My Personal Finance Blog

Banks and their associates are now competing with one another to provide a quick and easy credit card application process. There are two common options for bank credit card applications – online format and paper copy format. Banks’ disclosure statements provide all information regarding the costs and the terms of repayment.

By entering a few simple answers and providing financial details at a safe website, you can get a response to your application within a minute. An online application is the fastest and easiest way to receive credit cards. It is also one of the safest ways, as it protects personal financial details. There are a number of card types available. You can easily choose a card that matches your needs.

Banks’ websites usually display a list of their credit card types, interest rates, special promotions and credit limits. Many of them indicate the level of credit you require. For instance, a credit card with a high limit may need good credit, but in case of a student card, past credit history is not required. Generally, a person who is 18 years of age or older can apply for a card with any U.S. bank.

Most bank applications accompany two statements: ‘pre-selected’ and ‘pre-approved.’

In the case of ‘pre-selected’ statements, a person receives credit based on the details he provides on the application and depending on a succeeding credit report. In the case of ‘pre-approved’ statement, the person is granted credit just as he fills out the application and demands. But, he would not obtain as much credit as he desires.

Have you ever figured out how much money you will make in your lifetime? Looking at the total numbers can be both exciting and sobering. If you are 25 and make $40,000 a year, by the time you are 65, you could have earned over 1.6 million dollars – and that’s assuming you never get a raise. That’s quite a fortune.

But where does it all go? As you were growing up, your parents probably reminded you that “money doesn’t grow on trees”. As you have entered the working world, you probably understand that better now. But money can still seem to have a life of its own.

Family financial planning is not just about cutting coupons and denying yourself treats. It takes serious, careful thought and preparation, but the benefits are well worth the time and effort. The steps are simple.

Start Fresh

Before you can move ahead, you have to get yourself back to the starting line. Get rid of your debt. Once that hole is filled, you can really start to save money for the future. To get out of debt, you’ve got to start living off of what you can earn-not what you can borrow.

Credit card debt is a huge thorn in anyone’s side. Credit cards are a slippery slope, and though they can be handy in emergencies, they make spending money a little too easy. If you only pay the minimum payment each month on a $3,000.00 balance, it will take over 20 years to pay off, and you could pay over $4,000 in interest.

Luckily, getting out of debt is easier than you think. First, promise yourself that you’ll stop charging. Next, figure out how much you can comfortably spend every month in debt payments. Make it a reasonable number that you can stick to, but make it significantly higher than the minimum payments. Even paying $100 more per month on your payments can help out a LOT more than you think.

One last tip: Don’t send every penny you have to the credit card company in frustration. You’ll only end up with no cash when the electric bill comes in, and you’ll be forced to break your promise to yourself and start charging again.

Write it Down

It’s not unusual for a family not to be able to account for 10% or even 20% of their annual expenses. Make a comprehensive list and figure out where the money is going. Determine both how much you’ll spend annually and how much you intend to spend over your working lifetime. You can use the worksheet on the following page as a starting point.

You may be surprised to find out that you don’t know how much you’re spending on a lot of categories. Write down everything you spend for three months-yes, even that 50¢ Coke from the vending machine-and you’ll start to get some real averages.

Here are some categories to look at for savings:

Home

-Rent or Mortgage
-Home Insurance
-Home Maintenance
-Property Taxes

Utilities

-Electricity
-Telephone
-Water
-Garbage Pickup
-Homeowner/Condo Fees
-Internet Connection
-Natural Gas
-Cable TV

Food

-Groceries
-Dining Out
-Take Out

Transportation

-Car Loan
-Car insurance
-Gas
-Parking
-Car Maintenance & Repairs
-Subway, Tolls & Bus
-Registration & Inspection

Personal Care

-Hair Cuts
-Manicures/Pedicures
-Dry Cleaning
-Gym Memberships

Children & Education

-Educational Loans
-Daycare or Private School
-School Supplies
-School Fees
-Baby Supplies

Entertainment

-Renting or Going to Movies
-Family Outings
-Entertaining
-Tobacco
-Alcohol
-Vacations

