Survey: Planning for Gifts and Other Shopping on Credit Every fifth

One fifth of consumers intend to use financial services such as leasing, credit card or consumer credit during the holiday period. However, many consumers are unaware of what part of their salary should be exceeded when planning their commitments and what to do after a holiday in the event of a down payment, says a study by Good Finance.

A survey of more than 10,000 residents found that 8% of respondents would use credit services for their holiday shopping. 9% of men and 7% of women will choose financial instruments to buy gifts and other purchases. Some consumers are still undecided and are just considering buying gifts from their own or borrowed funds: 12% of men and 10% of women choose the answer “maybe”. The rest refer to gifts and other purchases that you plan to buy from your own funds during the holiday season.

When making new commitments

bank

It is important to be honest with myself and answer a few questions: What part of my salary credit payments do I spend now? Will my salary be enough for the increased costs? What is my plan ‘B’ if my money falls short after a few months? Answers to these questions will make you feel safer and maintain a good credit history, ”comments Andrius Bogdanovičius, CEO of Good Finance Credit Bureau.

According to him, nearly one-tenth of the survey respondents indicate that when borrowing responsibly, you can spend between 40% and 50% of your monthly salary on credit payments. 30% of survey respondents state explicitly that the share of income on credit payments should not exceed 40% of income (as stated in the Responsible Lending Policy). Most, or 60% of consumers, responded that the income-contribution ratio should not be as high as 35%. This is a more conservative approach that we may also consider fair.

Respondents were also asked how they would behave in the event of a shortage of cash credit after the holidays. The majority of those surveyed would choose to consult a financial institution on their plan B (69%). In comparison, 23% would pay part of the premium in this situation and overdue the rest. A further 5% would take no action and the payment would be overdue, while 3% would like to take on new credit.

Financial institutions should be approached

Financial institutions should be approached

When there are first signs that monetary affairs are moving in the opposite direction. Advance to a creditor and search for a compromise can help prevent your credit history from deteriorating. The worst thing to do is to do nothing or the so-called pyramid, which is a new credit to cover your down payment. It is true that this solution may be the right choice in exceptional cases. For example, when one creditor refinances credits from other financial institutions on favorable terms, ”says the head of the credit bureau.

Survey results show that the vast majority of consumers (85%) know that their credit history is assessed when applying for credit services. Other cases of legitimate interest in a financial discipline CV are far less well known. For example, only 28% of respondents stated that credit history can be verified by a telecommunications company that is late in paying for its communication services. Even less known is that credit history can be checked with a late friend (5% correct) and with a view to renting a home (correct 6%).

The survey was conducted December 9-16 online. More than 10,000 users responded to the survey.

My Good Finance is a self-service website

My Good Finance is a self-service website

Where residents can check their personal credit history report. It consists of available financial obligations, payment history, credit rating, what creditors were interested in customer data. The report is free once a year.

The self-service website is managed by the credit bureau Good Finance. A credit bureau is a system of responsible lending where the creditworthiness of customers is assessed by banks, credit unions, consumer credit, leasing, telecommunications and other companies. The credit bureau plays an important role in the financial system by helping financial institutions make sound credit decisions and protecting consumers from excessive obligations.

Liquid Online Direct Loans, Solutions to Increase Your Business Capital

Capital has always been one of the obstacles most entrepreneurs face. There are several ways to earn venture capital, by bringing together friends or close friends to invest in your business. But if you don’t have enough investment funds to run a business, then you don’t need to take out a loan. There are three types of loans available for additional venture capital, namely KUR (People’s Business Credit), KTA (Non-Credit Lending), and liquid direct online loans.

In comparison, KUR and KTA do have the advantage of having large numbers of loans granted, but the process of applying is complicated because the requirements to be met are also quite large. Not to mention all submissions are not accepted as they usually have to go through the Bi checking phase to see if you have a bad credit history. This is, of course, the opposite of a straightforward online loan.

The Benefits of Liquid Direct Lending Online

The Benefits of Liquid Direct Lending Online

In order for you to become more familiar with liquid lending online, it’s a good idea to first see what the benefits are. In general, there are three benefits to liquid direct online loans that you can experience right away:

  • Easy to Apply

The first benefit is the ease of applying for a direct online loan. Since you can submit them online, you can submit them anywhere and anytime. Just by relying on gadgets and internet networks alone, you can apply for a direct online loan. Usually, these liquid direct online loans can be applied through a website or application and you simply download the terms provided without having to go to the lender’s office.

