not actually own the car. This means that you cannot modify the car in any way without permission from the finance company. There may also be financial penalties if you exceed a certain annual mileage. If your circumstances change and you find yourself doing lots of commuting, this could make your PCH deal very expensive. At the end of the agreement term, you can simply hand the car back or, in some cases, you may be offered a deal to buy the car by making a final ‘balloon’ payment. This option is not usually guaranteed in a PCH deal, and if you want to make sure that you have the option to buy the car, you should choose a PCP deal. This is identical except for that right to buy at the end of the term. The PCP and PCH deals can keep your monthly outgoings down, and they are predictable costs, except where excess mileage is incurred.

Credit cards

This is not as crazy as it might sound. If you have sufficient credit and a low or even zero percent interest period, buying a car on a credit card can be cost-effective and efficient. You will not have to undergo any credit checks or sign up to any agreements as your credit is already in place with the card company. You will also benefit from some additional protection offered to credit card customers. There are, however, a few considerations to bear in mind. If you haven’t paid off the car by the time that your interest free or low interest period runs out, your costs could well rocket, and using your credit card could prove to be an extremely expensive way to borrow money to finance your car. You will also be tying up a significant amount of your credit, meaning that it is unavailable for other uses.

Dealer finance

Dealer finance usually takes the form of a car loan or hire purchase agreement. Conditions are the same as those mentioned above, but be especially careful of the conditions. Remember that the car dealer will most likely be motivated to sell you the finance package they offer. They are not shopping around for the best deal and they are not considering how the finance suits your circumstances. That is your job and before accepting any dealer finance you need to be sure it is competitive and right for you. Don’t be seduced by your enthusiasm for your chosen car. It can easily be bought with other, potentially cheaper and more suitable, finance packages.

Using a car finance broker

Thankfully, there are car finance brokers online where you can type in your details and get a choice of finance packages. This gives you an objective comparison and allows you to make a judgement on what’s best for you in the comfort of your own home, free of any pressure. Getting your finance sorted out before you visit the dealers will put you in the driving seat for any negotiations and ensure you get the best deal possible. It will also save you hours or even days of time, traipsing around the High Street or calling up providers.

Credit cards – how they can work for your finances

Credit Card

Credit Card

Many people feel a little apprehensive when faced with the word ‘credit card’ regarding today’s difficult financial climate. The reality of the situation is that the cost of living in the UK has risen to extremely high levels and many people have found that using a credit card can actually relieve a high amount of financial burden and allow them to make repayments at extremely low rates.

If you are thinking of getting a credit card then it is important that you consider the different forms of credit cards in the UK. Look over the key points below to ensure your finances can cease to be troublesome and understand how these financial contracts actually work.

Think in the long term

When choosing a credit card, regardless of the brand, rates or interest, it is essential that you think in the long term. Rather than just using it to buy the odd non-essential item that may end up hampering your finances, you should work it into your current monthly and annual budgets.

Doing this will not only give you a much clearer picture of your overall finances but will allow you to identify unnecessary spending in any areas. This means you can cut costs where necessary.

Find a low APR

A low APR is essential for your credit card as it will ensure that your payments stay low throughout the year if you pay back the full amount borrowed at the end of each month. Many credit cards are available with extremely competitive APR’s and interest rates and choosing one wisely is a prudent move.

For an online credit card which offers an outstanding APR, shop around and compare the latest deals. Remember that not all credit cards will be suitable for your situation so always consider how they will fit with your lifestyle when evaluating the APR which they offer.

Make sure you don’t default

Defaulting on a credit card payment can be very bad news. Not only will it affect your credit rating overall but if you have not chosen a low rate card it could burden you with several unwanted charges such as a late payment charge or increased interest rates, which, if unchecked could continue to snowball.

Consolidate irregular payments

One thing credit cards can be very good at is consolidating any irregular payments which you might have into one lump sum thus allowing you to see your monthly finances a lot more clearly and account for your entire budget. This is a very popular use for credit cards and something which they are very effective in doing and will also enable you to plan effectively.

Who can apply for a payday loan

payday loans

A pay day loan is different from a normal loan in the sense that it is a short term loan. In a pay day loan a person is extended an allowance for a very short period of time usually for the subsequent checks. Normally a pay day loan amount is quite low as compared to usual credit principle. And so is reflected on the interest rates in UK.

The government of United Kingdom has put up legislation on the Annual Percentage Rates (APR). You will mostly want or opt to get your pay day loan from any known acquaintance because that saves you from the risks of being fooled. At this lender people are often charged high interest rates because the principle amount and time span both are comparatively less.

