Be A Smart Business Credit Card Applicant
Even as the world economy feels the crunch lately, credit card companies are still clamouring for business as income from credit cards are probably one of the highest earners. The marketing becomes more aggresive and more perks are thrown in so that people would be more prepared to apply for one. Whilst personal credit cards are the norm, credit card companies have also taken the road to capture the business credit card sector. With such a lucrative market available, it is not surprising if the credit card agent tells you that he will come over to your office at your convenience so that you can fill up the business credit card applications. Even so, businessmen should take their time to source out the right type of card to use depending on the needs of the company. Some of the more common types of rewards programmes and features offered are as follows:-
Rewards Points and/or Miles Rewards
The rewards points incentive or travel miles reward programmes are probably in existent in almost all business credit card packages. With an eye to motivate the business man to spend more, points or miles are given for the amount spent on the credit card. The points are then redeemable against a catalogue of gifts or travel deals. If you know that your business requires you to spend considerably, then choose the rewards programme which gives you the best value for the points earned.
Cash Back
With cash back cards, the businessman is offered a percentage of each purchase back in cash. However, it is unlikely that you can actually withdraw cash earned back. Rather, the cash earned is used to offset selected purchases or used as rebates. Do note however that the interest rates on these cash back cards can be higher than ordinary cards and some may come with an annual fee. It is always advised that you read the fine print to determine the percentage for the cash back rewards before you decide whether it is worthwhile to submit that business credit card application. Read more
Fixed, Adjustable, Convertible, Balloon: Know the Differences Before You Apply
A mortgage allows you to achieve your dream of becoming a homeowner; but not knowing the difference between a fixed rate mortgage and an adjustable rate mortgage can get you into a lot of trouble – possibly even leading to foreclosure. There are principly 4 different types of mortgages which you should know about. A little bit of legwork now, can save you a lot of grief down the road, so take a minute to familiarize yourself with the terms below:
The Four Major Types of Mortgages
Fixed-Rate Mortgage – The most common type of mortgage. A fixed-rate mortgage allows you to lock into one rate for the entire life of your loan. The biggest advantage is that you will know exactly what you will pay every month of every year, for the next 15 to 30 years. If you like to organize your finances and know what your bills will amount to each month, this is the mortgage for you.
Adjustable-Rate Mortgage (ARM) – ARMs begin with an initial interest rate, which usually lasts 5 to 10 years, which then begins to adjusts even so often, depending on what the current market rates are. This will happen throughout the remainder of the loan. Take a 5/1 ARM as an example – For 5 years you will be locked into your initial rate then, once those 5 years have expired, your rate will adjust annually.
Convertible Mortgage – This special type of mortgage brings together the advantages of a fixed-rate mortgage and an adjustable-rate mortgage. It allows you to start with an ARM and then convert it to a fixed-rate mortgage to lock down your current rate for the life of the loan. This is nice because if your rate adjusts to a lower rate than you started with, you can lock down that rate for good. The catch is that you are only able to convert your mortgage for a limited time. If you miss it, you are stuck with an ARM.
Balloon Mortgage – This mortgage will benefit borrowers who cannot afford the full payments of a fixed-rate mortgage. A balloon mortgage allows you to pay a lower monthly payment for 10 to 15 years, but the balance of the mortgage will become due at that time. So, if you take out a $250,000 mortgage and pay $150,000 over 15 years, you will be expected to give the lender a payment of $100,000 at the end of that period.