Finding Best Unsecured Credit Cards

Credit mistakes in the past can cost you dearly in terms of poor credit scores. Those with less than perfect credit scores sure know the challenges of living a life without much financial assistance. Firstly, obtaining loans becomes a daunting task, as very few financial institutions are willing to put their money on high risk clients. As a result, they charge you very high interest rates to offset their risk. During such an event, your first priority should be improving your credit score and entering into the good books of creditors.

Unsecured Credit Cards to Rebuild Credit

As you begin to get out of your overwhelming debt, you will discover that there are quite a number of ways to improve your credit score. Unsecured and secured credit cards are often sought after by people who wish to improve their credit after a financial debacle. Secured credit cards require you to pledge an asset worth the limit of the credit card. This is in the creditor’s interest should you fail to repay your debt. For instance, for a credit card limit of USD 500, you will have to pledge something worth USD 500 as security. The security will be returned to you after you repay your impending debt and close your account with the creditors.

Unsecured credit cards do not demand any such security. Needless to say, they are quite popular among people with ‘not so good’ credit scores. However, such debtors are perceived as high risk customers by the financial institutions or creditors. As a result, they try to offset the risk by charging them higher interest rates. Besides, the debtor is required to pay an additional amount towards various processing and program fees. In addition, there is this annual fee which you must pay for the privilege of holding a card. People with average or good credit scores are relieved of all these additional expenses. However, when you are low on credit, you do not have much choice and need to make the best of what you have.

Unsecured credit cards for bad credit may help you steadily build your credit. If you are thorough with your monthly payments, your credit scores will show an improvement over time. Many people opt for prepaid credit cards in a hope to curb their spending habits. Although prepaid credit cards may limit your expenditure, they do nothing to improve your credit scores.

How to Choose

As mentioned above, you will be expected to pay a number of additional expenses as a part of acquiring a credit card. Most credit card companies charge an application fee over USD 100. Besides, there is a USD 20 one time processing fee and a USD 5 monthly processing fee. Additionally, you will be required to pay an annual fee as well, which may differ for every credit card company. All in all, you are likely to spend a couple of hundred dollars before you even swipe your credit card. Add to that a whopping interest rate close to 20%. This makes the use of unsecured credit card even less profitable. However, if you research thoroughly, you may come across a few institutions that particularly cater to the needs of people with bad credit scores. Look for reputed institutions with lower interest rates and less overhead expenses.

Thus, it is possible to get unsecured credit cards to rebuild your credit. Being diligent with your monthly payments can certainly help you build good credit in less time.

Ways to Plan Your Child’s Financial Future

Today, every individual is slowly becoming financially aware. Plenty of these individuals, especially parents are prioritizing financial planning for their whole family, especially when it comes to their children. But with so many financial options to consider, what are the best options that will not only provide the parents with the convenience to manage the funds but also the flexibility for their children to access the funds at the right time?

This is when the recurring deposit will make the ideal option. This termed deposit functions in such a manner where it allows the account holder to deposit a fixed amount of funds on a monthly basis until the tenure is met. Once the tenure is completed, the interest will be deposited along the recurring amount that has been invested. The invested amount can be anywhere as a much as Rs. 100 to Rs. 10,000 depending on the institute you are applying to. Additionally, you can even use the RD calculator to get the required amount that you would need to invest, and even the outcome that will come out of it. So how can you use this account to benefit you and your child?

• Fix a goal

As you grow older, you will notice that your financial requirements will increase over time. For one, you will need to set aside funds to run the house. Or you may also need additional funds to plan for a family event such as a birthday or a wedding. What better way to spend for such events, than by saving for it right from the begging? For such a requirement, you can open a recurring deposit for this purpose alone. Additionally, you can open several recurring accounts with different rates and tenures to match different financial goals. You can even use the RD calculatorto calculate the ideal amount and interest you would want for this purpose alone.

