Sometimes you really just find yourself needing some money. Unexpected events such as a car breakdown can put a damper in your budget no matter how well you plan. In situations where you need money and need it quick, you can look into Borrowing money from your 401 K. Typically, when someone makes a 401k plan they do not expect to take any money out of it until it has grown and matured.
But life does not always go the way we hope and sometimes we need to delve into whatever source of money we can find, and sometimes that means taking money from our 401k. This has been thought of and that is why most 401k plans will actually have that type of loan available.
While taking a loan from your 401k can often make the difference between paying off a bill and falling further into debt, there are risks involved. If you do not handle the loan carefully you can not only run the risk of having to pay much more down the road, but you also run the risk of ruining your 401k.
Not all 401k plans are the same and so there is no universal method for getting money out of them. You need to check into the specific plan you have and find out what restrictions apply when Borrowing money from your 401 K. For most plans they will require that you borrow a minimum amount of money, usually anywhere from five hundred to a thousand dollars. They often will also have a maximum amount that you can borrow, usually around fifty thousand dollars. However, again, every plan is different so you will need to look and see whether this applies to you or not.
While taking money from your 401k plan may be a life saver, you may not be able to. While most plans are different, there are usually similarities in the form of requirements. Most plans will not let you borrow money from them unless you can meet the requirements they put in place. If you do not meet these requirements they will not lend you the money. So this is another reason for why you should look over your plan carefully and read the fine print so that you are properly educated.
Like most loans, a loan from your 401k will have a set repayment plan that you will have to adhere to. This can be anywhere from 5 to 15 years depending on what type of loan you took out and what type of plan you are on. The nice thing about Borrowing money from your 401 K is that, while you of course have to pay it back, the interest rates are fairly low and are actually put back into your 401k.
While taking a loan from your 401k is a good option, there are some additional fees that you may have to pay. Such as yearly fees or fees if you miss a payment. If your company has someone who manages 401k plans you should talk to them in case you have any questions.
Ruthsella Corasol is the Owner of http://WorkingAtHome101.com Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.
Sunday, June 24, 2012
Saturday, June 2, 2012
10 Cons of an International Credit Card
Credit card fraud is a fast increasing crime in the world.
International Credit Card holders are mostly the victims of this
unauthorized access to their accounts. Let?s take a closer look of the
problems faced by international credit cards.
1. Repetitive use of credit card numbers. After a credit card number has been used and disregarded, say cancelled, credit card companies would reissue the same number to other cardholders. The personal identification numbers (PIN) is changed as well as the credit cardholder?s personal information. But it still bears the same credit card number.
2. Low standards when it comes to the use of cards by the participating merchants. This is a common problem encountered by international credit cardholders. Employees of the participating merchants have the full access to the account number as well as the security number of the card.
3. Account Statements given out by credit card companies contains less information about the participating merchant. It does not include relevant information about the vendor that charged any transaction on the credit card.
4. Unreliable blocking functions. Once a card loss is reported, it will still take months for the credit card companies to block the transactions being made through the stolen or lost credit card.
5. Lack of validation software. Participating vendors should have better validation software installed on their computer system.
6. Consumer unfriendly policies on fraud management. The policies on the present fraud management take the blame on the cardholders though not directly stipulated. This means that the policies on the fraud management of international credit card companies protect not the consumers but the company.
7. Lax standards on investigation about fraudulent transactions. This is the sad part for the victims of fraud through their credit cards. Getting the suspects charged though proven guilty of fraud seems to take on slowly.
8. Credit card fraud is usually committed through online transactions. This means that credit cardholders are not protected with the authorized or unauthorized use of their cards on purchases or services paid online.
9. Most of the companies that typically appear on charges are those associated with pornography industry. These companies are the ones that accept transactions even without verifying the cardholder?s information.
10. Most of the banks? system is not compatible with other international credit card companies for the e-commerce. This is a potential weakness that would mean loss of clients so they would prefer to keep quiet about it.
CPP_author
Ruthsella Corasol is the Owner of http://WorkingAtHome101.com. Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.
1. Repetitive use of credit card numbers. After a credit card number has been used and disregarded, say cancelled, credit card companies would reissue the same number to other cardholders. The personal identification numbers (PIN) is changed as well as the credit cardholder?s personal information. But it still bears the same credit card number.
2. Low standards when it comes to the use of cards by the participating merchants. This is a common problem encountered by international credit cardholders. Employees of the participating merchants have the full access to the account number as well as the security number of the card.
3. Account Statements given out by credit card companies contains less information about the participating merchant. It does not include relevant information about the vendor that charged any transaction on the credit card.
4. Unreliable blocking functions. Once a card loss is reported, it will still take months for the credit card companies to block the transactions being made through the stolen or lost credit card.
