Blog, Business, Finance, Loans

Choosing a Credit Card Wisely: 6 Important Pointers to Remember

Credit cards provide so much convenience—only if they are used properly. Choosing the wrong credit card can also lead to major financial disasters. The following are several pointers to keep in mind when choosing a credit card:

1. Figure out your financial needs.

List down all your goals in using a credit card. In doing so, you will remain focused on your real purpose for owning a credit card rather than being tempted by attractive features and deals that you do not need.

2. Avoid choosing a credit card randomly.

No two credit cards are alike—one of them may be better than the other. Do not settle for a credit card offered by the first company that approaches you. It is rather unwise to apply for a credit card without doing any research on it. Look for information online, read customer reviews, and ask for recommendations.

3. Determine the interest rate.

Make sure that your card does not charge a very high interest rate. Paying high interests every month is nothing but a burden to a credit card owner.

4. Choose a credit card with a low APR (annual percentage rate).

The APR is the interest accumulated every year for purchases charged to your credit card. If you intend to use your credit card for expensive items and pay them off in an extended period, then it is wise to choose a card that offers low APR.

5. Choose a credit card with a low annual fee.

Low annual fees are ideal if you plan to use your card only for emergencies and pay the full balance every month. Some credit cards even waive the annual fee in the first year.

6. Read the terms and conditions.

Look for any hidden charge or extra fee for penalties. You may end up paying more than you should if you are not aware of the conditions set by the credit card provider.

The last thing you need is a credit card that charges an amount that’s higher than you can afford. This makes choosing a credit card a must for everyone.

Blog, Business, Finance, Loans

How to Prepare Your Real Estate Analysis: 4 Helpful Reports for Investors

A wise investor knows the importance of numbers in the real estate business. He is well aware that numbers are used not just for counting the money earned from his investments—they are also for measuring an income property’s financial performance. How is it done? Investors use various reports and financial measures.

Annual Property Operating Data

The Annual Property Operating Data (APOD) is the most commonly used report in real estate investing. APOD is popular because it can provide a real estate analyst with a quick assessment of a property’s financial performance in the first year of ownership. It also serves as the annual income and expense statement of a real estate investor.

Proforma Income Statement

Many real estate analysts also rely on a Proforma Income Statement, which is a useful method to evaluate a property’s long-term cash flow and future performance. The proforma’s projection spans a period of 10 to 20 years.

Rent Roll

Because a property’s source of income is critical to good investment decisions, real estate analysts use the Rent Roll. This document contains a list of presently occupied and vacant units.

Rates of Return

Real estate investors also use rates of return to analyze a property’s performance. An example is the capitalization rate or cap rate that provides a quick look at a property’s value and net operating income. Another measure of a property’s performance is cash-on-cash return, which measures the ratio between a property’s projected first-year cash flow to the amount of investment needed to buy the property.

Do not be overwhelmed by the many reports that have to be examined to be able to come up with a real estate analysis. Just take your time in doing a thorough analysis. And if you do it properly, you will determine if a property is a good investment. Thus, you’re able to guarantee success.

Blog, Business, Finance

Business Cycle Graph: A Useful Business and Economic Tool for Your Investing Needs

To know whether a country or a business should prepare for tough times ahead, economists and business analysts look at business cycles to explain how a business or an economy is doing. It has to be done because economic activities do not move at a constant and consistent pace.

What is a business cycle?

The business cycle is the irregular up and down movements of economic activity over several years. There are times when the economy moves slowly, while sometimes it grows at a faster rate than its average rate of growth. It consists of four basic phases: contraction, trough, expansion, and peak.

4 business cycle phases

  1. Contraction

A slow-paced economic activity, a company is in a contraction phase if it has greater liabilities than sales. If a country’s economy is in a contraction period, then it is in recession.

  1. Trough

This phase shows a lower turning point. This is a transition stage from the contraction phase to the expansion phase.

  1. Expansion

The expansion phase indicates a faster movement of an economic activity. In a business cycle graph, the expansion phase shows a rise in the economic pace.

  1. Peak

The peak phase is the final level of an economic activity. It is the highest point of economic growth.


What does a business cycle graph do?

Business cycle graphs show details on the present conditions of a company or a country’s economy. The rising and falling movements of the bars, lines, and other graph tools represent whether a business or an economy is growing and moving on its way to success or if it is going through rough times.

Economists use these graphs to track the direction of the economy. Indicators include specific areas of economic interests such as a country’s Gross Domestic Product, Gross National Product, and consumer spending.

Although business cycle graphs show the history of business or economic performance according to the business cycle, they do not make any forecast on future economic activities. Economic conditions are always fluctuating, making it impossible to predict how the economy will perform in the future.