How many times have you feel dejected because of your Bad Credit Loans record? Your loan application gets rejected because of it, for which you cannot avail any external financial help. Without any available finances your financial standing is in shambles. Taking this in to account, lenders are now offering finances which in turn assist individuals like you to strengthen the financial condition.
These loans are specially designed for borrowers who are having problems like CCJs, IVA, arrears, defaults, non repayment etc against their name. The amount raised through these loans can be utilized for a number of purposes like meeting wedding expenses, holidays, purchasing a vehicle, financing business or paying of all the existing debts to improve the credit score.
To lend a distinct edge over other loans, these loans are offered in secured and unsecured form. The secured form of these loans can be obtained only by placing any valuable asset such as home, real estate as collateral against the loan amount. The loan amount approved is mainly dependent on the equity value of collateral which implies that higher equity will get the borrower a bigger amount. The interest rates and the repayment period are very convenient which makes it easy for the borrower to repay the borrowed amount.
On the other hand, unsecured form of these loans does not require any collateral as such. Tenants and non home owners are major beneficiaries as they have nothing to offer as collateral. Homeowners who do not want to attach any property fearing repossession can also apply. This loan option offers smaller amount for a small repayment period. However the interest rates will be comparatively higher. A proper research of the market may lead to lender offering these loans at competitive rates.
By making regular installments towards the borrowed amount, borrower gets a chance to improve the credit score. With an improved credit borrower can avail future loans at fairly competitive rates.
These loans can be sourced from various lenders based in the physical market as well as lenders from the online market. For better rates and quick approval borrower can use the online mode. Further, borrower should repay the borrowed amount other wise it may create more problems.
петък, 15 февруари 2008 г.
събота, 9 февруари 2008 г.
Good Credit - Bad Credit
Good credit is a precious commodity. It takes us years of purchasing, borrowing, and paying timely to perfect the art of good credit. And once you have it, you should not want to do anything to cast a negative light on it.
Good credit could be characterized by a person having opened revolving twelve month credit to pay for their first mattress, and later financing their first washer and dryer through a store credit card, and a few years later having dealer-financed their first new vehicle on a five year note. Let's not forget the ten year repayment student loan that helped jumpstart this individual's career.
Throughout the years, this individual made periodic credit card charges for incidental items and for longer term payment items using more than one credit card. This individual, M. Goody, has paid all of his past and present credit responsibilities on time. Over the years, his credit limits have progressively increased. Also, he has retained a respectable number of credit cards and dollar amounts of outstanding credit and loan balances.
As time grows on, M. Goody is ready to purchase a home. His credit history now becomes an indicator of his likeness to repay the home loan and even calculates into his home affordability. The chosen loan company looks at M. Goody's credit report as well as his credit score. Having a score of 730 out of 850 is not bad. It is well within the very good range. Therefore, M. Goody can expect to receive the best interest rates available for his home loan. The exact amount he can afford to borrow for a home include additional criteria and is yet another story.
While M. Goody now has an opportunity to weigh the terms and cost of a loan with this home loan creditor, he should be aware not to solicit more than a couple of home loan creditors to inquire on his credit report. For every such inquiry reduces your overall credit score. And you want to retain the highest score possible.
What did we learn about M. Goody? Over the years, he built up the number of creditors, paid on time, and increased his credit limits. Having a respectable number of creditors shows he can properly manage the credit entrusted to him. Also, retaining older credit lengthens his credit history. Paying his credit on time shows he is trust worthy to lend money to. It also shows that he is actively managing his monthly bills. Increasing his credit over time allows M. Goody to show responsible use of higher dollar limits. It also shows a lender he is worthy for larger loans, specifically that he may be worthy of their financing his very first home.
Bad credit is easy to come by. All you have to do is get access to one or more credit cards, not pay on time, spend more than the minimum payments you can afford on a monthly basis, purchase a car you can't afford, and/or file bankruptcy.
There are millions of people in the U.S. who have done just what has been described above. Unfortunately, they have either not taken their credit seriously or have succumb to an unfortunate monetary event. In any event, credit is the basis of many criteria which dictates your borrowing power and certain coverage: from car loans, to home loans, to revolving credit, to car insurance rates. If you are one of the unfortunate, it is time to do sometime about it. There are ways to build and improve your credit.
Item 1. Start by organizing your bills. List your expenses. Remember you have household expenses such as food, toiletries, gas, etc. These need to be included along with your credit obligations. Set a budget amount to pay each expense. You'll want to pay off your outstanding credit balances as quickly as possible. This may take years but there's no time like the present to start. Pay at least some amount on all outstanding credit (if you can't pay at least the minimum, the creditor would rather have some amount than zero. See item 3 for more details). Focus higher amounts on credit cards with the highest interest rates first. Getting higher interest cards paid off first will free up more money to pay off other debts much faster.
Item 2. Do not attempt to get new credit, close any accounts that have a zero balance, and have your creditor reduce your credit limit where not needed. Attempts at new credit may inadvertently appear that you plan to continue bad spending habits. This will not help with credit negotiations. Closing any zero balances and reducing credit limits shows you will not attempt to unwisely use your available credit. It is wise, though, to keep at least one favorable (in good standing) credit card in case the creditors in negative standing decide to close your accounts at some point.
Item 3. Contact your creditors and negotiate a payment plan that is fair to you and equable to them. In every case it would be preferable to pay the minimums on all credit obligations. If you find this is not possible, do not hesitate to ask your creditor to reduce your interest rate and your minimum payment to improve your ability to repay the loan timely.