  • Requirements Easy to Meet

As mentioned earlier, for KUR and KTA loans, the terms provided by the loan lenders are so complex that not everyone is able to apply for them due to difficult conditions. Let’s say the average KTA requires a credit card for at least 1 year. As for KUR, you are required to request a letter of the legality of business from the local government.

  • Fast Disbursement Funding Process

The benefits of this are unmatched, however, you will need more capital soon. Liquid direct online lending is not only easy to apply and the requirements, but the process of disbursement is also very fast. This is due to the fact that they do not offer much and the average loan amount is only around $ 20 million to $ 3.30 million so funds can be quickly disbursed. Plus all the requirements documents you provide are already digital so that your provider can process your submission directly.

Purpose Of Using Liquid Direct Lending for Business

Purpose Of Using Liquid Direct Lending for Business

Liquid direct online loans are typically used by entrepreneurs for the following:

  • Add business tools

All businesses need equipment to be able to operate properly. But there are some businesses, especially those whose equipment is becoming more sophisticated each year. With advanced business equipment, it can boost your business activity. Examples are like industrial packaging machine tools. With this packing machine, your employees no longer have to pack it traditionally so the quantity of packaged goods can increase.

To be able to buy the new business equipment, the entrepreneur will need a fair amount of money. If you take the cash, it will affect your operating costs.

  • Business Innovation

The business that one has can continue to evolve as they are constantly innovating and competing against similar ventures. But to innovate this business requires additional costs that you have to spend. Let’s take an example in recent years, sweet cereal no longer topping cheese, beans, chocolate, and sesame seeds.

  • Business Expansion

The purpose of using the most used liquid direct online loan is for business expansion. Anyone should want their business to thrive. For that it needs a business expansion. Just take a look at the Gas Geprek Chicken which is not only now available in Jakarta, but also in some major cities in Indonesia. It’s because they’re doing business expansion. By expanding your business, the benefits that will come to you will also increase.

To minimize the money you have to spend, you can apply a partnership or franchise system. But you still have to put in some money to promote your partnership program.

Apply for a Liquid Online Loan for Business

Apply for a Liquid Online Loan for Business

  • Specify the Required Loan Number

The first step is to determine in advance how many nominal liquid direct online loans you need. Count carefully and in detail so that there is no need to miss it. Low loan numbers can make it difficult for you to find additional loans. Meanwhile, more loan numbers can make the debt burden grow.

To be safe, you need to do a calculation simulation first to find out the loan numbers as well as the monthly installment numbers you can expect.

Alternatives for Credit Card Wire Transfers

Need to transfer money but you don’t have cash in the bank? Sooner or later someone will suggest that you wire money from your credit card. It is easy to do, and you can move money around the world. But before you provide those numbers, see what you get yourself in and evaluate the alternatives.

Transfer money via Credit Card

Transfer money via Credit Card

The term transfer is used in various ways.

  • Bank Wire Transfer: Wire transfers traditionally go through banks. These are the same day’s transfer from one account to another, and they are popular for transactions like home purchases. To complete a thread, you must provide the bank details of the recipient, and you may need to provide a paper form (although small forwarding requests might be available online).
  • Money Transfer: This can mean several things, but the basic idea is that you send money electronically, whether it is a traditional “transfer” or not. The funds would even be available to the recipient on the same day within a few minutes. Western Union, MoneyGram, and others offer this type of service, and you can set up transfers online or over the phone (the recipient can be identified by an email address, phone number or name). Sometimes these transfers take 2-3 business days while they pass through the ACH network.

cash advances

No matter what method you use, you will need a cash advance if you plan to fund the transfer with your credit card. An advance offers “free and clear” money available for immediate dispatch.

  • Rates: Cash advances come with fees. Most credit card companies charge a percentage of the transaction amount (with a minimum of $ 10 or more) or a fixed amount, which is larger. Fees effectively increase the price of what you pay for, so take the total cost into account when making decisions.
  • Interest Costs: Cash advances on your credit card are expensive. The interest charged on the advances is usually higher than the interest on funds that come from purchases (expect a rate of at least 25 percent). Moreover, there is no grace period on cash advances, so you’ll pay interest charges even if you pay off your card before the end of your statement cycle.
  • Your Credit: When you borrow against your credit card, you run the risk of damaging your credit – at least temporarily. Large cash advances can use the majority of your available credit limit, signaling that you might be in financial trouble. If you are planning to make a major purchase in the near future (at home or vehicle, for example), a lower credit score makes it harder to borrow. Avoid far beyond what your credit card and pay off the debt immediately.
  • How to Get a Cash Advance: If you are planning on the wire of money using a bank, you need to get money in your bank account. You can do this by visiting a counter in your bank’s branch and requesting a cash advance (moving the proceeds to your bank account), or you can simply withdraw money from an ATM and the money in your account deposit. If you use a money transfer service, the cash advance happens automatically as you go through the steps to complete a transfer.

