Monday, December 31, 2012

How to Use Credit Card For Your Online Purchase Without Compromising Safety

I have been using my credit card for a while now to purchase items online. Mostly we buy stuff that are cheaper in online stores like eBay, Amazon and online deals sites thru PayPal connected to our credit card. It was my mom who introduced this concept to me. We don't have worries regarding security of payments and transactions made.

However, some people can't be too sure. If you are also one who's not confident about using your credit card for your online purchases, let me tell about some precautions credit card companies have in place to make sure that payments are made smoothly and without problems.

Dangers of Using Credit Cards to Pay for Things Online?

First of all, let's tackle on the dangers such as scams associated with using credit cards online.

Gone are the days when people visit physical stores for shopping. Especially now that we're equipped with the Internet accessibility, we can shop for things that are not available in our country. We look out to online shops which offer delivery in international countries and those which allow online payments be made.

Many people now have succumbed to the idea of Internet shopping hence. To make sure that your details are within the right hands, follow these helpful tips below:

1. Log on to popular websites known for safety and trust.

Admittedly, there are many dubious sites found on the web. Anyone can sell online, without knowing who's who. And so anyone can be tricked by these culprits who mess online financial dealings. To solve this, research which websites to visit for online shopping to eliminate or lessen the probability of falling into bad traps. 
Read forums and comments made on the site. Find out the marketing strategies and testimonials of existing or previous customers. Check issues and if you found that there are lots of complaints, don't anymore buy stuff from the site. Plain and easy!

2. Have the protection code protect your identity.

Some people may use your credit card to make online purchases. But no one can use it successfully without knowing the protection code found at the back of your credit card. Increasingly, online shops now demand for this protection code to as well protect their authority online.

Before finalizing with your purchase, you will have to provide a card verification number which consists of small code with three digits beside or below the signature bar of your card at the back. Aside from that, the online shop has to request for your credit card name (the holder) and the expiration date before rendering the payment transaction.
3. List all your credit card numbers.

You can't use your credit card numbers to call people lest it's the same as your phone number. Kidding aside, write all the numbers of your valuable credit cards into a list on paper. This is to stop your liabilities from recurring with the use of your credit card without your consent.

How? Keep the list with you anywhere you go. It's advisable to insert it in your wallet or purse. Whenever you receive a credit card billing statement that shows that you have purchased things that you actually did not, you can terminate the credit card right away. Call the credit card company and confirm the loss or theft. You can also trace the transactions and know who did this and when.
4. Don't click on links inside phishing emails.

Don't be hooked to these scams that are intended to get access to your credit card information. These emails rip off your personal data from your email account and then obtain your passwords and sensitive data.

You know if an email is a spam when there's is no subject or no name in the first line of the email message. Also, if you are not familiar with the sender or the subject, don't ever dare to open the email and click on the links inside.

5. You gotta have a PayPal account.

PayPal supports both Visa and MasterCard credit cards. Signing up for an account is easy. You just have to submit a form and pay a reimbursable amount to your bank, enter the pin code and there you go--you are a step closer to being ultimately safe in doing online shopping and online credit card payments.

When sellers don't deliver your item paid thru PayPal, you can report it to PayPal by clicking a button there or writing them an email. Their staff will investigate on the issue. If proven true, you will be rightfully compensated and PayPal will charge the accused for his wrong. PayPal will give your money back as well as a paying customer!

Wrap Up

Amidst the many hullabaloos of the use of credit cards for online payments, online shopping is here to stay. It is now a grand industry, in fact. Internet protection progresses forward and netizens will experience less dangers for years to come.

Friday, December 28, 2012

Will Life Insurance Be Any Good and Beneficial to You?

It's not that you are foreseeing your death in the next five years or less, but getting a life insurance is just a matter of good practice. Life insurance ensures that your family and dependents will be taken care of after your last breath on earth. Why do you want to care?

Why You Need a Life Insurance

One common example I can provide is when you're the bread winner of the family. Your wife does not have any source of income, being a house-maker alone. Your kids are all still studying in school. Your parents are retired; they are too old to function and make money to support your family now. When your life ends, what happens to everyone in your tree? 

Well, there are two choices available: They may also follow you to the heaven. Or you can have them insured already with your life insurance plan.

We may gather information about everything in this material world by consulting books and experts. But we can never tell when we will die, unfortunately (or fortunately). So even when we are young now, we can't be sure. Maybe the reason won't be of sickness but of a very quick accident.

Who are Recommended to Sign Up for Life Insurance?

Yes, we all are recommended to have life insurance plans. The truth is we don't have and can't have eternal life, even if we have all the riches in the world. It's wise thus to invest money and channel some percent of our financial resources to paying life insurance premiums. We all will be needing a life insurance plan. Don't be arrogant into thinking otherwise.

