2018: 17 Cashback Credit Cards in India with Offers

Ever imagined getting paid back on the purchases/spends you make? This is known as cashback in the financial glossary and is offered through credit cards. Cashback credit cards lets users earn certain amount of money back in the card account after using the card on eating out, watching movies, fuel purchase, making purchase online, etc. depending on the issuers.

There are many credit cards offering cash backs in India offering money back. Here’s the list of best cards:

Cashback Credit Cards in India

Card IssuerCard NameCash Back Offered
CitibankCiti® Cash Back Credit Card5% on movie ticket purchases, telephone bill payments
HDFC BankMoneyBack Credit CardRedeem accumulated reward points as CashBack against the outstanding amount on your Credit Card. (100 Reward Points = Rs. 20)
Axis BankMY Choice5% on any of the two - Dining, Fuel, Electronics, Utility Bills, Travel, Supermarkets
Axis BankMY Zone25% on online and box office movie ticket purchases
Axis BankPlatinumUpto 25% on online and box office movie ticket purchases
Axis BankNeo10% on online shopping at jabong.com
10% on mobile recharge done via the Freecharge mobile application
ICICI BankInAFlash50% on any online transaction done (upto Rs. 500)
ICICI BankHPCL Credit Card2.5% on fuel purchases
Standard CharteredManhattan Platinum Card5% on supermarkets and departmental stores
20% cash back on Uber spends upon minimum credit card spends of INR 15,000*
Standard CharteredSuper Value Titanium5% on fuel, phone and utility bills
State Bank of IndiaPlatinum cardsRs. 150 on Rs. 1,500 Fuel spend
State Bank of IndiaGold & SimplySAVE cardsRs. 100 on Rs. 1,000 Fuel spend
State Bank of IndiaGold Classic CardRs. 100 on Rs. 2,000 retail spend
State Bank of IndiaDefence cardRs. 100 on Rs. 750 spend in defence canteen
Kotak Mahindra BankDelight Platinum10% on dining, movies
Kotak Mahindra BankCorporate Wealth SignatureHigh cash back
HSBC BankVisa Platinum10% on all spends during the first 90 days from the date of card issuance

Although it seems very enticing to get money back for the spends you make, there are certain tricks played by the card issuers, which are overlooked by the applicant while applying for such cards. Here are some of the key points to make a note of when applying for cashback credit cards.

Before applying for cashback credit card check following details:

  • Is there any minimum spend required to avail cashback? Cashback is received only after spending certain amount of money. So check this before applying. It should not happen that, just to earn cashback, you spend money on buying unwanted things. Card issuers are at an advantage when they let you spend more. They earn interest if the user is unable to make full repayment before the due date.
  • When should the amount spent? – Certain cards require cards to be used during a specific duration only. E.g. in the first 30 days of card issuance. So check this out first.
  • Where should the cards be used: For e.g. on movie or dining cashback, is there any criteria on which movie theatre or hotel, card should be used. Many times, user is required to use the card at expensive places only. Or if shopping clothes, is there any criteria on which brand’s merchandise you get paid back.
  • Maximum cashback limit: It doesn’t make sense to opt for a card just for the sake of getting a cash back, if there is a cap on the cashback amount.
  • What is the maximum cashback per billing cycle: This is very important point to check. Many a times, there is a cap on the money you will receive back in each billing cycle.
  • What is the claim process, if cash back is not credited: If there is no cashback received, there should be a hassle free claim process.
  • When is the cashback credited back to the card account

How to make best out of cashback credit cards:

  • Typically user gets a fixed percentage/amount of cashback. So look for the one offering highest percentage of cashback.
  • Use it wherever possible, so that you get maximum cashback. For e.g day to day grocery shopping, online purchases, etc. For this, you need to be aware of the amount and where to spend.
  • Choose a card with no annual or joining fee to save money.
  • Look for cards where there is no condition on location, duration, or minimum amount to be spent for getting a cashback.