Item 4. If possible set up automatic bill payment from your checking account to pay some of your credit cards. This will improve your ability to pay your bills timely and should help establish a better standing with your creditor.
Item 5. Any extra cash that befall you, bonuses and cash gifts, use it to pay down on the higher interest rate credit cards. It is good practice to pay off as much as you can as soon as you can.
Item 6. Work diligently to clean up your credit report. You should start this effort as early as possible. It can take lots of work to clean up this act. Your credit report may contain erroneous and misleading information. Identify accounts that should be closed and ones that contain incorrectly recorded information.
Contact the three credit bureaus to get the information rectified. If the creditor does not properly rectify the issue within the specified timeframe, have the three credit bureaus remove the negative information. As you work through the inaccuracies, you should be left with only the credit that needs to be cosmetically repaired and/or paid off.
Paying on time and paying as much as possible, requesting the creditor to assign more favorable "pays as agreed" terminology to your account for any listed as "late," lowering your credit limits where necessary, reducing the number of active credit cards, and actively staying on top of your credit not behind it, over time will help increase your credit score and get you back on track.
It should be noted that filing for bankruptcy and having collections or tax liens reported against your credit report is the least optimal "bad credit" situation you can be in. The steps above can start you on your road to recovery but will not remove the wounds that will be inflicted. Bankruptcy can appear on your credit report up to ten years, where as tax liens and collections stay on for seven. That's quite a number of years to wait before you get back on your feet. Regardless, it's worth your while to repair the damage and as soon as you are ready to rebuild your credit, find a credit-building vehicle that will jumpstart you on your way.
Find a credit card that allows you to charge products and services, with no credit check, you're approved regardless of credit history, and has credit limits up to $10,000. Many of these credit cards have no annual fee. Get started moving your credit in the right direction. And remember pay on time and don't over-extend yourself.
Favorable Tip:It is a good idea to acquire your credit report periodically, at least once per year. Under Federal law, you are entitled to one free report per year from each of the three credit bureaus. Access your free credit report online or contact each of the three credit bureaus directly: Experian, Equifax, and Trans Union.
Good credit could be characterized by a person having opened revolving twelve month credit to pay for their first mattress, and later financing their first washer and dryer through a store credit card, and a few years later having dealer-financed their first new vehicle on a five year note. Let's not forget the ten year repayment student loan that helped jumpstart this individual's career.
Throughout the years, this individual made periodic credit card charges for incidental items and for longer term payment items using more than one credit card. This individual, M. Goody, has paid all of his past and present credit responsibilities on time. Over the years, his credit limits have progressively increased. Also, he has retained a respectable number of credit cards and dollar amounts of outstanding credit and loan balances.
As time grows on, M. Goody is ready to purchase a home. His credit history now becomes an indicator of his likeness to repay the home loan and even calculates into his home affordability. The chosen loan company looks at M. Goody's credit report as well as his credit score. Having a score of 730 out of 850 is not bad. It is well within the very good range. Therefore, M. Goody can expect to receive the best interest rates available for his home loan. The exact amount he can afford to borrow for a home include additional criteria and is yet another story.
While M. Goody now has an opportunity to weigh the terms and cost of a loan with this home loan creditor, he should be aware not to solicit more than a couple of home loan creditors to inquire on his credit report. For every such inquiry reduces your overall credit score. And you want to retain the highest score possible.
What did we learn about M. Goody? Over the years, he built up the number of creditors, paid on time, and increased his credit limits. Having a respectable number of creditors shows he can properly manage the credit entrusted to him. Also, retaining older credit lengthens his credit history. Paying his credit on time shows he is trust worthy to lend money to. It also shows that he is actively managing his monthly bills. Increasing his credit over time allows M. Goody to show responsible use of higher dollar limits. It also shows a lender he is worthy for larger loans, specifically that he may be worthy of their financing his very first home.
Bad credit is easy to come by. All you have to do is get access to one or more credit cards, not pay on time, spend more than the minimum payments you can afford on a monthly basis, purchase a car you can't afford, and/or file bankruptcy.
There are millions of people in the U.S. who have done just what has been described above. Unfortunately, they have either not taken their credit seriously or have succumb to an unfortunate monetary event. In any event, credit is the basis of many criteria which dictates your borrowing power and certain coverage: from car loans, to home loans, to revolving credit, to car insurance rates. If you are one of the unfortunate, it is time to do sometime about it. There are ways to build and improve your credit.
Item 1. Start by organizing your bills. List your expenses. Remember you have household expenses such as food, toiletries, gas, etc. These need to be included along with your credit obligations. Set a budget amount to pay each expense. You'll want to pay off your outstanding credit balances as quickly as possible. This may take years but there's no time like the present to start. Pay at least some amount on all outstanding credit (if you can't pay at least the minimum, the creditor would rather have some amount than zero. See item 3 for more details). Focus higher amounts on credit cards with the highest interest rates first. Getting higher interest cards paid off first will free up more money to pay off other debts much faster.
Item 2. Do not attempt to get new credit, close any accounts that have a zero balance, and have your creditor reduce your credit limit where not needed. Attempts at new credit may inadvertently appear that you plan to continue bad spending habits. This will not help with credit negotiations. Closing any zero balances and reducing credit limits shows you will not attempt to unwisely use your available credit. It is wise, though, to keep at least one favorable (in good standing) credit card in case the creditors in negative standing decide to close your accounts at some point.
Item 3. Contact your creditors and negotiate a payment plan that is fair to you and equable to them. In every case it would be preferable to pay the minimums on all credit obligations. If you find this is not possible, do not hesitate to ask your creditor to reduce your interest rate and your minimum payment to improve your ability to repay the loan timely.