But those who are living at the edge of disasters are more recommended to sign up for more insurance plans other than life insurance. If your area has a high tendency of being caught with natural disasters and calamities, have your home protected by a house insurance package.

In addition, purchase and invest in mortgage insurance. If your house is not yet fully paid (as it takes a number of years before the house and/or lot becomes truly and completely filed under your name), the insurance company will continue paying for the remaining credits of your mortgage payment. This is in case you die (God forbid!).

Risks > Payment for Life Insurance

In the end, don't count the money you will lose in paying for the life insurance. What to you is the cost of life, anyway?

Life insurance is your gift to your dependents. Have your life covered and take caution on the eventuality. You don't want to become more of a liability when that time comes.

Wednesday, December 26, 2012

How to Invest in the Stock Market For Dummies

Learn the Stock Market (For Dummies)

I first got a glimpse of how it is to invest in the stock market when I was in my last year in secondary school. We had a subject called Economics, where we studied the laws of supply and demand and practice them through the stock market game play. offers dummies with mock accounts for free. We were required to create an account for each group, where I stood as a leader. I monitored the stock market trends locally and earned millions of pesos from it in weeks. However, since it was only a mock account, I did not earn the real money equivalent of my profits.

Anyway, I grasped a better understanding of the players in the stock market. In this article, I'd like to share it with you.

How to Invest in the Stock Market For Dummies

1. Research of Companies Listed on the Stock Market

No, it is not necessary to study the background and performance of each company listed in public. But you have to know which ones are good performers and those which have the ability to grow in the coming months. These are the companies you'd be eyeing to buy stocks from. By knowing news and the latest happenings about these companies, you will have a better way of predicting their stock prices.

2. Stock Market Trading Sectors

The stock market is built with various companies belonging to 11 sectors. Traders can buy and sell stocks from the following sectors which are further divided into defensive and cyclical:

Defensive Stocks

Defensive stocks are defensive, meaning that they are not affected much by any economic, financial or political crisis in the stock market either negatively or positively. To explain further, when there is an increase in the stock market trend, defensive stocks will remain constant and not be of good profits to you either.

This is because consumers normally cannot live without the products of these sectors. If you're a beginner in the stock market, you must have these in your stocks portfolio.

Defensive stocks are made up of:

  • energy (gas, power and oil)
  • capital goods (manufacturing and aerospace)
  • consumer cyclical (entertainment and automobiles)
  • financial/banking
  • technology
  • communications
  • transportation
  • health care
  • basic raw materials (wood and precious metals)

Cyclical Stocks

On the other hand, cyclical stocks will move you through upward and downward seasonal changes. These stocks have higher volatility compared to defensive stocks. Cyclical sectors include industries of consumer staples such as food and beverages and utilities.

It's not that because defensive stocks are basically safer to keep that you will only invest in defensive stocks and not in cyclical stocks. You should still aim to have a right mix of these different sectors.

To give you a hint, since energy is the largest backbone of our country's progress, investing in the energy sector is much advisable. Still, you have to do your homework in selecting with energy companies to go for when buying stocks.

3. Right Timing: When to Buy and Sell Stocks

Trading is accomplished when you buy and sell stocks. If you have been following the trends in your chosen sectors, you must know if they are performing well recently or poor. The golden rules are: sell those stocks with a downward trend; buy or invest on stocks that are soon/expected to rise.

End Notes

Explore the stock market and get a bigger picture of it before starting to trade. Read news reports pertaining to companies listed on the stock market and make your own notes. Advise of experts of which stocks to buy and sell specifically may not always be correct. So it's no good to don't trust them blindly.

Monday, December 24, 2012

What are the Different Types of Insurance?


Humans are prone to sickness. Cars are prone to crashes. Buildings are prone to deterioration. Essentially, all matter and all possessions in the world that we have are subjected to getting damaged. As wise individuals, we should make sure that we won't suffer from such casualties financially. And poof, there's insurance that can safeguard us from losses.

What is an Insurance?

An insurance is a written contract that will compensate for the damage of anything, including the life of a person. Once subscribed to it, while the loss is not experienced, you will have to pay a periodic amount of money according to the terms and conditions and policies of the contract.

Choosing an Insurance Plan

I bet you have met many insurance brokers or agents asking you to sign up for an insurance plan with their company. They will get commission out of it. You have to choose which ones can provide the best security with higher returns in different scenarios. So you must know the coverage of each plan via-a-vis the damage done.

There are general insurances that cover damages of your properties whether caused by flooding, robbery, fire, etc. Besides that, there are many types of insurances. To better secure knowledge of them, read on the following list of the different types of insurance that can be availed in the market nowadays.