• Fix a tenure

Like the financial goal, you can fix the tenure of the recurring deposit. The tenure of the recurring deposit can be a minimum of 6 months to a maximum period of 10 years. Once this tenure is met, you can either reinvest the amount in another account or renew the tenure for the same or different tenure. Fixing the tenure allows you to also fix the interest rate of your investment. Longer the tenure of the period, higher will be the interest rate. Since the interest will also be deposited at the time of maturity, you can use the extra funds in the same account.

• Fix a nominee

As a part of one of the functions of this account, the account holder is allowed to select a nominee. You can open an account under your name, along with your child’s under the minor category. Once the child reaches the required major age, the account holder can transfer the account to the child’s name, or make it the primary holder of the account. This allows the child to use funds as per one’s requirement, while also allowing them to maintain the account for a long term purpose.

Finding Best Service For Credit Card Processing

The 1st bank card services were established in the year of 2002. Their main goal is to support customers through quality services. Anyone will be able to accomplish faster credit card processing at very reasonable charge. Their consumer friendly service will provide you guidance through processing of any credit cards. Funds will be available within 2 days. Within time of approved application, your terminals will be confirmed and sent out within 2 days. They assist with you throughout credit card processing.

There are many benefits in accessing their services.

  • They have more than 2 decades of experience
  • Their service will be provided at highly competitive rates.
  • They will also offer free equipment solutions
  • Customers will find free online marketing tool to access to any services

1st bank card services are the one who offer wireless terminals for their clients. They offer terminals within 2 days of applications approved time. They have their Low Rates Credit Card Machine by which they process any kinds of credit cards. They will also provide instructions for terminal for usage. They will select one among their list of terminals which suits your business.

Best Customer Service:

1st bank card service stands in first position in terms of customer service. They will take care of you to deal with any kind of your merchant’s business. They prioritize customer’s achievement. They will provide you ability to stand in business for long time. If you could achieve long term business, they also had a vital role on that. Their team at Chicago provides top most support to answer to any questions. Through their programs, everyone will come to know about the basic work flow mechanism behind their process. By being as the best Credit Card Processing Company, they provide reliable and higher performance terminals. In addition to that, security is guaranteed with their terminals.

What Are The Expected Benefits Of Them For Business?

  • You will find chance to access to POS terminal payment options
  • Their machines have multi-layer security features
  • Reliability on POS device cannot be accounted
  • Highly committed service to new creation.

Their turnkey ATM program makes easy for everyone to access to their automated teller services throughout processing including equipment processing, installation and service. Therefore, 1st bank card services are having more benefits. In order to proceed with credit card processing, approaching them will give you a finalized conclusion. They are ready to help for any kinds of businesses.

Tips on Improving Credit Scores

Improving credit scores, that are calculated by the three credit bureaus, is possible provided one is aware of the factors that are taken into account while computing credit scores. Credit bureaus, viz. Equifax, Experian and TransUnion allocate weights to the following factors in order to determine the consumer’s credit score: payment history (35%), current level of indebtedness (30%), length of the credit history (15%), types of available credit (15%) and frequency of availing new credit (5%). Every individual has three credit ratings at any given point in time. It’s evident that paying off dues and using less credit will help one redeem one’s credit score since these factors constitute nearly 65% of the score.

Simple Ways to Improve Credit Scores

To get an idea about where you stand in terms of your credit record, get a copy from any one of the credit bureaus. Here are some of the simplest ways in which you can raise your credit score.

Paying Off the Balance on the Credit Card
Credit cards have a revolving credit structure that allows people to make minimum payments, based on the amount of credit availed and the interest accumulated on the borrowed sum. The facility of making minimum payments can contribute towards lower credit scores since the balance, that remains on the credit card, after each billing cycle, is reported to the credit bureaus. Hence, a person should try paying off the entire amount, that is due on the credit card or at the least, keep the balance below 30% of the credit limit. Thus, clearing out your credit card debt on time, would go a long way in boosting your credit score.

Discharging Credit Card Debts Punctually
Even if one is unable to pay off the entire balance on the credit card, timely minimum payments are a must since adverse payment history that comprises 35 percent of the score can render a huge blow to the consumer’s creditworthiness. So if you can’t clear off the debt entirely, pay as much as you can, every month.