Eligibility Criteria:

Since cashback is one of the benefit offered, the eligibility criteria varies for each card issuer. Here are the common eligibility criteria requested by most of the banks:

  • Income
  • Credit Score
  • Documents: Pay slips, income tax return, bank statement, ID and address proof
  • Company you work for, in case applicant is doing a job.

Credit Card for Salaried Employees: Eligibility & Key Features to Consider

One of the key eligibility criteria for credit card approval is the income of the applicant. Although you can get supplementary card even when you are not earning, but if you wish to be a primary card holder then you should meet minimum income criteria set by the respective financial institution. In addition to this, there are other criteria as well, which are listed in the later part of this article.

What should salaried individual look for in a credit card:

Interest rate: This should be the first thing checked by a salaried person applying for the card. But if you think that you are honest to repay monthly bills on time and fully, then low/high interest rate should not bother you. In either case, always opt for a card with low interest. Because you never know, card repayments may get delayed because of financial uncertainties such as job loss, forgetting to pay the bill, and so on.

Reward Points and Cashbacks: Almost every card these days offer reward points when used for making purchases. But check where such cards are really accepted for redeeming the accumulated points. Typically card companies have tie-ups with select merchants (online/offline) only. And you cannot use the card at any other place to get reward points redeemed. So if merchants sell expensive items, then it may not make sense to get such card. If you are thinking of getting a card for regular use, then choose a one which offers reward points on grocery shopping.

Charges: Almost every bank charge processing fee which is fixed. Although this fee is small but still choose the one with no charge or low fee and save money.

Fees: Most of the banks charge joining and annual fee. And if card user spends certain amount in an year, then annual fee is waived off in the second year. Although this is tempting but at the same time, banks want users to spend as much as possible hoping that you will default and will pay interest.

Other eligibility requirements by the banks:

Credit Score: Once application is received, banks get your previous financial history from credit agency. And based on the details received, credit score is derived which is out of 900. If your score is above 750 then you stand a good chance to get the card approved.

Documents: In addition to the income mentioned, you will have to furnish the proof to validate your income. This includes monthly salary slip, income tax return, bank statement, offer letter of the employer, etc. This varies for each bank. Failure in producing these will result in application rejection.

Personal details: PAN card, Aadhaar card, residential address proof, etc.

These are the key criteria every individual applicant needs to have or furnish to the bank. Failure in submitting any of these, may result in application denial.

Here are few credit cards and minimum income required:

For monthly salary less than or equal to Rs. 10,000:

  • Vijaya Bank – Visa Classic and Visa Global
  • Syndicate Bank – Classic
  • Indian Bank – Bharat Card
  • Bank of India – India Card
  • Jammu and Kashmir Bank – Empowerment
  • Corporation Bank – Gold Card
  • Canara Bank – Visa Classic and MasterCard Standard

For monthly salary less than or equal to Rs. 20,000:

  • HDFC Bank – Freedom & Bharat Cashback
  • Bank of India – Visa Gold & Visa Gold International
  • Central Bank of India – MasterCard Titanium, Visa Gold, RuPay Platinum
  • Indian Bank – Gold, Classic
  • Syndicate Bank – Gold
  • Axis Bank – Gold
  • Andhra Bank – RuPay Platinum
  • Corporation Bank – Gold
  • Canara Bank – Gold

How to finance your marriage without ruining yourself?

D-Day is here! You will finally formalize your life with your partner, with whom you have shared your life for many years. Of course you want to make this day memorable with all your guests, a day never to be forgotten. It is true that such an event can cost you quite a bit, but you are the only one to decide its magnitude.

So – how to finance your wedding without ruining yourself?

Compare different options to save money

When preparing for your wedding, it is wise to set a budget in advance to determine exactly what you can spend. This will help you avoid money disputes with your partner/family during the preparations. Marriage costs vary according to the people, locations and situations. Once you have set a reasonable amount, you will already be halfway through your preparations.