Funny how this is called life insurance when people can only obtain the financial benefits when the life insurance owner died. When you purchase a life insurance plan yourself, you will be insured that everything after your death will be settled. Your relatives will not be troubled anymore. The insurance company will grant them the monetary claims that you have paid within your insured time.


Auto insurance is not only a must for brand new cars but most especially for second hand automobiles or those which had already been used for more than five years. Auto insurance works to cover damages in one part or several parts of the vehicle. 

For example, the glass of your car's front lights were shattered after a minor car accident. As you are paying for regular installments of a certain premium amount for your car insurance, you can claim money from the insurance company to have your car lights fixed. Quotations differ so make sure to compare car insurances and get the best that suit your usage of the car or driving style. :)


In contrast to life insurance, health insurance compensates for your sickness bills. This is granted when you have proven that you have been stricken with some disease that is included in the coverage of the health insurance policy. You can go for medical treatments with selected hospitals stipulated in the plan and then reimburse the specified amount of premium for the doctor's consultation fee, hospital charges, medicinal expenses and other costs.

For what I know, health insurance companies will have your body or health checked up before they get you sign up for the insurance plan. This is because they won't take you as a client if you have existing multiple sicknesses already. For sure, they would be at a loss. So it's better to take a health insurance when you're still healthy and just continue paying for the premium until you get sick (when you're older).


There are too many uncertainties in businesses. High risks are present all the time, so it's recommended for you to purchase a business insurance plan to fit into your financial strategy or financial map. Find the best coverage there is for your business so you won't be too cramped up when mishaps happen somewhere along the way. Business insurance includes protection against sudden liabilities, insurance for your assets and other unexpected business interruptions.


Global warming is said to be making up for the end of the world, or not. Regardless the case, you have to get your house insured. This is the place where you stay at the end of every day. This space is supposed to be your sanctuary. 

When earthquakes split the ground into two and your house happens to stand in between, at least you are sure to be compensated by the home insurance policy you have. The premium for the home insurance can be a small price to pay as compared to the ones you have to shell out to rebuild the damaged parts.

End Notes

Choose the insurance plan that is equipped with the best policies for your lifestyle. You can buy several of them (from different companies to widen the scope and fight over the limitations individually) not only for your self but also your family and loved ones. Read the references in the Internet and discuss the pros and cons of each with a trusted insurance broker to find the best combinations of insurance plans.

Friday, December 21, 2012

Purpose of Credit and Getting Credits

Forms of Credit and their Purpose

Credits may serve two purposes in respectively two different contexts. 

One is commercial credit, which is that part of the purchase agreement made by companies. This is whereby companies approve of their customers to processes deferred or delayed payments of resources. This can be made at a personal or commercial level for consumer credit.

To manage your credit records, companies would often employ a credit manager who keeps them informed of financially unstable customers. This credit manager is one who also notifies whether or not you can be granted the right to borrow money from the financial institution.

Another one is consumer credit. Consumer credit is credit that is obtained by offering goods or services in exchange for payment to be settled at a later date. Examples common are credit cards, loans, mortgages. The latter two consist of having to pay for surcharges and interests as part of the credit due or borrowed amount.

Sometimes also, you would need to arrange for an insurance plan for the credit. Frequently, this is being practiced for car loans, house loans and business investment loans. Excluding non-obligatory charges, legal parties would mandate you to cite and specify the charges in percentage form. This is to give you a more accurate estimate amount of reimbursement of the debt.

Credit Information: Credit Report, Score and Risk

There are many terms and arrangements associated with credit. The common denominator is that everything needs a credit provider to subscribe to, a written contract and your good credit standing as a debtor.

How do you actually get accepted by the creditor to borrow money? There are so many people who would want to get a loan to fulfill their dreams of acquiring material things. However, not all are approved.

Check Your Credit Report

In order for the lending authorities to determine if you can be a good payer, they examine your credit report which includes your credit score and standing.

In the credit report, all payments you have done in the past are shown. The credit report keeps track of the history of your credits borrowed as well. It states if you have been bankrupt, how you paid thus and if there are delays in your payment.

These information are forwarded by banks, stories and credit card companies to a credit bureau, which is the overall body that maintains credit records. Because of the auditing, they need to provide accurate information on behalf of their customers.

The credit bureau then verifies their submitted customer information for approval. If all info are checked and audited as correct as matching the profile of the customer, this then signals a sanction for the credit.

Get Your Credit Report Score

One part of the credit records is the credit score. This score authenticates your creditworthiness and is taken from the statistical analysis of your credit history. This is checked thoroughly by the credit bureau to ensure that there won't be any loss of money (e.g. non repayment of credit).

