Education on Credit matters & enquiries

Financial literacy in G10

If you ever listen to the news, basically not as glorious as it seems, the articles being reported online or through present media coverage is often very disappointing. In the realm of reality, as economy is undergoing extensive reformations, investors and retail borrowers aren't quite pleased with the ever demanding standards of living. In addition, the G10 currencies are making travelers' mobility restricted in many ways. How then shall the knowledge of financial literature being imparted to our dearest residents when the news forecast is always bleak, darker than usual as moments past by.

Adopt an Interdisciplinary approach

The reality is actually very simple, bad news sell faster and better as opposed to positive pleasant to the ears. Being wary and observant of today's economic restructural programs, one should greatly anticipate the problematic issue arising swiftly - The Great Depression. Adopt an interdisciplinary approach in daily habits and movements to make a difference now. For the finance quadrant, do your best to tally maths up and try to avoid big ticket items most of the time if deemed unnecessary. As for the expectations segment, avoid pinning high hopes on promotion or wage increments but aim to secure your current job. In the world of credit, simply terminate all unwanted credit cards and finish paying up mortgage loans within the shortest time possible. The last portion of the pie is to invest in equities or bonds. The main reason is to outbeat inflation in terms of capital gains or through general dividends so as to increase net worth over time. Take opportunities immediately and forgo instant gratifications, thank yourself later!

Induce a Pavlovian cause & effect

Firstly, the retail borrower has to understand the Pavlovian attitude and impact. With the cheap credit lying around, everyone has been turned on, to try and leverage on credit facilities to either upgrade current standards of living with the hope of future expansion or indulging in speculative activities such as gambling. The greedy desires had stirred up utmost significant troubles that when the tide is over, you'll soon find many consumers and borrowers naked and thrown on shore. Very soon, the admiration will turn into a disastrous catastrophe which spells great trouble and of course, a Recession being sparkled. This is the last thing anyone ever wanted as many will find themselves homeless or debt-ridden for a long period with a bleak future of breaking even. Who will want such a negative Pavlovian effect?

Willingness to Share the Lollapalooza ending

The 'last' moment of joy is to share past experiences to the general public. Through the wide coverage of the Internet, a vast majority can benefit from using the net to search for financial assistance and Tips & Tricks in handling daily finances, with the hope of reaching or securing adequate funds to meet retirement needs. After all, they're still human beings and need to fulfill basic wants without thrusting the responsibility to their children to shoulder. In fact, the more you share, the more information others are willing to aid or advice in your lives. You never know who is going to help you at the very moment dearest call you. A lollapalooza ending is prominent and the gyrating motions will generate much responses from everywhere which in turns, strengthens the safety nets and making the government spend lesser time and resources in aiding the needy, with more resources being deployed to boost the economy rate.

Strict regimentation on Credit balance

Route to Free Cash Flow

Before attaining financial freedom in the world of finance, there is a need to plan adequately on the exact route in kicking off. Firstly, establish a financial blueprint to act as an informative progression plan to adhere to. It may be in the form of randomly throwing in ideas on credit improvements, clearing off debts & mortgages, identifying potential issues and suggesting solutions to the current bleak outlook. What's up with the Free Cash Flow? The ability to generate money over a long period of time, especially in your golden (retirement) days, is extremely vital to one's financial health as well as not shifting the (credit) expenditure burden to family members and stress everyone out. Take this opportunity to learn more on the methods to yield for the betterment of future.

Balance transfer to 1 Single card

When the individual is saddled with debts, interest rates rise exponentially, the credit card bills stacked up to the maximum. Question the sanity of the debtor as to whether the interests is actually payable in the service term. A rational decision is to apply for a powerful credit facility that will be able to tank all sorts of damages and use the balance transfer from other credit cards to this one. Since the cards are non-credit focused already, the interests being pegged too are therefore, gotten rid off together with the principle amounts. In an event, the balance transfer is insufficient, use cash to get out off debt-ridden situation immediately or prioritize the finances to manage the debts. From then on, the single card will be liable to most expenditures as well as being a single fund tracker for all expenses. It is time to lead a conservative lifestyle and never to draw back from credit facilities again!