Item 4. If possible set up automatic bill payment from your checking account to pay some of your credit cards. This will improve your ability to pay your bills timely and should help establish a better standing with your creditor.
Item 5. Any extra cash that befall you, bonuses and cash gifts, use it to pay down on the higher interest rate credit cards. It is good practice to pay off as much as you can as soon as you can.
Item 6. Work diligently to clean up your credit report. You should start this effort as early as possible. It can take lots of work to clean up this act. Your credit report may contain erroneous and misleading information. Identify accounts that should be closed and ones that contain incorrectly recorded information.
Contact the three credit bureaus to get the information rectified. If the creditor does not properly rectify the issue within the specified timeframe, have the three credit bureaus remove the negative information. As you work through the inaccuracies, you should be left with only the credit that needs to be cosmetically repaired and/or paid off.
Paying on time and paying as much as possible, requesting the creditor to assign more favorable "pays as agreed" terminology to your account for any listed as "late," lowering your credit limits where necessary, reducing the number of active credit cards, and actively staying on top of your credit not behind it, over time will help increase your credit score and get you back on track.
It should be noted that filing for bankruptcy and having collections or tax liens reported against your credit report is the least optimal "bad credit" situation you can be in. The steps above can start you on your road to recovery but will not remove the wounds that will be inflicted. Bankruptcy can appear on your credit report up to ten years, where as tax liens and collections stay on for seven. That's quite a number of years to wait before you get back on your feet. Regardless, it's worth your while to repair the damage and as soon as you are ready to rebuild your credit, find a credit-building vehicle that will jumpstart you on your way.
Find a credit card that allows you to charge products and services, with no credit check, you're approved regardless of credit history, and has credit limits up to $10,000. Many of these credit cards have no annual fee. Get started moving your credit in the right direction. And remember pay on time and don't over-extend yourself.
Favorable Tip:It is a good idea to acquire your credit report periodically, at least once per year. Under Federal law, you are entitled to one free report per year from each of the three credit bureaus. Access your free credit report online or contact each of the three credit bureaus directly: Experian, Equifax, and Trans Union.
петък, 8 февруари 2008 г.
Top 10 Sales Tips to Start a Sales Career
1) ALWAYS top-down sell. I can't say how many time's I've observed someone loosing more revenue simply because they didn't ask for the max subscription or term of their product/service. You'll find not all customers are concerned about prices since they can use what they spend with you as a tax break on their business.
2) Start the pitch with a larger value products and if we can't close the big sale, follow up with a smaller product.
3) Get into the habit of not using the word 'hundred' when giving a customer a price. Hundred has a 'large amount' connotation to it. Rather than saying 'one hundred and nineteen dollars and 50 cents.'
Use: It's ONLY one-nineteen fifty for the year.' And follow up with features, functions and benefits of multi-year/unit purchasing.
4) Set your sights and expectations high! Imagine yourself where you want to be at the end of the day and that's where you be!
5) ALWAYS break down price to the smallest metrics. Example: Describe a product as $9.96/month initially, rather than whatever the yearly rate would calculate out to.
6) Handling resistance is the key to successful sales. ALWAYS handle resistance on multiple terms and initial sales pitches. If everyone always took NO for an answer then no one would be meeting their goals. You'd be surprised how many customers change their minds after they here the benefits of a product.
7) A sale is happening on every call. Either a customer is selling you on a reason not to buy, or you're selling them on the reasons why they should be buying.
8) Stay away from words/terms such as MORE, EXPENSIVE or COST when relaying the price of a product to the customer. Always precede a price by the word ONLY, even if it's a price like $4,454.90.
9) Using a customer's name throughout a sales pitch can help build rapport and create a more positive experience. Although it may seem simple, you'd be surprised how it can change the tone of a conversion. EXAMPLE: 'Jim, do you know how much are you paying for this service with [company name]
10) Every customer has dynamic needs so we must make our pitches dynamic. Stay away from 'canned' or repetitious pitches. Imagine what your needs are in your everyday life. Let's say you play guitar and you just pick up a brand new one. You think it's the best guitar you've ever played and you tell your friends about how great it is. You're not trying to sell it to them, but the conversion itself is fluid and pushes the features, functions and benefits of the guitar. They in turn may end up buying it if the time comes.
Remember, you have to act like your not selling anything to the customer, but recommending to the client. You are simply there to help them find the right solution. Nobody is going to buy anything, they are simply going to reflect on the recommendation they received. Always remember, sales is not the word. recommending is. Your goal is making them believe your helping them, not pressuring them. But don't be to passive. Some aggression is needed to succeed.
2) Start the pitch with a larger value products and if we can't close the big sale, follow up with a smaller product.
3) Get into the habit of not using the word 'hundred' when giving a customer a price. Hundred has a 'large amount' connotation to it. Rather than saying 'one hundred and nineteen dollars and 50 cents.'
Use: It's ONLY one-nineteen fifty for the year.' And follow up with features, functions and benefits of multi-year/unit purchasing.
4) Set your sights and expectations high! Imagine yourself where you want to be at the end of the day and that's where you be!
5) ALWAYS break down price to the smallest metrics. Example: Describe a product as $9.96/month initially, rather than whatever the yearly rate would calculate out to.
6) Handling resistance is the key to successful sales. ALWAYS handle resistance on multiple terms and initial sales pitches. If everyone always took NO for an answer then no one would be meeting their goals. You'd be surprised how many customers change their minds after they here the benefits of a product.
7) A sale is happening on every call. Either a customer is selling you on a reason not to buy, or you're selling them on the reasons why they should be buying.
