Month: May 2019

How to use a credit card: to become richer

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Most of us are accustomed to think: a credit card exists in order to pay for the necessary purchase, for which there is not enough money now. But actually buying essential goods on credit is a direct path to the debt trap. After a few months, instead of the credit limit on the card, you will only have a mandatory monthly payment that you will make over the next few years.

But in fact, a credit card can be used so as not to pay interest to the bank, but, on the contrary, to receive the benefit yourself. To do this, you just need to follow 4 simple rules:

  1. Do not bring matters to interest.
  2. Earn cashback and interest on the balance.
  3. Use credit card as collateral.
  4. Never withdraw cash from a card.

And you will become a little richer. And now we will tell you more about each of them.

Do not bring to pay interest

Do not bring to pay interest

Most of the credit cards offered by various banks have a so-called grace period. Most often, this period lasts for 50 to 60 days, but sometimes it reaches a period of 120 days. And if you make a purchase with a credit card, but during the grace period you have time to pay off the debt to the bank, the bank does not charge you interest for using the money. You pay exactly the amount paid for the purchased goods, and no more . Choose yourself just such a card. How to use it correctly?

Let’s assume that you have planned a flight to the Crimea, but you do not have money for air tickets. Can I use a credit card in this case? Remember: to cover the deficit between incomes and expenses at the expense of a loan is fraught with falling into a financial pit. If you do not have money for tickets, you first need to find a way to earn them or know exactly when they will appear.

But consider another situation. You know for sure that your wages will be transferred, say, on December 25th. Of this amount, you can safely buy a ticket to Simferopol for 7,200 rubles. But you saw that from December 10 to December 15, the airline has a special offer, during which it sells tickets to the flight of interest for 1 100 rubles cheaper. You cannot buy this ticket during the promotion period. In this case, you do not have enough money to pay. But you can use a credit card with a grace period (grace-period crediting)! And then after receiving the salary during the grace period, return the amount borrowed from the bank. In this case, you will not pay interest to the lender. And at the same time save 1 100 rubles, using the promotional offer of the airline. Thus, you received a loan and did not incur any additional financial expenses, and you still remained “in the black”.

Earn cashback and interest on the balance

Earn cashback and interest on the balance

 

We can tell you about another way to make extra money on credit cards. But for this, in addition to the credit card, you must also have a debit payment card framed , on which your own earned money should lie . Consider an example. Suppose you spend an average of 35,000 rubles a month to purchase goods and services. The amount not less than this monthly comes to your salary card. Plus, you still have a cashback credit card. Choose those credit cards whose service costs 0 rubles per year.

As a rule,% cashback on credit plastic is higher than on debit, so it is more profitable to pay for purchases with credit funds. In accordance with the bank card terms, sellers of goods and services will refund you a certain percentage of your spending in the form of bonuses. With expenses in the amount of 35,000 rubles per month, you will accumulate approximately 400-1500 bonus points, which will become your additional income.

Do not forget during the grace period to transfer the money you have spent from payroll plastic to credit . In this case, the bank will not pay interest for using borrowed funds. And the received bonus points will remain to you, and you can spend them at your discretion.

Even better, if the option of interest on the balance is connected to your debit card account . And if you calculated your credit card within a month, then the same 35,000 rubles remained intact on your debit card, and the bank will charge you an interest on this amount at the end of the month (rates usually vary from 3 to 7% per annum). You can earn another 150-270 rubles a month on this (depending on the card conditions).

Then, when you are paid a monthly payment on your payroll plastic, you will transfer the money to a credit card and pay off the debt. The main thing is to have time to do it during the grace period. On the debit card, you will have a minimum balance of at least the amount of your monthly expenses (after all, you pay all the expenses with a credit card).

It is clear that you will not be able to earn any large amount this way. But acting under this scheme, you will use the money of the bank, you will not pay interest for it, and you will receive additional income . And let for one month you earn only a cup of coffee with dessert. But if you begin to save the money received, then in a year you will be able to save up for good headphones. And in a few years you will receive a free laptop.