Credit Risk

Notice that they have a thick bunch of information for checking. So on your part, you must do your homework as well. As the debtor, you must be critical in choosing the institution or company to seek for credit application. This body must also have an outstanding reputation; else, your name may be damaged and put at negative stake.

Wednesday, December 19, 2012

Low Cost Life Insurance Quote

The Best Time to Buy a Low Cost Term Life Insurance

A low cost life insurance can be best achieved while you are young. The younger you are, the lower the cost of insurance you can get. So if you feel like buying a life insurance for yourself, do not hesitate and wait for a longer time.

More waiting and delay will only lead you to higher cost of insurance. As you become more senior, there will be more thorough medical exams that are required by life insurance companies.

Low Cost Life Insurance Cost

Low cost life insurance rates are offered to young prospect buyers of life insurance policies. The young are counted to be less prone of being inflicted with life-threatening diseases and sicknesses since body organs are young—functioning at an optimal level. Some people are not eligible to get an insurance even if they opt for the most expensive life insurance package because the insurance company does not see anything good to take out of the deal.

Attain Low Cost Life Insurance Policies Through Universal Life Insurance Policies

Best advice is to know the benefits and the terms of different life insurance policies as early as now. Think not only of the price but also of the restrictions that come along.

Ask your insurance broker if there are universal life insurance plans available for purchase. Generally, universal life insurance policies cost cheaper. By far, they hold the lowest possible insurance premiums out of all the types of insurance plans.
Indexed universal life insurance policies can also help to increase your cash value and this can be seen on your personal balance sheet as assets.

Learn From Warren Buffet

Warren Buffet, one of the wealthiest people on earth, considers the value of life insurance policies as one of his best investments. If you make your universal life insurance policies as your assets, you can earn decent income through interests or returns from your "cash reserves."

Another advantage of purchasing universally indexed life insurance policies is that you have the power of flexibility in terms of payment. You can add on to your contributions or lower the amount as you see fit. You can also not pay for the premium for personal reasons or stop paying for a while.

The value of the insurance claims will be dependent on how much cash reserves you banked in.

Tuesday, December 18, 2012

5 Benefits You Can Get From Applying Cash Loans Through BetterLoanz

With, you can apply for cash loans online easily. They help you contact the most prominent lenders in the country. The best thing is that their service is for free! In this page, we will talk about the top 5 benefits you can get from applying through this payday loan website:


Most people cannot afford to pay for all their expenses all at once all the time. Therefore there are credit companies and bureaus that take charge to pay for them first and you just have to pay your debt back at a later time. However, some individuals don’t pay on time or rather don’t pay at all. For this instance, credit companies are forced to charge them with interest rates and late payment fees. What’s more, these people would have lower credit ratings and a bad credit score. When this happens, their record would be put as unattractive and won’t get them to file a loan next time around.

How can get quick and easy loans with this dismal record? One way is to rebuild a good impression again by submitting timely payments and clearing all your debts. While this may not always be easy and may require a longer process, BetterLoanz get you quick fixes.

Top 5 Benefits With BetterLoanz

1. Loan Even With Poor Credit Rating is that guy that sits between you (the borrower) and the lender. They will provide you with opportunities to review, and you can decline and accept the terms before signing in the deal. Lenders would check on your credit history with one major bureau but you don’t need to worry about your ability or qualification to get a cash loan. Before you know it, your application can get approved and you can get the short term cash loan as you need it.

2. Fast Approval

Application for loans with BetterLoanz is done fast and easy—within minutes! Once approved, the loaned money will be transferred to your account within 24 hours. In addition, you don’t need to fill out long papers. BetterLoanz offers online applications to a variety of people regardless of their credit records.

3. Good Security

Maybe you’re thinking that BetterLoanz services are too good to be true. But surely, this is not a scam. On the contrary, they are pro protection of their customers. BetterLoanz even advises clients to be aware of scams who are pretending to make transactions under their name. They suggest reporting scam activities to them at once when you receive such calls. BetterLoanz also take care of your privacy as their site works with the SSL security.

4. No Charge for Application

You are not obligated to pay for additional fees to BetterLoanz. Their referral process is actually for free. After you have selected the right lender of your choice, you will have to deal with the lender directly. This is the part where you will have to sign a contract for the loan and abide by their terms. Each lending company has a different loan and repayment terms, and these terms also vary depending on the state you live in. So you have to read them and understand them carefully.

5. No Hassle—Apply Online!

Stay away with the hustle and bustle of queuing and waiting for a long time to get approved. With Betterloanz, you can just sit back and relax while they contact a network of lenders who will approve your loan application soon.