8) Stay away from words/terms such as MORE, EXPENSIVE or COST when relaying the price of a product to the customer. Always precede a price by the word ONLY, even if it's a price like $4,454.90.
9) Using a customer's name throughout a sales pitch can help build rapport and create a more positive experience. Although it may seem simple, you'd be surprised how it can change the tone of a conversion. EXAMPLE: 'Jim, do you know how much are you paying for this service with [company name]
10) Every customer has dynamic needs so we must make our pitches dynamic. Stay away from 'canned' or repetitious pitches. Imagine what your needs are in your everyday life. Let's say you play guitar and you just pick up a brand new one. You think it's the best guitar you've ever played and you tell your friends about how great it is. You're not trying to sell it to them, but the conversion itself is fluid and pushes the features, functions and benefits of the guitar. They in turn may end up buying it if the time comes.
Remember, you have to act like your not selling anything to the customer, but recommending to the client. You are simply there to help them find the right solution. Nobody is going to buy anything, they are simply going to reflect on the recommendation they received. Always remember, sales is not the word. recommending is. Your goal is making them believe your helping them, not pressuring them. But don't be to passive. Some aggression is needed to succeed.
четвъртък, 7 февруари 2008 г.
How To Improve Credit Score The Easy Way
With the plethora of consumers in debt these days, many are scrambling to find easy, quick ways how to improve credit score. Credit scores are very important in building a strong credit history that will vouch for you when you want to purchase a house, get a job, or rent a car just to name a few. If you want to clean up your credit score, it’s important to adhere to the following tips to get your credit score back on track. Remember, having credit is a responsibility that you will pay back the money you’ve charged, and if you don’t you can find yourself in serious debt.
First and foremost, it’s important to annually review your credit reports from each of the three major reporting agencies. This will allow you to catch and correct any mistakes you find regarding your credit score. It’s very important that you do this early, especially if you’re planning on applying for a loan because changes can take up to three months or more to finally be corrected. Secondly, you’ll want to ensure that you are consistently paying your bills on time, every time; in full if you can manage. These tips are essential to how to improve credit score.
You may wonder how to improve credit score if you have outstanding balances on your credit cards. Well, it’s always best to reduce your balances as quickly as possible in order to clean up your credit score and bring your balance to 25% or less of your total credit limit. These tips are absolutely imperative to follow if you want to improve your credit score. After following these tips for awhile, eventually you’ll be debt free and look more trustworthy when businesses or individuals view your credit score. Take the time to clean up your scores now for a debt free life later.
First and foremost, it’s important to annually review your credit reports from each of the three major reporting agencies. This will allow you to catch and correct any mistakes you find regarding your credit score. It’s very important that you do this early, especially if you’re planning on applying for a loan because changes can take up to three months or more to finally be corrected. Secondly, you’ll want to ensure that you are consistently paying your bills on time, every time; in full if you can manage. These tips are essential to how to improve credit score.
You may wonder how to improve credit score if you have outstanding balances on your credit cards. Well, it’s always best to reduce your balances as quickly as possible in order to clean up your credit score and bring your balance to 25% or less of your total credit limit. These tips are absolutely imperative to follow if you want to improve your credit score. After following these tips for awhile, eventually you’ll be debt free and look more trustworthy when businesses or individuals view your credit score. Take the time to clean up your scores now for a debt free life later.
Should you get an Amercian Express Credit Card?
Having a visa card is almost indispensable in today’s day and age. Why, since I obtained my American Express credit card, I have been able to partake of a wide variety of goods and services, and that is no joke. Without that America express credit card, I was unable to join the local gym, to order t-shirts off of the Internet, to reserve a plane ticket online – and that is just a few of the basics. It seemed like only a few years ago that cash was the preferred way to purchase things, but those days are now long gone now. All across the country and the world, people are using their Visa, Mastercard card, or American Express credit card to make purchases with money that they do not have for goods which they may not need. Although American Express credit cards are a really convenient way to make a purchase – get it now and worry about it tomorrow – it does come at a heavy cost. Credit card debt is mounting everywhere.
It is true that credit debt is one of the biggest problems that is facing America today, and it is no laughing matter. That is one of the main reasons why I had to cancel my American Express credit card in the first place. Once I had the power to purchase items without parting with my money immediately, I was almost unstoppable spending machine. I would charge everything and anything on my American Express credit card, and soon the costs would spiral out of control. I was dealing with a debt that I could not possibly pay for, and I was literally in a state of panic. I actually had to go through a debt refinancing service to get my credit card debt into some form of a manageable form where I could hope to pay it. The whole situation was a nightmare.
Now, thank goodness, I have gotten my debt paid off and canceled my American Express credit card. A lot of people would think that it is incorrect to blame it on the American Express credit card, but I think that they do not understand something about human psychology. When I had to pay with everything in cash, I would know just what I had at any given time. But like I said before, the American Express credit card made everything way too easy. I could spend money like water, and before I knew it, it was all gone. No American Express credit card, no problem.
It is true that credit debt is one of the biggest problems that is facing America today, and it is no laughing matter. That is one of the main reasons why I had to cancel my American Express credit card in the first place. Once I had the power to purchase items without parting with my money immediately, I was almost unstoppable spending machine. I would charge everything and anything on my American Express credit card, and soon the costs would spiral out of control. I was dealing with a debt that I could not possibly pay for, and I was literally in a state of panic. I actually had to go through a debt refinancing service to get my credit card debt into some form of a manageable form where I could hope to pay it. The whole situation was a nightmare.
