Archive for May, 2009
Choosing a Low Interest Rate Credit Card
If a credit card is used cleverly, it is one of the most powerful financial tools. But not everybody can afford to pay the expensive interest rates that most credit card issuers charge. This is where low interest rate credit cards can help people who plan to maintain a balance on their account and not to repay the full amount monthly. however, what does interest or APR stands for when talking about low interest rate credit cards?
Basically, APR is the cost of credit as a yearly interest rate. APR stands for “Annual Percentage Rate” and may be used to compare different credit and loan offers. The APR on credit cards is usually worked out monthly based on the current balance on the credit card.
The monthly interest is calculated as if the current card amount would stay the same over a year; the interest on the balance over a year (APR) is calculated and divided by 12 to get the monthly interest. It is a necessity that all lenders tell the client what their APR is before signing any agreement.
Although the arrangements and terms do differ from one lender to another, it is better for people to get low interest rate credit cards because the lower the APR, the better the deal for them to spend more money shopping.
Why should you choose low interest rate credit cards? Low APR credit cards are a great choice for those people who prefer stricter financial budgeting. The APR determines the balance over a period of time, it being the most important attribute of a credit card.
With regard to low interest rate credit cards, the amount of interest one has to pay on his or her credit card balance depends on its APR. So, the lower the APR is, the better it is him or her because it means they have to repay less interest. APR’s on low interest rate credit cards can either be ‘fixed’ or ‘variable’.
If you plan on getting low interest rate credit cards, there are many cards that offer low APRs to be found on the Internet. These low interest rate credit cards are chosen using a factoring scheme that ordered these cards by computing a number of their attributes to place the best credit cards at the top.
One of the questions one has to pose when searching for low interest rate credit cards is about the charges: whether they vary or are fixed. If these charges are variable, they might affect the repayments and if these rate are fixed, the repayments stay the same. Searching for low interest rate credit cards may also include questions on the likelihood of any charges that are not included in the APR like optional payment protection insurance or an annual charge.
If there are any, make sure that you know what they are and when you must pay them. Finally, looking for low interest rate credit cards should include questions on the terms and conditions of the credit and how these conditions suit you.
If you are looking for low interest rate credit cards, you could begin looking for a scheme that could help you save hundreds in interest with a low interest credit card and low cost processing. Most low interest rate credit cards offer 0% APR for the first months on purchases, cash advances, and balance transfers.
Low interest rate credit cards sometimes offer rebates on certain items purchased. They also offer $0 liability on unauthorized purchases, and no annual fees. Some low interest rate credit cards have very good introductory rates for purchases. They sometimes offer great deals if one carries high balances on other cards and want to transfer the balance.
Indeed, having low interest rate credit cards can be useful and convenient, and can even help build a strong credit history that will help you with future activities like home-buying, paying for higher education, and even getting a job. But, before you apply for low interest rate credit cards, consider the pros and cons especially in relationship to your current financial situation.
Don’t Drive Without Texas Auto Insurance
If you happen to own and operate a motor vehicle in Texas, you are required to have Texas auto insurance coverage. The type of insurance coverage that Texas law requires drivers to have is called liability insurance. This type of coverage has a minimum standard that must be met for a driver to legally operate a vehicle on the Texas roadways.
Companies who issue Texas auto insurance are well aware of the amounts of liability insurance a driver must carry. You need not worry about trying to determine what those amounts are, as a representative of the insurance company you choose can inform you of the amount of coverage you need at a minimum. You can certainly choose to carry more insurance than the legally required amount, but that will cost you more money.
When thinking about your budget, you really have to consider that your Texas auto insurance premiums are non-negotiable. This means that you have to pay them, no matter what. If you choose not to, you are in violation of the law. Of course, if you get caught without the proper insurance coverage, there will be consequences. The least of the consequences will be a fine.
If you think that you can possibly get away with not having coverage by signing up for a policy and then dropping it once you get an insurance card, or by presenting a fake card when you are asked to show proof of insurance, you might be interested in knowing that there is a system in place to prevent you from doing so.
The fact is that Texas auto insurance providers are required to report information on vehicles and proof of insurance coverage to a database that can be accessed by law enforcement personnel. That means, if you get stopped, the officer can easily check and see if your vehicle is currently insured.
So, the best thing to do, and the right thing to do is to follow the laws and make sure that you carry at least the minimum amount of liability insurance that is required by the state. That way, you don’t have to worry about a fine, or worse, being sued for not being insured.
Buy Notes – Hitting a Put Shot With a 9-Iron
Buy Notes – Know Your Borrower
A friend of mine who is a note broker, set up a call for me with the Senior Vice President of a CA bank. He was in charge of the banks note sales.
The Sr Vice President advised me that they had 3 non performing notes that were commercial loans in the LA area.
How to Buy Notes…communicate with your borrower
Hear me out…
The bank told me that one of the loans was in foreclosure and had a sale scheduled in a couple of weeks.
And also mentioned that the bank had had no contact with the borrower, or builder/developer in this case.
So I asked her if she had any concerns about the loans and also asked if she thought the bank would run into any problems foreclosing on the properties.
She told me she wasnt concerned because the property values would allow them to pay off their loan.
My Concerns With Buy Notes Situation
If there’s one thing I’ve learned in this note buying business, managing the relationship with your borrower is key in 60% of all cases.
You can ruin your chances of getting out of a note deal if you do not work with your borrower.
This is why…
There are basically 5 Exit Strategies in Note Buying:
foreclosure, refinance, short sale or deed-in-lieu, note sale, and reperformance.
Foreclosure and note sale are the only 2 exits that you can do with no communciation to your borrower.
In this example, the bank has chosen foreclosure as the exit. But the time it could take to recover the property can easily be postponed, if the borrowers file for bankruptcy. This is one of the risks associatied with foreclosures.
My Advice on Buying Notes
Buying notes can bring you high returns without have to foreclose or to sell the note to someone else.
If that’s true, then losing contact with your borrower essentially kills 60% of your note buying exits (3 of the 5).
Would a professional golfer get onto a course with only 5 of 12 clubs?
Would that be somewhat limiting to their game?
I’m pretty sure of it.
But boy would it look funny hitting a putt with a 9-iron.
Working with your borrower is essential when you are buying notes. It can be painful, but it is what has to be done.
This is the same advice that I shared with the LA bank today.
Will they take my advice? I am going to be tracking her discounted notes to see if any of them end up in bankruptcy court.
And if those notes do – there’s a good chance that she’ll regret not having kept in touch with her borrower.
