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.

Business, Finance

Should I Sell My House or Rent It Out? Pros and Cons of Selling or Renting Out Your House

Changes in life are inevitable, but it can be a very difficult decision when you have to choose between selling your house or renting it out. There are a lot of factors homeowners need to keep in mind when they have to decide between the two. House rental can be very advantageous but it could also mean the opposite if one hasn’t thought it out properly.

The same goes for selling a house. It can be tough when deciding what to do with your property, you have to know the advantages and disadvantages of doing both so you can better realize which option outweighs the other. To answer your question of “should I sell my house or rent it out,” here are pros and cons of selling or renting out your house.

Pros When You Rent out Your House

Pros when you rent out your house

One of the pros when you rent out your house is the steady flow of money you may receive from your tenant. Renting out your house may mean potential financial security because of the should-be regular pay of your tenant. This can also mean that your house may improve in features because of a tenant’s lifestyle or preference. This improves the value of your house should the time come that your tenant will be relocating. Your house is an investment when you rent it out. Ultimately, one of the many pros when you rent out your house is letting your investment do the work for you. You won’t have to do much. You just wait until it’s time for the tenant to again pay his/her rental fee.

Cons when you rent out your house

Of course, renting out your house can never be all just fun and games. There can also be many cons when you rent out your house. For one, your house can actually have damages because of your tenant. This can mean a trouble in finance. You can be faced with expensive charges when repairing the property. One of the many cons when you rent out your house is also personal issues that a tenant may have, preventing him/her to pay his/her dues. Another is it takes a lot to be a landlord or a landlady. You have to prepare an extra budget for damages and when a tenant can’t pay his/her fees.

Pros and cons when you sell your house

There are also many pros and cons when you sell your house. When you sell your house, you instantly earn a big amount of money that can make your life instantly more comfortable. You could also use the money you acquired when selling your house to buy a new property as another investment. However, this means you, of course, lose the ownership of the home or homes that you sold.

Selling your house could mean selling it a value lower than what the market offers it for. There are many competitors in the market, and investors usually offer a price lower than of the market. Even at a house’s peak condition, it can be unlikely for an investor to pay a market value of the house. Be wary and make sure to know both pros and cons when you sell your house. If you want to learn more about the benefits and downsides of selling your home, Renting vs. Selling: Which One is Better? has all the info you need.

Cons when you rent out your house

Should I sell my house or rent it out?

If you have what it takes to be a landlord or landlady in terms of finances and other areas, and if it is more advantageous for you to rent out your house, then, by all means, have your house rented out. Otherwise, and if you gain more money by not keeping your property, selling could be the better option. With the question, “Should I sell my house or rent it out?”, we hope we helped you in determining the better option for you by showing you the pros and cons of doing both renting out or selling your home.

Business, Finance

How to Repair Credit Score and Rating: A Guide

Do you accurately know your credit score and rating?

You should because these are an indication of your financial health and status. Just like everyone else, you too should make the time to review and manage your credit score and rating so that you know where you stand financially and how your borrowing future will be.

why you should repair bad credit score

Why You Should Repair Bad Credit Score

If you find that you have bad credit in need of fixing, then you should immediately find ways and take the crucial steps on how to repair credit the soonest which you can and which time will allow for you to depending on how critical your bad credit is.

While you can live with poor credit and still survive, it will certainly be tougher than if you have better credit rating. Poor credit can damage your borrowing future in that it will directly affect your chances at getting good deals in loans and interest rates. It will make borrowing money much more difficult and expensive, if not near impossible.

This is essentially the reason why you should repair bad credit score.

Fix Your Credit Score Without Hiring the Professional Services of a Credit Repair Company

Perhaps you have seen advertisements of DIY credit repair techniques and methods on the papers and across the internet popping up as you are browsing through different websites.

You can try and fix your credit score by yourself. Attempting at how to repair credit all on your own would not hurt. After all, there is truly no credit repair technique or method which any credit repair services company can do to improve your credit which you cannot do on your own.

In fact, there is not much use hiring the professional services of a credit repair company to fix your credit score and make it better than it currently is.

So save yourself the time, efforts and money because you yourself can find ways and take crucial steps on how to repair credit.

Read on and find out how to repair credit score and rating.

What You Can Do Today on How to Repair Credit Score and Rating

Review Your Credit Report.

Checking your credit report is a necessary initial step on how to repair credit score and rating.

It will contain credit history, and every other data and information that will be used to identify and determine your current credit score and rating.

While credit reports are generally accurate and well-calculated, be sure to not take chances and ensure that there are no errors on your report. Otherwise, you should come forward and dispute the mistakes with the credit bureau.

An example of this mistake can be an uncredited or unlisted previously made payment for an amount which you owed.

fix your credit score

Start Developing and Practicing Good Financial Habits.

First off, you should learn to live within your means, to lay aside for future emergencies, and to earn savings for future investments. Once you start developing, practicing and keeping these simple habits to enhance your financial health, you will notice the positive changes in the financial aspect of your life and lifestyle.

Good financial habits can help you catch up with delayed payments much faster than you realize you can. In addition, owing to these good changes in financial habits, you will finally be able to pay bills on time from here on.

You can now rebuild and fix your credit score and create an improved payment pattern and history on your credit report.

Use a Secured Credit Card.

Another way to fix your credit score is to use a secured credit card which requires you to keep money in a linked savings bank account as a collateral. In this way, you can continue using a credit card although not the usual, regular card without the collateral. The reason why this is important is because continuous use of credit card can largely contribute to fix your credit score. In fact, when rebuilding credit, it is not advised for you to close any credit card accounts.

