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Articles Archive for March 2006

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[25 Mar 2006 | No Comment | 279 views]

Lots of folks have questions about credit cards but may feel shy about asking for fear of being seen as not savvy. Here’s a list of frequently asked questions about applying for credit cards to bring you up to speed on what you need to know about the credit card application process.
Can I apply for a credit card?
In general, if you’re 18 years of age or older (the age limit may be lower in some states) and are a U.S. citizen, you have the legal right to apply for a credit card with any U.S. bank or financial institution.
Do I have to have a bank account to get a credit card?
In most cases, credit card companies won’t consider issuing credit to someone that doesn’t have at least one bank account in their own name.
Do I have to have a bank account with the bank that issues the credit …

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[25 Mar 2006 | No Comment | 249 views]

People who find themselves unable to control their credit card spending are in something of a predicament. Having a credit card will put them deeper in debt, but not having a credit card makes it impossible to do things like rent a car or get a hotel room. In their book “Getting Rich In America” Lee and McKenzie suggest a method for keeping a credit card for when it is necessary without facing constant temptation.
Take a small plastic container such as a butter dish, or Tupperware and fill it with water. Place your card in the water and put it in the freezer. The water will turn to ice encasing your card in several inches.
When you want to use the card you must take it out and place it in the sink to thaw for several hours depending on the size of the container. This way you have a card, …

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[25 Mar 2006 | No Comment | 267 views]

Credit card companies are generally thrilled to give you an increase in credit, if they think you’ll use it and not go bankrupt. If you find yourself getting deeper and deeper into debt consider lowering your credit limit. Simply call up the credit card company and ask them to lower the limit on your card. This way you can still have the convenience of a credit card but you’ll have some safe guards to help keep you from going deep into debt.
Of course, the best way to use a credit card is to pay off the balance at the end of each month. With a lower credit limit, it will be easier to pay off the balance. If the maximum you can charge on your card in a given month is $500, that will be a lot easier to pay off than $5,000.
By lowering the credit limit on your credit …

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[25 Mar 2006 | No Comment | 278 views]

FEES TO BE PAID
Under any circumstances, the following are charged by most credit card companies:
Annual fee Paid for being a user of the card
Cash advance fee. Paid when the card is utilized for making a cash advance; usually a flat fee or a percentage of the amount advanced
Balance-transfer fee. Paid when a balance from another credit card is transferred to the other card. Checks are usually sent to pay-off the card. Balance transfer happens when the check is used to settle the amount due on the other card.
Late-payment fee. Paid if payment was done after the date due
Over-the-credit-limit fee. Paid for payments exceeding the credit limit
Credit-limit-increase fee. Paid for a credit limit increase request
Set-up fee. Paid for opening a new credit card account
Return-item fee. Paid for returned checks when bill payments by check was done for insufficiency of funds (meaning, the check bounced)
Other fees. Payments made for over the phone …

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[25 Mar 2006 | No Comment | 232 views]

Letter of credit (L/c) is a widely accepted and commonly used payment method in international trade. They are usually issued by larger banks and contain a promise to pay a seller beneficiary) upon receipt of goods by a buyer if certain conditions outlined in the letter have been met.
There are three general principles governing the use of letters of credit:

The banks’ responsibility to deal in documents only;
The rule of strict construction, which dictates that the terms and conditions of the letter of credit are to strictly adhered to; and
The rule of independence, which mandates that the letter of credit is to be considered independent from the sales contract or any other agreement between the parties.

 
Put simply, the Issuing bank has two main roles:

To give a binding undertaking to the seller that if compliant documents are presented, the bank will pay the seller the amount due. This offers security to the …

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[25 Mar 2006 | No Comment | 249 views]

Contactless payments create a whole new field of payment options for merchants. Contactless payments are quick, simple and pave the way for greater profits. A smart computer chip, with data and an antenna is embedded into a credit card, debit card or fob. When the card or fob is tapped on a radio frequency reader, the reader sends out a radio signal that activates the card, the information on the card is read and the payment is processed without a signature for purchases less than $25.00 with no chargebacks to the merchant.
“Merchants don’t need to worry about compatibility with their present systems or security” said, Mohamed Khan, President and Founder of ViVOtech, Santa Clara, Calif.-based developer of contactless software, transaction management systems and readers.
“We have been working closely with processors, card issuers and terminal providers to create an open system using the IS0 14443 standard. It uses secure encryption technology. …

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[25 Mar 2006 | No Comment | 319 views]

Margin–borrowing from your broker–increases your buying power, and when all is right with the world it literally doubles profit potential. But if you make a lousy play you have to pay back double. That’s why we have preached for years against using margin. There’s already enough risk in the market.
Let’s suppose you like stock XYZ at 50 but don’t have the cash in your account to buy all that you want. So you decide to “margin” it, which simply means you borrow 50% of the money to buy XYZ from your brokerage. If the trade goes well and XYZ moves higher, you can sell with a very nice profit.
But what if the market is in the process of correcting? Old XYZ could take a 10-15-point loss, and there is a good chance that eventually the brokerage will call you for the balance. Well, if you had to borrow the money …

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[25 Mar 2006 | No Comment | 224 views]

Recently, several students from the Babson College MBA program called requesting an interview. They were researching the venture debt market and wanted an insider’s view of how this segment compares with venture capital. Their questions were thoughtful and I thought the discussion was worth sharing. An excerpt from the interview appears below:
Q. How does venture lending (VL) differ from venture capital (VC) as it relates to fund- raising expenses?
A. Fund-raising expenses in connection with venture loans are generally lower than for venture capital transactions. Legal fees are one of the largest expenses in many transactions. Lenders typically negotiate venture loan arrangements using their standard documents. Venture capitalists, however, usually use newly created stock purchase agreements. These agreements add considerable expense to these transactions since outside legal counsel is used. Other VC expenses include a more expensive and comprehensive due-diligence process.
Q. What about the flexibility of agreement terms?
A. It is difficult …

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[25 Mar 2006 | No Comment | 251 views]

Sometimes emergencies or once-in-a-lifetime opportunities get to us and we find ourselves in financial straits afterwards. If that’s you, don’t worry. You’re not alone. But what you may not realize is that it doesn’t have to be the case for you. There is a solution to your predicament. And the solution may surprise you.
A UK personal loan is one option that many people may want to choose because it gives them a variety of potential loan amounts and interest rates. If that’s you, the choice is yours! You can choose the loan amount that is right for your situation. And, the rate of interest on the principle is usually determined by several things. For example, the prevailing interest rates, the risk the lender faces from the recipient, the amount of money you want to borrow, and the repayment period. Also, a UK personal loan comes with several flexible repayment terms, …

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[25 Mar 2006 | No Comment | 260 views]

Investing is a great way to make money. It’s nice to invest in something and see it grow and prosper until it’s worth much more than when you first bought it. That’s a basic principle of investing. But it doesn’t just apply to the stock market. It applies to your life and your sanity, too!
When you look at your whole life’s enjoyment, a UK personal loan may be one choice you want to make to increase that enjoyment. And since many people are choosing to make a UK personal loan part of their financial portfolio, you might want to make one part of yours as well.
You can get a UK personal loan from many lending institutions that are eager to do business with you. Because they want to do business with you, they offer a variety of competitive interest rates and a huge range of available loan amounts for whatever …