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Secured Credit Cards Vs. Regular Credit Cards The only difference between the two is that a secured credit card is sanctioned against security (cash) deposit, which unsecured credit cards don't require. Secured cards often have higher fees than unsecured ones. You might have to pay an application fee and yearly subscription fees as well. The penalty APR could be quite high for these cards. If you are wondering why, the answer is quite simple: a person who isn't creditworthy, is unreliable with credit. Hence lenders impose high interest rates on them. Apart from these aspects, secured credit cards are just like regular unsecured credit cards and function on similar terms. How Do Secured Cards Work? If you are looking for a chance to build or rebuild your credit, a secured credit card could be a suitable option for you. You just need to approach the bank and apply for a secured credit card. You should know that there isn't a guarantee of getting a secured card just by payin...

If you have an annual income that easily lets you pay monthly EMIs and other expenses as well as make savings to assist in downpayment, it indicates a green signal. Go ahead with your plan of turning your dream into a reality. If you have a credit score above 700, then there are good chances that you will get approval on the home loan.  In case you are a credit card user but haven't checked your credit score yet, then use mymoneykarma's credit score tracker to pull your credit report.In case you are afraid of borrowing credit now, then look at it this way; say you liked an apartment costing Rs.1 crore, but you skipped buying it because currently, you don't have a crore in your bank account. Will you ever be able to buy it again? Sorry, but the harsh truth is that you wouldn't be able to afford the same home after a few years, as real estate prices soar with time. Are You Averse to Government Scheme Benefits? No? Good. The central government introduced a sc...

As per the new guidelines of RBI, now banks are required to apply the MCLR method to calculate the rate of interest. For home loan schemes with floating interest rates, the rate can be changed half-yearly or yearly. A reduction in MCLR is a boon for first-time borrowers as home loans connected to MCLR for a year in fixed rate means that the rate will be the same for the whole year. However, for the old loans that were borrowed at a higher base rate, it is helpful only after the end of the one year lock-in period. To avail the benefit of the new MCLR, the borrowers of old loans need to start a fresh contract with the bank. Other banks that had declared the rate cut in the same year were State Bank of Travancore, IDBI Bank, and Indian Overseas Bank. India Bulls Housing Finance had also subsidized their home loan offerings. Interest Rate of All Leading Banks in 2018 The interest rate of home loan varies from one bank to another, depending on the location of the property, the loan amount,...

Application Process for ICICI Home Loans The applicant can either apply online through the website of ICICI Bank or can call the toll-free number. The bank will start the process after checking the necessary documents, the applicant's credit score, and the value of the property for which the loan is applied for. Once the loan is approved, the borrower will be notified through an SMS and an email. However, remember that you need to have the best credit score for ICICI bank home loan . Documents Required For salaried individuals, the following are the documents that the applicant must submit- Application form with a self-attested photograph. Identity, address, and age proof. Last six months' bank statements. Past three months' salary-slips. Processing fee cheque Form-16 or Income Tax Return proof. Credit Score for ICICI Bank Home Loan The best credit score for ICICI bank home loan is 700 and above; the higher your credit score, the lesser is the amount of interest r...

You have come to the right place. mymoneykarma tells you about seven necessary expenses that will crop up in your wedding and how to reduce those expenses. Let's get started. Venue These days, wedding venues are just like a great flat with a great location: hard to find and insanely expensive.  Fancy hotel ballrooms, banquet halls, upscale farmhouses, and huge function halls are the popular choices, and they cost a bomb. But venues need not cost an arm and a leg if you plan carefully. Choose a place in the outskirts instead of an upscale hotel within the city to save costs. Search for a venue that doesn't require you to use their in-house vendors for decoration and catering services mandatorily. Go for open ground venues that will give you the liberty to work with your preferred vendors. Many wedding planners also suggest moving the wedding to an offseason period when hotels and banquet halls offer huge discounts. The same applies for destination weddings. Moving your marriag...

What Are Cash Back Credit Cards? These are particular types of credit cards that pay you back a certain percentage of the amount you spend for every transaction in the form of rebates or points that you can exchange for gifts. The usual rebate rate is 1-2% of the transactional amount for most credit card companies. More than half of the credit companies offer cash back credit cards in India. Types of Cash Back Credit Cards Different types of cash back cards come with various benefits that we’ll cover in this article. A good cash back card can help you cover expenses, build credit, or even grow your savings. Before picking a card and starting the application process, you should have a good idea of your spending habits. Cash back cards are often designed with certain types of spenders in mind. The cash back card will work best for you if its reward structure fits your buying habits. There are three common types of cash back credit cards. 1) Flat rate: Some cash back rewards cards offer...