Next, you need to analyze the different expenses within your budget. Here are some of the key events/things you can save by being creative and thinking outside the box:

  • Location: Do you have at your disposal a beautiful garden (belonging to you or your relatives)? With the help of your friends and family, you can decorate this place and turn it into an ideal place to organize your wedding. In summer, a wedding tent with a few canvases can create a very intimate and pleasant atmosphere.
  • Catering: You can go (too) far in what you serve your guests, however, they will come for you and not for the food or drinks served at your wedding. Feel free to be creative, and choose a menu that suits you. For example, if you are a fan of Chinese food items, you can decide delicious Manchurian, etc. with non-alcoholic beverages. It will leave your guests with an unforgettable summer memory.
  • Wedding clothes: New wedding dress collections are generally on sale or available on rent. Both the options are good depending on the utility of the dress after the marriage. By renting, you can offer yourself the dress of your dreams at lowest price!
  • Honeymoon: Have you ever thought about the miles saved with your credit card? Thanks to these, you can finance all or part of your trip. If you want to save money, extend the honeymoon to a later date when travel season is off.
  • Number of people: The price of a wedding, will ultimately depend heavily on the number of people you wish to invite; the more there will be, the more expensive the wedding will cost you. You can also choose to keep your wedding intimate and private.
  • Events: If cost is a concern, limit the number of events during your marriage. Skip bachelors party or DJ, depending on your financial situation.

Savings or loans?

The best way to intelligently finance a marriage is to use your savings. To get such a sum, it is better to start saving several years in advance. Feel free to compare financial institutions to find the loan that’s right for you.

If your savings are not enough, you can cover the rest of the expenses with a loan. However, remember that it will also cost you money: you will have to pay it back in monthly installments, over the next few years and with interest. The most appropriate loan for a wedding is the personal loan. The latter does not require any justification as to the destination of the borrowed funds; the monthly payments and the interest rate are fixed in advance. You can also take loan through peer lenders. Compared to banks, eligibility criteria is not strict and you can bargain on interest rates.

Save on your budget, not your dream wedding

We have already given you some tips to reduce the costs of your wedding, here are some additional tips:

  • Choose the best location, not the most expensive or prestigious one!
  • If money is a concern, invite only your family and close friends, a successful ceremony does not depend on the number of people present.
  • Offer refreshments and snacks or a personalized menu.
  • Don’t choose the most expensive wedding car, but choose to rent a beautiful car from your family or friends.
  • Melt your old rings to get your rings.
  • Weddings on weekdays are generally cheaper than weekends. Wedding price can also vary depending on the day and time of day! Do not hesitate to take this into consideration.
  • Does anyone you know have a passion for photography? If so, you can save good money on hiring a professional photographer by hiring him over a professional company.
  • Do you have a friend who loves playing DJ? You can also save money by leaving him in charge of the musical entertainment for your evening.

Try to imagine how your wedding should be, and customize it to your choice keeping in mind your financial situation! You can fully enjoy this moment with all the people present at your wedding: your partner, your family, your friends, in short, all the people you love because it will be your D day!

6 Ways to Reduce Credit Card Late Payment Fees

Having a credit card can be useful, as long as you are not in arrears. Every delay generates bank charges such as interest to pay on your unpaid expenses. For example, some banks charge late fees or charge high interest rates. So here are some tips to help you minimize the late payment of your credit card.

Contents :

  • How to choose your card
  • Use a single credit card
  • Know your repayment timeline
  • Pay back on time
  • Limit your expenses
  • Avoid withdrawals

1. How to choose your card

Late payment can generate significant additional costs. To minimize these costs, it is useful to look at the rate applied by banks regarding repayment and late payment and find the one that suits you best. In addition, bank charges may apply to different types of credit cards:

  • Conventional Credit Card: Make sure you pay back a portion of the amount you borrow each month. Your bank gives you a minimum monthly amount to pay and the payment deadline. Always pay on time to avoid late payment.
  • Prepaid Card: Your expenses are automatically debited from your account before the repayment due date. This means that, each month, your current account is reduced by the total expenses incurred. If your balance is insufficient, you pay interest based on the applicable APR.