End Notes

At this time, BetterLoanz does not guarantee that your application will be approved when referred to lenders. But they will try their best to look for a fit lender for you. Meanwhile, you can learn about their services and more information about their company at their website:

Monday, December 17, 2012

Stock Market Options Trading 101

So you've found an investment and you're ready pull the trigger on it. Before hitting the buy/sell button, know that in the stock market, there are other financial trading instruments than stocks. There are the likes of bonds and options. This article focuses on stock market options trading.

What are Options?

Options are contracts that the trader has to buy or sell. Some people say that they are less risky than stocks. Instead of buy and sell, the two actions available to you are Call and Put.

Options are also known as derivatives because their value is derived from the underlying financial asset, which is usually a stock or a stock market index.

When to Call and When to Put? 
To call means to buy, and to put means to sell. When you think upon analysis of trends that the stock market will go down further the line below a price limit (or "strike price") within a particular set of time (or "expiry date"), you would want to exercise the contract by putting. On the other hand, if the strike price is at the minimum, the wise action recommended is to call. 

Every contract, however, has a corresponding expiration date. If you did not perform any transactions, the contract will just die on its own. It cannot be refunded. 

You may only exercise the call and put actions within the specified duration. Whether the stock market is going down, you can have profits when you make the right action. This is unlike buying and selling stocks, where your profits largely depends on the performance of the stocks.

The best timing is when your profit margin increases. However, the stock market might get reserved by the expiry date. If you're doing this options trading game online, you have to have a really trusted Internet service provider. Your connection puts you at risk. The worse thing that can happen is that you won't be able to cash in on your virtual profit.

Example of Options Trading to Improve Your Understanding

OK. After feeding you the fundamentals, let me give one example of an "options trading situation." Here are the given numbers:

Stock trading: $40
Possible amount of call option contract to buy: 10 stocks at $45, $2 per option
The cost price ----> Your investment based on this would be: $20, which came from 10 stocks x $2

YOU WIN if the stock price goes up to let's say... $50. The equation goes 10 stocks x ($50-45) = $50 minus $20 which is the cost price. Your total earnings would be $30, losing $20 with a 150% profit rate. This situation is led with the assumption that the stock price does not cross $45 before the expiration date of the option. If you are confident enough, in normal stock market trading, you would have to buy a lot more than this. 

If you bought the contract, in contrast, with $40 per option, the cost price would be $400 (10 stocks x $40). When you got a good call and sold it at $50 each, you can be a winner all the same. You gain $100 in the end, which is equivalent to 25% profit rate.


There are lots of resources and reading materials available online about options trading. Make sure that you are well prepared and have a grasp or really clear understanding of the stock market trends before going on trading. 

Options trading needs careful forecasts of stock prices in a particular time. Because of the market's volatility, you will be also required to stay updated on the stock market news. You can make big profits if only you bid on high risks with the right amount and right timing.

Friday, December 14, 2012

How Do You Buy Bank-owned Real Estate Properties?

Today I'm going to talk about how you can buy real estate from banks. It's not that banks are also into the real estate business where they buy and sell properties. Bank-owned properties are those that have gone through the property foreclosure procedure.

For some reason, these bank-owned real estates were not won at any bidding or the property foreclosure public auction. Hence they remain on the books of the bank.

Are Bank-owned Real Estate Properties Cheaper?

Probably one of the first questions you would ask is that if the bank-owned real estates properties are tagged with a cheaper price tag. I mean, you would wonder about the advantage or the edge of buying from the bank instead of the regular real estate brokers and realtors, right?

Typically, houses or properties at these deals are not sold at minimum offers. Bank-owned properties do not come with any discount. Rather, these properties cost even higher than what their market principles dictate. However, with the help of a professional financial institution or bank residence trader, the discounts can be determined and captured upon.

How to Buy Bank-owned Real Estate Properties?

When you're an individual or trader who looks for a house from a financial institution, be aware that you are working with an organization here (in particular, the bank), rather than an individual. In this scenario, the associate of the lender is almost never the ultimate choice. Also, any offer provided to that bank associate must usually be taken to you for acceptance.

Before signing up and closing the deal, you have to review and accept the terms of the deal. As such, you will be given a scope of time known otherwise as the waiting period. The bank will issue a notice and an invoice for your consideration. If terms are all clear and you are to make a positive decision, you can first take a tentative yes.

The next step is to clear all your bills due or the bank card bill. When making an provide demonstration, it is essential to make the demonstration as professional as possible. You should have mortgage responsibilities in place beforehand.  It is critical to be able to produce certification from your mortgage founder. This is to help you maintain a positive credit score rating. So your chance of being accepted to enter the deal (or business) will increase.

The financial institution will provide the residence on an as-is basis, so you as the customer have to be accountable for any maintenance that might be necessary. Therefore, it is essential to note that you have to seek the services of a residence examiner to analyze the property in advance.

