6 Ways to Pay Your HDFC Credit Card Bill

6 Ways to Pay Your HDFC Credit Card Bill

Credit cards comes with advantage that will allow you to purchase now and pay later option. the most important point to consider when using any credit card is its safety. Security of the credit card primarily lies on its number, if it is disclosed means security is compromised. So, one needs to be careful while handing card to others. Click to know on how to protect your credit card. 

Shopping is fun but when it comes to paying credit card bill it is a worry. Here are different ways through which you can pay bill. With these options there will be no more late payments.

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What Are Contactless Debit and Credit Cards in India?

What Are Contactless Debit and Credit Cards in India?

Following ICICI Banks, almost all banks will soon launch Contactless Debit and Credit Cards in the market. The latest cards will use the near field communication (NFC) technology to make payments at outlets.

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Documents Needed to Apply for Credit Card

Documents Needed to Apply for Credit Card
Credit cards are the most attractive and easy way to purchase things. Moreover offers from bank and other companies makes using credit card irresistible !!

Before buying credit card, it is necessary to compare different credit cards and decide based on your requirement. Credit cards differ on basis of interest rates, late payment fees, over limit charges, reward points, or other important factors.

Before applying one needs to check whether he is eligible to apply or not.

Eligibility Criteria

1) One should be either salaried , self employed or professional

2) Should aged between 22 - 59, have a bank account and have some monthly Income

3) Must not have a history of bad credit or your loan should not be declined in Last 3 months

4) Should have some monthly repaying capacity

Document Required

1) Passport size Photograph.
2) Filled application form dully signed
3) Latest 3 months salary slips ( indicating break up of Gross salary i.e Basic Pay House rent and Net Salary after deductions)
4) 6 months bank statement reflecting salary credits updated within last 15 days.
5) Identity Proof (Any One ): Pan Card, Passport, Driving License or Voter's ID card, employee identity card as identity proof and signature proof incase of government employees.
6) Address Proof( Any One) : Passport, Driving license, Ration Card, Voter's ID Card, Bank statement, Rent Agreement telephone bill, electricity or water bill, loan Schedules and bank statement showing EMI debits.

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Auto loans for used or second hand cars in India: What you should know?

Auto loans for used or second hand cars in India: What you should know?
It's not always that you would like to buy a brand new car or a vehicle. There are times when you realise that you would not drive much and that a used or second hand car would do.

Loans today are easily available for used cars, depending on the age of the car. If you have seen a 10 year old car and are expecting loan for the same, forget it. Just do not keep chasing the bankers as you are unlikely to get a car or auto loan approved for the purpose, if the age of the vehicle is over 4-5 years.  

Important things to know before you take an auto or car loan in India:

a) Interest Rates on Used Cars Are Higher

Interest rates are generally higher in the case of used cars. It's almost impossible to say how high these rates would be. It would most certainly depend on the financier and the age of the vehicle. Older the vehicle higher would be the applicable interest rate.

You can expect interest rates to be higher by at least three per centage points on an average.

b) Banks Offer Cheaper Rates for Used Auto and Vehicle Loans in India

If you have to choose between an NBFC and a bank, go in for the bank, because the interest rate would be certainly cheaper. In fact, if you are able to rope in a government owned bank, you might get the loan at an even cheaper rate.

c) Age of the Car Important

The age of the car or the vehicle is extremely important. Older the car, the higher the interest rates. In fact, older the car lesser the funding as well.

d) Financing Through a Reputed Dealer is the Better Option

You may have heard of certified cars. Almost every top manufacturer certifies used cars. For example, Maruti has True Value, where Maruti engineers certify the health of the car. They check several key points to determine the health of the car.

Banks may favour buying from a reputed second hand vendor like Maruti True Value, which would to some extent guarantee the value of the car.

e) Loans For a Lesser Period

If banks grant an auto loan for a maximum of 5 years, it would be almost certain that you would not get the same tenure for a used car.

Conclusion

If you are going for a second hand car make sure that the car is not very old. This would save on interest rates and help in easy approval of the loan.

