Australians are keen to get the best return on their money. Many of us are enticed by the incentives of reward credit cards offering cash back, frequent flyer miles or points that can be dedicated toward purchases. Coupled with good money management, a rewards credit card will pay dividends. However, in the hands of a whimsical spendthrift the card can become a further drain on financial resources.
In essence, it would seem that getting a credit card is easy. After all, credit card company representatives are out and about on the streets and in shopping malls signing up new customers all the time. However, filling out the form is only the first step, and your credit score will be used to determine if you are actually wanted as a customer. So, what credit score is actually needed to get a credit card?
In 2014, changes were introduced into credit score reports. History regarding personal loans is now scrutinised more thoroughly by lenders, meaning that if you have successfully paid off a personal loan on time and on schedule it will positively affect your credit score. On the other hand, defaults or recurring late payments will reflect badly on your credit score.
The changes to the system provide a more comprehensive overview of an individuals capacity for sound money management. Rather than only negative ‘black marks’ showing up on the credit report, positive information is also taken into account. Lenders and service providers will take previous financial management into consideration.
Free tertiary education is an ideal that promotes societal equality, and is especially attractive to students from lower socio-economic backgrounds. As a nation, Australia relies on human capital that generates wealth and improves the overall standard of living for everyone. However, in reality there is no such thing as ‘free’ education as the funding to maintain huge universities has to come from somewhere. This leads to the actual question. Should the government (taxpayer) or student foot the bill for higher education?
Home contents insurance gives the home owner or renter peace of mind by covering the financial cost of replacing or repairing possessions. Almost everything you own can be covered by contents insurance, including furnishings, computers, white goods, electrical appliances, equipment, toys and even collections such as stamps or coins.
As we accumulate possessions it becomes imperative to protect our investment with insurance. Home contents insurance covers items belonging to every family member, and can even include items belonging to visiting friends as long as their name is also listed on the insurance policy. Items that are not covered include permanent building attachments. These will need to be part of a separate ‘home insurance’ policy. Many people combine home and contents insurance to cover both the house and possessions.
Being in debt from time to time is a fact of life for most people. Whether purchasing a home, car, or planning a vacation, borrowing at least some of the money is essential and scheduled repayments are the norm. However, it’s no secret that some people are not careful with their money, and the tendency to borrow too much or pile up credit card debt can soon lead to an out of control debt spiral. Desperation for some respite can lead to further bad decisions that only increase the woes. At this point, expert guidance is essential and a debt consolidation personal loan could be the answer.
For most of us, purchasing a house and a car are two major situations where borrowing money is essential. They are significant financial outlays that require dedicated effort to pay off over a long period of time. Banks and other lending institutions rely on our credit score for approval of loans, so what credit score is needed to buy a house or car?
Credit scores are the safeguard banks use to protect themselves against the possibility of loan defaults. They are based on a range of data related to the borrowers previous financial accountability and present financial status. Whether we like it or not, our credit score is a personalised risk assessment, and involves disclosure of both good and bad financial dealings. The positive and negative are taken into consideration for our individual credit score.
Successive Australian governments have encouraged schemes that provide the opportunity for higher education for all, regardless of individual financial limitations. These initiatives are highly acclaimed by educationalists around the world, especially those residing in countries where equal study opportunities are not prevalent. The HECS-HELP system has strong support in Australia, although detractors cite the huge burden on the taxpayer in maintaining the system. So, what is HECS-HELP, and how exactly does it work?
Paying off a home loan mortgage takes a dedicated effort over a number of years. During this time your personal circumstances might change, finances could fluctuate, and lenders will vary their interest repayment rates according to financial markets. As a borrower, you may be on the lookout for a better deal, but there are a range of factors to consider before moving ahead and refinancing your loan.
There are a number of factors that will determine the amount you can borrow for your home. Before commencing the search for your ideal property, you will need to get an accurate idea of how much money you have to work with.
Your bank or credit provider is taking a calculated risk every time they lend money. In order to minimise the risk they will require proof of your ability to repay the loan, and an up-front deposit to protect themselves against any loss if the loan is terminated early.