Trick:

If you can’t pay your card balance this month, avoid making new purchases in the following month to reduce the costs of late payment. If you choose installment payments, try to reduce the number of repayments or even repay all your expenses at once. Be aware that by repaying the balance as soon as possible, you will pay less interest due to a potential late payment.

2. Use a single credit card

Another way to reduce your payment delays is to consolidate your balances from multiple credit cards into one card. So you don’t have to pay for the different cards, and you centralize all your expenses. It will be easier to follow up by consolidating your debts in one place. You can also better manage your late payments and pay off your card balance by paying one bill at the end of the month.

3. Know your repayment timeline

It is time by which borrower is required to fully repay the utilized credit. Make sure you know yours so you can repay your debts on time and avoid late payment.

4. Pay back on time

To avoid further payment delays, it is best not to exceed your credit card repayment deadline. You won’t have any additional expenses if you pay your bills on time. Learning to meet your payment deadlines will help you not lose too much money. Avoid unnecessary purchases to pay off your balance on time.

Trick:

  • If it is difficult to repay the entire balance, always try to pay more than the minimum balance mentioned by the bank.

5. Limit your expenses

Depending on the amount of your expense, it may be more advantageous to pay with your credit card or take out a loan. Because of the bank charges associated with repaying your monthly payments and possible late payment, you may prefer a loan for large expenses such as a car or renovating your home. Credit cards have a limited limit, so you won’t always be able to borrow as much as you want. In this case, they are to be preferred for day to day shopping purchases or others with a low cost. Typically, credit card rates are generally higher than personal loan rates.

You can also choose different payment methods. Prefer to draw a little from your savings rather than drawing it from your credit card.

6. Avoid withdrawals

With your credit card, it is also possible to withdraw cash at ATMs called as cash advance. As simple as it sounds, cash advances also have a cost. You will be subject to bank charges and interest related for using this service. To minimize your costs, think about spending only the money you have. If you do not repay them on time, your late payment may also cost you interest on the amount due.

By avoiding late payment, you save most of the time on unnecessary costs incurred. With these 6 tips, make sure you know the cost of your credit card. Read carefully all the conditions related to your card.

Is Your Credit Card Right One? 4 Signs That Tell, It’s Not

Good credit card management is, for many, the most important indicator for accessing bank loans on better terms in the future. Everyone who has had a relationship with a financial institution has used the plastic money, either for their first purchase of a cell phone or buying stuffs online or travelling because they offered incentives such as miles to travel or points to redeem for future purchases.

Over time, however, some bad habits create a damage to the credit history. There is a temptation to take advances with credit cards without paying attention to the fact that each bank charges a fee for this transaction and the current interest rates on this money are the highest for consumer credit and that if there is default, the moratorium rates are equally disastrous for any pocketbook.

You become parents

Parents who are new to their first baby don’t think much about all the changes that the new family member will bring. And they believe that life will continue as it was before and they will continue to go to those fancy restaurants, that they will find a way to keep traveling with the baby in their arms and they will continue to travel the world. That’s probably not the case and that’s why they should also check their credit card for a discount for their new needs.

Instead of that plastic to earn miles, choose the one that gives discounts on baby items or benefits on newborn clothes or milk jars and diapers. And if such cards are not available, look for a card specially made for shopping. Although, looking for discounts on diapers/shopping cards, will be less sexy than saving for that trip, but you will see that it will serve your finances better.

Your card is stretched over the limit

The misuse of credit is very costly. Over crossing the credit limit carries a very high interest rates which ends up affecting your credit history. If you are hung up on the installments you have the option to refinance with the bank, although this may generate new interest and lengthen the repayment of the debt. If you become delinquent the next month, your credit history may be affected.

Another option is to ask for an increase in the limit. But if you’re already hung up on the one you have and you’re lousy at managing your finances, you’re likely to be tempted to make a new advance to open up one more hole in your pocket, without having covered up the old one. Or finally, sell the debt to another bank. There are many entities offering card balance transfer at lower rates. But as long as you improve your situation, hand over the cards and end up paying off that debt.