If you are passionate about cars, bikes and vehicles, do not forget to 

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Steps to stop issued cheque payment online

Stop payment facility will enable you to protect from fraud or forgery or in case of misplace of cheque. But, before placing for stop payment request one needs to ensure that the check is not yet been presented for clearing.

However, if the cheque is presented before stop payment is requested, in such cases banks will not be able to stop the payment of your check.

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6 Things to Check Before You Apply for a Loan

Before applying for a loan there are certain things that you need to check. This will ensure that you do not make losses and also will not disappoint you in case your loan is rejected. Here are 6 things that you must check.

Evaluate Your Finances
Don't go for a loan just because you can afford to pay the EMI from your salary or from your other sources of income. Loan entails processing fees and interest, which can make them really expensive, especially personal loans. Go for a loan only when you really need it.

Do not forget your Cibil score
Check your Cibil score before you apply for a loan. This will ensure that you are not disappointed in case your loan is rejected or a lesser amount of loan is sanctioned.

Use online portals to compare
Variance in interest rates can mean a lot, especially in large sized loans like home loans. It is best to compare loans online. There are many portals that allow you the facility to compare loans before you take them.

Check your own ability to service loans
Please check your own ability to service the loan. Sometimes, you may not be able to pay the EMI because of other outstanding loans or poor take home salary.

Compare processing charges
Many banks waive off processing charges during festive seasons. At other times the processing charges differ from banks to banks. In general government owned banks like SBI or more reasonable in terms of these charges.

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Reasons for rejection of your car loan application

Reasons for rejection of your car loan application

Easy financing schemes offered by banks and financial institutions have made purchase of high-value luxury items such as a car really affordable. But many a times, banks reject application for car loan despite an individual earning a decent salary. One of the reason that may be cited by the financial institution for the loan application rejection among other possible reasons may be low credit score.

Credit score determined by credit bureaus on the basis of the credit history of an individual is a 3-digit numeric figure in the range of 300-900. Some of the leading credit bureaus in India include CIBIL, Experian and Equifax. Each of the credit bureaus adopt a different methodology to compute the credit score. Usually, a credit score of 700 and higher is deemed as good.

In order that your loan application does not gets rejected on this ground, you need to ensure a good credit score by maintaining good credit history. Credit history that is a snapshot of the current as well as past credit relationship of an individual with the financing company can be well maintained by servicing debt obligations in full and in a timely manner. Note, rejection of loan application in a previous instance also shows up in the credit report, so without due consideration do not apply for loans simultaneously at two institutions as it impacts your credit report badly.

However, in case you inadvertently have become the victim of low credit score and poor credit score and due to it are facing rejection in each of your financial attempt, you can turn to credit repair companies which will you in restoring your finances.

Other possible reason of loan application rejection may be in a case when you are already trapped in too many ongoing loans and bank adjudges that another loan will impair your ability to discharge  debt obligation towards existing loans. Job stability and other such factors that determine loan repayment ability of an individual are also taken into account while approving the loan application. So, it is highly likely that loan application of a person who hops job on a regular basis and shows up lower job-stability gets rejected.

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6 things you should look for in your life insurance policy

6 things you should look for in your life insurance policy
It's not always easy taking a life insurance. You have to do a lot of hard work to compare insurance policies, their benefits, services rendered etc. After having scrutinized and shortlisted, here are a few things that you should look for in your insurance policy.

1) Check your personal details
Please do remember to check and verify the personal details. Make sure the name matches with the name on the PAN Card or other proof that you have submitted. Check the age and the correct details of the nominee.


2) Examine the riders
We often tend to forget about the riders. Please make sure you read them carefully or in case of an eventuality you may not be able to claim benefits due to lack of information on the riders. Every insurance company provides the complete details of the riders.

3) Study the details of the premium
Study the details of the premium and the amount due. Make sure that you have written them down and you know when to honour your commitment.

4) Check for returns promised
If you have been promised a particular return make sure the policy reflects that. Do some calculation and arrive at the maturity amount.

5) Check surrender and miscellaneous charges
At times it may be possible that you are cashed strapped for money. At such times the premium paid may be of some use, unless it's a term policy. Study the kind of benefits you would have to surrender if you forfeit the policy.

