A 25-year old is done with college and is probably into his first job. At the threshold of adulthood, he wants to fulfill several dreams in a short period of time. Most people believe that having a credit card is an important factor of becoming an adult. However, there are many individuals who think such cards are unnecessary. Just like investing is not necessary, having a card is also not a necessity. So then why would a 25-year old need one?

Here are five reasons why having a credit card at the age of 25 is beneficial.

1. Deposits are Not Necessary

Some merchants who accept debit card payments require the customers to also pay a higher deposit at the time of booking. In case a person is unable to execute the plans, the merchants are still able to earn some of their cash deposit amounts (because there fund is done after deducting a certain sum). These are similar to security deposits and may become inconvenient. A credit card eliminates all such difficulties for the users because merchants do not require deposits for such transactions.

2. Deferred Payment

When an individual uses a debit card to purchase any product or service, the money is immediately deducted from his bank account. On the other hand, a credit card purchase does not have to be paid until the next payment due date. For example, if a cardholder purchases something using his card on the 1st of a month and billing due date is 31st of the month; he enjoys an interest-free period of 30 days. Although this may not seem like much, being able to make purchases without the need to pay upfront cash may help users save a lot of money over a longer period of time.

3. Affordable Home Loan Interest Rates

Many people think that they may receive better discounts and close a home purchase faster if they pay in cash. However, if a person has used his credit card responsibly and made timely payments, this is reflected in his credit score given by a credit rating agency like Credit Information Bureau (India) Limited (CIBIL). A higher credit score is beneficial in reducing the interest cost on home loans and other types of borrowings. This makes it less expensive for people to buy their dream home. Furthermore, paying the mortgage installment with a card reduces the actual cash outflows and helps prevent financial difficulties.

4. Reward Points

Most card companies provide excellent reward-based credit cards for their customers. These issuers allow the cardholders to accumulate reward points on their spending. These are redeemable against several offers, such as travel deals, air miles, or purchasing some products and services. In addition to the reward points, users may enjoy cashback offers and benefit from signup bonuses that make credit cards more beneficial.

5. Develop Credit Score

A 25-year old may not have any credit history. However, he may need to avail of a loan in a couple of years to purchase a home or any other asset. This period may be used to develop a good credit score using a credit card. When an individual utilizes his card responsibly and has no delays in payments, it has a positive impact on his credit score. Having a strong credit score has several direct and indirect benefits, such as increased possibility of receiving approval on loans and lower interest rates.

People often find lots of information on how using a credit card may have severe outcomes, such as financial distress and debt traps. However, using a card wisely also has many benefits. However, before applying for a credit card, it is important to check credit card eligibility and understand the terms and conditions related to credit cards.

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Being stranded beneath the mountain of debt is a pretty scary place to be. You don’t know what’s going to happen, and you can’t see a way out. But, you need to try to make sure you follow this advice and give yourself a chance of escaping.

Start Budgeting

You need to start getting serious with your finances now. Organization is a big part of climbing the ladder out of the pit of debt. If you’re not someone who is particularly organized when it comes to finances, then you need to work on this. Get on your computer and start making a budget and spreadsheet. Yes, it sounds like the least fun in the world, but it is really going to help you when it comes to the nitty gritty.

Consolidate

The main thing you need to try to focus on to get debt free is to consolidate. Now, there are a few ways you can do this. You might consider entering into an IVF or joining forces with a diet consolidation company. Or, you might prefer to take a look at unsecured loans and choose one that you can use to consolidate and pay off all the debt. Don’t think that just because you’re in debt at the moment you can’t use a loan like this to help you. It’s important to put all your debt together and try to get rid of it in one payment. And a personal loan gives you the chance to do this.

Talk to the Experts

You know you don’t have to face this debt alone, right? Okay, so you might not want to talk to your friends and family about it. But, you should certainly speak to experts who have dealt with this before. Following expert advice to get your finances back on track is so important. You will have questions that need to be answered. And financial experts can provide you with this peace of mind as much as possible. Talk to professionals, and ask for guidance in getting free from your debt. They may well be able to refer you to a consolidation program.