When your buying proposition is accepted, you need to carry out the funding.  Some customers have access to large cash supplies and can simply write a check for the price level.  Others may implement traditional funding, FHA funding, FHA foreclosure funding, or an FHA recovery mortgage.

The FHA-backed applications allow the user much more positive terms than those that are available under traditional funding.  These applications usually provide very low down payments and low rates. However, only certain lenders are certified to problem FHA financial loans. My advice is to look for agents who can give better planning and solutions for these highly beneficial financial loans.

Should You Rent Out Your Real Estate?

People are getting smarter these days. Instead of buying several houses and make each of them serve one purpose (e.g. vacation house, guest house, actual residence, movie house, etc.), they have their real estates rented out. The trend now is not to invest money in banks totally but in real estate.

You can earn passive income by renting your properties to tenants. This does not require that you completely have paid for the real estate property, although some deals to some degree are more unfair (the total amount must be paid for). The basic idea is that while you pay the real estate company, your tenants pay that same amount monthly to you. You will gain profits when tenants continue to pay while you have already finished shelling out for the desired payment.

Question is, is this an appropriate approach in entering into a real estate rental agreement?

To answer this later, here are five things to watch out for when you rent our your real estate:

1. Maintenance Responsibilities

As the landlord who's not living in the same house as the tenants, you won't have 24-hour monitoring on what your house has become. When you got a tenant who does not keep up with cleaning and maintaining things in proper form and order, your real estate may just be in trouble.

The worst thing is that when your house is damaged without your knowledge. The rented premise may lose its value and depreciate in time. You will have to have it reconstructed and renovated thus requiring to pay a huge amount of money to keep it fit after the stay-in period.

2. Collection of Payments

What if the tenant won't pay on time or simply does not want to pay the rental bill at all? You are renting your real estate out to obtain profits and not for charity. You must be patient in collecting rental fees and maybe charge them with problems encountered with basic amenities. You will not be responsible to solve their issues with electricity, water supply, garbage disposal system and safety features of the house once you turn the house over for their temporary stay.

3. Amount of Rent Fee

If the tenant consistently pays at the frequency you demanded but you are not getting the ideal amount of rent you declared, you will be at a loss as well. You need to consider the current real estate value and purchase price versus the rental fee charged. Then subtract the expenses further with the maintenance costs and tax payments. Evaluate these before putting your real estate property for public rental use.

4. Ideal Tenant

Don't assume that all is well when you find a good tenant that pays all the time and does not cast any physical damage to the house. You also have to examine the background and lifestyle of the tenant. What if he is a drug lord, a murderer, an assassin, or a wanted criminal? Police officers will go chasing after you since the property is in your name.

So when you post ads and media to search for the ideal tenant for your real estate, make sure to ask for a third party company or service provider to check on the personal details and incidents record of your tenant before saying yes and signing the lease contract.

5. Making the Contract

A real estate lease contract must inhabit the proper terms and conditions that are acknowledged by a lawyer. When any problem arises, you have to go to proper legal procedures and face the problem against your tenant through the court. The contract binded by the laws will make your real estate rental business more legitimate. Somehow you should include there that the tenant must take care of your property like his own. He should be responsible of the house, while not providing annoyance and shame in the neighborhood.

End Notes

If you have the money, investing it on real estate is a good move. The real estate business is not all about just buying and selling of properties. Renting out spaces is great to earn more revenues passively. You just need to be aware and cautioned about these pertinent details. Do your homework and study about your prospect tenants and follow everything in this article and give yourself a pat on the back.

Wednesday, December 12, 2012

Credit Cards for College Students

I remember having my first credit card when I was in my sophomore year in college. Until now, I am my mom's supplementary cardholder in a number of credit card companies. I use the credit card like cash but in very few instance. I also make it a point to pay for my monthly dues to maintain my good credit standing as recorded by the banks.

However, most people are not following the same practice. Research reports have indicated that most people who start using their credit cards early are those which incur very high credit. As they don't take this responsibility to pay for their debts seriously, their credit score is lowered and their credit history is adversely affected.

In this article, I'll talk you through financial basics related to maintaining habits of college students and any teenager in general, to ascertain good credit standing with the use of credit cards.

1. Register as young as you can as an authorized credit card holder.

From what I know, you can be a credit card owner when you reach the age of 16. So when you step into college, you may already use your credit card for store purchases. Having a registered credit card is a convenient way to buy stuff. But just keep your credit utilization low.

Don't tempt yourself to use your credit card as much as you can. You might not be able to pay for the debt later, if you won't ask money from your parents and you don't have a paying job yet.

Credit agencies analyze your historical credit record and you will have a better credit score if you have a longer credit history.