Debt-to-income ratio, or DTI, is a quantifier that lenders use to determine if a potential borrower is eligible for a new line of credit. It is an analysis of an individual's monthly income and existing debt obligations to find out if the individual is capable of handling and repaying more debt. Your debt to income ratio doesn't affect your credit score. You can breathe a sigh of relief. In fact, your debt to income ratio doesn't even appear on your credit report. When you apply for a new loan, the lender typically asks for a self-reported estimate of your salary or a document like your salary slip to confirm your income. The lender calculates your DTI and decides whether or not to sanction the loan accordingly. Therefore, though it doesn't affect your credit score, it has a significant impact on your credit health as it decides your ability to get credit. What is the Ideal Debt-to-Income Ratio? Financial experts recommend that a debt-to-income ratio less than 36% i...

Credit report and credit score are essential terms in the glossary of finance. I was unaware of them until last year when I had a conversation with my friend about taking a home loan. She asked me if I knew my credit score or had checked my free credit report recently. I had no answer. I had to ask her what a credit score is and why it is essential in the first place. The Free Credit Score Mystery She told me that a credit score is a three-digit number. It is determined by credit information companies (often called credit bureaus) by assessing the credit history of the borrower. It is calculated based on the reports submitted by the banks and other credit card companies in which the individual already has active credit accounts. The number can range from 350-900, and should be in the range of 600-800 to be considered healthy. One can check his/her credit history through a detailed credit report issued by the Credit Information Companies (CIC). A borrower is entitled to get a free cred...

How to Get the Lowest Interest Rate on Home Loans? Apart from the enforced interest rate cuts by the banks, there are other ways through which the borrower can get a home loan on lower interest rate: Avail a home loan jointly with your wife and make her the primary applicant of the home loan. Most of the loan provider institutions offer home loan to women on an interest rate that is less by 0.5% of the general interest rate of the same loan. One can also opt for a balance transfer facility and switch to another bank that provides a lower rate of interest if the current bank or financial institution is charging a higher interest rate. In such a fierce competition, banks prefer to retain their customers - especially the ones who make repayments on time and have a good credit report. We at mymoneykarma help you in transferring your home loan to a different financer with favorable interest rates. You could also apply for a home loan through mymoneykarma! We offer the best, lowest interes...

Pooja was excited about her first credit card. However, she was quite nervous and apprehensive as well, thinking about the mistakes that she may commit unknowingly. She approached her friend Malini, who works in a bank, to ask for some tips to consider before using her first card. Malini gave her ten fantastic tips for first time credit card users, which we are going to share with you. Here they are: Pay on Time Malini told Pooja that it was crucial to make bill payments before the due date. If Pooja misses payments, it would affect her credit score. Credit score was a term with which Pooja wasn't familiar because she got her first credit card based on her corporate salary account. Nobody had asked her for credit history. Malini told her that there is a vicious circle of credit which would start forming around her if she started using her credit card irresponsibly. For instance, if Pooja misses even a few payments, her card issuer will report this activity to the credit bureaus, ...

Are you really ready for your first credit card ? If you don't have an instant answer to this, maybe you need more time to analyze. However, if you are looking for a way to determine whether you are cready (credit-ready) or not, then let us make it easy for you. mymoneykarma has lined up a comprehensive list of rules here, following which can help you determine and even boost your credit-readiness: Job Security and Regular Income You need to have a steady flow of income for at least one year before applying for a credit card . Since the time you start earning, lenders will be ready to offer you a credit card, but it’s best you don’t buy it at this time. Warning: You could fall into a terrible debt trap. Wondering, how? Let's picture a situation: You make costly purchases through your credit card. Come month-end, you can't even pay the minimum due because you don't have enough money in your account. You don’t have a source of income, after all. Such irresponsible beha...

3 Tips to Help You Stay on Top of Your Payments Life these days can be extremely hectic and busy, and most of us handle multiple lines of credit simultaneously. Getting confused and forgetting a due date is quite natural amidst multitudinous items on our minds. How do we ensure that we never miss a payment? The solution can be a simple one. Synchronize the Due Dates: If you have multiple credit cards with different billing cycles and due dates, you could consider talking to your card issuers and change the billing cycle in such a way that all the due dates synchronize. Most creditors will agree to this proposition. You could schedule all your due dates on a particular day right after you receive your salary. This will considerably reduce the chances of missed payments. Reminders: If you are an absent-minded person, you must set up reminders for yourself. It could be a wall calendar, sticky notes, cell phone reminders, or even text/email reminders - set up something that will notify y...