Say goodbye to Lavish lifestyle

Since you've made the right choice to stay rational in making proper decisions while trying to adapt to the newly fruitful lifestyle, do adhere religiously to your desired retirement objectives by often keeping track of expenses and planning informed decisions beforehand. By then, it is not tough to single out potential conflict of interests or lose control of one's financial pathway. In the end, it is all about managing your expectations and consumer spending habits. Nobody will force you to lead a frugal life by scrambling every single dime instead of having enjoyment out there with family. It is the type of life you want to lead and occasionally, it's possible to indulge in some luxury happiness - up to you to decide! Give your family some treats to boost bonding between members and bring joy to them, this is something money or any material objects can never achieve.

Track your Expenses & Review

History cannot emphasize enough on the utmost importance to track your expenses as well as to do a performance review over a period of approximately one year. Why must I track my spending and chase after reviews? The fact that past history can never be an exact indicator, you are solely responsible on your finances and as the head of household, the members in your clan is waiting for you to put food on the table. The question is whether you can afford to live on Credit facilities and make everyone think of money when it comes to spending on necessities.

For more investment tips & tricks, do read up reputable sources from the Internet. A light research can save you the hassle on identifying probable solutions and advocate financial prudence by sharing real-life experiences so that others will not follow the miserable footsteps of the kind sharer.

Deliver Credit into good hands of Users

Knowledge on Credit Functions

There is nothing wrong about any financial instruments in the market - Equities based, Forex mobility, Options & Warrants, Derivatives, Futures or Commodities. It all depends on how the users use these financial vehicles to generate more income with the power of leverage. By tapping on futuristic projections, the borrower is able to receive higher returns doing the same thing as opposed to traditional trading without credit functions. One must remember an old adage, "Past performance is never an indicator of future performance." This sentence gives retail borrowers who needs to leverage to think twice before the final conviction.

Who can Leverage on Credits?

The first question to ask is how comfortable are you when it comes to (manipulating) credits? Some folks are more efficient and competent in the sense that they're likely to be more rational in decision making as well as possessed an in-depth plan of utilizing leverage to optimize profits and minimize any potential losses when gap down. Renowned hedge fund managers often perform hedging to prevent against unwanted fluctuations and this is one key thing when it comes to handling credit facilities - lower profits in exchange for potentially heavy losses. For the commoners, they tend to do naked puntings and based on speculative guesses without much information in the relevant markets hence it is unwise for them to leverage heavily on the broker house equities. It is pretty dubious on taking ownership of credit functions in the established resourceful markets.

The power of Credit usage

How tremendous can the borrower benefit from using leverage? Everyday, the news reported that someone has significantly lose most of the assets due to leveraging on bank's equities or being unable to pay up for the outstanding mortgage valuations. It seems crazy but the rewards are exponential! In the realm of using leverage, the power of credit will boost the profits up based on the amount of cash invested plus the leverage folds. Let's say a retail trader boldly borrows 10:1 ratio, based on a 10 times increase, his profits will rise ten folds once the deal goes through Earnings before Interests, Tax, Depreciation & Ammortization. That is how powerful can one reap from such enormous gains!

Final resort to Borrowering

Do not attempt to borrow credits from the banks when the individual has outstanding loans. In the state of indebtedness, how is he going to pay up the interests when his current owing amount is unable to come to complete settlements? If there is no existing liabilities, only then, can a retail borrower leverage on credit facilities. The reason behind is that there are risks like costs of borrowings or potential failure in the respective investment niche which draws direct attention to contingency plan. However, the person possessing debts will face extreme difficulty in compensating for the losses. Hence, the final resort is never an option. Leverage yearns an enormous advantage over traditional cold hard cash and it does benefit users!

Knowing the Borrowing costs in Credit

To Leverage or Not in Credit?

The powerful thing about leverage is on the ability to expand at an increasingly manner that borrower's current circumstances forbid. This authority may blackfire anytime should it be abuse by the lendee. A conventional wisdom states that, "To be or not to be, that's the question", hence tapping on future cash is deemed as short term borrowing in expectance of reaping better rewards in the long run. Not everyone is suited for being borrowers. Just by looking at the interest rates piled up from credit cards and debts will one know who is responsible in handling finances and who's not.