Your credit card is from a private company

There are many private credit cards i.e. usually an agreement between banks and large supermarkets/others. The discounts or offers are specific to those companies only.

The problem is that if you accumulate points on one side, they may not work for you in another shop, and that’s a bit of a disincentive for the buyer. So before opting for such a card, check the policy carefully so that there are no surprises with your use of your plastic money.

No longer meets your financial objective

Credit card is not a’souvenir’, nor a reminder of anything. It is a means of payment and that’s it. See if the bank offers you a product that has a more favorable interest rate for your financial situation. There is no point in sticking to a card that may be obsolete and that does not even bring the minimum security to your finances.

What to do if credit card is lost or stolen abroad?

You are on holiday abroad and you have just been the victim of a theft or you have just lost your credit card card? What are the formalities to be completed to protect you from possible abuse?

Let’s understand this in detail below:

Risks related to the theft or loss of bank cards abroad

When on holiday abroad, be even more alert than at home. Because in the event of theft or loss of your bank card the procedure to report will be more complicated in foreign country.

There is a good chance that someone with bad intentions may have stolen your card for fraudulent use. Although fraudsters cannot withdraw money without your PIN code at ATMs in Europe or abroad, they can make payments on your behalf, especially online payments on sites that do not bear the words “Verified by Visa”, “MasterCard Secure Code” or “SafeKey”.

Moreover, in some countries outside Europe, it is still not necessary to put your PIN code to make payments in shops, restaurants, etc.. This increases the risk of fraudulent use of your lost or stolen card.

What is the procedure to follow in case of lost or stolen bank card abroad?

When you notice your credit card has been lost or stolen, you must act quickly. You must, in order:

  • Contact your bank to stop and block your card. It is also very important to keep the acknowledgement number provided by your bank, it will be required to prove your claim.
  • Report suspicious theft or loss of your credit card to the local police.

It is very important to take these steps as soon as possible in order to be able to be compensated for the money used without your knowledge. If you still have your card but it has been used without being physically presented (for example via the Internet), or if it has been copied, you will not have to pay a small amount to the bank.

If you follow this procedure carefully, you will in the worst case lose a small amount of money. Your credit card provider is responsible for all fraudulent charges made after you report to stop your card. This is only true if you have not committed a deliberate negligent act, such as leaving your credit card in your car in plain view with your PIN code nearby.

By performing this procedure, your bank will reimburse you for fraudulent transactions between the time your card is stolen and the time it is blocked. The small amount mentioned above can be waived if you have fraud insurance included in your credit card.

In addition, you can also ask your bank to replace your bank card. In general, replacement costs will be at your expense.

How can I protect myself against credit card theft or loss abroad?

To avoid becoming a victim of credit card theft or loss abroad, here are some simple tips to follow:

  • Keep your credit card in a safe place.
  • Be vigilant when withdrawing money: go with someone, avoid using ATMs at night, prefer withdrawing money inside banks, check the status of the ATM (extra cameras, keyboard status, etc.) and be attentive to the people around you when withdrawing money.

You now know the main formalities to complete in the event of theft or loss of a bank card. So be careful with your bank card when travelling abroad.

6 Tips to Keep Debt Under Control

We often hear rising non-performing assets of the bank which is nothing but businesses or individuals are having difficulty paying their loans or credit card repayments. But why is it becoming more and more difficult to repay your credit? There are various reasons for this. For example, fall in interest rates, encourages households to borrow more.

So how do you get out when debts start to accumulate and the situation gets out of control?

1. List your credits and reduce your expenses

Take stock of your situation to assess your ability to repay on time. Repay credits with high rates first if you can’t pay them all at once.

It is often not easy to reduce spending in a consumer society like ours. List the monthly expenses that you must pay. Example: rent, energy bills….

On the other hand, you can also try to renegotiate with your suppliers: change your car insurance if it is too expensive or your telephone/internet subscription to reduce your costs. You need to limit unnecessary expenses like the latest iPhone 6 or a new TV.