Remember, if you use a credit card to fund a transfer, you are borrowing money to make the transfer. As a result, you have to pay a high-interest rate on the money you borrow, and the fees will be added to your loan balance, reducing the total amount of interest that you pay. But there are alternatives.

Risks of Wire Transfers

Risks of Wire Transfers

Unlike the purchases on your card, cash advances cannot be reversed, reducing the risk for your bank or money transfer service. They are only willing to make an irreversible transfer if they are more or less in control of the money. The recipient will be able to get the money immediately (in cash or by moving the money elsewhere), and there is no way to get the money back.

Only send money if you know where it is going, and if you trust the recipient. Different scams use transfers (or money transfer services), and scammers take advantage of misunderstandings about how these payments work. Most people think that their bank or Western Union can help if there is a problem, but the money is usually gone forever.

Alternatives for wiring your credit card

Because of the risks and costs, there may be better ways to send money. Depending on the situation and whether you need to borrow money, some of the options below might be a better fit.

  • The wire from your bank account: If you don’t have to borrow and trust your recipient (you know it’s not a scam), just send money from your bank account. There are different ways to do this, including using a standard transfer.
  • Pay with a debit card: Online sites usually ask for a “credit card” number, but you can use a debit card in most cases. Debit cards pull money from your bank account instead of creating a loan, so you’ll avoid cash advance and interest charges. Just make sure you know who you are giving your card number to.
  • Money order or Cashier’s checks: There are different ways to send “guaranteed” funds. In addition to the transfers, cashier checks are considered to be very safe (as long as the check is not a fake). The issuing bank guarantees cashier’s checks so that they cannot bounce. Money orders are also an option in some situations.
  • Payment Apps: If you know the person sending your money to (a friend or family member, for example), try a free or cheap payment service. Square Cash App moves money from your bank account directly to check the recipient’s account – using your debit cards – for free. PayPal is available for international payments, and there are several other options that can meet your needs.
  • If you need to borrow money: Your credit card is not the only way to borrow. Assuming you really need to borrow, ask your bank about a personal loan (or other options available) for drumming up the money. Online lenders and peer-to-peer loans are also a cheap option, especially if you have a few days to work with. Credit cards are probably the fastest option, but you will have to pay a premium for that speed.
  • Convenience Checks: Getting a cash advance from a counter or ATM is expensive. You might be able to pay less if you keep an eye out for special offers from your credit card company. With ease checks or balance transfer offers, you can write a check yourself and use the money any way you want. Although you may still have to pay, there is a good chance that the costs will be lower, and as a bonus, you can get a lower interest rate (for a limited time).
  • Standard Credit Card Payment: Another option is to simply pay with a credit card (assuming being accepted). Credit cards can be used internationally, and you will get the consumer protection benefits if you use your card to make a purchase immediately. PayPal is a similar option and it is free to make purchases with PayPal. For some purchases, PayPal will even lend you money (via PayPal Credit).

If none of the options to choose will work, it may be useful to use your credit card and wire money, but only in an emergency.

Save the expenses instead

Save the expenses instead

Borrowing money on credit cards is not sustainable. Ultimately, high-interest rates and steep reimbursements can drag you into a spiral of debt. You will spend more money on maintaining the debt every month than you move towards the debt itself.

To prevent borrowing money, budget for necessary expenses and building an emergency fund. Ideally, you have enough to cover three to six months worth the cost of living (or more, if you prefer to be conservative). Emergency funds must be somewhere safe and accessible, such as a savings or money market account. Avoid robbing the fund, and when surprises come, you won’t have to incur substantial costs.

Sometimes borrowing is inevitable. If you like having a backup plan, you can take advantage of keeping a credit line open. A line of credit is a pool of money that is available for borrowing, but you don’t actually borrow until you need to. The line of credit must be inexpensive to maintain because you only pay interest if you borrow money (or never).