Business people usually cash in on the holiday seasons to maximize their sales and profits. It will be high season for them. They will stock up, price up and smile all the way to the bank. They know that people will be less restrained in their suspending than at any other time. It possible that you may be among the many who have suffered post-holiday season financial stress, and want to make sure it does not happen again. Your success in this will be determined by how well you control three critical factors: your increased rate of spending, the manner in which you finance that spending, and the heavy financial demands that follow in the subsequent month.

Financing Using Plastic

With holidays like Christmas or the New Year seeming to come round too quickly, people often find they have not saved up enough for their celebrations. Moreover, budgeting is an alien concept during this and spending can spiral out of control. To cover the inevitable shortfall in resources, the credit card is an obvious attraction. There are advantages to using the card to finance your expenditure:

i) It gives you free access to about a month’s credit.

ii) It gives you the temporary ability to spend beyond your current means.

iii) It allows you to track your expenditure.

iv) You do not have to carry lots of cash around with you.

Use of credit card, how ever, does carry with it significant dangers if it is not carefully controlled. Research indicates that spending could increase by up to 35% when using a credit card compared with using cash. Here are some key principles to help you guard against running into credit card debt trouble.
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Airline credit cards have steadily been gaining popularity in the past few years. Airlines and other companies related to the travel industry benefit as customers utilize their services more frequently; brand loyalty is strengthened as well. Consumers with a good credit history gain by obtaining greater value from their credit cards. Fundamentally, airline credit cards operate in a similar manner; purchases charged to the credit card earn travel points for the card holder, these points can be redeemed in various ways, for example contributing toward free travel, hotel stays, service at a car wash, etc. Four key features to consider while selecting an airline credit card are given below.

Low Interest Rate: The cost of credit is measured in terms of the annual percentage rate (APR). A good credit profile helps to obtain a low APR, i.e. prime + 4%. Most credit cards offer a “variable rate” plan in which the APR changes with certain economic indicators. The interest rates vary with the cards and are influenced by other offerings such as the grace period, annual fee, bonus points, etc. A card holder who does not carry a monthly balance need not really worry about interest rates; however, people who do carry their balances forward can select from a number of airline credit cards that charge a low interest rate. Some cards offer an introductory rate of 0% interest on balance transfers over a period of time, which is typically 12 months.

Preset spending limit: The spending limit in airline credit cards can vary from a few hundred dollars to thousands of dollars. The minimum monthly payment is liable to increase with higher spending limits. Some cards allow users to spend over the credit limit, the amount over the limit and the resulting penalty are settled in the subsequent month’s payment. Credit card bills can quickly balloon to unmanageable proportions. Therefore, inveterate spenders are well-advised to carefully consider the preset spending limit before settling on an airline credit card.
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You’ve researched the perfect car to buy and the perfect time to buy it. But have you checked your credit report and credit score? A quick review of your credit report online before you visit dealerships can save you both time and money when you are ready to make your deal.

1. Give that credit report a tune-up.

Check your credit report early in the process to avoid embarrassing or costly episodes at the loan desk.

• Get the facts first. Having your 3-in-1 credit report from TransUnion’s TrueCredit.com before you shop for a vehicle allows you to compare and review your financial information from each of the three credit bureaus: TransUnion, Equifax and Experian.

• Check the accuracy of your 3-in-1 report. If you find any mistakes, report them immediately.

• Are your credit card balances high? Reducing these or paying off small debts can sometimes boost your credit score and save you money on a loan.

• A few months of prompt bill payments can improve the way lenders view you.

2. Don’t overextend yourself.

Brand new sports car vs. used and practical? Before you decide which car is right for you, it’s a good idea to see how much you can really afford.

• After all your other bills are paid each month, how much do you have left to put toward a vehicle?

• Do you have a trade-in or down payment? These can help you negotiate a better rate with lenders and can be especially important if you have problem credit.

• Calculate your debt-to-income ratio by dividing all your monthly payments by your gross monthly income. Make sure to add in your expected new car payment. A ratio greater than 30 percent may be a red flag to lenders.

3. Do your financing homework.

Applying for an auto loan doesn’t have to be stressful if you arrive prepared. Consider the following:

• Be ready to discuss your income, occupation, home loan and credit history.
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If you’re a college student, you know how expensive books, movies and tuition can be. And if you only work during the summer break, you may be looking for a way to stretch your funds through the cold winter months. Fortunately, a student credit card can help. Find one with low interest and good terms, and you can charge during the lean times and then pay it off when you’re making money on your summer job.

To get a student credit card, follow these guidelines:

1. Find some cards for comparison.

It’s easier than you think. Credit card companies often set up tables and booths at college fairs. You may even find fliers or applications around campus. And you can always find a student credit card with an online search. Be sure that the cards you’re considering are specifically student cards. Credit cards aimed at students tend to have more lenient credit score and credit history criteria, and they also tend to have lower interest rates.
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