2. Talk to your banker and ask for a lower rate

Bankers are not necessarily the first people you want to talk to about your debts, but they are the only people who can help you and provide solutions. Don’t be afraid to review your situation with them as soon as you feel that debts are starting to accumulate. The sooner you do this, the easier it will be to manage.

If you have been able to repay your loans on time so far and have built a relationship based on trust with your bank, your bank may offer to lower your credit rate. If this is not the case, ask your bank what other solutions are available to help you.

3. Consider taking out insurance

Personal loan insurance is not mandatory, but can be useful to cover death or disability. If you do not have insurance, it is important that you talk to your bank to find a solution to help you.

4. Opt for a credit consolidation or a credit repurchase

A credit repurchase can be a solution to lower the interest rate and to see your situation more clearly. You can take out a new loan with another company to repay all your outstanding loans and reduce your overall monthly payment. On the other hand, a credit consolidation will require you to pay your credit over a much longer period to compensate for the decrease in monthly repayments. Talk to your bank to see if this is the best solution for you. Also consider closing your revolving loans.

5. Use non-judicial debt mediation

If you are facing temporary difficulties that jeopardize your financial situation or if you are facing prolonged over-indebtedness, you can resort to non-judicial debt mediation. It constitutes personalized assistance by persons designated by law or by public or private institutions.

6. Consult the collective debt settlement

Collective debt settlement is a legal procedure to try to remedy situations of over-indebtedness that have become unmanageable. It enables people to regain living conditions consistent with human dignity and to repay all or part of their debts, as far as possible.

It is important to think carefully before taking out a loan so that you will be able to repay it. Pay attention to your expenses and manage your budget well.

10 Misconceptions about Credit Cards

It’s time to stop misconceptions and think that credit cards were invented by the devil to put you into huge debt.

Some people are scared to death of credit cards. This is usually for 2 reasons:

  • When they know someone who has succumbed to debts because of them or
  • Someone who does not know how they work.

Some of these preconceived ideas are really absurd. Here are the most common misconceptions about credit card:

1. Credit Card = Debt

You will only be in debt if you don’t pay your credit on time. More emphasize on the word “on time”. Once the due date has passed, if you have unpaid balance, you will have to pay interest.

2. The interest is too high!

Again, they are high if you don’t pay your bills on time. When you make a purchase with your card, you get an interest-free period, called a “grace period”, which varies depending on your bank. Interest will be added to the payment of your credit after this period. This is something you want to avoid unless you want to have debt.

On the other hand, a deferred debit credit card is directly linked to your bank account and allows you a deferred payment of your purchases for a maximum of one month, without paying interest.

3. My friend/relative got into a lot of debt over credit cards

There are three reasons why people accumulate so much debt with their credit cards. They keep forgetting to make refunds. They’re over their card limit. They don’t keep track of their expenses.

If you are a responsible person and pay attention to your expenses, there is no reason to worry about having a credit card.

4. I’m gonna forget to pay off my credit

Banks would love card user to forget making repayment. But most banks have online banking systems that allow you to access your account with a single click and make payments on time. Too easy, isn’t it!

5. A debit card offers me the same benefits

Wrong. Credit cards offer you many benefits, such as miles, cashback, points, or insurance that you do not receive with a debit card. Finally, it will be impossible for you to plead lost money at your bank in the event of debit card fraud.

6. I don’t want to have an account with that bank just for the credit card

The good news is you don’t necessarily need it. In many cases, you can get a credit card with Bank A without opening an account with the same bank. In that case, you can pay your balance from your account with Bank B. So who says, it is complicated?

7. Credit cards have hidden fees

This is absolute rubbish. Credit cards have terms and conditions that you need to know to understand what you are signing up for. It’s like when you read Facebook’s terms and conditions when you create a new account.

8. Credit cards are not secure

First, when you are careful, you are very unlikely to be a victim of credit card fraud. But if this happens to you, the banks may block the transaction or even refund you. This is not possible with a debit card; what is lost will never be recovered.