Now, thank goodness, I have gotten my debt paid off and canceled my American Express credit card. A lot of people would think that it is incorrect to blame it on the American Express credit card, but I think that they do not understand something about human psychology. When I had to pay with everything in cash, I would know just what I had at any given time. But like I said before, the American Express credit card made everything way too easy. I could spend money like water, and before I knew it, it was all gone. No American Express credit card, no problem.
Maximum Return On Your Credit Cards
There has been an explosion of credit cards that specialize in certain benefits over the last five years; reward points, cash back, 0% transfers, credit monitoring, discount gasoline, money-market savings, etc. So how do you get the most return from your card, particularly when their plans change?
(Presuming you never, ever carry a credit card balance – interest charges and potential fees will more than consume any side benefit that a card can offer.)
In the old days, the big benefit was airline miles. Let’s see how well that works out. The average airfare for a ticket that was paid for with credit card airline miles is about $400. And the average program requires 25,000 to 35,000 miles to be credited a free ticket. Since miles are normally accrued dollar-for-dollar, the average benefit is between 1 to 1.5% of what you spend. More reference material for this article is available at http://investing.real-solution-center.com.
Now we are starting to have something to compare. If you get an offer for a 1% cash back credit card, you’d be slightly better off getting the airline miles. But in my opinion, the many cards offering up to 5% cash back are the best deal, as long the fine print lines up. First, there are normally limitations on the shops where the 5% applies. You want a card that applies the 5% to where you spend the most of your monthly income. The credit card industry calls these ‘everyday purchases’, such as groceries, drug stores, and gasoline, but exclude warehouse clubs. You should get a card with the widest number of retailers where you commonly spend money. Or, get a specific-store card for those large one-time purchases. For example, if you are buying new kitchen appliances from Sears, apply and use their card for the purchase and you normally get 10% off. You can cancel it later when it has a zero balance.
The next 5% cash back problem is an annual limit. Citi Dividend credit card limits your annual earning to only $300. If you have some big purchases, you may have spent $5,000 on your credit card in the first month, and you’ve hit your cash back limit already. So guess what, you are going to stop using that card and start using a different 5% cash back card until you’ve used up that limit as well. Use them up and move on. American Express currently has a card called Blue Cash for bigger spenders. It offers only 1% cash back until you spend $6,500, and then it pays 5% cash back until you’ve spent $50,000. But there aren’t nearly as many AmEx merchants as Visa/Mastercard merchants. (Again, AmEx and others may have exclusions like purchases at warehouse clubs). You can compare dozens of credit cards from directory websites like www.allstarcreditcards.com.
Getting the most from your card is like going into battle: you can have a great plan in the beginning, but once cardholders start exploiting loopholes and creating unintended consequences, the card companies change their policies, it goes back and forth continually. So read all the fine print before applying, and squeeze some extra money from your credit card purchases this year.
(Presuming you never, ever carry a credit card balance – interest charges and potential fees will more than consume any side benefit that a card can offer.)
In the old days, the big benefit was airline miles. Let’s see how well that works out. The average airfare for a ticket that was paid for with credit card airline miles is about $400. And the average program requires 25,000 to 35,000 miles to be credited a free ticket. Since miles are normally accrued dollar-for-dollar, the average benefit is between 1 to 1.5% of what you spend. More reference material for this article is available at http://investing.real-solution-center.com.
Now we are starting to have something to compare. If you get an offer for a 1% cash back credit card, you’d be slightly better off getting the airline miles. But in my opinion, the many cards offering up to 5% cash back are the best deal, as long the fine print lines up. First, there are normally limitations on the shops where the 5% applies. You want a card that applies the 5% to where you spend the most of your monthly income. The credit card industry calls these ‘everyday purchases’, such as groceries, drug stores, and gasoline, but exclude warehouse clubs. You should get a card with the widest number of retailers where you commonly spend money. Or, get a specific-store card for those large one-time purchases. For example, if you are buying new kitchen appliances from Sears, apply and use their card for the purchase and you normally get 10% off. You can cancel it later when it has a zero balance.
The next 5% cash back problem is an annual limit. Citi Dividend credit card limits your annual earning to only $300. If you have some big purchases, you may have spent $5,000 on your credit card in the first month, and you’ve hit your cash back limit already. So guess what, you are going to stop using that card and start using a different 5% cash back card until you’ve used up that limit as well. Use them up and move on. American Express currently has a card called Blue Cash for bigger spenders. It offers only 1% cash back until you spend $6,500, and then it pays 5% cash back until you’ve spent $50,000. But there aren’t nearly as many AmEx merchants as Visa/Mastercard merchants. (Again, AmEx and others may have exclusions like purchases at warehouse clubs). You can compare dozens of credit cards from directory websites like www.allstarcreditcards.com.
Getting the most from your card is like going into battle: you can have a great plan in the beginning, but once cardholders start exploiting loopholes and creating unintended consequences, the card companies change their policies, it goes back and forth continually. So read all the fine print before applying, and squeeze some extra money from your credit card purchases this year.
Five Steps to Planning a Successful Business Exit
A business owner’s exit is a once-in-a-lifetime transformation. We’re not talking about selling a house or a car. This is a complex process that requires the technical expertise of a team of trusted advisors. The key to any successful business exit is planning. It must begin with personal reflection on the part of the owner regarding what he or she wants out of the business exit. Only then can the owner, along with his advisors, design an appropriate exit strategy. The five (5) planning steps outlined in this article are designed to help business owners define their personal goals, understand all the transfer options and work with an advisory team to execute a successful business exit plan.