Leave a credit card as collateral

credit card as collateral

You can also leave credit plastic as collateral without using your personal funds. The security deposit may be required, for example, by a company that rents out bicycles or even cars. The amount of the pledge when renting a car is from 10 to 50 thousand rubles (depending on the brand of car). The rental company can reserve the amount of the deposit (deposit) on the client’s card (it is not necessary to present it and leave the payment instrument with personal funds). And if the client passes the car to the owner without damage after the lease expires, the deposit on the card is unlocked, the reserved amount remains intact. The percentage for using the money you do not pay. At the same time you get a car rental service without attracting your own funds.

Loans for studies, Masters and University students.

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Having studies is increasingly important in order to find a good job. The unemployment lists are full of unemployed people with studies but who see how changes in the labor market and the demands of employment of companies force them to be more and more trained and have better studies. That has caused many unemployed to have returned to the University or are pursuing postgraduate and master’s degrees.

But high tuition fees, both in private training centers and public school fees, are causing an increase in student loans. All this causes that people who want to improve their curriculum vitae by expanding their studies have to get more money to be able to finance their university and graduate studies.

Knowing that getting a good job, or just a first job, allows you to get income to be able to return the credit studies. Fortunately, there are many companies and financial institutions that offer loans to study.

Loans for university students

Loans for university students

Most banks offer loans to finance university students, that is, the enrollment of courses, postgraduate programs, master’s degrees, or university studies. The operation of these credits to study are very similar to any personal loan, but the main difference is in the repayment terms and the amount to be financed.

For example, when financing the master’s degree studies, you can talk about 35,000 euros credits to return in a maximum of 8 years. While to finance university studies, ie a career or full university degree, we can talk about credits of up to 60000 euros to be returned to 10 years.

For example, the Credit for Studies and Courses of Banco Sabadell that grants up to 15,000 euros to be repaid in 10 years, both to finance school courses, specialization courses and even languages. Although Banco Sabadell also grants financing for university studies.

Another of the financial institutions that offers loans for studies is Apobank with its Creditorio Studies, providing financing for books, tuition fees, school supplies, travel and subsistence expenses (student and similar flats both in Spain and abroad).

It offers novel advantages such as postponing the loan payment up to 3 consecutive periods of 6 months. The Studies Credit offers a maximum loan amount of 30000 euros, with a total maximum term based on the maximum duration of the studies plus an additional 5 years. Being a loan for long-term studies, the interest rate is not fixed but variable, linked to Euribor.

The loans for university studies Tuition Blue, offer financing to study from 6000 euros to return to 9 months and with a grace period in the payment of capital and interest of up to 6 months. Or the Supercredit 4 of Openbank that finances studies of up to 18,000 euros to 5 years.

Almost all of these loans are usually at a fixed interest rate, over 6%. Although you can also find loans for studies at a variable interest rate, with a differential over the Euribor around 4%. Another common characteristic of the studies credits is that there are opening commissions, normally between 1% and 3%. Another characteristic typical of loans for studies is that they usually have a grace period, that is, a maximum of 24 months in which no capital is returned from the loan but simply interest is paid. This is because in the first years is when the students of the course, postgraduate, university, or master’s degree are still studying or looking for work.

So they do not have an improvement in income due to having completed some higher education. However, not all are equal and that is why it is essential to use an online comparator such as SMS Credit. Regarding the conditions and documentation to be able to obtain loans for studies, it is usually the following:

  • Ability to pay the monthly installments of the loan, so in the case of loans for university studies the family usually endorses the young student.
  • Provide the necessary documentation of income level, payroll or income statements, as well as equity.
  • Contract other products, especially for young university students, to link the client with the entity. Especially an insurance to avoid the non-payment of the loan.

