Factors to Consider when Choosing a Credit Card

APR - when choosing a credit card, one factor you need to look at it APR. APR is the amount of money that you will get charged for borrowing money. This amount means the interest rate that you will be charged over the course of a year, and is usually presented in percentage form.
Limit - this is the amount of money that you will be allowed to borrow. When you reach the limit on your credit card, then that is you; you are back to having no money. Despite that, limits can often work well for ensuring that you keep any debt under control.
Credit Rating - if you always pay your bills on time, then you will most likely have a good credit rating. If you manage to pay your bills on time with a credit card, it will help to make you look like a person who is more than capable of sound financial management. Because it is important to keep a good credit rating, you should always do whatever it takes to keep your credit rating as good as possible.

Here's what you can do to help keep your credit cards out of the hands of fraud artists and thieves:

• Think of credit cards as cash
• Never leave your cards unattended
• Always know the location of your cards
• Destroy expired cards
• Sign the back of any new cards immediately
• Report lost or stolen cards immediately
• Protect your PIN - memorize it and do not write it down
• Be careful how, when and to whom you give your card number and related information
• Destroy personal financial information - don't just throw it away
• If you are not going to be using your cards for an extended period of time lock them away in a safe place
• Always verify your account statement and report any discrepancies immediately
• Make certain you get your card back after every transaction
• Keep your card in plain view when making a transaction
• Make certain that if you are being sent out a new card that it arrives within a few days of the date promised
• Take extra care if you have cards with large credit limits

The fire in Dinesh's home was caused by a crack in the electrical cable coming into his home, which short- circuited and the arcing caused the subsequent fire, which began at the electrical box and moved through the false ceiling of his basement's recreation room. Dinesh and his family escaped in their pyjamas. At this point, it is important to note that Dinesh had done all the correct things with his insurance. He had filled out the appropriate forms and was insured to what he believed was to value – Rs 60,00,000 on his home and Rs. 44,00,000 on his contents. Because the damage to the basement weakened the foundation, Dinesh's insurer paid Rs. 78, 00,000 to replace the dwelling since he had the replacement value clause in his policy.

Contents were an entirely different matter. Dinesh said the most important thing you have to remember, is that whatever value you insure for includes sales tax. Therefore, he suggests that you remember whatever amount of insurance you have on contents, the limit is 50-75% per cent of that value since sales tax is required to be paid. Most people would admit that Rs. 44, 00,000 on contents and Rs. 60, 00,000 on one's home is more than adequate - not according to Dinesh.

He remembers some of the immediate out- of- pocket expenses for which he was not prepared - two pairs of glasses, three sets of contact lenses, dental retainers and prescription drugs. He also found it surprising that he had to hire a locksmith to come and cut new keys for his cars, which had to be broken into and pushed out of the way for the fire department.
Other things, such as identification, licenses, credit cards, and passports had to be replaced. They had no keys, and no place to live, no identification and no credit cards. His insurer responded within hours with a cheque for Rs. 1, 20,000 to tide them over while they found temporary living quarters and shopped for clothes.

Dinesh is not wealthy, does not have extravagant tastes, but he does insist that insurance on contents be increased to adequately cover his possessions.

May we suggest that you closely review the value of all your contents including personal items, a partial list of which has been mentioned above, to ensure that in the event of accidental loss, your insurance will be in a position to replace all your goods? Dinesh's comments were that the least of his worries were things like jewellery - he was happy to get out alive.

Every human aspires to protect their loved ones from all types of adversities, basically by providing them financial protection. The fact that lack of money can lead to a lot of difficulties and problems in life neither needs no proof or explanation. Keeping this in mind people take up life insurance, so that in case the person dies, his family will have the much needed financial protection. To fight calamities and accidents, assets like vehicles, home, etc. are also insured.

But, a scenario where a person is unable to work because of sudden illness or a handicap due to an accident has been largely ignored by the general public, till now. Medical insurance and other medical covers are provided by organizations, but they cover only the concerned person's medical bills that too only till a certain time. What after that? What about the ill/disables person's family? It was keeping all these factors in mind that income protection insurance was introduced.

Income protection insurance is basically for those people who cannot resume their normal day to day job, either due to a sudden illness or a disability. This kind of financial protection is provided by the employer to his employees, wherein, the employees are paid a certain percentage of their monthly salary (mostly it is 60%, but it can also be more depending upon the employer's policies). The amount paid is usually not taxed and is mostly paid till the age of 50 to 65.

But is an ‘at par’ issue really a one-time opportunity? Do investors really gain by investing in an NFO as against through the sale window? While NFOs do widen the fund options for an investor, they also add to confusion. Here are some factors that one must look at before going for a NFO.

What is unique?

Many a time, investors get swayed due to the Rs 10 net asset value (NAV) compared to higher NAVs of the existing schemes. However, what must be kept in mind is the fact that both — the NFO and the existing scheme — invest in the same market and enjoy the same odds.

The NFO needs more marketing efforts compared to an established scheme. These expenses can eat into your returns. Also, note that the distributors are paid higher commissions in case of NFOs. The ‘contests’ for the distributors make them persuade their clients to go for NFOs. It makes sense for investors to get into a fund after it reopens for continuous subscription. They also need to check if there is an exit load over and above the entry load. What also needs to be checked is if the SIP has got a lower load structure, which may be possible in volatile markets like the one we are experiencing now. Go for a direct route to save ‘on entry’ loads.

The fund structures are also important as close ended funds won’t let you go for a systematic investment plan. For international funds, even if you are investing in domestic currency, you have to check the currency of the fund in which the money is going to be invested.