Pros & Cons of Credit 

Before indulging on Credits, make sure that an individual is well aware of the risks and costs of borrowings. Certainly, there will be advantages in leverage, else what's the point of utilizing, but do note that the cons might come back to haunt you if not being managed in a prudent manner. One of the key points why Credit is such a beauty is because the lendee may use it to gain bountiful returns by enhancing current investments or buy new properties that can be rented out for "passive income" over the next few years while covering mortgage loans. Some prefer to setup small businesses using credit lines from personal loans to be owners and out of the rat race. Who says increase lifestyle equates to having more debts? In fact, many borrowers are successful in putting more cash on the table by purchasing new houses, renovating & renting or even investing in other peoples' businesses for recurring income.

Active vs Passive Borrowing costs

Firstly, an individual who wants to take up loans need to have the necessary knowledge in borrowing costs. There are two main components; Active vs Passive risks. What's so important about this? When it comes to active approach, loan repayment schemes and penalties come into mind. The costs of borrowing depends on the loan tenor, types of loan as well as the risk profile of the borrower. All these factors contain significant impact in ruling out the possibilities of loaning. How about passive risk? It is something not obvious but still working round the clock at the backend. Such risks are like global inflationary pressures or government's interventions in certain policies. Based on the average interest rates, it stands at 3% per annum, which forces the loan repayments to increase without the borrower noticing anything. Should government make unfavorable rulings like reducing tenors, the impact will be put on lendees. All these constitute to the importance of understanding risks.

What to leverage on and what not

The final piece to the puzzle is to ask what to leverage and what not. Based on past statistics, those who borrowed for speculative investments often faced with massive debts and finally reaching bankruptcy, with personal debts irrecoverable to relatives & friends. Such cases originated from  indulging in gambling activities, owing private moneylenders, leading lavish lifestyles, overstretching finances in high-end condos & European cars. These financially unhealthy activities made an individual's credit rating degrade and creating social problems over the long run which are costly to repair.

If the borrower has planned out on the necessary credit debts, the implications are proven to be less harsher in reality. Let's say an individual wants to expand his business by leveraging on credit lines. After weighing out the possiblities and risks, he initiated a bank loan and act accordingly to his path, in an event something bad occurs, he has contingencies to mitigate the issues. If everything proceeds in a smooth transition, he'll have the luxury to either expand further or be contented with his financially healthy lifestyle. Choose what to leverage on wisely.

Can Credit really benefit debtors

Credit beneficial to Borrowers

What is the first impression when the term 'credit' is being introduced to you? Old folks often lamented that the power of credit will destroy an individual's financial well-being and credibility in the long run. How true is that? Indeed, there is a saying famously known as "Money is the root of all devil". However, have one every asked how the country derives with flourishing economy. It is the jobs of investment banks, retail & commercial businesses as well as hedge fund managers to create a blooming influx of cash surpluses. But, they don't possess the financial capabilities to fund these capital-intensive infrastructures hence leveraging on commercial credits being loaned to them at moderate interest rates by the relevant Central Banks. How about retail borrowers, find them out before!

Who can benefit from Credit cards?

Knowledge is power to success! If any direct sales officer ever stops you in the shopping mall or just outside the bank, don't reject them outright as they might have some special deals crafted out by the marketing team and audited by the quality control segment. Most of the time, two keywords will pop out in their sales pitches - Credit Cards and Personal Loans. You must be thinking why are they so persistent in selling and part of the reasons is that it yields a considerable amount of commissions, not exactly the highest, but the most lucrative and higher success rates being proven in the industry.

As a retail spender, learn more about the respective credit cards being offered by various banks. Be surprised that most of these retail bankers are non-competitive as they target different segments and audiences. Credit cards offer rebates from shopping expenses as well as signing up incentives like vouchers which can significantly reduce spending on necessities. Use it to your advantage today!

There are banks looking at consumer spending, others in search of credit loaning facilities and remaining ones after high-networth-individuals.

Taking up Student Loans using Credit

Wanting to spearhead career or pursuing your passion in something desirable but lack the cash to do so, there is a loan facility by the name of Student Credit department. What's so special is that retail banks do offer students to adopt study loans with fixed interest rates to upgrade themselves even without initial capital outlay. Further studies can be costly and not everyone can afford but in this competitive industry, bankers design unique types of loans to increase their market share as well as making these aspiring students benefit in the long run, win-win situation for the economy and users.

Retail bankers & Micro moneylenders are more willing to allow students to leverage on credit as they're still young and have the financial future to make repayments. The debtors are usually insured by third party insurance firms in an event of unforeseen circumstances and the banks don't suffer massive losses at any point. Another attractive thing is that by adopting a student loan, there are perks such as extended loan tenor of up to 8 years as well as zero upfront installments during the period of studying. Who is to reject such an enticing opportunity?