Loans for postgraduate studies and master’s degrees

Loans for postgraduate studies and master

Undoubtedly the most demanded studies by unemployed and workers who want to improve in their job, are postgraduate and master studies. However, getting a master’s degree is not only difficult but also expensive, which means that you have to get money by using credits to study this type of course. That is why many training centers have agreements with credit institutions to finance postgraduate and master’s studies.

These loans for postgraduate studies allow covering expensive tuition fees for higher education, and that is why there are many banks that offer loans of this type. For example, Apobank through Credi Estudios Superiores offers funding for postgraduate and master’s degrees both in Spain and abroad. Or the BBVA Master Blue a loan that finances up to 50000 euros to 10 years and with a grace period of 2 years. One of the great advantages of this credit for studies is that the repayment term reaches up to 8 years with a grace period, in which only interest is paid, up to 24 months. Another of the loans for postgraduate studies or master’s degree is the so-called Master loan from Catsubank.

A financing for masters that allows a return period based on the duration of the studies, with a maximum of 8 years. With a term of lack of capital payment of up to 2 years and a loan amount to finance postgraduate and master’s degrees of up to 60000 euros.

What undoubtedly allows access to the best master’s and business schools. Or postgraduate and master’s degrees to study at prestigious foreign schools such as Stanford, Harvard Business School, London Business School, MIT, etc.

Loans for studies abroad

Loans for studies abroad

In addition to the master’s degree studies at foreign universities and business schools, the most common are studies abroad within the European ERASMUS program. That allows to study courses of careers and university degrees outside of Spain. The drop in scholarships for studies abroad has led to an increase in loans for studies abroad.

These are very similar to the rest of the studies credits but with the characteristic that they can finance foreign studies of up to 18,000 euros to be returned between 1 and 8 years. Examples of this type of credits is the Erasmus Master Loan of the social bank of Apobank, Microbank.

Where students can apply for loans for studies abroad of master’s degree of 12,000 euros for a course abroad or up to 18,000 euros for two courses.

Like other credits to study have commission opening, but the big advantage is that you can get this loan for studies without endorsement. Another type of loan for studies abroad with the Erasmus program is the Tranders loan to finance the cost of accommodation abroad, transportation, and the expenses derived from university studies with a maximum of 6000 euros to be returned in a term of up to 3 years, including 1 year of grace in the repayment of the capital of the loan.

Another of the credits found in the market for financing university studies is the Bankers, an entity that bets on loans for both national and foreign university studies. This credit for studies abroad finances up to 18,000 euros for students and graduates up to 31 years included.

The repayment term is maximum 4 years, with a 1 year grace period in the payment of the loan capital, linked to the Euribor and opening commission.

Loans for university studies

University studies are one of the most chosen options for workers, young people, and the unemployed, who wish to improve their studies. When seeking funding for university studies, scholarships can be used from the Ministry of Education or the Autonomous Communities, although the amount is usually low and the requirements are very demanding.

That is why it is very normal to resort to loans for university studies, especially if the enrollment is very high. That is why a guarantee is usually needed, normally granted by the family in the case of young students, to grant this type of loans for university studies. That’s why there are many credits that allow financing university studies such as the Loan Enrollment of Banco Popular that offers a maximum of 6000 euros to pay for university studies and return within a maximum period of 1 year.

One of the banks that most bet on university students is Bankate, the great rival of BBVA, with loans for university studies such as the Total Career Loan that offers financing for studies of up to 56,000 euros, or the Total University Credit of Bankate that allows obtaining loans for university studies with up to 80000 euros of financing.

What allows to study in the best Universities of Spain ( ESADE, Complutense University, Pompeu Fabra University, Autonomous University of Madrid, Carlos III University, University Pontificia de Comillas, etc ) and abroad (University of Chicago, Stanford, Harvard, University od Pennsylvania, etc). Another loan from Bankate to finance the payment of more economical university fees is the Supercrédito Enrollment that offers financing of up to 6000 euros for students with a maximum age of 24 years, with a maximum repayment term of 12 months.