Archive for June, 2008

Cash Back Credit Cards Reward Regular Spenders

As credit card companies continue to work hard to compete for the borrowed dollars of consumers, reward programs and cash back incentives become increasingly lucrative for consumers. Cash back credit cards and other reward programs are incentives designed to motive credit card users to spend more and spend frequently.

Cash back credit cards vary in terms of the amount of incentives and the set up for the programs. Some cards simply offer a percentage of cash back for each dollar spent. While rewards do vary, most card companies offer cash back rewards in the range of 1-1.5 per cent. Some cards reward every purchase equally, while others reward users with bonus rewards for buying products from network companies. Card companies are partnering with retailers and other businesses and some cards pay rewards up to five per cent or so for in-network card purchases.

Points based cash back programs are also very popular. As opposed to offering a percentage of cash back for purchases, some card companies award points to card users for certain amounts and types of purchases. Users can then exchange points for cash back or other types of rewards.

Credit card companies reward users for various reasons. Sometimes card companies want consumers to spend money to carry higher interest-bearing balances. Others reward consumers more for frequent card uses as a way to increase revenue for transaction fees charged to merchants. Merchants typically pay transaction fees to card companies to process card purchases. Thus, a modest 1.5 per cent cash back payment to a card user is reasonable to the card company who gets significantly more in transaction fees from the merchants.

The biggest decision for consumers considering cash back and rewards programs is what types of benefits and perks are most preferred. Some credit card companies offer cash back only cards that pay the percentage rate in cash back. Others use the point based system but offer a wider selection of reward perks. Many companies rely on their partner relationships to offer higher value non-cash rewards to consumers. Additionally, there are combination rewards programs that allow consumers to choose between cash rewards and other product and service rewards at any point in time.

As with any type of credit card offer, borrowers need to consider their own spending habits, and optimal benefits when reviewing card options. Cash back incentives are most beneficial to users who use cards regularly and in the ways rewarded by the card company.

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Filed under Credit Cards : Comments (0) : Jun 28th, 2008

Disadvantages Of A Bad Credit Score

Borrowers with bad credit find it much more difficult to get great rates and terms on loans and credit cards. Lenders assess the risks of lending to consumers using credit history and credit scores. The level of risk posed by any given consumers dictates the willingness of a lender to loan the borrower money, and the nature of the rates and terms. Borrowers that are less risk because of a solid credit performance can find much better rates and more favorable borrowing terms.

There are opportunities for borrowers that have had some struggles with bad credit to obtain loans. Typically, a borrower that poses a strong risk to the lender must offer some type of risk aversion to get a reasonable loan. This risk aversion usually takes the form of a secured property. A borrower might offer his property or another asset as collateral to give the lender recourse in the event of non-repayment of the debt obligation. This is called secured debt.

Homeowner secured loans are a common type of secured loan. Property is the most valuable asset most people own and is thus commonly looked to as a source of security for a substantial loan. Thus, a borrower with bad credit seeking a loan of a significant amount would likely have to secure the loan with their home or property. When a borrower puts up their property as collateral for a secured loan, the lender obtains a lien against the property and could potentially repossess the home in the event of non-repayment.

While many borrowers of all credit types use secured loans to get the best rates and terms on loans, bad credit borrowers often have no other alternative. Some lenders required borrowers with low scores to secure loans of above certain amounts. Other times, it is simply impossible for a bad credit borrower to get a practical loan rate and terms without securing a loan. Unsecured debt for bad credit borrowers often comes with high interest rates and fees that are also intended to reduce the lenders risk. Borrowers do need to understand that while secured loans do usually offer better borrowing opportunities, they also pose substantial risk. A secured loan exposes the secured property to risk. It is extremely important that a borrower is confident he can meet the loan obligations before obtaining a secured loan. Careful assessment of income to expenses is the key.

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Filed under General Info : Comments (1) : Jun 28th, 2008

Creating A Positive Summer Internship For Financial Analysts

Many financial analyst interns find their summer internships disappointing. There are some institutions that offer quality structured programs. Because their is a large learning curve, I think that summer is too short a time for interns to get an important role.

Summer internship is an excellent opportunity to learn about financial career opportunities because you’re already in the door. For 8 weeks, you can be in daily contact with the people who can give you important advice.

It is very helpful to see the internship from a positive perspective. Look beyond your assigned duties, no matter how unchallenging or unexciting they may be. Just like cold-calling, if you see beyond it as being a “dreadful task”, cold-calling can be the most powerful training in sales.

Learn about the career paths. Work on getting to know as many people as possible. Ask to meet with their connections in related fields so you can learn about the various career paths. Be curious and ask plenty of questions.

