Month: July 2018

Choosing The Right Credit Card

Certainly, your credit matters but, unfortunately, that doesn’t happen with so many credit cards in your wallet! In fact, having many of them can negatively impact your credit position, as either, you would not be using them much or you may end up not paying the balances on time that can harm your financial reputation badly. Therefore, the key is to have the right one(s) to not only boost your credit score but also to enjoy some financial benefits, for which we have the carefully curated 5 significant suggestions!

  • Your expectations out of the card

Not every card is made similar! No, we aren’t talking about its physical characteristics, but, the significant functional characteristics, such as entry-level credit cards (secured, student, store credit cards), rewards credit cards, balance transfer credit cards and so on, which come with various advantages to suitably satisfying your financial necessities. For example, a secured card might help you build your credit from the scratch and whereas, the rewards credit cards help you enjoy some cashback rewards on specific purchases and therefore, only after accessing your credit position and relevant expectations you should go for the specific card type to enjoy the absolute benefits.

  • Understand the APR

The annual percentage rate or the APR is the percentage of the charge applicable to your balance amount carried beyond the acceptable grace period. Not all the APRs are calculated the same, that is the APR on purchases might differ with the APR on balance transfers and therefore, understand the subject thoroughly to avoid paying more for your credit card usage, unnecessarily.

  • Know your credit

If you are not a newbie then, certainly you would have a credit for yourself, which you ought to check to decide the suitable credit card for your suitable situation. That is, if your credit score is not as expected, find a suitable card that might rebuild or repair your credit favorably, such as the secured cards or if your credit score is highly pleasing, then plan the ways to convince your credit card issuer to offer you some perks such as the increased credit limit, which you can carry out only with the idea of your credit situation, undoubtedly!

  • The fees

There are several fees associated with the usage of credit cards, such as the annual fee, late fee and so on, which you have to understand to choose the right one that does not burn your pocket!

  • The credit limit

If you have certain credit-limit expectations to satisfy your monthly financial challenges then, choose such a credit card that satisfy your practical requirements, appreciably! But, if you are a newcomer, it is advisable to choose a low-limit credit card to make you a responsible user, indisputably!

Varied types of inflation that affect business

Inflation means a rise in prices because of the increase in the cash supply in the economy. This happens when there is abundant cash in the market and the value of the currency is depreciated. Depending on the rise in prices, there have been varied names given to inflation. However, you need to understand that the constant price rise will be of different magnitude. Listed below are few types if inflation faced by the business organization.

Creeping inflation– Creeping inflation is when the pace of price rise is very slow, like that of a snail. The rise in price below 3% is considered as creeping inflation. It is considered safe and it is necessary for the business and economy growth.

Trotting or walking inflation– This happens, whenever the rise in price is moderate and the rate of inflation is only a single digit. The rate of inflation will be always below 10%. It is actually a warning signal given to government to control it before it transforms into a running inflation. This does not create much impact and the business does not get affected.

Running inflation– When the rate of price rise is between 10 to 20% annually, it is known as running inflation. It affects mostly the middle class and the poor adversely. Small time and middle segment business get affected badly by this type of inflation. It requires strong fiscal and monetary measures to be adopted or else, hyperinflation will occur.

Hyperinflation– Hyperinflation is also known as galloping or runaway inflation. It happens when the rate of price rise is very fast and reaches double or sometimes triples digits. It ranges from 20 to 100% annually. In reality, it means the inflation reaches a point wherein the inflation rate turns into immeasurable and cannot be controlled at all. Every day the price rise will happen and it will, in turn, result in monetary system’s collapse due to steady and constant fall in money’s purchasing power. All the business organizations and the industries will be hit badly. And it will even end up in closing down of business because of the irrecoverable loss.

Semi-inflation– In this case, as the output increases, the rise in price will not happen. However, the increase in aggregate expenditure will result in facing supply shortage which cannot be substituted. It is also known as bottleneck inflation as there are bottlenecks in the supplies of few factors.