Avoid Canceling Lines of Credit
Many times, people cancel credit cards with the hope of curtailing excessive spending. The credit utilization ratio, which is defined as the ratio between the total outstanding balance and the total amount of available credit, increases since the numerator remains the same while the denominator falls. Since a higher credit utilization ratio results in a lower credit score, it would be sensible to retain old cards, use those for small purchases and pay off the balance during every billing cycle. To put it simply, be balanced in your credit card usage. Economical usage of credit lines and maintenance of a low credit utilization ratio contributes to a good credit score.

Limiting Inquiries
On applying for credit cards, the lenders can demand a copy of the borrower’s credit report from one of the three credit bureaus. These are listed as credit inquiries that can count against a person’s FICO score. Renting a car with a debit card, applying for a number of new credit cards, and shopping around for the best rate on mortgage and car loans result in credit inquiries that lower a person’s credit score. Hence, one should try and limit the number of inquiries. Fortunately, multiple inquiries by auto, mortgage and student loan providers within a period of 45 days are clubbed together and treated as one inquiry.

Increasing the Credit Limit
Requesting the lenders to increase the credit limit on the credit cards may result in increasing the amount of available credit. This in turn lowers the credit utilization ratio. A lower credit utilization ratio helps in improving the credit score.

Paying Off Debts Using HEL
Using a home equity loan (HEL), to pay off debts is better than using the credit card since any revolving credit balance impacts the credit score more than a home equity loan. That’s because credit card debt burden builds up very fast and impacts the credit score quite adversely.

Contesting Errors on the Credit Report
Finally, one should obtain a copy of the credit report, from the credit bureaus, and ensure the accuracy of the information. People have the right to contest any incorrect information contained in their credit report.

Keep Outstanding Debt to a Minimum
The main point to keep your outstanding debt, down to a minimum and maintain a consistently good financial record. Automatically, your creditworthiness and credit score will be raised higher.

It’s important to note that good credit score is imperative for seeking loans at a favorable rate of interest. Obtaining a home mortgage loan, a car loan or even a private student loan is contingent to a person having good credit scores.

Simple Ways to Pay off Your Credit Card Debt

When you receive your very first credit card, the temptation to make a few impulse buys can often be too much to handle. Before you know it, you have hit your limit and now owe thousands to your creditors. If you are drowning in debt and looking for a way in which to keep your head above water, here are five tips that you are sure to find useful.

Analyse and Change Your Spending Habits

The first thing that you need to do is ensure that you know the difference between ‘wants’ and ‘needs’. Try to analyse when you do most of your spending and why you do it. Once you understand your unique spending personality, you will be able to make the appropriate changes. Instead of spending cash on unnecessary treats and indulgences, you will be able to set money aside that you can use to pay your creditors at the end of the month.

Draw Up a Budget

An obvious suggestion, but one that cannot be emphasised enough! A solid budget will be your saving grace when trying to pay off credit card debt. Managing your money is nearly impossible if you do not actually write down the figures and remain aware of the amount that you have at your disposal each month. So be sure to take the time to sit down and map out your finances. You’ll be really glad that you did!

Have a Yard Sale

Ever heard of the saying ‘one man’s trash is another man’s treasure’? It could not be more accurate! If you are trying to rake together a few extra pennies in order to pay off your debt, try selling some of the unwanted items that have collected in your house over the years. Not only will you make some cash, you will also be de-cluttering your home in the process.

Reward Yourself

Cutting down on spending is like dieting – if you deprive yourself of everything that you desire, the chances of falling off the wagon and binging or splurging as a result are much higher. How do you remedy this? By rewarding yourself from time to time. While it is not wise to buy that expensive diamond necklace that you have had your eye on, going out for a few drinks with friends or getting a refreshing facial is more than okay. You’ve earned it, after all.

Avoid Using Your Credit Cards

Seeing as though your credit cards are the reason why you have landed yourself in debt in the first place, it makes sense to set them aside for a while whilst you pay them off. If you do not carry them on you, the temptation to splurge on certain items will be greatly reduced. If you tend to over-spend when shopping online, take action and delete your credit card info from the site’s memory for the time being.