For example, once you turn 32 and you file a loan application, your application will have greater chance of getting approved when credit card companies see that you've been using your credit card and have been maintaining a good balance since 16 years ago. Hence you will be more trusted in their eyes to get their nod.

2. Track Your Expenses

Maybe I got this habit of tracking my expenses from my mom. Call me crazy or just too OC, but I keep an Excel spreadsheet of all the details of my expenses. In that file, I have one tab for the debits and credits of my bank accounts, reason for each entry (i.e. cash withdrawal for food, transportation allowance, house utilities, wardrobe, etc.), one tab to manage my budget (i.e. expected and actual savings and expenses for each month), one tab for the pending amounts yet to be paid to the bank (i.e. purchases from credit card/PayPal), and another tab to monitor also the different sources of income that are expected to fill the debit part of the bank account.

I update this file almost every day so I won't forget any cash in or cash out. 

3. Conduct Comparisons of Credit Cards

Credit card companies offer different schemes and promotions for every type of client they have. For example, Card A is best for frequent travelers as the use of credit card enables users to earn points or miles for their next flight; and Card B is best for shoppers as users can accumulate points to earn vouchers or get discounts in their next purchase.

When you approach the credit card company to apply for a credit card, read all the terms of the credit card schemes and promotions available and select the one that suits your needs. Also, check the interest rates (should there be) and the other points of the credit card.

4. Watch Out For Minimum Payments

As a teenager, you are not exempted to the rules of using a credit card. There are credit card companies that allow minimum payments to be made. However, it is not a good practice to always take advantage of this method. It's always better if you have a zero balance of credit in your account to have a good name. Pay your credit card bill in full.

5. Treat Your Credit Card as Cash

If you can't help paying the minimum amount allowable, push yourself to treat your credit card as cash. If you think you can't pay for the item, then don't consider using your credit card.

End Notes

If you are a teenager who wants to have your own credit card, be safe and protected by avoiding online scams in emails and websites. Do not every apply for your credit card on the web. Go to your trusted physical bank. Be wary of offers and claims of unknown companies. Else, your personal information may be put at stake and you may be charged with different amounts not spent by you but be put accounted for them.

Monday, December 10, 2012

What Are The Types of Real Estate?

There are various types of real estates. Among the four popular ones are: residential, commercial, industrial and retail. In this page, we will look into these in detail.
Residential Type of Real Estate

Residential properties are, in a nutshell, houses or spaces where people live. They can be in the form of house and lot, condominiums, buildings, flats, apartments, duplexes and vacation homes. You can live in them or you can have them out for rent. Usually if you prefer to have it leased, you have to set out on a contract with your tenants. This is called the tenancy contract, which is to be fulfilled by signatures of both parties to determine the length of stay and other house rules.

Residential properties can also be sold out to new buyers. This is the part where you can sell the house for auction, hire some real estate broker to do the job or contact your network to sell and profit from your pre-loved property. 

Commercial Type of Real Estate

Commercial type of property includes business offices, hotels, restaurants, hospitals, schools, etc. Such models have great functional expenses and are closely linked with regional economic conditions. A commercial realtor sometimes deals with mixed-use properties that both have retail outlets and residential units inside.

Industrial Type of Real Estate

Industrial properties are where the big money lie, among all the other property kinds. Such models are usually huge, with great roofs, placed close to convenient transportation routes, and with a surrounding yard or open space. Industries, parking lots, manufacturing facilities and automotive facilities (like car wash, repairs, servicing) make up the industrial real estate sector.

Retail Type of Real Estate

Retail property is a type of real estate that may consists in malls, shopping centers and other buyer outlet and selling stores. In addition to the base rental, the homeowner may also take a portion of the retail store units’ profits and provide high-quality maintenance and maintenance in turn. Location of this type of property is always a key factor in property brokering. Exposure, population density and earnings levels are important to be considered.

Real Estate Investment Thrusts

I know this was not mentioned in the introduction. But I feel compelled to also tell about real estate investment thrusts which are booming in the modern times.

A new entrant into property types of real estate, investment thrusts are slowly becoming more popular. This works by investing in a profile of property holdings and trade them on the stock market. Another way of identifying real estate would be those that regularly generate income and others that give benefit via capital appreciation.

Examples of this would be areas for farming, poultry or animal farm-breeding. These offer great potential benefits, because of the large size of property involved although these are ones that usually require more money!

End Notes

If you're new to the real estate work—if you're working as a new real estate broker, it is advisable to stick with residential dealings first. These are the simplest type of real estate to sell with the least  maintenance expenses

Once you get a good grip of the particulars in the types kinds of transactions in real estate (in particular, the better details of the underlying laws), you can venture out into larger revenue-earning kinds. Good luck!