Rights & Accountability for Debtors using Credit

Firstly, debtors who want to tap on future cash as to understand the risks of doing so by assessing their level of comfort in repayments as well as the purpose of using. While credit bureaus & credit reporting agencies are surfacing to help in designing specific precautionary measures, it is the responsibility of debtors to borrow a conservative amount under any circumstances. This will help the economy generate more activities with lesser risks of facing heavy deficits in provisional for bad debts should a recession occurs. Debtors have their rights to sound off and negotiate with creditors in an event they're unable to pay up the liabilities and the fact that lenders have to respect the decisions else face harsh punishments in the grand jury. Do not take Credit for granted as it is the future cash that has not been earned.

Do you really need Credit

Credit a necessity or a want

The first question in mind is whether credit is necessary for daily survival. If the answer is Yes, then the individual needs to rethink the plans being set out else risk being debt-ridden for life. While it is not wrong to take advantage of cheap credit in this low interest rate environment, one must be aware that nothing last indefinitely and one day, interest rates might revert back to norm and outstanding loans will be hit. A debt-free lifestyle is ideal but there are several loans that are inevitable to an average consumer - mortgage loans, car loans and recurring expenses.

Questions to ask before taking up Loans on Credit

Two things to ask before tapping on future cash - "Is this Credit necessary" and "Is this Value for Money". If these two questions are unanswered, needless to speak, get rid of them. Let's say you need a car for traveling purposes, it is good to take up a loan if you're just starting out as a businessman but the key question is on the loan amount being taken up. Why overstretch your finances by buying a newly imported BMW when there are so many secondhand cars available at unresistable prices? In fact, a basic sedan can transport you from point A-B at competitive timing with a fraction of costs. How about purchasing a new house? Why buy an expensive villa with heavy maintenances from pools & gardening when a low-cost house with beautiful decor is up for discount? All these expenses can be controlled with prudent judgments, eliminating insanely high costs in the long run and benefitting borrower's in terms of financial health.

Holiday trips funded with Credit Cards & Debts

It is good to travel abroad with friends & family members for rest and relaxation purposes. All is good until the word 'credit' kicks in. Why must the holiday be saddled with credit card debts or loans from credit lines? Is the overseas trip too expensive for you to handle? Scrap the ideas of going abroad if the individual don't have the financial means to do so. Seek alternatives like going to a beach down the borders or simple picnics in the green grasslands. Similar characteristics but great difference in finances. Eradicate all credit card debts and only take advantage of credit cards when opportunities arise. Get out of credit lines as it is going to be crazy remunerating hefty interest rates albeit low inflationary measures. None of these future cash can aid you in generating better returns.

Contentment vs Credit lifestyle

Do you really need Credits for survival? No one is in the right position to judge your spending but if someone needs to stand in your way like credit bureaus or licensed moneylenders, something is very wrong with your current lifestyle. A cool suggestion is to lead a contented life by indulging in happiness and not extravagance. Daily parties in luxury yachts or fine dinings can never provide permanent joy. It has been proven that long term contentment derives from a debt free lifestyle. Even before splurging on credit cards, ask yourself, is this thing really a want or a need?

How to Maintain your Credit balance

Healthy Credit tips & tricks

Owing money to creditors is not an uncommon issue, it has been said that high GDP is proportional to high debt ratio, creating a credit bubble in the economy. In fact, more than 30% households turn to credit bureau and credit referencing agencies for immediate assistance on a yearly basis. Though the numbers are dwindling down over the years due to proper financial education in place, it remains at alarming rates that requires urgent reformation in credit levels.

Examples of Credit bubble crisis

One of the world's unforgettable crisis is the Lehman Brother's sub-prime crisis initiation. What happens is that folks over-leverage on mortgage credit loans and extended payments till the firm is unable to remunerate investors, retail bond holders & commercial derivatives traders, causing a massive upheaval in the finance world. Finally, the nation has no choice but to bail them out and by introducing monetary stimulus and detrimenting the entire economy.

Many jobs were lost as the crisis affects almost all areas of economic and mortgagees are unable to sustain cash flow. The lack of liquidity in certain capital-intensive infrastructures when bust as they're unable to pay up credit terms issued by suppliers, who were visibly shaken by the liabilities in some on the world's largest banks collasped. In the end, forceful payments and upfront confrontations by creditors put everyone in hardship.

