All posts by: Guy Gomez

About Guy Gomez
April 15, 2019

Credit Card Tips You’d Love To Know

Credit cards are our go-to options when we are left with no other alternatives. But let’s accept it – credit cards are the saviors when we’re desperately in need of some quick funds. Here are a few quick tips about credit cards you’d love to know about

1. Use your card sparingly

Trying your best to avoid using your card and swiping it when you actually require it makes total sense and is super beneficial for you. Spare the credit card for the times when you cannot do without it and watch how positively it impacts your credit score. Maintain the fine balance between use and overuse, and you’re good to go!

Using credit card

2. Terms and conditions – watch them

Every credit card company has different policies and terms of use when it comes to their cards. So make sure you know what you are signing up for

3. Give the high-interest cards preference

The credit card with higher interest rates is what you should be paying off first. Not that you shouldn’t pay the rest, but just make sure you have a sorted approach towards the payments that includes paying off the higher interest rate card bills off first.


4. Monitor your credit usage

What’s best than keeping a tab on your credit and taking decisions based on that? So make sure you have that finance app ready in your smartphone that will monitor all your credit and also generate reports for you when required.

5. Watch the offers

To be frank – don’t fall for these offers. Make sure you study and weigh the pros and cons of such offers before you actually sign up for one. The credit card companies want to make their business thrive so they wouldn’t really mind pushing you into overspending by luring you with these offers. Be careful!


6. Don’t use cards unless you pay them off

Instead of continuing to use the cards and piling up those debts, stop using the credit cards until you have paid off the bills. This will save the interest amount that would keep accumulating, thus increasing the amount you have to pay off.

Simple tips that would not only keep your credit score in the permissible limits but will also allow you to make use of the facilities credit cards bring with them!

Credit Card
April 10, 2019

Different Types Of Loans

There are good possibilities that the predominant population knows a bit about loans. Today loans play a major role in our life. It has provided the opportunity to own a lot of things to many people that are very much farfetched considering their financial status. We are not going to get into the details of banks and procedures but instead in this article we will the different types of loans that the bank offers its customers.

Secured personal loans

Secured personal loans are the ones that are protected or secured by collaterals. Some of the examples of secured loans are car loans and mortgages. Generally, personal loans are unsecured loans. But there are a few banks that offer personals against assets. These assets might also be saving accounts. A secured loan is the one in which you will get easy access to money. You do not have to pay the fees or sell any of your assets. But you will be paying a monthly amount with the interest to the bank.

Personal loan

Unsecured personal loans

If there are secured loans, it is mandatory that there should be unsecured personal loans. The majority of the loans that are offered by the banks are unsecured loans. Generally, for unsecured loans, the interest rates are a bit high when compared to secure loans. The unsecured loans are protected or backed by any kind of collateral. Even though the interest rates are high, most of the banks offer various options for the repayments of unsecured loans.

Fixed rate loans

The fixed rate loans are the ones where there are no foreclosures. The interest rates in fixed and it cannot be changed. You have to stick on to the same from the beginning till the end. This is not preferred by the majority of the population. There are not many positives in this loan.

Interest loan

Variable interest loans

As the name states, the interest rate of the loan will vary depending on the life of the loan. In this loan there are foreclosures. Hence the loan period can be changed during the repayment period. This is the kind of loan that everyone will prefer. The biggest advantage in this type of loans you have a lot of repayment options.

Debt consolidation loans

It is a well-known fact that many people take loans is for debt consolidation. It may be credit cards, paydays and all other types of personal loans. Debt consolidation loans are the ones where you will not have any kind of issues for loan approval. But you also need to understand the fact that the interest rate will be high for debt consolidation loans.

Lines of credit

Lines of credit

Lines of credit are the ones that are provided by the banks to customers that have very specific requirements. Since it involves high asset requirements, there are no mandatory collaterals. The most common line of credit is the home equity line of credit.

April 5, 2019

Important Factors That Can Affect Your Loan Approval

No one can deny the fact that loans are one of the greatest concepts that man has ever come up with. It is very much evident that loans have played a great role in most of our lives. For many, it has helped to realize the dreams.
All good things happen after a lot of struggles and loans are not an exception. You need to go through a lot to get your loans approved. The banks take into account a lot of parameters before sanctioning the loans. In this article, we will see some of the factors that will affect the loan approval.

Outstanding balance

The outstanding balance that you have will definitely be a huge hurdle for loan approval. It is because it will have a significant negative impact on the credit score. Moreover, the information will be used by the lenders to determine the credit utilization score. It is the ratio between the credit limits and outstanding balances. It is very high in case of home loans and term loans. It is better and safe if you can maintain the ratio at 20% to 30%.


Repayment history

The history of your loan repayment plays a very important role when it comes to loan approval. It conveys a lot of information to the lenders. In the current situation, all it takes is a few clicks for them to know your repayment history. If you have been perfect, then it is a green signal. If there are has been some delay, it can be accepted up to a certain level. But if you have a bad history, there are possibilities that your loan will not get approved. To avoid these kinds of things, it is better to repay the loans properly.

Types of credit

There are two types of credits. They are secured credit and unsecured credit. The lenders will take into confederation the ways in which you have repaid your secured and unsecured loans. They will give more importance and weight age to unsecured loans like credit cards and personal loans. Even though loans with liabilities like home loans are considered they do not as much importance as the unsecured loans.