Step 1: Define the Personal Goals of the Owner
Since personal goals intertwine so closely with the daily existence of a private business owner, it only makes sense to begin with the basic albeit crucial question, “What do I want to accomplish with my business exit?” The answer seems obvious--make the most money after taxes and fees. Often, however, it isn’t this simple. Owners have nourished and raised their businesses from infancy; they typically care a lot about who will take the reigns. Family members might also be involved in the business. Their fate will also be dependent upon what the business owner ultimately decides.
Aside from money, other motives for a business exit can include “transfers to family”, “transfers to employees”, “transfers to co-owners”, “partial transfers to gain some liquidity today but still run the company’s day-to-day business”, or “an initial public offering”. The decision often comes down to a question of liquidity. A substantial source of liquidity outside the business makes for a much easier choice.
However, more often than not an owner’s wealth is tied up in the business. The owner must therefore balance his financial and interpersonal goals in order to find the best possible exit strategy. Therefore, an assessment of the range of values for the business is the crucial next step.
Step 2: Understand that a Range of Values Exist for the Business
The value of a privately-held business depends largely upon who buys it. It’s not as simple as watching the ticker tape for today’s stock price. The type of buyer can impact both the price placed on the shares (or assets) of the business and the tax consequences to the selling owner. Value (net transfer price) is therefore a “range concept”.
“Internal” transfers to employees, family, and co-owners provide fewer dollars up front, but allow for greater “control” of the business, “continued income”, and flexible timing and tax characterization of payments to the exiting business owner. By contrast, “External” transfers to other industry players, financial groups, or by initial public offering command more liquidity “up front” while the owner relinquishes more control over the Company and the timing and tax characterization of payments. A closer examination of the transfer options can help an exiting business owner determine the right balance of money and control over the future of the business.
Step 3: Examine the Options Available for the Transfer of Shares
There are seven (7) primary purchasers of privately-held business stock (or assets). Below are listed the Parties to the Transaction and Types of Transactions Available (samples; not a complete list)
Internal Parties:
Employees - Employee Stock Ownership Plan (ESOP)
Charity - Charitable Remainder Trust
Family - Gifting Program
Co-owners - Leveraged Buyout
External Parties:
Financial Groups - Recapitalization
Industry Buyers - Acquisition (at Synergy Value)
Initial Public Offerings - IPO (at Public Market Value)
Based on the primary goals defined in step one (1), an exiting business owner chooses the “party” to whom the business will be transferred. That designee, once chosen, will determine the limits or expansion of the Value. At the end of this phase, the process comes full circle as the Value (after taxes and fees) is matched against the owner’s goals. If the two meet as one, congratulations! A successful business exit strategy has been devised. Now it’s time to execute.
Step 4: Provide Full Financial Disclosure to the Buyer
This step isn’t going to be easy on the business owner. Assembling financial records and presenting them to a buyer/successor is a very time consuming, very personal survey of how the business is run. It can be huge psychological block for many exiting owners. Remember, any savvy buyer (or successor) to a business will need to understand the financial condition of the Company. When an owner fesses up to any “creative accounting” they may have employed over the years to help build wealth and reduce tax bills, the process goes smoother. Full disclosure is the best path to a seamless process. There is an old saying - “if the truth will kill a deal, then there is no deal”.
Not only that, but it may reward the owner in the end. Full disclosure is not about passing judgment, but instead affords the buyer (or successor) an opportunity to assess the business’s true profit potential. The astute exiting business owner will recognize this in advance. Why? Because most “creative accounting” practices depress the profitability of a business. Clear those away and the Buyer will recognize a higher earning power and in turn a higher Value for the Company.
Step 5: Assembling the Advisory Team – No One Should Go It Alone
Planning and executing a successful business exit strategy is a complex process that requires the technical expertise of a team of trusted advisors. It’s not the time to take short cuts or pinch pennies. Time and money should be invested in assembling the right team of advisors; a successful business exit is more than worth it. It should be viewed as an investment in success.
We must understand that business owners are independent “self-starters”. If they weren’t, their businesses wouldn’t be so successful and we wouldn’t be talking to them. But some of their strengths and characteristics can lead many business owners to attempt the “do-it-yourself” business exit strategy. This can create an unnecessary drain of time and money on both the business owner and their business.
A business owner’s exit is a once-in-a-lifetime transformation. It is an important milestone that is sure to provide any business owner with one of the most challenging yet satisfying sense of accomplishments.
So remember, planning is the key to any successful business exit because a proactive approach to an Exit Strategy is the only approach to a successful Exit Strategy. If you’ve come to the end of this discussion, you’re already ahead of the game.
© John M. Leonetti
Step 1: Define the Personal Goals of the Owner
Since personal goals intertwine so closely with the daily existence of a private business owner, it only makes sense to begin with the basic albeit crucial question, “What do I want to accomplish with my business exit?” The answer seems obvious--make the most money after taxes and fees. Often, however, it isn’t this simple. Owners have nourished and raised their businesses from infancy; they typically care a lot about who will take the reigns. Family members might also be involved in the business. Their fate will also be dependent upon what the business owner ultimately decides.
Aside from money, other motives for a business exit can include “transfers to family”, “transfers to employees”, “transfers to co-owners”, “partial transfers to gain some liquidity today but still run the company’s day-to-day business”, or “an initial public offering”. The decision often comes down to a question of liquidity. A substantial source of liquidity outside the business makes for a much easier choice.
However, more often than not an owner’s wealth is tied up in the business. The owner must therefore balance his financial and interpersonal goals in order to find the best possible exit strategy. Therefore, an assessment of the range of values for the business is the crucial next step.