Stop Spending!

It seems pretty obvious to suggest that if you want to climb out of debt, you need to stop spending. But, you’d be surprised how many people don’t actually follow this advice. You need to curb your spending habits as much as possible if you want to get out of this sticky situation. That means cutting back and only spending what you absolutely have to. Avoid the frivolous luxury purchases, and only spend money on what you actually need. If you’re struggling with this, that’s what you can use your budgeting to help you out with!

Sinking into debt can be quite alarming, and yet so many of us fall victim. It’s so easy to get into a downward spiral and become unable to dig yourself out of the debt you’re in. That’s why it helps to have advice like this you can follow to try to get yourself debt-free.

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Tabling your household budget can be pretty tough on a good day, when your income covers all of your expenditures. But when you’re attempting to create a financial plan and the cost of your expenses outweigh your pay (and your savings), you can wonder how you’ll make ends meet. Unfortunately, you can’t blame your budgeting woes on dyscalculia or irresponsibility; sometimes the only reason why you’re in the red is because of bad luck. All you need are too many bills with overlapping due dates with not enough pay, and you’ll be struggling to create a budget that works. Luckily, there are helpful options out there that can help you get your finances back on track, like short-term loans from reputable direct online lenders.

What’s a Short-Term Loan?

Loans with this title have a fixed repayment schedule. Many of them are considered payday loans because they require full repayment by the time of your next paycheck. The best options for payday loans have low barriers for entry, which means you can acquire them quickly and easily, regardless of your credit rating. Many of these lenders, which includes MoneyKey, don’t look at your credit at all. As long as you’re an American citizen over the age of the majority with proof of income, a bank account, and an email address, short-term loans are a convenient and viable way to access the cash that you need. They’re extremely useful in situations when you need money as soon as possible – when surprise bills or repairs require payment according to a tight schedule.

Why Use a Direct Online Lender?

The Internet has simplified most areas of our lives, so it only makes sense that it has helped to streamline the process of acquiring loans, too. Now you don’t need to travel to a brick and mortar lender to get the money that you need. There are direct online lenders, such as MoneyKey, that offer all of the same services online. You can fill out their online application directly from their website, submitting the information mentioned above and get an online payday loan from Moneykey.com. By virtue of being processed online, you’ll receive a more immediate response to your application. As opposed to waiting weeks for a person to call or schedule a meeting about your funds, direct online lenders will notify you instantly of your qualification, and you’ll receive your small dollar loan within one business day should your application be approved.

How Can You Protect Yourself?

Though short-term loans are a convenient way to getting the money you need, it’s not always easy to get a product that reflects your financial capabilities. There are some lending companies that offer small dollar loans with unmanageable rates, terms, and conditions that make their financial products difficult to repay. They do this on purpose in hopes you’ll rollover your payments to incur late penalties and more interest. State governments have stepped into limit these lenders abilities to scam consumers by introducing laws and regulations limiting the rates, terms, and conditions of lawful small dollar loans. Make sure the direct online lender you turn to for assistance can provide their state licensing to prove their financial products are in accordance with the law.

Find a loan that has a repayment schedule you can manage, and you’ll have the financial assistance that will help you pay for your surprise expenses without putting your budget into flux. While you shouldn’t rely on these products month to month, they act as a pinch hitter when your income fails to cover your expenses.

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When you think about car insurance, it is always about accidents and getting yourself protected in the event of an accident. We believe that having a third party liability insurance policy is enough since it is mandatory by law to provide for damages done to third parties involved in a mishap. However, is it enough?

God, Forbid! What if you meet with an unfortunate scenario of your car getting broken into and stolen? Would you be covered for the loss?

Car theft is something that would not have crossed your mind. However, looking at the alarming statistics of theft in India, it is worthy to revisit your insurance plan and get yourself covered for theft.