Loan history
Loan history

The loan is the report that furnishes the complete history of the loans. It gives providers all the information like the type of loans that you have taken, your repayment history, the interest rate and a lot more. The new borrowers who have a credit history of fewer than six months will get a -1 rating. The easiest way to tackle this issue is to build a proper credit history for six months.

New recent credits

The bank will take your credit enquires very seriously. They can easily get all the investigation made on your account. The quires are absolutely fine if they are for home loans because banks will understand them. But fit is for credit cars or personal matters then there are possibilities that your loan might not get approved.

March 29, 2019

Factors That Banks Consider While Approving Loans

Getting loans from any bank might sound easy. But it is not as easy as it sounds like. It is like the process of a product passing various quality tests before entering the market. The individual needs to clear a lot of obstacles to get a loan from the bank.

The banks before approving the loans take into consideration a lot of parameters. It is not that they are being strict, at the end of the day the person should be able to repay the loan with the particular interest amount. This is the reason why they check a lot of things before approving the loans. In this article, we will see some of the important factors the bank considers before approving the loans.

Credit history

The credit history is the first thing that the bank will consider before loan approval. The credit history refers to the proper repayment of EMI if you have borrowed loans earlier and proper payment of credit card bills. If you have a clean history, there are good possibilities that the loan will be approved. It would be great if the credit score is 800 and above, if not make sure that it is above 300.

Credit history


We all know that occupation plays a major role when it comes to loan approval in banks. If you are in a stable job, the banks will give more preference as you will have a stable income; hence there will not be any problem in repaying the loans. In this particular aspect, people working in private companies or who are self-employed have a lower preference. There are a few banks who also take into account the entire working history. It does not matter how much salary the person is getting. If they have constantly been changing jobs, then it is huge minus while getting loans.


When it comes to loan approval age plays a major role in it. The majority of the banks prefer the people between the ages of 30 to 40. It is because there are good possibilities that they will have a well-paying job and in the near future they will not be going through any kind of big expenses. The most important reason is their health. Their health condition can be trusted up to certain level. There are very fewer possibilities that they will have any major health issues which might cause death.


Spouse’s income

If your spouse has a solid and good income source, then the changes in loan approval are very high. They take it into consideration because they can depend on their spouse’s income if they are not repaying the loans properly. They also need to be clear that there is some sort of income source that is there to keep the family running. If not it is obvious that the loan repayment will not be proper.

Loan approval
March 11, 2019

Top Five Investment Options

Direct equity-

Putting resources into stocks may not be everyone’s cup of tea as it’s an unstable resource class and there is no assurance of profits/returns. In addition to the fact that it is already challenging to pick the correct stock, timing your entrance and exit is likewise difficult. The main silver covering is that over extensive stretches, value could convey higher than expansion balanced returns contrasted alongside all other resource classes. Meanwhile, the danger of losing an essential segment of capital is high except if one decides on stop-misfortune technique to abridge misfortunes. To stop-misfortune, one puts in a development request to sell a stock at a particular cost. To decrease the hazard to a certain degree, you could enhance crosswise over segments and market capitalizations. As of now, the 1-, 3-, multi-year advertise returns are around 13 percent, 8 percent, and 12.5 percent, separately. To put resources into direct equity, one needs to open a demat account.

Equity mutual funds-

Equity mutual funds overwhelmingly put resources into value stocks. According to the current Securities and Exchange Board of India (Sebi), Mutual Fund Regulations is a value shared store plot that must contribute no less than 65 percent of its advantages in benefits and cost related instruments. A value store can be effectively overseen or latently overseen. In an effectively exchanged reserve, the profits are generally subject to a store administrator’s capacity to create returns. List assets and trade transferred to reserve (ETFs) are latently overseen, and these track the primary record. Value plans are sorted by market-capitalization or the segments in which they contribute. They are additionally classified by whether they are a household (putting resources into supplies of just Indian organizations) or universal (putting resources into loads of abroad organizations).


Debt mutual funds-

Debt mutual funds are perfect for financial specialists who need consistent returns. They are less unpredictable and, henceforth, less unsafe contrasted with value reserves. Debt mutual funds put resources into fixed-enthusiasm creating securities like corporate securities, government securities, treasury charges, the business paper, and other currency showcase instruments. Presently, the 1-, 3-, 5-year advertise return is around 6.5 percent, 8 percent, and 7.5 percent, individually.

National Pension System (NPS) –

The National Pension System (NPS) is a long haul retirement – centered speculation item overseen by the Pension Fund Regulatory and Development Authority (PFRDA). The base yearly (April-March) commitment for an NPS Tier-1 record to stay dynamic has been diminished from Rs 6,000 to Rs 1,000. It is a blend of value, fixed stores, corporate securities, liquid assets, and government assets, among others.

In light of your hazard hunger, you can choose the amount of your cash can be put resources into values through NPS. Right now, the 1-,3-,5-year showcase return for Fund alternative E is around 9.5 percent, 8.5 percent, and 11 percent, individually.

Public Provident Fund (PPF)-

The Public Provident Fund (PPF) is one item many individuals swing to. Since the PPF has a long residency of 15 years, the effect of intensifying of tax-exempt intrigue is enormous, particularly in the later years. Further, since the premium earned and the key contributed is supported by the sovereign assurance, it makes it protected speculation.