6) Surrender the policy if you are not happy
If you are not happy with the terms of the policy you can return the same. Most insurance companies allow a period of 15 days as lock-in during which you can surrender the policy if you are not happy.
Conclusion

It's extremely important that you spend time and study every detail. Insurance is as important a decision as even a real estate investment. So be very careful and check, read and seek expert opinion if need be.

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7 Must Know Facts About Bank Fixed Deposits

Fixed Deposits (FDs) are a favorite investment avenue for all class of investors, due to safety of capital invested and guaranteed returns.
Investing in fixed deposits could save you from the risk associated with equity. However, how much to invest in FD depends on the risk capacity of an individual. One should also remember that returns from bank fixed deposits could be less compared to other investments such as equity or other company deposits.
7 Must Know Facts About Bank Fixed Deposits
If you are one of the investor who believes and in bank fixed deposits, then here few facts which you must know.

1) In India, under deposit insurance scheme by the Reserve Bank of India, fixed deposits held in bank upto Rs 1 lakh are insurance covered. So, it is better to diversify amount into different banks if you want to invest more than Rs 1 lakh.
2) In most of the banks, senior citizens are offered better interest rates.
3) Company fixed deposits or any NBFC's offers fixed deposits with high interest rates then bank fixed deposits. Don't get confused at this point, better to analyse the risk associated with company fixed deposits. Not to forget, higher returns are backed by higher risk. Company deposits are unsecured deposits.
4) Interest rates on a bank FD, are almost always compounded quarterly. Check if it is otherwise.
5) Risk involved in FD is locking your principal for longer during. In case if the latest interest rates are high your amount will be locked in for particular period, and many banks charge for premature withdrawal. So, better to lock in for short period with high interest rate.
6) Bank deposits attract TDS if the interest income crosses Rs 10,000 per annum. You must add the interest income to your other sources of income and pay tax depending on the tax slab.
7) In order to save tax, you could opt for putting the fixed deposit in the name of unemployed spouse, if any.

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Why It Can Be Better Than A Fixed Deposit?

Why It Can Be Better Than A Fixed Deposit?
Anand recently recounted his experience on how he lost money in a fixed deposit he would have never have lost had he to invest in a flexi deposit.
Exactly last year he invested in a fixed deposit of a leading private sector bank at 9.5 per cent for two years. He had invested a sum of Rs 10 lakhs. Now, he suddenly has a medical emergency after 11 months and decided to break the entire fixed deposit.
Flexi Deposit: Why It Can Be Better Than A Fixed Deposit?

He needed just Rs 2 lakhs for his father's surgery, but had to break the FD of entire Rs 10 lakhs.
Now, two things happened here. He lost one per cent by way of penalty that the bank had levied for breaking the fixed deposit early and secondly, he got lesser interest rate for breaking the FD. More importantly, he needed just Rs 2 lakhs but had to break the entire deposit. Now, when he wants to place the remaining Rs 8 lakhs in the balance of the fixed deposit, the interest rate has fallen from 9.5 per cent to 8.75 per cent, yet another loss.

What would happen if he had to place money in a flexi deposit?
If Anand had to invest in a flexi deposit he would have been able to just withdraw Rs 2 lakhs and the remaining deposit of Rs 8 lakhs would continue to have attracted 9.5 per cent. He would not have lost on falling interest rates, penal charges by the bank etc. Clearly, the Flexi deposit is a great scheme and investors should note their advantages.

How To Invest in Flexi Deposits?
Most of the banks offer a Flexi Deposit. These deposits are linked to your savings account. So, what happens when you have an emergency is that the amount is transferred to your savings account and the balance in the fixed deposit continues to attract interest. You do now have to break the entire deposit. Banks like IndusInd Bank, IDBI Bank etc., have Flexi deposits.

Check with your bank before you decide on placing a fixed deposit. If they have a Flexi deposit it would be a better choice especially during an emergency.
Conclusion

A Flexi deposit offers the best of both worlds and many advantages. It gives you a higher interest rate than a savings bank account and at the same time offers you money when you need the same during an emergency. A win-win situation for all.