Credit Cards and How It Works


A credit card is a tool used in the financial world to pay for goods and services being offered by a merchant. Once the credit card holder offers payment using the credit card and the merchant swipes the card, upon the credit card issuer’s approval, the purchase is deemed complete. The obligation to pay is now with the credit card holder to the credit card issuer. The issuer in this case paid for the purchase and will now need to collect from the borrower. Of course, the issuer will charge interest fees for the use of their money.

Credit Limit

A credit card holder is granted a certain credit limit which they can consume to pay for such goods and services. This credit limit is being granted by the credit card issuer which is an amount they are willing to accommodate. Any purchase of goods or services made by the credit card holder will be validated against this credit limit. If the purchase is exceeding the available credit limit of the holder, the purchase will then be declined. Credit limits may increase upon the request of the holder and review of the issuer. In some cases, the issuer may increase the credit limit without notice to the holder.

Interest Fees and Finance Charges

It is important to be aware that a credit card holder makes use of the issuers money and services when they avail the use of the credit card. This in turn yields interest fees which are payment for the credit card holder’s use of the issuer’s money. Finance charges on the other hand are fees paid for the services being rendered by the credit card issuer and other penalties that need to be collected for any breach in the contract such as overdue payments. Interest fees and Finance charges are the ways credit card issuers earn money for financing your purchases.

It is important to understand the use of credit card. When the time comes that you do need one, these are the things you need to consider.

Avoiding Mortgage Scams


The housing market is one of the most common environment where scammers thrive. When mortgage gets involved, scammers are often nearby. These crooks often say things that will cause you to doubt but somewhere along the way you start getting convinced and end up paying cash and signing documents that may be the start of a bigger problem.

Scammers are everywhere and it is something that thrives in a market where large amount of high value transactions take place. With this article, we will try to cover how you can avoid these scams and what things you will need to watch out for.

  1. Deed Theft

These are scammers who try to modify or refinance your existing mortgage loan for a better interest, amortization, or technically a better deal. What they do is they get you to sign documentation for the refinancing and formed part of the documentation are deed transfers. In this way, the scammers are able to get the deed transferred under their names and leave the owner wondering how they have lost their property without knowing about it.

  1. Upfront Payment Fees

It is common for a lending company to charge fees for the processing and working on requests. These fees are often charged after the loan period but some lending company charge upfront. Don’t get me wrong, upfront fees mean getting the charges deducted from the loan proceeds that will be provided. If your lender is asking you to pay upfront charges through check, credit card or cash, be very careful. Most probably the company you are working with is trying to scam you for cash.

  1. Lease/Buy Back Agreements

These types of scams are quite deceiving. The scammers ask you to sign a document including the transfer of deed where they make it appear that you would be able to buy back the property from the new owner. While the borrower is deep in financial problems, the scammer will insist that the new owner also allows renting the place for a minimal fee. After all the documents have been signed, the borrower gets evicted from the property.

Credit Card Issuers and What To Avoid


Credit cards are becoming a necessity and more people are trying to get their hands on one. Some people may even have two or more cards that they use. With credit cards becoming infused in our daily living, credit card issuers have become more aggressive in marketing and selling their products and pushing them to individuals. It is our responsibility to make sure that we are aware of the cards being offered to us and who are offering them to avoid scams. Here are a few tips on what to avoid when looking or getting offered a credit card.

  • Avoid Offers from Online/Phone Agents

If the call you are getting is coming from an unfamiliar number or getting offers from agents who talk to you online outside a secured website, then do not engage. There are cases where someone poses themselves as online agent and get your information which will be used for other illegal activities. Always engage with agents who you can validate as a representative of the card issuer you are eyeing.

  • Avoid “Too Good” Promotions

Credit card companies are institutions who earn money by lending money. It is necessary to be aware of the promotions that are being offered especially those promos which might be too good to be true. Most probably it is. You will need to consider that every company, including financial institutions, will hold promotions to create demand and more market reach. Sometimes going overboard can get you to start mismanaging your charges and going into debt. Always be aware of what is being offered and have that principle of “if it’s too good to be true, it most probably is”.

  • Avoid Getting Pursuaded

Whenever you decide to get a credit card, make sure that you are getting it because you have done your research and due diligence of needing it. Marketing representatives are quite good in persuading their customers and making them think that they need a credit card. Just remember, always buy when you’ve done your research and not because someone said so.

Choosing Your Mortgage Lender

Now that you have decided you are ready to purchase your own home, you will need to apply and get yourself a mortgage. A mortgage is the best way to help you finance the purchase of your new home. But the real challenge here is getting to partner with the right mortgage lender.

Mortgages often entail long period of time thus putting importance on who you would like to partner with as a borrower. Lenders often provide good service and great packages to borrowers whom they have built their relationship with. So here are a few things to note of when finding a good mortgage lender.

  1. Compare Lenders

Always have that time to research and compare the lenders. Find a lender who has been in the business for a long time and has established its business within the industry of lending. This will ensure that the lender you are dealing with is not someone who can scam you from getting that mortgage loan. Also, working with a credible lender will allow you to enjoy good service because of the vast experience they have had within the business.

  1. Finding the Right Package

When choosing a mortgage lender, consider the packages that they offer. Being able to compare the packages will help you choose the right mortgage loan that is being offered to you. Mortgage isn’t only about the interest payments. It’s about the terms and conditions that has been included in the agreement that can bring an advantage to your mortgage.

  1. Business Partner

One key trait that you need to look out for is when your prospective lender treats you as his business partner. As mentioned earlier, a mortgage entails long term period between the lender and borrower. Having a good relationship with the lender will definitely bring you advantage.

It is necessary to choose a lender whom you will be comfortable with. The right lender will bring a good relationship  with future dealings.