Ultimately, patience, discipline and great regard for your financial future are key on how to repair credit. So keep these values in mind and use them in your next steps and plans as you carry on rebuilding your credit status.

Business, Finance

Some Facts About A Financial Adviser

Managing your finances can be challenging given that there are a lot of instances where you will be tempted to buy something you don’t need. Often, we mismanage our funds thinking that we have enough savings to cover our monthly expenses but in the end, we deplete our personal savings and our emergency funds, and this is considered a big sin towards your financial security.

With this in mind, a financial adviser can help you manage your money in such a way that it will be appropriated in investment to make sure that you will fail proof your future. Knowing what a financial adviser is, how much financial advisors charge, and how to find a good financial advisor is a crucial step which can help you start planning your finances and improve your credit score.

where to hire the right financial adviser for your company

What Is A Financial Adviser?

Knowing what a financial adviser is can help you go to the right professional to help your make plans for your goals. By definition, a financial adviser is a person or entity who renders services for clients to secure their finances on investments such as insurance and other consumer goods.

Financial advisers do so while making sure that their advice is still following the laws surrounding your area with regards to investing and money management. A financial adviser may be working for a company, or he or she may also be independent of an enterprise, depending on his or her reputation and stability as a financial adviser.

How To Find A Good Financial Advisor

In choosing the best planner of this industry, you must consider several characteristics that mark a good financial advisor. As you choose a financial adviser, you must look for the following traits and achievements:

1. Education – a financial adviser, must hold at least one license which makes him a reputable professional in his or her industry. A financial consultant may hold several licenses and may cover several aspects of your needs.
2. Career Profiles – a financial adviser who can provide premium services is marked by a good career track which is occasionally seasoned with career milestones. You can learn how these planners fare in the market by looking at customer reviews.

These are only two of the essential traits you must look for in a sound financial advisor. With this in mind, you might be wondering,”how much do financial advisors charge?” given that the best ones have a good track record in the industry.

These traits must be present in your prospect financial advisor. There are several entities such as Life’s Great | UK’s 1st Online Financial Adviser who embodies these traits and it is imperative that you choose the best one there is.

how much should a professional financial adviser charge for their money management service

How Much Do Financial Advisors Charge?

A financial adviser charges people according to the services that they availed. A financial adviser usually renders service which suits a client’s needs for guaranteed satisfaction. Service, coupled with the financial advisor’s professional record can be the primary determinants of how much he or she is going to charge you with.

Advisors usually charge by the hour for consultancy services, while some who manage finances charge their clients for these services per year. Some may cost 5,500 – 5,000 US Dollars per year for their services, and some may charge 12 US dollars per hour for consultation.

With the mentioned things above, you can now manage your money better with the help of financial advisors. In looking for a reputable advisor, you must consider several traits which mark a good professional who can render the best service to suit your needs. Ultimately, paying for an advisor is an investment itself, as in the long run, you can secure yourself against insolvencies.

Business, Finance

Options For Funding For Small Business

Nowadays, the economic conditions have made it very suitable for investment and increase cash flow all over the country. This resulted from the stabilization of the market, after the previous economic recession which made more people make better decisions in handling their finances.

Given the current market conditions, a lot of people are now willing to take the risk in investing in startups but sometimes personal funding for small business may be insufficient, which is why many people resort to looking at small business financing options.

startup business gets loan from specific lenders

Loans: The Common Source Of Funding For Small Business

As they say, we have to strike while the iron is hot and sometimes, our funds may be insufficient for our businesses, which is why we resort to looking for other funding for small business.

There are several ways to fund your venture’s capital to successfully launch your brand to the consumer market and commonly, this is through a small business loan. Getting a business loan may be challenging but a lender grants loans if the borrower is able to meet the requirements and has fulfilled the necessary steps to qualify for the grants. In order to apply successfully, a borrower must:

1. State the reason for borrowing money. You need to justify to the lender why you need money for startup business and why they should grant you your much-needed finance and make sure it is fundable.

2. Select the loan which will fit your needs. There are many loans which can help an entrepreneur maximize the potential of their business as long as they have the right funding and loan schemes for their capital.

3. Gather a list of lending companies and compare the cash advances they grant, their payment schemes and their interest rates. Normally, these lending agencies must be able to fund businesses in accordance with state and federal regulations.

4. Check and gather their requirements and fill out necessary application forms when you apply. Contracting should be understandable and official. Read the fine prints.

5. Make sure that you have a good credit history to increase approval chances.

Other Funding Options

Aside from loans, there are other ways to fund a small business. These funding sources for small businesses come in different forms but they sure are working! Other sources for startup money include:

1. Investors and Venture Capitalists – there are many investors who invest in start-up ventures early on and there are also capitalists who give money to high-risk businesses with maximum potential for growth.

2. Invoice Advances – this option has a similar structure with payday loans, it’s just that instead of paying the creditor with your salary on your payday, you pay them with the money that your customer or client owes you.

3. Crowdfunding – this involves gathering potential investors (usually by a third party, such as a website)for your startup, online.

4. Grants – there are some start-ups which may deem advantageous to the community (such as community-based businesses)and in consequence, government agencies may provide grants for the business proponent (similar with how research grants are processed).

where to get money to fund your small business

Many aspiring entrepreneurs are now looking for opportunities to grow their finances by venturing into small businesses. Funding for small business may be challenging, but it is possible if you just know how and where to look.

There are several ways to fund your small business (especially when your capital are insufficient)but the most common one is through loans. There are several steps that an aspiring entrepreneur must do to ensure loan application approval but in any case when loan credit is not an option, there are other ways to fund your business capital. Just select which funding sources will work for you best and get ready to act fast.