Using credit cards comes handy and you can buy what you want anytime. It doesn’t matter whether it is a need or a want, when you have a credit card you are tempted to make purchases. As you know that you can easily pay back the credit card bill after getting your paycheck you end up spending more than required.
It is essential to avoid high interest rates on credit cards so that you do not spend more on bills. Let us learn the ways to avoid paying high interest rates on credit cards
Most of the credit cards set up a grace period for all new purchases. It is about the duration for which the grace periods last. It starts from the date you make a new purchase till the due date of monthly billing cycle from the date you made a purchase.
There will be no problem as long as you make timely payments on monthly basis which means the credit card company won’t charge any interest. When you end up paying lesser amount than the due amount the credit card balance will be carried over and termed as unpaid credit to be paid in the next month.
Interest rates are basically applicable on balances that are due or unpaid. When the full due amount is not paid it is termed as revolving or carrying balance. In case you pay even less than the minimal amount then it is treated as late fees.
High interest rates on credit cards
You need to have self control while managing your finances as you know the interest rates on credit card are high which can make your spending on purchases even more expensive. Of course, if you are not having cash to pay for any purchases then you will not like the idea of paying more on interest by making a purchase even more expensive by paying through credit card. For example if you buy any device for $1,000 via credit card and even after making minimal payment each month you will actually pay $175 extra as part of interest over a year. Moreover you also owe $946 dollars against the purchase you made.
With the increase in revolving credit by 4.9% every year more and more consumers are getting credit cards that major issuers and banks offer. There is significant increase in credit card interest rates and those having credit card debt should manage their spending by either paying back or pay minimum amount to not get into a troublesome situation.
The hike in credit card interest rates boost the APR to almost 17.10%. The credit card holders who are following a standard pattern of paying the minimum payment on credit cards every month can find it to be quite expensive. If they fail to pay the debt there is no way they can overcome the difficult situation.
The minimum amount to be paid will reduce down every month with the collapsing balance. Remember, the figures would shoot up in case there are extra charges, late payment of fees, and hike in interest rates or other varied costs.
The consumers should get into the habit of self control, the idea of I want it right away should be eliminated to avoid getting into trouble with credit card high interest rates. The lifestyle should be maintained without falling under debts. With the increase in debts the monthly payments shoot up which leads to problems for the consumers.
Make sure you cut on your unnecessary expenses and try to figure out what interest rates you are paying on every credit card you own. This will help you prioritize the credit card with higher interest rates. You can go for credit counselling to understand how the high interest rates on credit cards can affect your finances without you knowing about it. Make sure you set a budget and also have some savings to pay off your credit card bills. Do not get into credit card debt that you can’t overcome. Over a period of time it can lead to a number of problems. It is not that you can’t use your credit card to make purchases but make sure you pay the full amount in balance every month. You can use it wisely for convenience and protection. You can also avail the cash back rewards that come as cool offers with credit cards.
The idea is to not fall under credit card debts and use the self control formula to avoid unnecessary purchases. Capital is something really important for businesses to run their business smoothly. Many people switch from job to business to execute their ideas that even lead to great business opportunities. When they plan to start a business the first thing that stops you for a while is lack of funds or capital.
Loan is the best option to raise funds for your business. You can get loans from many financial institutions or banks. You may find the entire process of getting loan little bit complicated that earlier. Now banks have set up new rules for lending funds for businesses especially the small businesses. Thus you should be aware of detailed steps to get a business loan from any bank so that you can get your loan approved without any hassles. Let us look at the basic and essential steps that will help you apply for a loan from the bank and get it approved.
Create a perfect business plan
When you apply for a loan, the banks want you to present a powerful financial plan which works well for your business. It includes the introduction about you and what the business you want to start is about. The business plan you present should be able to speak about your business goals and missions and also how the business will operate to achieve the goals and mission. A perfect and convincing business plan will help you convince the lender easily.
Explain the spending pattern for the borrowed finances
Banks are interested in knowing about how you are going to spend the loan amount borrowed from the bank. For example, if you are planning to buy equipment, you should seek an equipment loan. In other case if you need funds to keep your business running prior to the debtors offer you money then make sure you apply for a suitable short-term loan. Hence it is better to explain what you are going to use loan amount for to help the bank assess whether the amount given will take care of all your business needs.
Mention the loan amount you actually need
Before applying for a loan makes sure you do all the calculations to find out the amount of money you need so that it is neither over or underestimated. The reason is that if you seek less money than you need it can land you in financial problems in near future. On the other hand stating an overestimated amount can again put you in trouble as bank will ask you whether you have made a perfect business plan after conducting a thorough research. To put an end to all the doubts make sure you have a better business plan with a proper presentation and a budget.
Be determined about the credit score
Today, all banks verify whether a person who applies for the loan is eligible for the loan. When you apply for a loan make sure you check your credit scores and credit reports. It would be difficult to get a loan if your credit score is lower than expected. If your credit score is low you can try for a loan that is revenue based. You can put in some efforts to increase your credit score before you apply for a loan from a bank.
Monitor your credit report
At times you could find some errors in the credit report and it happens when you are not attentive. It can pull down your credit score negatively. That is why you need to keep a check on your credit score by checking files of business credit and personal credit. In case you find any errors you can approach the credit reporting firm to get it corrected and increase the score after eliminating the errors. It is necessary to look into credit report as low credit score won’t fetch you loan from a bank.
Evaluate the available lending options
Once you check your credit report and find it to be fine, the next you need to do research and create a list of various banks that are feasible to provide the loan type you are looking for. Make sure you pick out the banks that provide loans at considerably low interest rates and offer approval guidelines that are quite flexible.
Maintain accurate financial records
It is easy to get loan from banks when you have correct and well-maintained financial statements. Banks check the balance sheets you have along with income statements and cash flow statements. Any help for financial problems contact gtacredit.com or call 416 650 1100