Who can apply?

There is only one condition applicable on applying for a pay day loan for the citizens of UK. That is they have to be of age 18 and above. Those who are officially adults are liable rather considered eligible to apply for a pay day loan and be legally responsible for repayment with interest.

Although this hard and fast rule is applicable only for people who borrow pay day loans legally from banks. Minors can always get their pay day loans from known people whose confidence they have. They can win the trust of the lender and thus they do not have to wait until they are 18. But this is illegal and if it comes in light of the UK government then both the lender and borrower can be charged serious punishments.

Online application:

Now since the process of procurement of pay day loans from banks of UK is time consuming so they have come up with the scope of rendering online loans. This is very fast and effective means of obtaining pay day loans from anywhere in the whole nation.

You first need to choose from the numerous online websites such as www.no-credit-check-payday-loans.co.uk available for providing pay day loans. Once you are sure of a single site then you will be provided with an application form. This form contains all the necessary details that you need to fill in. Some of the basic information like your history pay rolls, pending loans, employment and income rate and you’re investing intentions is included in the application. Depending upon the statistics of your report they will confirm within few minutes whether you will get the pay day loan at this lender or not.

Need:

The need to apply for a Pay day loan arises when people are mainly struck by credit card debts. Apart from this there can be urgent need for financial help for example unexpected illness leading to payment of immediate medical bills.

Applying for pay day loan is very easy on the internet now a day. And some of the websites like www.no-credit-check-payday-loans.co.uk promises to provide a loan within 15 minutes of time. They basically look upon the reason for your procurement and the more urgent need like medical emergency, the sooner they transfer money to your account.

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CREDIT CARD FOR COLLEGE STUDENTS

What is a credit card?

A credit card is a plastic card that is issued to users as a means of payment. It therefore allows its holders to buy or purchase goods and services.

College Student Credit Card

Student Credit Card

Why a student credit card?

As a student, one is subjected to regularly being asked to pay for some few things in order to run smoothly, some money for books, tuition, or accommodation, some money for the food and some for extra curriculum activities. It’s however, unlike the credit card your parents were usually stuck with back in college or school, a student credit card rewards one for spending his/her cash, also allowing you to even win some points which are redeemed for prizes or cash.

Students or college credit cards usually offer different types of reimbursement for the spending. There are those that give percentage on what is spend back between a different range like between one to three percent, while others will offer points for each and every pound or dollar spent. Unlike the cash which is imply put back into ones account at the end of the month, here points are collected and they are traded for prizes depending on which prize one is interested in.

A good credit card should reward you for using your card anywhere, but also has to offer you big rewards if you are to make some purchase at a stationery or bookshop, including joints like restaurants, movie theatres, supermarkets or shopping malls, chemists, gas stations and all the consumer locations or places for students.

What to look for in a student credit card

Generally the student credit cards were designed with a particular purpose. This was to actually ease the pain of one having to pay a larger amount of cash in one semester, and also teach the young people or students how to use the credit card well. Therefore a good credit card for the college students should offer APR(Annual Percentage Rate), a high period for which one can make his/her payment and a resource to help one track his or her financial situation such as the budget calculator or some free credit lesson.

The best student credit card has to offer some kind of reward for making payments on time and not to exceed the credit time limit. This also has to come with a reduced annual percentage rate or some bonus points. It’s also supposed to offer rewards for good GPA.

Therefore there are many components which can make up a good student credit card, this are.

  • Annual Rate For Purchase

This is the amount of cash one has to pay in interest for the use of credit

  • Points For Card Use

This one is the greatest appeal of a good student credit card. The student credit card offers two types of rewards, points or cash. Points are usually collected through the use of the card and are redeemed for some sorts of treats, ranging from gadgets, tours, concert tickets, shopping to even travelling tickets. The cash back will reward you a percentage of what you’ve spent at each and every month.

  • Who It Is For

All student credit cards usually require the users to be 18yrs and above, and others would even require some prove of enrollment in a particular accredited college or university.

  • Fees And Charges

It’s also inevitable, that if you are to exceed your credit limit or you are to make a late payment, there will be a formal fee deducted onto your account or bill. Therefore searching out for the lowest fees can make this one to be less painful for the student.

  • Help And Support

Since sometimes its unpredictable to tell what one can encounter at any particular place at any particular time, its recommended that a student credit card should offer a 24/7 support system which is real solid for business.

A student credit card is a powerful perfect tool for students, its therefore important for managing your money well. So proper budgeting will ensure one stays within his or her means and you do not run your credit score down the ground.