When dreaming of the lottery, even a cash prize of a few million isn’t easy to comprehend. A billion would be even harder. But a trillion? The average person just can’t handle a number that big.
Now try to conceptualize $13.5 trillion. That’s enough to send everyone in the U.S. to their local state college for a four-year degree and still have some left over.
It’s also how much money the 15 largest banks in America hold in assets. Of that cohort, just five manage half of it: Bank of America, Citigroup, JPMorgan Chase, US Bancorp, and Wells Fargo. Until recently, their hold over American wallets had gone unrivalled.
But as FinTech companies grow in scope, new challengers step up to disrupt the grip these Big Banks have over the industry — and consumers like you stand to benefit the most out of this change.
What is FinTech?
FinTech is short for Financial Technology and describes any technology that supports financial services. As a result, it’s a pretty broad term. Even the abacuses of yesteryear technically fit the bill, as do the automatic calculations the Big Banks use when completing transactions.
In 2019, FinTech means something more advanced than helpful back-end functions. It describes a subset of financial companies that offer front-facing services to customers.
FinTech represents a varied group of companies
The headlines make certain parts of the FinTech corner stand out more than others. Bitcoin often makes a splash in the news. The latest drama surrounds now dead CEO of Quadriga Gerald Cotton. He kept $145 million in a cold wallet no one can hack, leaving more than 100,000 investors out of luck.
Before this, it was Elon Musk thinking out loud on a podcast, saying crypto is the currency of the future. And before that, most new sites debated whether crypto is a reliable way to invest your money.
If you’re unfamiliar with the industry, it would be easy to equate all FinTech with Bitcoin because of the focus it’s under. While crypto is one of the most theatrical examples of FinTech, not all FinTech is crypto.
Mobile banks make it cheaper to manage your money
Some FinTech companies offer relatively humble services compared to Quadriga. There are mobile banks that take your day-to-day banking experience out of the branch and onto your phone, tablet, or laptop, so you can deposit a check with your camera or transfer funds to a friend.
Because they don’t have the overhead costs of physical locations, most mobile banks eliminate the common banking fees and restrictions the biggest banks place on their services. While you may have to pay as much as $15 in monthly fees to keep a basic checking account with one of the big banks, FinTech scraps these fees altogether.
FinTech also removes barriers to essential services
There are also online lenders that offer installment loans and lines of credit to people with subprime credit. For anyone who’s tried to get a loan while they’re rebuilding their credit, you understand the importance of knowing your credit score before you apply.
Many of the biggest banks have strict regulations and will reject any applicant with a subprime score. However, there are FinTech companies that won’t — they use other financial criteria to determine your creditworthiness, giving people with low credit a chance at getting an online loan.
Whether you’re denied a loan or tired of paying too much to maintain a checking account, greater convenience and low costs can persuade you to ditch traditional financial organizations for FinTech. And you wouldn’t be alone. By 2023, it’s expected there will be more than 362 million FinTech users in the U.S. alone.
With this many potential customers, FinTech is primed to take a bigger piece of the financial pie as it disrupts the monopoly the biggest banks have over the country.
With nearly 60 million credit cards floating around the UK, it’s fair to say plenty of us are using multiple credit cards at once.
But how many is too many?
If you’re wondering about opening another account, consider the pros and cons before you make a move.
Lower your credit utilisation
Multiple credit cards, if used correctly, are great for your credit score. This is because of a feature called credit utilisation and how credit providers perceive it.
Credit utilisation is, in short, the percentage of credit you are using against your credit limit. For example, if you had a monthly credit limit of £1,000 and were using £800 a month, your utilisation would be 80%. £500 would be 50%, £200 would be 20%, and so on.
Where your provider is concerned, high utilisation is bad news and will affect your credit score negatively. Providers like to see utilisation of no more than 30% so, if you are close to your credit limit on one card (indeed anything above 30%), it benefits you and your credit score to spread the debt across several cards.
Spread the spend
Speaking of spreading your debt, the same process is beneficial to those struggling with a lot of debt on one card or looking to spread out a purchase cost (and avoid high utilisation).
Where high interest debt is concerned, you can use multiple cards to transfer a balance from a high interest account to a new, 0% interest card or two in order to release the pressure on an account building interest. It’s a temporary solution but saves you money in the long run.
Back yourself up
If credit cards are your main source of payment, it’s worth having multiple cards so one can be used as a backup or for emergency use.
This is useful if your card provider freezes your main card, for example if it suspects fraudulent use, or an unexpected payment comes up that needs dealing with immediately.
Reap the rewards
Credit cards offer various incentives to spend, and different credit cards offer different perks. An example would be a percentage cashback amount on certain purchases across the month.
Using different cards on the right purchases means you’re getting the most back from your spending.
Don’t lose track
The big risk with multiple cards is that they can, if mismanaged, rack up debt and harm your credit score.
The more cards you have, the easier it is to lose track of both spending and repayments. Purchase frivolously and you may spend more money than you have. Meanwhile, missing repayments can mean interest and a hit on your credit score.