How to Seal the Deal With Your Real Estate Broker

Real estate is a complex business, though it's one of the most profitable and most promising of all. Of course, who does not need a home, right? But in order to seal the deal with a really good real estate broker and get the house of your dreams, you have to establish good connections with these people.
In this page, let us discuss the ways on how you can close the deal with your real estate broker.

Who is a Broker?

If you don't know yet, a broker is a real estate agent who goes in mediation in between you (the customer) and the house owner (seller). They are frequently in the lookout for leads or potential customers who are interested in buying lots and properties. In one property, they usually have more than one clients that they are dealing with.

In the case wherein you are the client, your real estate broker selects options for your viewpoint. On the other hand, he would also choose the client who would pay the most decent amount of money to win the property. Real estate brokers earn mostly through commissions; that's why.

Ideas to Win the Deal Home

How to Seal the Deal With Your Real Estate Broker

1. Give in CASH. For instance, you don't have the serious cash right now but want the property badly, you can pay the real estate broker some form of initial payment. This amount should be striking to his eyes, else your offer will be for naught. 

When it gets approved, make sure that you both acknowledge a promissory note that verifies legally that transaction can be progressed. This is the preliminary transaction to the agent where he gets benefits and interests.

2. Be the FIRST. Another aspect you have to win is time. Think of real estate as a competitive market. You are buying investments to safeguard your future here. So you have to make rather quick but smart decisions. Brokers are more in favor of customers who closes the deal faster than those who are able to pay more but takes a hell lot of time in finally making a purchasing decision.

3. Attend to meetups. Once in a while, brokers would invite you to go into site visits. There you can see the properties on sale in actual life. Keep in mind that the agent is a very active individual and time is cash to him. He will not be amused with someone who always makes up excuses not to attend with meetups. 

Also, it is during most meetups where better deals and explanations are revealed. There you may gather other insights about the advantages or disadvantages or buying the lot.

End Notes

If you are worried that your real estate broker is a scammer, you can check the background information of the company he is working for. Ask for details; there is no damage to examine this. Furthermore, you can question other similar agents about the real estate property prices and value for better confirmation.

Extra steps include being mindful of the current lawful records of your country. This is to make sure that you are not getting deceived by brokers.

Friday, December 7, 2012

Short Sale Versus Foreclosure - What You Should Do During These Hard Times

Are you worried about having large home loan stability on your residence?

Truth be told, because there had been a lot of economic downturns and political turmoils in the market, economical responsibilities have become too burdensome. Adding to these are medical problems in the family and the responsibility to pay for your kid's education? 

If you do not create regular flows in income for your everyday needs and supplies for your home, you just might be in some trouble. Not to worry though. You can opt to go into residence foreclosure, whereby banks and/or other lending firms and economical institutions will take ownership of your house. 

This alternative is to put your residence available on the industry, but it is quite possible that its current rate is much lower than the awaiting home loan due to the lender. In this situation, you can apply for a brief selling. In this article, I will tackle on short-selling of your residential home or setting it up for a foreclosure. It is short sale versus foreclosure.

Residential Foreclosure - Is it a good decision?

This year, I have observed that banks are very likely to accept a brief selling program instead of residence foreclosure for several reasons. If they took the residence into ownership, it still has a low industry value, resulting in them to either delay for years in the hope of a rising value. They can also purposefully sell it at a reduction. This is called, in real estate terms, a short sale.

On the other hand, there are those what's called house foreclosures. Foreclosures bring in various expenses like court charges for processing the residence foreclosure situation, attorney charges for legal counsel and administration, and residence maintenance expenses. Brokers as well impose great charges for their residence foreclosure services.

A successful program requires the distribution of complete and precise certification, including a letter, a profit-and-loss declaration and tax profits as proof that you cannot pay up the home loan stability. 

The asking cost has to be a trade-off, attractive the residence buyer to delay until the loan companies acceptance, but also reducing the edge of reduction for the lender. If you have any non reusable income and/or resources, the lender will immediate you to simply change your repayment schedule, rather than going in for a brief selling.

How Long Will It Be?

The length of the entire process differs as per the complexity of the individual situation and the number of instances awaiting with the lender. Some situations take months and others, only hours; the average length is 90 days. So if you are able to create ongoing home while the handling is on-going despite your economical problems, you are motivated to do so. 

Banks and/or economical institutions may allow you to take up your house until the brief selling is closed. You can pay back the difference between the stability home loan and the residence selling amount to the lender at a later date, though it is not followed strongly.

End Notes

Don’t delay until residence foreclosure mail is aware and follow-up calls cause you discomfort. This also has a longer waiting period and decreases your credit score rating by 100 points more than a brief selling. 

At this point of economic problems in your life, you want to maintain as great a credit score rating as possible, so that you can progress as soon as possible and own some other houses and profitable assets in the future.