How Does Cash Advance Work?

A cash advance is very similar to a payday loan, except the terms are generally a bit longer. For those with poor credit, this is often a better option when emergency funds are needed. Cash advances are not legal in all 50 states, so it is important to make sure they are legal in your state before obtaining one. This is an alternative to a traditional loan and is generally for an emergent purpose.

Loan by Check

Some lending facilities for cash advances do not give actual cash; some provide a check that is made out to you for deposit into your bank account. In return, you must furnish a post-dated check to them for repayment of the loan or authorize a direct withdrawal from your personal bank account on the specified repayment date.

Advance from Credit Card

Some credit cards allow for cash advances. Not only are you charged an interest rate with the credit card company but the lender also charges a fee. In some cases, you can go to ATM for a cash withdrawal, but when you need a larger sum of money, you must visit either a bank or financial loan institution for the advance.

Varying Terms

There are varying terms by location and facility. The average cash advance interest rate is 15-percent. This fee is attached to the loan amount and must be paid in full at the time of repayment. Other fees can include administrative fees, processing fees or local taxes imposed by a specific municipality.

It is important to review the terms for the facility you wish to work with prior to accepting any funds or signing any paperwork. Always read the fine print as this can include disclosures for hidden or any additional funds that may be required.

View the repayment terms as these do also vary.

Short Terms

Most cash advances are scheduled for repayment within 14 days. Terms vary by location as some will extend out to 21 to 30 days. Most cash advance lenders require you to leave a check with them that can be deposited into your bank account for collection on the scheduled repayment date. Other lenders will require you to come to the office and make the payment in person. If a credit card advance was issued, repayment may be requested in cash form. Always ask about the terms of repayment before accepting the advance.

In a sticky situation or one where you have limited resources, this is an option to consider. This is better than a payday advance since the interest rate is much lower. Your credit does play a factor in the amount that you can advance. Your income is the biggest deciding factor as a lender cannot advance you what they don’t see you bringing in as far as income is concerned. Your other bills are not taken into account in this situation as it is a short term loan that is to be paid back in one single payment. In this situation, it is best to only ask for exactly what you need and not extra.

The Importance of Company Credit Checking

Understanding how your company, potential business partners and new customers that you choose to deal with can be affected by credit reports is vital. Here we explain what credit checks are and look the importance of company credit checks.

CR

 What are company credit check reports?

This type of report gives an up-to-date true and fair view of how a company manages its financial obligations. The report usually includes company background such as director details and shareholders, accounts receivable information, current and historical credit score, and public information such as records filed with a government agency.

 Why are they important?

 

While it’s important to increase your customer base as your business grows, late and non-payment of bills can cause major cash flow problems for your company. Before entering into business with new customers or new business partnership, it’s essential to conduct checks to ensure they’re creditworthy. Remember that the size of a company is not a guarantee that they’ve a healthy level of cash flow. Company credit checks enable you to have a good financial understanding of potential business partners and customers. Assessing the risk will save you time and money in the long term.

Credit histories are often affected by debts, loans, and credit score. Checking the company’s credit will let you know whether they have previous form in defaulting, the ability to pay the debt, and whether they take on loans which they cannot afford. A company that has an average or poor credit score means they’re less consistent in repaying their debts.

It’s a good idea to look at your own company’s credit check report to find out how it appears to your suppliers and customers. Moreover, comparing your company credit report with your competitors’ will enable you to benchmark your performance against them. It can help you to identify opportunities and threats by exploiting your competitors’ weaknesses.

If you’re seeking finance for your business, it’s likely that your company credit history will be checked. Your company credit score may go up and down depending on the financial activity. Hence, it’s a good habit to check your company’s credit profile regularly to ensure the information is accurate and up to date. Regular checks will enable you to identify discrepancies and prevent any fraudulent transactions on your accounts. Make sure your company address history is correct as you may be penalized for debts incurred by others. Credit reports provide valuable information that allows you to rebuild a previously damaged credit rating to boost your chances of obtaining finance for your business.
How can you carry out credit checks?

You can ask for references from existing suppliers of your new customers and potential partners. Another reliable way to check on the financial situation of a company would be to approach a credit checking agency that specializes in supplying creditworthiness reports.

Company credit check reports provide valuable information to make smarter business decisions. Obtaining a copy of your company’s credit report is the first step towards protecting your credit rating. It’s important to undertake checks of your potential customers and business partners to make sure they are credible. Benchmarking your company’s financial status with your competitors will ultimately help to understand how your competitors are operating.

 

Image by Simon Cunningham,

 

Is Staying Home to Raise the Kids Costing you More than you Think?

Not long ago we wrote a blog about how the number of stay-at-home moms in America is on the rise. As a matter fact, in 2012 nearly 30% of all US mothers stayed home to raise their kids, up 23% from 1999. Take a trip to any park on most weekdays and you’ll even see dads there also, having swapped their desk chair for a high chair.