Another ancient yet powerful crisis is the dot com bubble. In the late 1900s, everyone was pumping large amounts of money into the US economies, most of the investments derived from borrowing from credit firms, incurring massive debt-to-gdp ratio, surmounting up to 70% of entire economy. This did not stop the influx of cash flow and foreign investments went up approximately 15folds due to materialistic possessions. Everyone wanted to get a cut from the bubbly pie! By then, even non-profitable turnaround companies are being dragged into the scenario, boasting crazy surpluses without any disposable means. Fat checks & dividends for management structures increased exponentially without adequate in-house credit controls, or should it be said 'unstoppable'! Until the economy begins to stagnan due to overwhelming funds, everyone released their investments together expecting mega profits that led to crashing of economy or widely discussed as end of "monetary values". Finally, the dot com bubble burst and many went bankrupt overnight instead of dreaming big in retirements.

Maintain good credit scores by doing Checks & Audits

Forget about lavish indulgence in bachelorette parties or buying up argan oil hair products. Head straight to setup an emergency fund and keep it save, the time to use will come. Firstly, identify all liabilities and list down high interest rate ones. Next up, come up with a checklist for necessary essentials. Eliminate unwanted spendings from nightclubs or expensive high-class restaurants. Lastly, resolve those bad debts that incur high borrowing costs. The final thing to do is to perform audits on a  quarterly basis and review credit scores from online sources. Free ones available for all using a rough gauge. If a credit check can save any potential costs being involved, why not do an opportunity cost to savage the current situation.

What types if Credit Financing available

What are the best Credit financing schemes for you?

There is an enormous variety of credit enhancement facilities offered by creditors from various professional background. Some examples are retail & commercial banks, micro credit lenders, credit agencies, accredited financing bodies and other banking institutions. Generally speaking, borrowers are in an advantageous position as the current benchmark promotes healthy competition in securing credit loans. The next appropriate query is which credit facilities best suit me and why. A rationalized decision significantly helps credit borrowers to improve their financial status and better lifestyles, of course at an attractive rate of interest repayments. But first of all, different debtors need different credit financing options so the dealer will use various methods to do debt assessments, identify risk profiles and introduce suitable loans for them.

Micro Credit financing plans

Ever get outright rejected by retail bankers due to ex-credit records or simply income not matching the criteria, there is always an alternative to loan money, but, at higher interest rates. Micro credit companies offer a lending hand to those who are aspiring to be entrepreneurs to establish branding while leveraging on the creditors' possessions. In general, due to the high risk-to-reward ratio, it makes other credit ventures hopping into this bandwagon. Furthermore, with less stricter regulatory bodies, these firms escape harsher punishments as compared to retail banking lenders.

Personal bank loans

A 'safe' haven for taking up personal loans, usually deducted from credit card limits, is to seek help from retail banks. Why is that so? Under tight financing regulations, bankers are required to undergo loan courses, attend to client's needs based on a set of checklist and educate them on the risk and methods of repayments. In fact, it is increasingly popular to borrow from banks than credit firms due to the lower interest rates and larger pool of credit schemes available. Always remember, pick your loans wisely as credits may come back to haunt your sleep!

Credit referencing agencies hotline

If borrowers still fail to secure personal loans from retail banks or micro credit firms, the last resort, subjected to incurring referral fees, is to engage credit referencing agencies to help find potential credit loan suppliers who are experiencing the same situation as borrowers - failure to secure clients for loans. These credit referencing agents are knowledgeable in the field and encounter many different cases that allow them to figure out some of the best solutions for credit lendees. No doubt that credit agents want to generate numbers for commissions but they are responsible for their actions and bear accountability for their actions. Support credit referencing agents today by engaging their professional services today!

Credit Cards vs Credit Lines

Comparison between two Popular Credits

In the realm of credit, there is a wide variety of "future income" to tap on for a better lifestyle. This post narrows down to 2 prominent & highly rated credit facilities many borrowers like to consume. In fact, there are some obvious signs that attracts lendees to this marketplace saturated with competitions from different sectors - retail banks are not only the choice these days! And also, acquire education on the distinguishing factors and why some lenders can employ "Loss Leadership" strategy or some borrowers declaring loan loyalty to certain financial institutions. A very exciting topic is to be unfold!

