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DO YOU REALLY NEED A CREDIT CARD? HERE ARE A FEW CONS AND PROS.

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DO YOU REALLY NEED A CREDIT CARD? HERE ARE A FEW CONS AND PROS.

It’s true a credit card gives you financial aid at times of need but it has a few bad points as well.

When do you need a credit card?

If you cannot buy big items in one go or make big cash payments you will need credit card. You can spend any amount of money within your credit limit. But if you have been managing well without one avoid as it could ruin your credit rating if you default your debt payment.

Another reason for applying for a credit card can to improve your credit rating by taking a secure credit card or making monthly payments in time your credit score improves in a couple of months and you can get approved for loans that were giving you trouble.

What if you default on your payment?

If you default on your payment its downhill for your good credit score goes to vein, if it becomes too bad you may not even get approved for loans.

Security: credit cards are more secure cause even if someone makes a illegal transaction the money can be reverted back to you as you have not yet paid for it which is not possible in case of debit cards at times. Few places like hotels accept only a credit card so you can face a little problem there. But remember not have too many cards, as more the no. of cards the more no. of bills you have to pay.

How to know your credit is bad

You credit rating is given by your FICO credit score it depend on several factors like if you pay your bills and premiums on time, if you the whole credit bill or only the minimum amount required. You can easily get your credit report from FICO, how do you decide your credit is bad:

  •  if your credit score is between 500 to 580 then you have poor credit you can get a loan only if you put down a down payment of 5 to 20% on your loan amount.
  •  if your credit score is between 580 to 620 its fair credit but you will have to some down payment the interest rates are average.
  •  if your credit score is between 620 and 640, its average credit you should be able to take loans without down payment at reasonable interest rates.
  •  if your credit score between 640 to 700 it good credit you will be able to get low interest rates on loan without down payment.
  •  if your credit rating is 700+ its superb you can get a loan at cheap interest rate without down payment depending on your income and few other factors.

Decrease you interest rate with just one phone call

Well are you barely keeping up with your home loan and credit card bills then it is high time you make a call and ask the company to lower the rate down a bit. They can reduce interest rate or decline your request but until you ask you will not know. In US a survey was carried out where many people asked for a drop in interest rate and 50% of them had their interest rate slashed. Yes the rest of the people were not entertained but who knows the cuts you interest rate by 1/3 just by one phone call, if you don’t try even the bank is not interested in helping you.

You must be thinking then why don’t most people do, they don’t do it as just like you they don’t know about it. If you are a good customer and you have paid your entire bill on time this is the chance for you. Do not talk to the customer service sourly, tell them if there is any way in which the interest can be cut down a bit, tell them you are happy with company but interest rates are a bit tough on you and you are receiving offer of lower interest rates but you are trying not to switch your credit card. You work hard entire month to earn your paycheck of course you are the only one who can optimize it so make a call today itself to change you interest rates.

Finance

Bank of England’s Haldane says inflation “tiger” is prowling

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Bank of England's Haldane says inflation "tiger" is prowling 1

By Andy Bruce and David Milliken

LONDON (Reuters) – Bank of England Chief Economist Andy Haldane warned on Friday that an inflationary “tiger” had woken up and could prove difficult to tame as the economy recovers from the COVID-19 pandemic, potentially requiring the BoE to take action.

In a clear break from other members of the Monetary Policy Committee (MPC) who are more relaxed about the outlook for consumer prices, Haldane called inflation a “tiger (that) has been stirred by the extraordinary events and policy actions of the past 12 months”.

“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely,” Haldane said in a speech published online. “But, for me, the greater risk at present is of central bank complacency allowing the inflationary (big) cat out of the bag.”

Haldane’s comments prompted British government bond prices to fall to their lowest level in almost a year and sterling to rise as he warned that investors may not be adequately positioned for the risk of higher inflation or BoE rates.

“There is a tangible risk inflation proves more difficult to tame, requiring monetary policymakers to act more assertively than is currently priced into financial markets,” Haldane said.

He pointed to the BoE’s latest estimate of slack in Britain’s economy, which was much smaller and likely to be less persistent than after the 2008 financial crisis, leaving less room for the economy to grow before generating price pressures.

Haldane also cited a glut of savings built by businesses and households during the pandemic that could be unleashed in the form of higher spending, as well as the government’s extensive fiscal response to the pandemic and other factors.

Disinflationary forces could return if risks from COVID-19 or other sources proved more persistent than expected, he said.

But in Haldane’s judgement, inflation risked overshooting the BoE’s 2% target for a sustained period – in contrast to its official forecasts published early this month that showed only a very small overshoot in 2022 and early 2023.

Haldane’s comments put him at the most hawkish end among the nine members of the MPC.

Deputy Governor Dave Ramsden on Friday said risks to UK inflation were broadly balanced.

“I see inflation expectations – whatever measure you look at – well anchored,” Ramsden said following a speech given online, echoing comments from fellow deputy governor Ben Broadbent on Wednesday.

(Editing by Larry King and John Stonestreet)

 

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Finance

Bitcoin slumps 6%, heads for worst week since March

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Bitcoin slumps 6%, heads for worst week since March 2

By Ritvik Carvalho

LONDON (Reuters) – Bitcoin fell over 6% on Friday to its lowest in two weeks as a rout in global bond markets sent yields flying and sparked a sell-off in riskier assets.

The world’s biggest cryptocurrency slumped as low as $44,451 before recovering most of its losses. It was last trading down 1.2% at $46,525, on course for a drop of almost 20% this week, which would be its heaviest weekly loss since March last year.

The sell-off echoed that in equity markets, where European stocks tumbled as much as 1.5%, with concerns over lofty valuations also hammering demand. Asian stocks fell by the most in nine months.

“When flight to safety mode is on, it is the riskier investments that get pulled first,” Denis Vinokourov of London-based cryptocurrency exchange BeQuant wrote in a note.

Bitcoin has risen about 60% from the start of the year, hitting an all-time high of $58,354 this month as mainstream companies such as Tesla Inc and Mastercard Inc embraced cryptocurrencies.

Its stunning gains in recent months have led to concerns from investment banks over sky-high valuations and calls from governments and financial regulators for tighter regulation.

(Reporting by Ritvik Carvalho; additional reporting by Tom Wilson; editing by Dhara Ranasinghe, Karin Strohecker, William Maclean)

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Finance

Britain sets out blueprint to keep fintech ‘crown’ after Brexit

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Britain sets out blueprint to keep fintech 'crown' after Brexit 3

By Huw Jones

LONDON (Reuters) – Brexit, COVID-19 and overseas competition are challenging fintech’s future, and Britain should act to stay competitive for the sector, a government-backed review said on Friday.

Britain’s departure from the European Union has cut the sector’s access to the world’s biggest single market, making the UK less attractive for fintechs wanting to expand cross-border.

The review headed by Ron Kalifa, former CEO of payments fintech Worldpay, sets out a “strategy and delivery model” that includes a new billion pound start-up fund and fast-tracking work visas for hiring the best talent globally.

“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.

Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.

“This review will make an important contribution to our plan to retain the UK’s fintech crown,” finance minister Rishi Sunak said, adding the government will respond in due course.

The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance all mean the sector’s future in Britain is not assured.

Britain increasingly needs to represent itself as a strong fintech scale-up destination as well as one for start-ups, it added.

The review recommends more flexible listing rules for fintechs to catch up with New York.

“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.

The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).

“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.

Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.

“It’s a question of knowing who to call when there’s a problem,” Swinburne said.

($1 = 0.7064 pounds)

(Reporting by Huw Jones; editing by Hugh Lawson and Jason Neely)

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