Paying off debt is an incredibly stressful process, which is why it is important to take it one step at a time. Luckily, by following the aforementioned steps, you will be well on your way to a better future and a healthier financial situation in no time at all.

Ways to Build Good Credit

The importance of good credit score in your financial life cannot be stressed enough. Your credit score will always come in the way of getting your loans approved, acquiring better interest rates or obtaining credit cards. None of the financial institutes or private lenders ever approve a loan without looking at the person’s credit history. If you committed any mistakes in the past or mismanaged your finances, be assured that it will have undesirable repercussions on your credit history forever. Nonetheless, you can certainly take some measures towards rebuilding credit score. So, in case you are looking for intelligent ways to build credit score, you may benefit from reading the following tips.

How to Build a Good Credit History

While those with less than perfect credit scores often struggle to bring their scores at par with average credit score, those with no credit history find an altogether different challenge. These are mostly students or young professionals, who are yet to establish a credit history of their own. These people find it difficult to get loans due to lack of credit history and hence, are denied the opportunity to repay loans and build a good credit. Also, people who have to go through a bankruptcy situation often have to begin from square one. An event such as bankruptcy leaves dents in your credit report forever. Yet, if you work consistently on building good credit, you can certainly rise from ashes.

Maintain Only a Few Credit Cards
Applying for a credit card can be your first step towards building a credit score, irrespective of whether you need it or not. Go for a credit card company that offers affordable charges and interest rates. If you already have more than four credit cards, then it would make sense to surrender a couple of them. Possessing multiple credit cards may force you to spend unnecessarily. Hence, it is best to maintain 2-3 low interest credit cards. Keep your expenditure within 30 – 40% of your limit and make sure you pay your debt in time. Exceeding your credit card limit is not looked upon favorably by the lenders.

Get a Secured Loan
Getting a secured loan is the best way to build credit fast. Something as significant as a home loan can add to your credibility. However, make sure you can afford the monthly payment. If you are thorough with your payments, then a secured loan can quickly pave way for good credit score. Make sure you at least pay the minimum payable amount on time. Diligence in payment scores good marks with creditors. However, for getting a secured loan you will need an asset to pledge.

Maintain Stable Employment/Residence
This is particularly important for those who are just starting out. In the absence of any credit history, your creditor will evaluate your creditworthiness from the nature of your employment. If you have managed to retain your job for a long time, they rate you high on creditworthiness, irrespective of your income. On the other hand, people who switch jobs from time-to-time and spend part of their life unemployed are considered high risk candidates by the lenders. Similarly, retaining your residence for a longer time also pays well.

Keep Track of Your Credit History
Your every credit activity is reported to the credit bureaus by the lenders. Hence, it is imperative that the information that is getting reported is accurate. You can keep a track of your credit history by obtaining a copy of your annual credit report. This will enable you to rectify errors in your report on time and prevent them from affecting your credit score.

The most important aspect of building a good credit is to plan and manage your finances properly. Allocate a budget for major expenses and keep a tab on other expenses.

Tips on Getting a Good Credit Score

The moment you think about applying for a loan, first question that pops up in your mind may be, ‘Is my credit score good enough?’. It is the one number that holds sway over the lender’s judgment of your financial record. It is a prime indicator of your fiscal health and default parameter studied by banks and other financial institutions, when you apply for credit or a loan.

What is a Good Credit Score?

You need to have an idea about credit score ratings scale and how these scores are calculated. In USA, the most widely accepted credit score rating system is FICO. It is calculated using a statistical algorithm, developed by Fair Isaac company by credit bureaus for every individual in United States of America. As explained on the FICO website, the prime determinants of a credit score calculation in ascending order of importance are credit history length, total amount of money owed, current outstanding balance on various credit lines and your credit repayment history. Every defaulted loan payment and credit card bill hurts you in the form of a lowered credit rating and consequently decreases your creditworthiness in the eyes of your lenders. The FICO credit score range extends from 300 to 850. Any score above 660 is a good credit score.

How to Improve It?

So, what can you do to improve your credit score? You don’t need to take any extreme measures but follow some simple guidelines that are as follows.