5. Lack of validation software. Participating vendors should have better validation software installed on their computer system.
6. Consumer unfriendly policies on fraud management. The policies on the present fraud management take the blame on the cardholders though not directly stipulated. This means that the policies on the fraud management of international credit card companies protect not the consumers but the company.
7. Lax standards on investigation about fraudulent transactions. This is the sad part for the victims of fraud through their credit cards. Getting the suspects charged though proven guilty of fraud seems to take on slowly.
8. Credit card fraud is usually committed through online transactions. This means that credit cardholders are not protected with the authorized or unauthorized use of their cards on purchases or services paid online.
9. Most of the companies that typically appear on charges are those associated with pornography industry. These companies are the ones that accept transactions even without verifying the cardholder?s information.
10. Most of the banks? system is not compatible with other international credit card companies for the e-commerce. This is a potential weakness that would mean loss of clients so they would prefer to keep quiet about it.
CPP_author
Ruthsella Corasol is the Owner of http://WorkingAtHome101.com. Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.
Friday, June 1, 2012
A Credit-free Card: What is a prepaid credit card?
In this high-tech era of computers and machines, the purchasing power of people is mostly based on credit. Nowadays, credit cards are almost indispensable in almost any business transaction. For one, nobody can purchase anything online without a credit card.
People who have a poor credit history though, will have a hard time getting or renewing their credit cards. This is where prepaid credit becomes useful.
There are lenders that offer prepaid MasterCards and/or prepaid Visa Cards. Both these cards can be used like a regular credit card. It is even hard to distinguish which card is prepaid or not, by simply looking at it or even using it.
This is basically how prepaid credit cards work. When an account is opened, the card should be ?pre-loaded? with cash up-front. This is like paying for a pre-paid calling card.
Prepaid MasterCards or Visas can be used anywhere as long as these cards are accepted.
The prepaid credit card advantage:
1. Prepaid credit card can be easily obtained. It can be purchased online or in local retail stores. It does not require any credit check or proof of income.
The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the card with cash. The amount of cash loaded will be the ?credit limit?
2. No interest charges.
When a prepaid MasterCard or prepaid Visa is used, there is no interest charge unlike the regular credit card. The reason for this is that the money used is the owner?s actual money therefore no interest is needed.
3. Prepaid credit cards are free from financial or credit problems.
4. Prepaid cards can be used almost anywhere. Prepaid MasterCards and Visa cards are almost accepted anywhere in the world.
Disadvantages of Prepaid Credit Cards:
1. Usually a set-up fee of 5 to 50 dollars is needed when an account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card.
Regular credit cards usually do not charge a set-up fee or annual fees.
2. Cash up front is needed before any purchase could be made with the prepaid card.
This could be an advantage since compulsive spending can be avoided.
3. There are some prepaid credit cards that cannot be used to pay regular payments such as monthly electric consumption or online services.
The Conclusion:
The prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits ones? needs.
CPP_author
Ruthsella Corasol is the Owner of http://WorkingAtHome101.com . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.
People who have a poor credit history though, will have a hard time getting or renewing their credit cards. This is where prepaid credit becomes useful.
There are lenders that offer prepaid MasterCards and/or prepaid Visa Cards. Both these cards can be used like a regular credit card. It is even hard to distinguish which card is prepaid or not, by simply looking at it or even using it.
This is basically how prepaid credit cards work. When an account is opened, the card should be ?pre-loaded? with cash up-front. This is like paying for a pre-paid calling card.
Prepaid MasterCards or Visas can be used anywhere as long as these cards are accepted.
The prepaid credit card advantage:
1. Prepaid credit card can be easily obtained. It can be purchased online or in local retail stores. It does not require any credit check or proof of income.
The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the card with cash. The amount of cash loaded will be the ?credit limit?
2. No interest charges.
When a prepaid MasterCard or prepaid Visa is used, there is no interest charge unlike the regular credit card. The reason for this is that the money used is the owner?s actual money therefore no interest is needed.
3. Prepaid credit cards are free from financial or credit problems.
4. Prepaid cards can be used almost anywhere. Prepaid MasterCards and Visa cards are almost accepted anywhere in the world.
Disadvantages of Prepaid Credit Cards:
1. Usually a set-up fee of 5 to 50 dollars is needed when an account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card.
Regular credit cards usually do not charge a set-up fee or annual fees.
2. Cash up front is needed before any purchase could be made with the prepaid card.
This could be an advantage since compulsive spending can be avoided.
3. There are some prepaid credit cards that cannot be used to pay regular payments such as monthly electric consumption or online services.
The Conclusion:
The prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits ones? needs.
CPP_author
Ruthsella Corasol is the Owner of http://WorkingAtHome101.com . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.
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