Step 2: Understand that a Range of Values Exist for the Business
The value of a privately-held business depends largely upon who buys it. It’s not as simple as watching the ticker tape for today’s stock price. The type of buyer can impact both the price placed on the shares (or assets) of the business and the tax consequences to the selling owner. Value (net transfer price) is therefore a “range concept”.
“Internal” transfers to employees, family, and co-owners provide fewer dollars up front, but allow for greater “control” of the business, “continued income”, and flexible timing and tax characterization of payments to the exiting business owner. By contrast, “External” transfers to other industry players, financial groups, or by initial public offering command more liquidity “up front” while the owner relinquishes more control over the Company and the timing and tax characterization of payments. A closer examination of the transfer options can help an exiting business owner determine the right balance of money and control over the future of the business.
Step 3: Examine the Options Available for the Transfer of Shares
There are seven (7) primary purchasers of privately-held business stock (or assets). Below are listed the Parties to the Transaction and Types of Transactions Available (samples; not a complete list)
Internal Parties:
Employees - Employee Stock Ownership Plan (ESOP)
Charity - Charitable Remainder Trust
Family - Gifting Program
Co-owners - Leveraged Buyout
External Parties:
Financial Groups - Recapitalization
Industry Buyers - Acquisition (at Synergy Value)
Initial Public Offerings - IPO (at Public Market Value)
Based on the primary goals defined in step one (1), an exiting business owner chooses the “party” to whom the business will be transferred. That designee, once chosen, will determine the limits or expansion of the Value. At the end of this phase, the process comes full circle as the Value (after taxes and fees) is matched against the owner’s goals. If the two meet as one, congratulations! A successful business exit strategy has been devised. Now it’s time to execute.
Step 4: Provide Full Financial Disclosure to the Buyer
This step isn’t going to be easy on the business owner. Assembling financial records and presenting them to a buyer/successor is a very time consuming, very personal survey of how the business is run. It can be huge psychological block for many exiting owners. Remember, any savvy buyer (or successor) to a business will need to understand the financial condition of the Company. When an owner fesses up to any “creative accounting” they may have employed over the years to help build wealth and reduce tax bills, the process goes smoother. Full disclosure is the best path to a seamless process. There is an old saying - “if the truth will kill a deal, then there is no deal”.
Not only that, but it may reward the owner in the end. Full disclosure is not about passing judgment, but instead affords the buyer (or successor) an opportunity to assess the business’s true profit potential. The astute exiting business owner will recognize this in advance. Why? Because most “creative accounting” practices depress the profitability of a business. Clear those away and the Buyer will recognize a higher earning power and in turn a higher Value for the Company.
Step 5: Assembling the Advisory Team – No One Should Go It Alone
Planning and executing a successful business exit strategy is a complex process that requires the technical expertise of a team of trusted advisors. It’s not the time to take short cuts or pinch pennies. Time and money should be invested in assembling the right team of advisors; a successful business exit is more than worth it. It should be viewed as an investment in success.
We must understand that business owners are independent “self-starters”. If they weren’t, their businesses wouldn’t be so successful and we wouldn’t be talking to them. But some of their strengths and characteristics can lead many business owners to attempt the “do-it-yourself” business exit strategy. This can create an unnecessary drain of time and money on both the business owner and their business.
A business owner’s exit is a once-in-a-lifetime transformation. It is an important milestone that is sure to provide any business owner with one of the most challenging yet satisfying sense of accomplishments.
So remember, planning is the key to any successful business exit because a proactive approach to an Exit Strategy is the only approach to a successful Exit Strategy. If you’ve come to the end of this discussion, you’re already ahead of the game.
© John M. Leonetti
The Cost of Forex Trading
The forex trade is going to be the buzzword for the future and it holds enormous opportunities for the investors in the forex trade. In the earlier days of the forex market the requirement of the capital for the investment was quite big most of the times running into millions of dollars. The size of the investment kept the common investor out of the forex market for quite long. After the internet boom forex market also went through lot of changes and the requirement of the minimum investment to participate in the forex trade dropped considerably, making it a feasible area for the small investors. At present the scenario is as such that, if you want to work at home with a great earning potential you should seriously think about learning the ins and outs of forex trading, one of the most profitable activities anyone can enter into due to its generous characteristics that set it apart from other capital markets at the present time.
Forex markets are very active markets in nature which are open 24-hrs a day except the weekends. It’s a global market so you can trade from any where in the world round the clock and you will always find profitable trades that will make your earnings grow in a stable manner. You have the US market then the European and then the Asian forex markets. Each one of them appears on the forex trade zone one after another. One of the great times to trade is during the over lapping periods. The USA and European forex markets overlap between 5am and 9am EST and the European and Asian forex markets between 11pm and 1am EST. The overlap periods are usually the busiest and best time to trade in the forex market. After the opening up of the forex market for the small investors you can open a forex trading account with a forex broker for as low as $300.
In order to be successful in forex trading you need to learn the tricks of the trade. Forex trading is a very complicated and speculative market and for better understanding you need to have a good knowledge of how markets behave and what influences this behavior to be able to use it in your favor to earn handsomely. The worst thing you can do is to enter the world of forex trading without proper knowledge and this can cost you a lot of money in bad trades. In the worst case scenario you could lose what’s in you account. But you would have to do something really stupid for that also. To help you out from the difficult scenarios lots and lots of expert advice is available on the net. To prepare you to cope up with the actual trading scenario many sites are there on the net that provide you with the demo or the free practice account. By using these accounts you can really prepare yourself to earn some profits in the real forex markets.