9. A card like this is gonna make me spend more

It’s all about the state of mind. If you think you will spend a lot with your card, you can choose one with a smaller limit. For example: an amount less than your salary.

10. I don’t know which one to choose

There are many credit card comparison tools available online that allows you to compare between several cards very easily. You can also compare on websites of different financial institutions and find the financial product that suits you best.

Studying Abroad? 4 Ways to Finance Your Studies, Stay & more

Would you like to study abroad, whether at a university in California, study for a Master’s degree in Cambridge or take language courses in Spain or Portugal? Many students dream of pursuing part of their studies abroad. A new environment as well as another school on resume is likely to offer you an unforgettable experience. It also allows you to stand out when looking for a job or a first job.

But what are the means to finance your studies abroad? And if you don’t have enough money, is it possible to get a loan?

If you wish to study abroad, it is important to first list the fees and estimate the budget you will need. You need to know, for example, how much will your education and future housing cost? You must also consider food costs. For example, a sandwich in Norway is 84% more expensive than in Belgium, and a condo in California is expensive than other parts of the country.

1. The financial possibilities

Studying abroad can quickly become expensive. If you know the total cost of your trip in advance (12 to 18 months), you can still save and try to raise at least some of that amount. Once you have a good overview of all your expenses, it is important to determine how you will fund them.

Here are the different possibilities available to you:

  • Using your own funds: Can your parents help you financially to study abroad? Do you have a savings account funded through a student job or grants? Or were you employed and earning money before applying to a university? This is still the best way to pay for your stay abroad.
  • Applying for a scholarship: The only drawback is that you must meet a number of criteria and complete certain formalities before you can apply. You can apply for different scholarships at different organizations depending on the country you want to study in. There are various programs such as Fulbright Foreign Student Program, Abbey Road Summer Scholarships, Civil Society Leadership Awards and Hubert Humphrey Fellowship Program offering scholarships to International students wanting to pursue education in the United States. Do not hesitate to ask about these scholarships to find out what the conditions and methods are for obtaining them.
  • Combining studies and a job: Even if you have a reserve of money in your bank account, it may not be enough and you may need a little more money to finance your daily life abroad. You can, for example, try to get a part-time job abroad or try these work from home jobs in the free time.
  • Finally student loan: If the above options are not available to you, you may take out a student loan as a last resort.

How can you get a loan?

Before you can obtain a loan, you must meet several requirements depending on the country you live in. In addition, the bank will examine your financial situation to see if you have any (outstanding) debts and if you are able to repay this loan.

The latter can be subscribed under your own name, or that of your parents. Students who borrow under their own name must be able to demonstrate that they have the ability to repay. If you’re not sure what type of loan is best for you, check various education loan comparison tools available online.

3. How does student loan work?

There are essentially two different types of loans available for young people wanting to study abroad: installment loans and credit lines. These types of contracts are between a financial institution (for example a bank) and the student.

Credit Line Opening:

If you want to withdraw small amounts of money when and where you want, without knowing in advance exactly how much it will be, opening a credit line can be a good choice. It can take the form of a credit card with an overdraft facility or a bank card with a line of credit or an authorized overdraft on your bank account.

With this type of credit you can withdraw money when you need it, several times throughout the term of your contract and benefit from flexibility in repayment (subject to compliance with certain conditions). This credit is also revolving: the funds you have used and repaid are immediately available again. However, with the zeroing period you must repay the credit in full at least annually or once every five years.

Installment Loan:

It is an alternative to the opening of credit. Here you take out a loan for a predetermined amount and term. You will therefore have fixed monthly repayments. Installment loans are particularly suitable when you have a substantial expense to make at once (such as the college fees). So you borrow money and then repay the interest and principal monthly.

4. Repayment of your loan

A student loan usually does not have to be repaid immediately. You may even be able to wait until you finish your studies.

However, it doesn’t make sense to wait too long to repay your credit since interest starts to accrue from day one. Knowing that your professional career will only start some time after you take out the loan, it is essential to borrow only the amount you really need for your studies and to repay them as quickly as financially possible.