Of course some of these parents are at home because of the lack of jobs but many are there by choice, saying that there’s no way to put a price on time spent with children before they grow up. While that might be true, it’s also true that anyone considering staying home to raise their children should look at the costs involved in swapping out a career in the working world for a career taking care of the kids.

The simple fact is that any retirement nest egg can be quite devastated by a lapse in retirement savings. For example, 50% of a 25-year-old’s retirement income can be replaced if they’re earning $40,000 a year and start saving 13% of their salary at the age of 25, including any employer matching that they can get their hands on.

If you deduct three years from that however, that 50% replacement rate falls to 43% and, after five years, it falls even further to 39%. That extrapolates to needing to save 15% of your salary if you miss three years in the working world or 17% after missing five.

Financial experts will tell you that, even if you decide to take time off, you should still continue to put savings into a spousal IRA. Yes, this will need to be funded by the working spouse but, since it’s in the non-working partner’s name, it should be fine. If you’re married and file a joint return you can also open a traditional or Roth IRA. In some cases the lower income that you have because you’re not working will make you eligible for a Roth and you may want to consider converting a traditional IRA into a Roth as well.

Taking time to raise the kids will also impact your Social Security benefits once retirement comes. The 40 credits that you need usually require at least 10 years of paying into Social Security and, if you’re close, you might consider working a bit longer. Also keep in mind that the 35 years when you earned the most money are what the Social Security Administration considers when they figure benefits, so any years that you earned nothing will cost you. If you’re a stay-at-home parent and you don’t qualify for benefits, you may be entitled to up to 50% of the benefits that your working spouse will receive.

Since it’s highly unlikely that anyone will take over raising your kids for free, having adequate life insurance on the stay-at-home parent is a must. The breadwinner in the family should have adequate life and disability insurance as well.

Finally, in any situation where one spouse ops to stay home and raise the kids, budgeting and downscaling is absolutely necessary. Putting together a bigger emergency fund is also vitally important, especially if the breadwinner suddenly becomes unemployed and unable to work.

A good suggestion is to try living on only one income before deciding to take the stay-at-home plunge. That information should help to make the decision much easier whether pro or con.

Don’t Fall for these Hotel Scams

Summer. Time for barbecues, road trips and… hotel scams? If you’re heading out on the road this summer and will be staying at a hotel or motel along the way, the FTC recently published a list of scams and “hazards”, including some that are identity theft related, that you need to obviously avoid. Some are simply extra fees that hotels have started adding, which you obviously will want to avoid as well. Check them out below and make your summer travels a little safer and less expensive. Enjoy.

1) The “problem with your credit card” scam. The first scam comes right after you check into your hotel room. The phone rings and a person identifying themselves as someone “from the front desk” says there’s a problem with your credit card and asks for the account number. It’s a scam that’s becoming more popular because it’s quite easy to pull off and, once you give that number and its accompanying data, the scammers have access to your card and can quickly drain it. If you get a call like this at your hotel, hang up and call the front desk yourself to see if they were the ones actually calling. Even simpler, walk down there yourself and ask.

2) The “fake pizza flyer” scam. With this scam, you find a pizza or other restaurant flyer slipped under your hotel door with pictures of their delicious food and their phone number. Once you call, they take your order and your credit card information. Although it’s not extremely popular yet, simply due to all of those security cameras at most hotels, it is being seen more often.

3) The rogue Wi-Fi hotspot. This can happen in your hotel or in a coffee shop or other location along the way. Using easily set up technology, criminals offer a free Wi-Fi hotspot and collect your credit card and other information once you log on. Your best bet is to always check with the hotel or a restaurant employee to make sure that the Wi-Fi hotspot you’re using is legitimate. Even better is to use your own smart phone as a Wi-Fi hotspot, which is easily set up with a phone call to your service provider.

4)The “free” Wi-Fi trick. While this isn’t a scam set up by criminals, you certainly will feel like you’ve been ripped off. Many hotels today are offering “free” Wi-Fi in their lobby but, once you check in, you’re forced to pay a daily fee for your Wi-Fi in your hotel room. Some hotels charge between $10 and $15 per day so, before you start using that Wi-Fi, make sure it’s actually free.

5) Extra “resort” fees. Although budget websites like Expedia or Priceline help hotels fill their rooms, most hotels are not particularly fond of them. In order to make up the money lost from giving away their rooms so cheaply, many have taken to including “resort fees” like charging you for housekeeping, keeping things in a hotel safe and so forth. Some will even charge you these fees if you don’t use them, so if you see them on your bill make sure to ask for them to be removed.

6) The bouncing cancellation fee. It used to be that if you canceled a hotel reservation 24 hours ahead of time or more, you would get a full refund. These days that’s not always the case so, before you book a hotel or motel reservation, make sure you check to see what their cancellation policy is and, if you have to cancel, abide by it to avoid these extra fees.

Now that you know some of the tricks that criminals, and unfortunately hotels, are using to grab your hard-earned money, you can go on vacation this summer with a little bit less anxiety. Have fun!