Importance of Comprehensive Insurance Plan

Car insurance policies fall into two categories – third party liability and comprehensive plans. Third party liability covers for damages done to third party or property in an accident and is compulsory to own one as per the Indian law.

On the other hand, comprehensive car insurance plan comprises of third party liability coverage and also covers you for damages done to your car due to accidents, theft, and unforeseen mishaps.

A comprehensive insurance policy is the most sought by all since it gives the much-needed security against unforeseen damages and provides full-proof protection for your car. It is wise to opt for a comprehensive insurance plan to give you complete peace of mind.

The compulsory third party liability insurance policy is not going to help you in any way when you discover suddenly that your car is stolen. Whereas, when you own a comprehensive insurance policy, in the event of theft, the insurance company will come to your rescue and reimburse for your loss.

All you need to do is to lodge an FIR with the police and inform the insurance company of the same. You will be covered for the loss, and your money will be reinstated back to you as per the terms and conditions of the policy. Your car is the most prized asset and going an extra mile to protect it, using a comprehensive insurance policy is essential.

Why should you consider upgrading to a comprehensive cover?

You need coverage to protect you against damage to your car as opposed to the third party only If your car is stolen, you would have to pay up in full to purchase a brand new vehicle. Whereas with the comprehensive insurance plan, you are eligible to get back your hard-earned money, even if not in full.

Added level of protection that gives you more advantages

Don’t go for the lower level of cover just to save few bucks. You will save more in the long-run when you opt for comprehensive plans.

Stay safe against the crime of theft and other unforeseen damages that can happen to you anytime

Be secured on the road and also off the road. Don’t pay up for something for which you were not at fault

As seen above, the advantages of owning a comprehensive insurance policy are plenty. So make a wise choice and don’t regret later.

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I’m sure you’ll agree that the internet is one of the most revolutionary leaps forward in history. How many times have you used an internet connection today? How much harder would your life be without that? Pretty much every facet of our lives has been influenced by the world wide web, and investing is no exception. In this post, we’ll take a look at how the dawn of the information age has changed the way we invest.

With the sheer size of the internet these days, it’s pretty tough to explain exactly what it is. At the core of it, it’s one giant bank of information. The internet has made information more accessible than ever before, and stock traders have benefited from it exponentially. Before the internet, an investor’s job was incredibly long-winded. Every time you wanted to find out about a company, you’d have to head to a library and sort through stacks of financial journals. Lengthy files on the history of stocks and bonds would have to have been leafed through until you found what you were looking for. The only alternative would have been calling up a company and asking directly for a financial report. This would not only cost a lot in the way of postage, but would also take a lot of time to gain any benefit from. You would have to wait for the report to be printed and posted. After that, you’d start again with the process of sorting through all the information yourself!

The internet immediately sped up this entire process. These days, you can get onto the SEC website in a matter of seconds, and view company reports in detail as soon as they’re updated. Lengthy, detailed documents on financial histories can also be downloaded in an instant. Then, you can easily search for keywords, figures and specific topics. With the erratic nature of the stock market, these quick updates became an essential for any successful investor. Many modern companies also keep up investor relations web pages. Here, you can find all the same files, presented in a clear, simple way. This created a pretty significant shift of power in the world of investing. Before the information age, investment managers and brokers had a huge advantage over investors like you and me. They had immediate access to detailed financial reports, without having to go through the same trials as investors. This has completely been turned on its head now! Some online resources will provide information for an affordable fee. Others even offer their valuable information for free! Perhaps the biggest change technology has had on investment is lowering investor’s fees. This has been seen in precious metals, FOREX and everywhere else in the world of investing. Retail investors have benefitted the most from this however. These days, it’s completely common for online brokers to charge a mere £6.00 for a trade.

As the internet has become more widely used, the power has gradually transferred to the little guys. Let’s hope that future technology continues to do so!

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