Top 4 Reasons To Have A Credit Card

Though you may not need a credit card, you still should have at least one. A credit card is beneficial in many ways. Here are four reasons you must get a credit card.

Develop your credit rating

When purchasing home or car, the financial organization will check your credit rating. This is important to decide whether you will be given loan or not. If you don’t have a credit card, you will have very less credit history. You can improve your credit rating by purchasing your regular items with a credit card and paying back the money on time. This way you won’t have to pay any interest.

Convenience

It is easier to make large purchases using a credit card. It will give you some financial flexibility. If you pay off the money at the end of the month then you won’t have to pay any interest. You can also spread your money through several months and pay in installments. Some purchases allow you to pay within a year without any interest. So, you can take those opportunities as well.

Make urgent purchases

Sometimes, we often run into emergency situations. For example, in the case of any health problem or a car accident, you will need lots of money immediately. In such situations, you can use your credit card to pay the bills or fix damage caused in a car accident.

Safer to use

Credit cards are safer to shop than debit cards. If your credit card is stolen, your bank can help you and fix things. You won’t lose any money. There is more risk with using a debit card.

Having a credit card is a good thing, but you have to control your spending habit. You should be careful not to overspend and get into a debt. If you do so, it will severely affect your credit score.

5 Ways To Get Fund for Your Small Business

When you decide to start a small business, you should first think of the sources from where you can get your fund. Here are the best ways you can get fund for your business.

Self-funding

If you have the capital then you can fund your own business. You can use your personal savings, credit card, second mortgage, etc. to fund your business. If you have assets like a second home or a boat, then you can sell those as well.

Friends and family

You can get equity or debt funding from your friends and families. However, you should be very careful when you do that. It might ruin relationships and hurt their feelings if your business fails.

Angel investors

These are affluent people who are interested in investing in businesses. You should search online for angel investors. You can also talk to your chamber of commerce.

Partners

You can take someone as a partner and get funding. Resources can be aligned through strategic partnerships. You must choose the partner carefully so that you can work together and make it a successful venture.

Banks loans

You can get small business loans from the traditional banks. But you need to have a good track record. The loans may require you to provide security.

There are many more funding options available for small businesses. You need to research all these options and decide which one will be best for you.

4 Reasons Your Mortgage Application May be Rejected

Getting a mortgage is a challenge. There are many complex procedures involved in applying for a mortgage. Applying for a mortgage doesn’t guarantee that your application will be accepted. Here are four reasons why your mortgage application may be rejected.

Bad credit history

Your credit history is reviewed when you apply for a mortgage. If you have a poor credit history then your application may be rejected. If you had problems in paying off your debt then you will have low credit score.

Not much credit history

Some people make all their transactions in cash in fear of paying interests. So, they never have a credit agreement. As a result, they don’t have any established credit history. The bank that will give you mortgage would like to see how you manage your credit before they approve your mortgage application.

Unrealistic expectations about loan

If you apply for a loan that is much larger compared to your salary, then your application may be rejected. It gives an indication that you won’t be able to pay off your mortgage.

Unrealistic borrowing expectations

Affordability is assessed on various factors and some potential borrowers have unrealistic expectations and apply for a larger loan size in comparison to their salary.

Employment gaps in application

The eligibility of getting a mortgage depends vastly on your affordability. You must be in the same job for many years in order to qualify. If there is any gap in your employment then your application for a mortgage won’t be accepted.

You should fill up the mortgage application very carefully so that there is no missing information. Make sure that you don’t have bad credit score, limited credit history, unrealistic expectations or employment gaps. Otherwise, you won’t get approval for a mortgage.…