Leverage on Credit Cards a good thing?

The current trend of signing credit cards is an interesting one and case studies should be evident on consumers expenditure. When young adults reach a certain age, one of the common goals is to own at least one credit card that does not belong to student category. So what's the beauty of credit cards which makes borrowers enticed to?

The definition of credit is to leverage on the bank's current operating funds at the expense of repaying on time else subject to interest rates. Since there is no fees to remunerate within a specific time frame, usually 28-30days, it makes credit compelling to indulge in. Another lucrative factor is that owning credit cards provide some forms of prestige and boost self-esteem of an individual.

Based on borrower's average monthly salary, simple method of approximation, he/she may get up to four times credit limits. However, the lendee must not have bad credit ratings in the past as things might get complicated while subjecting to case-by-case approvals. Many a times, credit card firms offer incentives in using their products such as discount perks, signup freebies and many more. If credit cards are used in a prudent manner, such as signing up only for freebies and discounts, then it is the right choice of securing one. Never draw cash using credit cards as the interest rate is seemingly overwhelming at about 24% interest per annum.

Is Credit Line an alternative to credit cards?

A commonly asked question is whether credit lines a direct alternative to credit cards. Firstly, the borrower needs to identify his needs. Is it for buying goods at hypermarts or merely for taking personal loans. If the answer goes to the former, signing up for credit line is obviously a wrong choice.

Why is this scheme so popular when it cannot buy anything? In general, the core usage of such credit is to target market audiences under the loan category. The interest rates for taking up loans, depending on the tenor, are more competitive as compared to drawing cash directly from credit cards known as Overdraft function.

In addition, try issuing checks out to anyone and the process is swift without any hassles. As long as credit is borrowed and returned at the stated timing, no charges will be incurred. That's the beauty of leveraging on credit facilities.

Which one is better for you & me?

In reality, this weightage requires you to seat down with a professional banker and let him analyze your risk profile as well as identifying the types of credit to be utilize. If the borrower is going to use both functions of spending and loaning, the banker may offer to split the credit limits into half for both cards, estimated up to 2X credit limits each. Should the lendee just need either function, the limits will be transferred to the respective cards, free of charge of course.

As you can see, the process isn't hassle-free but significantly reduces time being spent on identifying wants. As long as credits are paid on time, there are fewer issues on loan settlements. In this low interest rate environment, some retail banks or credit lenders shower you with free gifts and even zero percent interest rates for specific loan tenors.

What is your Credit Limit

Credit Limit explanation

For the benefit of those who don't know what are their credit limits, this blog aims to raise credit awareness not through funding campaigns or expensive seminar talks, but from generating fruitful comments leveraging on the internet. The beauty of technology is that it enables users from all walks of life, globally, to input their comments and encourage healthy discussions, to the extent of bringing in real-life experiences so that readers may avoid certain pitfalls.

Who sets credit limits for retail lenders?

The most common type of individuals who fall in this segment is you. When in need of extra cash, the first impression awards to (bread & butter) retail banks. These bankers, regulated by strict laws, adhere to financial regulations and are often in the reviewing process by professional accredited auditors hence the chance of mishap is way lower than credit lending firms. A typical retail bank offers competitive rates, pegged to the Credit Union, and promotes healthy competition between inter-bank interests rates. The limits being offered are tagged to credit cards for book keeping records and of course, being reduced proportionally to the outstanding loan amount.

Where does the credit limit deduct from?

For retail credit borrowers, the most common way to to take loans from credit cards. Firstly, it is imperative to know where does the magical 'limit' figure appears. When direct sales officer access the individual's monthly contributions from various sources, the potential figure is put up for approval. Once the compliance team clears the application, the credit team decides the rates, which are reviewed from time to time, under their mercy. Finally, the credit limit appears for the officer to help borrowers loan the respective amount.

Based on normalize rates, the limits being imposed are up to 4X the current monthly salary. For entrepreneurs, the limits is pegged to the fixed pledged credit cards being approved. Credit is disbursed to the borrower for the stated loan tenor and relevant interest rates. Nowadays, the rates are close to zero, based on the Federal Chief and audit committee team, which makes personal loans so lucrative and a booming season to begin with. This positive move generates much cash flow around the economy and the cycle helps credit to flow through even at an increasingly amazing rate.

Can I temporary increase my credit limit? Increase your credit line?