7 Credit Card Tips to Use it Correctly

Credit cards are increasingly used to cover our daily purchases, practically all of us have at least one…but do you know the basic rules when it comes to obtaining a card of this type?

Here we give you 7 recommendations to choose the most suitable one and use it correctly.

1. Annual Fee

Is the amount the bank charges annually to lend you the money you have. It includes all the elements that are involved in serving the card user – processing, providing security, monthly alerts, etc..

The basic rule is – lower the fee, lower is the cost of the card.

2. Compare Your Paycheck Against Your Credit Limit

The Credit Limit is the maximum amount you can use to purchase and/or purchase services. This amount varies from person to person and card to card, and is granted according to a bank’s analysis of the history, work, salary of the person applying for the card, among others. Every time you make a purchase using the card, the money available on this line of credit decreases and when you pay down the principal or reduce the debt, you get the line of credit back.

It is recommend that you cap the limit to 60-70% of your monthly income and one more than 4 months of your salary.

3. Benefits

That’s right, everyone wants to live the goodness of the famous reward points. One of the factors that can tip the balance on one card or another is the benefits. These may include airline travel miles, special annuity pricing, sweepstakes, event tickets, pre-sales, points to purchase items and vacations, night sales, permanent discounts, sports benefits, partnerships, self-service, among others. It should be noted that while the benefits add to the attractiveness of the card, they may also involve a higher annual cost. Don’t get hooked on a card that offers you points redeemable for things you don’t use, be realistic. If you don’t travel often on the same airline, chances are you’re not going to do it for plastic either.

So don’t get hooked on a card that offers you points redeemable for things you don’t use.

4. No Interest Months

The Monthly Interest Free payment method allows you to purchase products and/or services at a similar price as if you were buying them in cash (paying the payment in a single amount), but with the possibility of deferring their cost within a certain period of time (6, 12, 18 months). This is much better than fixed payments (or credit scheme), because if you pay on time, it frees you from the monthly interest that the bank charges for the financing (interest rate).

However, keep in mind that if you don’t manage your expenses well, months without interest can upset your finances. It is recommended that you project the monthly payment of the purchase together with other financial commitments, to define if it is possible to cover all your expenses. It also suggested that you consider buying after the cut-off date to obtain up to 50 days of financing to start paying.

If you don’t manage your expenses well, months without interest can unbalance your finances.

5. Minimum Payment

When you use your credit card, you are using money borrowed from the bank. That’s why, month after month, the bank (the card issuer) sets a minimum amount you must pay to keep your credit current. If you don’t pay it, you will be charged interest on late payments and you will have a negative credit history, which will lower your chances of getting any type of credit in the future. Paying this minimum amount keeps your credit active, but it’s also a strategy that will only get you deeper into debt. Why? By making full payment, you are avoiding not only your debt, but also the interest. But if you only pay the minimum balance, you have to pay interest on the remaining balance, that is, you are not reducing your debt but increasing it. So remember the following:

“If you pay only the minimum balance, you will go into maximum debt”

6. Prepare Your Account Statements

Credit cards have a cut-off date, which is the last day of the period charged per month. After this day, all purchases you make will go into the next monthly payment and so on. It is important that you have your statements in order because they contain information such as the minimum payment, the payment deadline, the non-interest bearing payment, the credit limit, interest and your balance (total amount you owe the bank), all of which will allow you to see how much you have spent, how much money you need to pay off your debts and whether it is healthy for your finances to continue using your card.

Know if it’s healthy for your finances to keep using your card.

7. Build Credit History

If you handle all your finances in cash, you’re not building a credit history and it will be harder to get a credit card or credit itself, which can help you cover big expenses like buying a house or car. The credit history will help you get more credit, it’s a way for the bank to prove that you’re responsible enough for paying off your debts. So the better your credit history is, the more credit you can receive. If you’re young and have never had credit, you can get cards against fixed deposit which will help in building your credit history.

A good credit history will help you get more credit.