Whilst you’ll no doubt be looking for the best interest deals and lowest charges, introductory offers do come to an end and many cards come with an attached monthly fee.
If you’re running a handful of cards, such fees and interest can add up, leaving you with unwanted costs at the end of the month.
Just as it’s easy to lose track of your spending and repayments, it’s also harder to notice possible theft or fraud across multiple accounts if you’re not paying too much attention.
An unlikely occurrence, but another thing you need to be on top of.
So, how many cards?
The answer is no one really knows!
It depends on your current situation with outstanding debt and your future plans. More than anything your ability to responsibly manage your finances will be the determining factor in selecting the right number of credit cards for you.
It is better to remember that having a good credit score doesn’t’ ensure that the application submitted by you will be accepted for credit and you’ll be accessible with least interest rates. Remember that the lender’s decision is never made solely on the credit score.
It would be crucial to mention here that it hardly takes much to get bad credit. The worse thing is the one can ruin the credit score even before the person realized that he/she has one or even before the same understand the importance of having a good credit score.
The credit score reflects the way how you’ve managed the financial obligations and all the information are directly reported to the credit bureaus by different companies like lenders, credit card issuers, etc. Having a poor or bad credit score is always stressful and costly but it’s simply not the end. So, you need to do something for your credit repair and to get rid of all the hassles. Read the tips discussed below to get it done easily.
Ensure that the Credit Reports are Accurate
The first and the foremost step in this context would be to check out the accuracy of the credit reports. Everybody is offered with three credit reports (already stated above). According to a study report published by the Federal Trade Commission in 2012, it was discovered that 1 out of 5 customers had an inaccuracy in the credit reports. In the continuation study that came out in 2015, it was found that people who reported about an unsettled error on one of the outcomes consider that the doubtful information is still erroneous.
Fix all the Late Dues and Payments
Well, closing down all the account doesn’t make any change and they won’t make the late payment disappear. The challenge in this context is to get be on the usual track. This can be done by setting up reimbursement due date warnings with the loans as well as credit cards and get well-organized. The due dates of the credit card payment can be easily moved to the lender or bank’s website. It is also important to inquire about the compensation due dates related to the paycheck schedule.
Avert New Credit Card Application or Purchases
Experts recommend that as long as you are in credit repairing mode, you should avoid making a new application for a credit card because it may adversely affect the credit score. Opening new credit account will also lower the average credit which is another potential action to hurt your credit score.
Getting new credit card acquisitions will increase the utilization of the credit, i.e. the ratio of the credit card stabilities to their corresponding credit restrictions. The greater your balances are, the higher the utilization of the credit card and consequently more your credit score will be affected.
After trying every possible way to improve the credit score, the best and the ultimate thing one can do is to hire credit repair professional agency. These agencies have got the knowledge, experience as well as expertise both to offer great assistance for planning the repair of the credit score.
Sacramento title loan is one of the fastest, easy and most convenient ways to access cash with just the title of your car which you use as collateral; your credit score is usually not taken into account.
The size of your title loan largely depends on the amount of money you require, the value placed on your car as well as your ability to pay back the loan. A title loan in Sacramento gets you as much cash at the time you need it. We also help you keep your payment manageable.
Our online application makes the process of accessing this loan faster and a lot easier. Soon as you begin the process online, you would just be a step away from getting the cash.
Wondering how you would get a car title loan in Sacramento title loan
With an illustrious history of customer satisfaction, Sacramento title loan has made the process of getting title loans simple and fast. For instance, we accept all sorts of credits so long as our esteemed clients possess a car that has been paid for in full and has a title to show for it; you can get your car title loan approved for you very quickly.
In addition, we understand the value you place on time and for this reason, we specifically tailor the process of accessing this loan to be smooth and efficient. From the beginning up to the end, you would end up spending less than 3o minutes and by this time, you would have the cash you seek. With the Sacramento title loans, you get to go home with the money the very day you apply. We would not make you go through unnecessary twists and bends that would delay the process. Other lenders may do this, but it is not our style. One of our most important missions is to provide the best title loan experience for our clients. Our desire is to be your resource for title loans and that fast cash you need.
Now, why wait when we provide the best option for fast cash? All that is required is that you fill out an online application form and then bring your car, the car’s title, along with government issued identification to your nearest Sacramento title loan location. We would do an appraisal of your vehicle and then determine reasonable transaction amount that is based on your need along with our appraisal of your vehicle.
Once the application is approved, you would get the cash you need while you retain the use of your vehicle. This whole process, as earlier stated takes the duration of 30 minutes. Once you complete servicing the loan, you get back your car title.
Some great benefits of dealing with Sacramento title loans
Getting a title loan in Sacramento is a lot faster and easier compared to borrowing cash from other sources. With a title loan you are able to get the cash you need depending on your car value.
Even when you have collected the money, you still get to keep your car for the duration of the loan. You do not need a job, but you need to have some kind of income. Without doubt title loan in Sacramento is one of the fastest ways to get cash.