Pets

-Pet Grooming
-Pet Boarding
-Pet Medical
-Pet Food

Services

-Housekeeper
-Gardner/Mower
-Babysitter

Medical

-Dentist
-Physician
-Eye Care
-Prescriptions
-Emergencies
-Medical Insurance
-Life & Disability Insurance

Consumer Items

-Magazines & Subscriptions (online game subscriptions, etc.)
-Other Memberships (ballet classes, season tickets, club dues)
-Books
-Hobby Expenses
-Tapes & CDs
-Clothes
-Furniture/Household
-Computers and Home Office
-Toys & Games
-Gifts
-Christmas Expenditures
-Other

Other Expenses

-Other Loans
-Credit Card Payments
-Child Support
-Late fees, bank charges, etc.
-Charity
-Alimony
-Income Tax

Savings

-Retirement Savings
-Emergency Savings
-Investments

Establish Goals

The vast majority of families would like to be better off, but have no specific goals. And no, “I’d like to be rich,” doesn’t count as a specific goal. Sit down with your significant other and talk it over. Where do we want to be in ten years, and how do we get there?

Make your goals specific and attainable. Know your rewards for cutting spending. If you decide to give up take-out food, cable TV and morning coffee at your favorite cafe, figure out how much you can save and what you’re going to do with the money. Will you save up to go to school again? Would you like to get a bigger house? Do you want to be able to retire earlier?

Calculate it out: How much money do you need to meet your goals, and how can you get it.

Save and Invest

Determine a set amount that you are going to set away each month and treat it like a bill. To start with, you’ll probably want to put your money in a savings account. But as your savings grows, you’ll want to start to use that money to make more money.

There are dozens of safe ways for you to invest your money and earn more interest than you will in basic savings. Here are a few you can look into:

CD’s Mutual Funds Bonds Money Market Accounts IRAs Treasury Bills and Notes

At Sec.gov, you can use the search function to find clear definitions of different types of accounts. And at Bankrate.com you can compare interest rates offered by banks in your area for basic savings, CD’s, mutual funds and more.

Educate Yourself

In the end, proper financial planning requires educated decisions. Don’t just blindly earn and spend. Pay attention to where your money goes. Household budgets, careful spending, savings, investments, and credit card control are only part of it. Not everyone likes dealing with financial aspects of their lives, but in the end, it’s worth it to bite the bullet, crunch the numbers, and learn how to handle the fortune you earn.

Bad credit bank accounts are perfect for those who have a poor credit history, have been bankrupt, or have a county court judgment registered against them. This helps them to repair their credit history without being caught in a fraud net. For the best services with a bad credit bank account, people should check the policies of the banks because different banks have different policies regarding bad credit bank accounts.

Repairing credit history is the first step to getting back into business. With careful planning and skilled help and patience, it can be done. It is very important to know what is owed and to whom. Current copies of credit reports should be obtained from all major credit bureaus. People should check the accuracy of the information provided in these reports to avoid further inconvenience. Paying bills on time to upgrade credit is also advisable, as is assessing the credit situation regularly to avoid any mistakes. Consolidating debt by paying minimum amounts.

People should maintain their credit accounts so that they can use credit when in financial need. They should go for a secured bank credit card that is backed by money deposited in a bank account while reducing the number of credit cards they have.

It is advisable to always pay the minimum dues on credit cards and get a copy of a credit report yearly to catch any errors. People should avoid things that can limit their credit such as high balances on credit cards, too many applications for credit, and low credit scores.

If you are seeking to build or rebuild your credit, you may want to apply for an Orchard Bank credit card. Orchard offers different credit cards such as cash back credit, premium low interest, secured, gold, classic, and platinum that can fit the financial needs of their clients. Applying for a CC at Orchard Bank is very simple, and hassle-free.

History of Orchard Bank

HSBC (Hong Kong and Shanghai Banking Corporation) was established in 1865 in an era when trade was getting progressive in Europe, India, and China. In 2003, HSBC acquired Household International Inc., the mother company of Beneficial Finance Company and Household Finance Co. – both of which provided loans and deposits to over 53 million customers. Ultimately, the acquisition made HSBC as one of the globe’s biggest issuers of credit cards through Orchard Bank.