A common question frequently asked by borrowers is the extension of credit limits. As the limit is fixated by the reviewing team, there is no way to directly increase unless the borrower undergoes the troublesome process of credit review team, the individuals may request for a temporary increase instead.

Simply take up the phone and call the hotline for assistance. Under common circumstances, a raise of up to 30% increment may be approved under managerial level for a duration of 2-3 months. It is not impossible for an increase unless the credit rating is so poor such as past bankruptcies or currently owing money.

Alternative to Credit cards is credit Lines

For those who had exceeded their current credit limits or unable to apply for increments, an alternative route is to sign up for Credit Line! Don't worry, it is not something with higher costs of borrowings or possesses any hidden charges. In fact, credit lines are more flexible with viable options as well as incurring a lower interest rate for borrowings.

Firstly, credit lines cannot work like credit cards whereby an individual swipes to buy items, it has two key functions and this chapter brings attention to appropriate usage through adequate explanations. The first thing is cheque book and its self-explanatory. Simply issue checks and the amounts will directly be credited to your payers or debited to your payees.

The second part resembles credit card loaning process whereby the borrower takes up a personal loan using the credit limits within this credit line. Of course, the limits are far below the norm, typically pegged up to 2X monthly contributions, helps an individual to buffer some sudden expenses like hospitalization costs or unplanned family holiday trips.

As you can see, there is beauty in possessing credit cards and lines that helps to faciliate some transactions with lucrative interest schemes, aim to improve or even upgrade your current lifestyle. Be sure to watch your credit limits and maintain good credit rating at all times. Prudence concept applies here!

Credit Expansionary measures

Rate of Credit Returns

If an investor or accredited body is to challenge the credit benchmark with inflation rates, it may seem that the latter far outweighs the former which brings us to the next question - why are credit lines so lucrative? Over the past decade or so, inflation is rising at an exponential rate and the current pace of market wages, some hit the ceiling, is unable to match up as fast. Hence, many turn to various sources to increase their revenue in order to be competitive in this modern society.

Inflation v.s Credit

What exactly is inflation? It is a term that measures the cost of living in a particular country, specifically the nation's economy. As the economy grows at a rapid rate, so much so that wages are unable to catch up in this ball game, there is a need to identify probable ways to increase income over the years. An individual may choose not to do anything but suffer in the long run when others are able to retain purchasing powers excluding him. By now, the power of Credit is expanding at an exponential manner even faster than inflationary measures.

Many investors & professional institutions are frantically borrowing unfathomable volumes of credits from pool of resources, ranging from credit referencing agencies to corporate investment banks and even international credit financing firms. These are common venues for the yield-hungry companies to tap on and expand faster than ever. They hold massive debts on hand and try to increase by venturing into high risk projects or even leverage on debt-saddled firms, also known as turnaround companies, for higher returns.

Income generation using Credit Lines

While folks are able to tap on credit lines as a financial vehicle to stimulate income, it is unwise to think that the money belongs solely to the borrower. Credit, usually from banking segments, often derive from credit cards facilities or personal loans that take up massive portions of your monthly take-home income. Not only does it detriment your current expenditure, but also face a huge risk of potential deficits should the strategies not do as well as expected. Hence, it is good to weigh the pros and cons before plunging in to any investments as well as having an emergency contingency fund to balance out the deficits & surpluses back to equilibrium.


Knowing the key differences in the economy, however, one might not have the capabilities to stomach such pressures hence inflation and credit authorities force you to think harder and smarter than before. Day after day, it is not a mystery about individual traders and hedge fund managers to leverage on credit schemes for expansions but likely seen as a norm. Expand your current holdings with care by adopting a prudent concept before jumping on the bandwagon of Credit Game.

History of Credit

Credit & Origin

Credit existed long ago since the ancient historical moments. In the nomad days, travelers roam around this small globe in search of new products and acquiring new knowledge. When someone offers things to them, these nomads need to present some goods as well. Towards the end of the journey, they don't have anything left to exchange hence credit kicks in. The nomads will remember the presenters and head back for reporting before sending the respective gifts or tokens of appreciation. As you can see, credit begins a long time ago.

Who is Eligible for Credit term?

As credit is a futuristic thing, not many are willing to forgo current pragmatism for optimism. The reason behind is on the question of whether it is feasible and viable for future earnings. Then, who exactly can borrow and why? As modernization occurs, the government needs to incentivized its people to create more jobs, more opportunities and invent new things. Hence, credit evolve to be part of the society.

