Credit cards have become a part of life for most people living in the western countries. Itís becoming increasingly impossible to avoid them, especially for business men. So if it is the first time you are seeking to enter into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable for all the credit cards for which you are eligible. While the rate may not remain fixed indefinitely, it’s always advisable for first timers to go for the one charging lower rates.
Read the fine print, especially on the other charges that may be charged on you, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges kick in.
Decide what limit is appropriate for a person of your income. Also the fewer credit cards you have, the better placed you are to track your spending.
Compare the services and other features such as the cash back incentives, or warranties, rebates and the like.
Check whether the card is widely accepted to enable you to pay for your needs.
You will do yourself a favor by familiarizing yourself with the following terms.
Annual Percentage Rate. This is the measure of the yearly cost of credit.
Finance Charges. These are the total charges involving the transaction. This is the period the issuer gives you before he starts charging you interest on new purchases. Note that not all credit cards have a grace period.
There are many factors to consider before applying for a student loan. Among these are how much is available in savings or other non-loan areas. Are you going to receive any scholarships? Is the educational institution accredited? Will you be going full time or only taking one or two classes? Make a list of the expenses for each semester. Will you be living on campus or commuting? Allow enough money to purchase books, food, clothing, and other basic supplies. Once those criteria have been established, you must allow yourself plenty of time to complete the process.
Before even considering loans or grants, you must have received an acceptance letter from the educational institution of your choice. Once that has been accomplished, it is best to visit the school in person and make the acquaintance of the financial aid office. However, that is not always an option. The second step, once an acceptance letter is received and returned is to fill out the FAFSA or Financial Application For Student Aid. Most financial aid offices will help in filling out this form and sending it to the correct address. While awaiting the results from this, explore the possibilities of various grants and scholarships that are available. Again, the financial aid office will help determining the availabilities of these.
The FAFSA will generate a SAR or Student Aid Report. Use this form in conjunction with grants, scholarships and other financial awards to calculate the amount of money that will need to be borrowed to ensure payment of the educational credits. If you are planning on working while attending school, these funds can be used to offset the total repayment amounts. However, the lending institutions will use these monies to determine the loan amounts available for subsequent semesters.