Orchard Financial Bank approves customers with good credit. If you have poor or, only applying for one for the first time, Orchard Secured MasterCard can be given to select customers as a step for a good financial start. This requires for a deposit that matches the credit limit so the charged interest rate is fairly small. You can also go for a Household Bank Low APR MasterCard that charges less than nine percent for purchases.

Orchard Bank offers 3 various credit cards to choose from:

The Orchard Low APR Card has a default APR variable 29.49% and a variable 8.90 APR on purchase. If people are seeking cards to rebuild their credit, this type of credit card might suit them. Annual costs range from $60 up to $96. You get to pay $0 to $49 for the processing fee, and you can access them online 24/7. This credit card is accepted in millions of locations worldwide.

The Orchard Bank Classic Card has a 9.90% APR purchase variable, with annual fees ranging from $o to $79, $0 to $49 for the processing fee. This card is a better option for customers who wants to build a better credit. The benefits are the same with the Low APR Card, as well.

The Orchard Bank Secured MasterCard has a low 7.90 percent variable on purchase and it offers secure purchases and reservations. The annual fee for its first year is free, and you’ll only pay $35 on the next year onwards. To open an account, a minimum deposit of $200 is required.

On the other hand, Orchard Bank can charge their customers high interest rates in their credit cards for them to avoid poor credit that may happen in the future. The account’s paid interest rate (as agreed) is about 2.19%, however, it can go as high to almost 30%. Unless you have non-existing or poor credit, be certain that the credit card you applied for at Orchard Bank fits your financial situation.

How to apply for an Orchard Bank Credit Card:

Visit Champion Credit Cards. HSBC Bank in Nevada, N.S. issues credit cards with and by registering to their site, you can apply and have the card delivered to you by mail.

It is not strange to find a person with stacks and stacks of credit cards – all these are active, mind you. This is because there are a lot of credit card companies nowadays that make it easy to own credit cards. They also make it really attractive with added perks as rewards points and mileage credits. You can even have multiple credit card types from the same issuer. In the coming days, you might even find a package with a pre-approved credit card in your mailbox. Your stack might also include ATM cards and debit cards from several of your bank accounts. These accounts may or may not have been opened in connection with your credit card accounts. Or, maybe some of your plastic cards were issued to you because you have an account with the issuing institution. Is it advisable to have lots of accounts and credit cards?

In as far as bank accounts, it really does not make sense to keep several of the same types of account. Financial managers would advice that you open one account for your revolving fund, another one for your emergency fund, and probably a couple of others for your long-term funds. Your revolving fund could be your simple ATM account or your checking account. There are some banks that offer both conveniences in one account. This is your transactional account – some would call it your wallet account. Your emergency fund could be kept in a time deposit or a special savings instrument with a tenor that you are comfortable with and that earns interest that is a bit higher than your savings account.

For your long-term funds, you can consider higher-yielding instruments like fixed tenured special high rate offers that your bank could offer from time to time. You need not keep all your accounts in one institution. In fact, it could be dangerous to keep all your eggs in one basket as they popular adage goes. Having about three to five accounts with different banks in total would be just right provided that these are different types of accounts. It would be a nightmare to monitor and balance five checking accounts.

Now, credit cards are a different matter. There really is no cap as to how many charge cards you should own. Heck, some credit card companies can give you a new one even if you do not have a good credit score. But then again, you should be wise about owning and using them. If your credit record is clean thus far, there really is no reason why you should start acting irresponsibly and start smearing it. Having a lot of plastic cards do not automatically give you license to go on a wanton spending spree. You can actually use multiple plastic cards to your convenience.

Being able to manage spending on several cards and making payments on them as they fall due can do wonders for your credit record. The number of cards you own does not matter as much as the amount of outstanding unpaid balance you have on all of them. While one or two cards is really all that you need, it really does not matter much how many bank accounts and plastic cards should you have for as long as you are able to manage all of them well enough not to put you on the negative side of your personal financial statement.

It is best to remember that these financial instruments are supposed to help you manage your money. You should not end up losing money in the long run. Prudent use of these tools will allow you to save more of the money that you earn and earn more from the money that you save.

So, in the end, how many bank accounts and plastic cards should you have? Only as much as you could handle properly!