Is credit a good or bad thing?

Depending on individual's circumstances, credit can either help or destroy you. Lets say the borrower is leveraging on credit lines to expand finances through 'safe' investments or private funding, this will benefit the lender over a long period of time, possibly providing a sustainable lifestyle. Assuming the lender is trying speculate on gambling activities for a fortune, trying to pay off his debts, he might face crucial problems in the society. Having said that, if he is able to manage his finances well, why must there be a need to borrow more money using future cash (credit) to repay his installments?

How to manage Credit Lines and Borrowings?

The answer to handling expenditure is to adopt a prudent concept as well as a conservative approach in anything pertaining to money. When it comes to mortgage loans, housing needs is mandatory but owning the class of properties can be controlled. If an individual has the financial capability to purchase high-end properties, so be it in leveraging on mortgage specialists. However, if the individual has no financial competence in owning boutique classes, it is more prudent to take up a cheaper alternative. The rationale behind such decisions is that in a catastrophic event like recessions or smaller scale ones such as job loss or disability, the individual still yields credit power to repay the facilities.


An alternative, or widely known as protection, is to get insured by buying insurance policies. With respect to the relevant big ticket items, managing credit can get tough when sudden events happen hence insurance schemes are created to prevent against sudden losses. The good thing about being insured is that some insurers (mainly from Insurance Union) may have clauses in full compensations and it is definitely wonderful news to the ears.


As long as the borrower is able to accede to credit requests, while taking a conservative approach and adequate preparations, there should not be any big hassles in the long run. History of Credit begins a long time ago and is here to stay for almost the next century. There is no need to be fearful of cheap credits and nowadays, more schemes & regulations are in place to protect credit lenders.

Introduction to Credit

World of Credit

When anyone hears the word credit, almost instantaneously, the individual will link negative connotations to this terminology. A curious question to ask is a big Why? The reason behind such negativity is due to the incapacity to remunerate upfront costs to a seller hence owing in the form of credit term. At times, creditors issue debts to lenders and give them attractive interest rates that cannot be refused hence leading to credit being involved.

Who has Authority to 'create' Credit?

Have you ever wonder on how credit is being developed from nothing? Indeed, there is an institution that creates credit through printing money out of nothing! Yes, the Central Bank has the authority to distribute credits to retail & commercial banks at any given time. Strictly regulated by the members of Parliament, who held meaningful discussions regarding monetary programs, the Central bank issues debenture to the underlying banking institutions to stimulate the economy with the aim of building up infrastructures and improve consumers' standard of living. Certainly, expansionary & contractionary policies are being developed and the bill has to pass through the Senate and cabinet ministers before officially taken up as Credit.

How is Credit going to help me?

Governing the country's welfare, including communal living costs, the relevant authorities are taking up credits to enhance & generate the economy, indirectly benefiting you. Based on the policy, retail banks have greater flexibility in accessing higher credit sources which in turn, being able to disburse more personal loans to borrowers.

Upon granting loan approvals, you have more choices in leveraging with more borrowed cash to improve the standards of living by prudently allocating resources. Some of you might adopt a conservative approach by saving up, others more risk-adverse to penetrate equity investments and the remainders to upgrade their current lifestyle to afford luxury. As more money supply is flowing around the economy, the rate of returns may be higher and the dividends act as bonuses to you - either repaying costs of borrowings (also known as interest rates) or reinvest the proceeds to achieve meaningful distributions.

Net-Net yields, credit seems to help generate a vibrant mobility which aid to beef up by progressively showing you to the desired lifestyles.

How much Credit is desirable?

Here comes the crucial question on borrowing the optimal amount of debts. In the first place, no one individual has the same set of requirements hence there is no one-size-fits-all. As a lender, your credit limit is highly dependent on several factors mainly wages, personal income taxes and key retirement contribution funds. The general consensus is to leverage up to 4 times the last drawn pay for personal loans.

In the current low interest rate environment, leverage actively boosts your overall financial status to higher altitudes if proper planning is done with a clear mind - rational decisions. However, the market may turn against you should unproductive habits are being adopted hence stay rational with every judgements.

While there are social safety nets in place, never rely on government grants or pension funds and speculate everything on Credit Lines (OBL). Prevention is always better than Cure!