There are many factors that contribute to the price fluctuation in the currencies and if you are vigilant enough you would be able to sail over the problem period quite nicely and would be able to log in a nice amount of profit. The forex trade is getting popular among the small investors due to the requirement of very small capital and barring the risk factors of the market, the ability of the forex market to provide ample scope of earning sizeable profit by the investors. There is no need to be afraid of the forex market, only thing required is the proper knowledge about the forex market.
Forex markets are very active markets in nature which are open 24-hrs a day except the weekends. It’s a global market so you can trade from any where in the world round the clock and you will always find profitable trades that will make your earnings grow in a stable manner. You have the US market then the European and then the Asian forex markets. Each one of them appears on the forex trade zone one after another. One of the great times to trade is during the over lapping periods. The USA and European forex markets overlap between 5am and 9am EST and the European and Asian forex markets between 11pm and 1am EST. The overlap periods are usually the busiest and best time to trade in the forex market. After the opening up of the forex market for the small investors you can open a forex trading account with a forex broker for as low as $300.
In order to be successful in forex trading you need to learn the tricks of the trade. Forex trading is a very complicated and speculative market and for better understanding you need to have a good knowledge of how markets behave and what influences this behavior to be able to use it in your favor to earn handsomely. The worst thing you can do is to enter the world of forex trading without proper knowledge and this can cost you a lot of money in bad trades. In the worst case scenario you could lose what’s in you account. But you would have to do something really stupid for that also. To help you out from the difficult scenarios lots and lots of expert advice is available on the net. To prepare you to cope up with the actual trading scenario many sites are there on the net that provide you with the demo or the free practice account. By using these accounts you can really prepare yourself to earn some profits in the real forex markets.
There are many factors that contribute to the price fluctuation in the currencies and if you are vigilant enough you would be able to sail over the problem period quite nicely and would be able to log in a nice amount of profit. The forex trade is getting popular among the small investors due to the requirement of very small capital and barring the risk factors of the market, the ability of the forex market to provide ample scope of earning sizeable profit by the investors. There is no need to be afraid of the forex market, only thing required is the proper knowledge about the forex market.
Credit Card Games for Children
Present-day children are much different from the children we once were. They have different values and ideals and play different games. They are growing up in the times of cell phones and Internet, reality shows and computers. Most of them learn how to use a computer before they learn how to read. They are good at using all kinds of devices and equipment and they play high tech games. They also enjoy playing business games.
Money games have long been popular among children as well as adults. You can hardly find an American who hasn’t played monopoly. This board game is extremely interesting. It first appeared on the market in 1935. Since that time it has been upgraded several times. Today it is a number one financial game.
By playing monopoly children learn how to plan and manage their finances. They are real businessman and woman, purchasing goods, real estate and factories. And all the purchases have usually been made with fake dollars. But the latest edition of Monopoly has a unique feature. Now you can use plastic instead of cash! No doubt this was truly a brilliant idea. Who can believe in a businessman or woman without a credit card?
And this is not the only example of credit cards entering a child’s world. Little girls can help their cute little Barbie to make a purchase with her tiny credit card. Of course, these young ladies do not learn anything about credit card fees, rates and credit limits. Who can set a limit to a child’s imagination? With a pink credit card in her hand Barbie buys cute outfits, nice cars and even houses.
Children need to learn how to manage their money. Games is the way children prepare for their adult life. It is the responsibility of their parents to guide them. Fake credit cards can be used for starting your kids’ credit card education. Of course, a 6-year-old will not understand what a balance transfer is but it is not a bad idea to explain the child that nothing comes for free and even if he or she buys something with a credit card the time will come to pay for it.
Parents should especially pay attention to teenagers. They are old enough to understand the basics of credit card management. This idea is fully understood by Bank of America. Together with Hello Kitty brand it issues special credit cards for kids. Parents apply for the card and teach children how to use plastic. Another card for children is Visa Buxx Card. Parents can put money on the accounts and monitor how children spend it. Right now a new credit card ‘for boys’ is being developed.
Money games have long been popular among children as well as adults. You can hardly find an American who hasn’t played monopoly. This board game is extremely interesting. It first appeared on the market in 1935. Since that time it has been upgraded several times. Today it is a number one financial game.
By playing monopoly children learn how to plan and manage their finances. They are real businessman and woman, purchasing goods, real estate and factories. And all the purchases have usually been made with fake dollars. But the latest edition of Monopoly has a unique feature. Now you can use plastic instead of cash! No doubt this was truly a brilliant idea. Who can believe in a businessman or woman without a credit card?
And this is not the only example of credit cards entering a child’s world. Little girls can help their cute little Barbie to make a purchase with her tiny credit card. Of course, these young ladies do not learn anything about credit card fees, rates and credit limits. Who can set a limit to a child’s imagination? With a pink credit card in her hand Barbie buys cute outfits, nice cars and even houses.
Children need to learn how to manage their money. Games is the way children prepare for their adult life. It is the responsibility of their parents to guide them. Fake credit cards can be used for starting your kids’ credit card education. Of course, a 6-year-old will not understand what a balance transfer is but it is not a bad idea to explain the child that nothing comes for free and even if he or she buys something with a credit card the time will come to pay for it.
Parents should especially pay attention to teenagers. They are old enough to understand the basics of credit card management. This idea is fully understood by Bank of America. Together with Hello Kitty brand it issues special credit cards for kids. Parents apply for the card and teach children how to use plastic. Another card for children is Visa Buxx Card. Parents can put money on the accounts and monitor how children spend it. Right now a new credit card ‘for boys’ is being developed.
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