Learn about what each of their typical day is like, what their major challenges are and what are some possible ways of addressing these challenges. You’ll be able to gather lots of insider insights to better determine which is the right direction for you.

Build relationships. The more people you meet, the more connections you’ll establish. This is also an excellent opportunity to practice “people skills”. Learn their lingo and observe how they interact.

Social skills and relationship building are two important skills often overlooked by the young financial analysts. Being successful requires a lot more than just crunching numbers. Who knows, some of these connections you make during the summer may open doors for you when you graduate.

Set your goals on a few things you would like to accomplish during the summer. Even if they are not under your assigned duties, make your requests. Some possible ideas are:

*Sit in at a client meeting and observe a senior financial analyst in action

*Join a corporate meeting and watch a CEO present the latest news

*Observe and learn how the valuation models are constructed if you are assigned some basic task of data entry

The possibilities are unlimited. It’s really up to you on what you make of this experience.

Decide from the very beginning that you are going to have fun with it and make it worthwhile!

Going according to job guide opportunities is good, for students who want to work from home. The guide guides them in insurance as well as future career possibilities like real estate etc. This also means more checks on the career development.

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Filed under General Info : Comments (0) : Jun 28th, 2008

Top 5 Money Saving Tips for Business Start-Ups

Anyone can start up a business, but not everyone succeeds. Consider these five critical questions before setting up shop. They can save you money in the beginning and make money for you over the life of your endeavor.

1. Is the business itself viable?

Many new businesses fail not because the idea was poor, but because the would-be entrepreneur didn’t do his homework. Your town may well be able to support two organic food markets, but not right across the street from one another. Remember to consider:

- market size – ease of entry – potential market share

Mark the competition’s location on a map and look at the radius of the town. A centrally located business will outperform one on the edge of a community. If your competition is on the eastern edge of town, is there a place for you on the western edge? Would customers rather do business with you than drive across town? Do you have access to better or equivalent inventory and a good location to seize that part of the market? The old saw, “Location, location, location” is crucial to a new business.

2. What are your short term and long term goals?

What do you hope to accomplish in both the short and long term? You may simply want to reach a “break even,” point in your first month, selling as much inventory as you purchase with a plan for a profit of X% in the second month to be increased by X amount each subsequent month. Evaluate your progress at documentable intervals, generally three, six, and twelve months. Have you set aside money that will carry you through a bad first month? If so, how will you adjust your goals for the remainder of the period in question?

3. How will you keep your records?

Successful businesses keep records. Some are necessary for day-to-day operations and tax payments. You can use a financial package like Quick Books with modules to assist you in figuring payroll as well as Social Security withholding for your employees. A spreadsheet like Excel is excellent for tracking inventory and sales, with built-in graphing capabilities will allow you to see a “picture” of your business performance. If you don’t think you can handle these tasks on your own, plan to hire a bookkeeper or an in-house employee who can keep everything accurate and up to date.

4. How will you handle space, equipment, and staff?

Although you can locate space on your own, there are many advantages to working with a commercial realtor. A professional in the field will understand the demographics of the areas you are considering and may be able to find lease space as well as buildings for sale (depending on your goal in that regard.) By the same token, you may find that leasing equipment is a better option than buying, at least in the first year. If you are taking out a small business loan, you can add lease financing for business equipment to the terms of the agreement.

Don’t over-invest in space, equipment, and staff at the outset. Work with as few people as you can manage. Consider hiring independent contractors or freelancers for specific projects, rather than paying people in periods when there may be little or no work. Make sure that the people you do select have the necessary skills. If you have to spend too much time training your personnel, you’re losing money.

5. How will you advertise initially?

Initial advertising is tricky. If people don’t know about you or can’t find you, they can’t do business with you, but you don’t want to be stuck with costly glossy brochures that never get used. Marketing is a “garden” you must tend constantly. Where will your advertising dollars be most effective? Some possibilities include:

- A trade publication. – The local newspaper. – Online through purchased ads or a business website. – Radio. – An inexpensive postcard mail campaign.

Don’t forget to think “outside the box.” You can, for instance, place ads on the plastic flip down liners of grocery carts where hundreds, even thousands of people will seem them weekly.

Don’t feel bad if you don’t know how to answer these questions yourself. As the entrepreneur, it’s your job to anticipate potential issues and solve them by whatever means necessary, including going to experts. We don’t all have business degrees, but with proper forethought and good planning, we can all be successful business owners.

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Filed under Business Solutions : Comments (0) : Jun 28th, 2008