Pay Your Bills On Time
The simplest way of improving credit scores is to ensure that timely bill payments are made. Make sure that credit card bill clearance is given top priority as one defaulted payment can degrade your score. On the other hand, consistent credit card bill payments will raise credit score certainly. The fact that you are using your credit lines wisely, automatically boosts your credit score.

Use Credit Cards Sparingly
One of the things that can leave a blot on your credit report and lower credit score is unpaid credit card debt. Use your credit card as an emergency option and avoid buying on credit as much as possible. The revolving credit system employed in credit card interest rate calculation can mount your debts very fast. So, be careful while using credit cards and don’t use them unless you absolutely must. If you must use them, then make sure you pay back a sizable portion of the monthly bill or clear it entirely.

Clear Your Debts
Another straightforward way is to clear your debts as top priority. This will improve your repayment history over time and you will eventually see an increase in your credit score. See to it that sufficient funds have been allocated for repayment of your mortgage loan installment and reminders are set for payment deadlines.

Plan Your Yearly Budget & Expenses
If you plan out your yearly budget and decide on spending limits, you won’t make the credit score hurting errors that happen because of haphazard expenses. A sound financial plan and planned use of credit lines will reflect on your credit score rating, in a positive way. This is the prime suggestion of most financial advisors when they explain how to make your credit score better.

Avoid Opening Multiple New Accounts
Opening or closing multiple financial accounts for credit in a short time or making too many queries for credit lines is inadvisable. It may hurt your credit score. Open up a new credit account if you must, but availing too many credit lines in a short period of time may lower your credit score. So take all these points into consideration.

Wise Usage of Multiple Credit Types
Another factor which may substantially boost your credit score is the variety of credit types which you may have used. Your non-reliance on a single credit type and usage of multiple types of credit with timely repayments, improves your creditworthiness and helps increase your credit score.

So, now that you know how to increase your chances of landing up with a good score, create an action plan. Chalk out your budget and expenses to achieve a set goal. The key to a good credit rating is to have a well planned strategy for managing your finance and expenses. Think before you make an impulsive purchase using a credit card and go for surplus expenses only after you have cleared your monthly bills and debt payments. When you borrow more than you can return in time, credit score will take a hit.

Ways to Improve Credit Score

The range of the credit scores is between 300 and 850. Late bill payment or a lapse in the payment of the bills can damage your credit score. If the credit score is below 620, getting any kind of loan is difficult. When the economy is booming, credit score of 700 is considered as an excellent score. At the time of an economic recession credit score of 700 is considered as an adequate score.

Statistical reports say, there are several million people in the US, with a severely damaged credit score, in the wake of back-breaking recession that has been eating into the economy, for the past few years. Credit blemishes are a hindrance in obtaining loans and credit cards. If the credit score is bad and a loan is granted, you would have to put down a huge down payment and pay high premium rates. When there is an economic crisis, you would need a credit score of 720, to get a mortgage or an automobile loan. It is wise to repair your credit score, if it is bad, before approaching the financial institutions or banks for a loan or a credit card. If you have an adequate credit score of 700, you can also improve it to 720 before applying for a loan. In this Buzzle article, you will find some essential tips on improving your credit scores by changing your financial habits.

Ways to Improve Credit Score

Prior to applying for a loan, you should check your credit rating. You can get a copy of the credit report from either one of the major credit bureaus (TransUnion, Equifax and Experian). Review the credit report for any discrepancies. If there is any, you can send a credit repair letter to the concerned official, pointing out the discrepancy. Here are a few useful steps to improve your credit score.

Payment History
One of the significant attributes that determine the credit score is the payment history. The creditors will look into your most recent credit history to evaluate your credibility. Improve your credit history by paying the bills on time. Delinquent payments can lower your credit score. Paying bills on time will help in rebuilding your credit rating.

You can avoid late payment by setting up an alerts or reminders on your mobile phone. Other options are online bill payment and automatic deduction from your bank account. The utility bills, credit card bills and loans can be linked to one of your bank accounts. Ensure there are sufficient funds in the linked bank account. You can ask the utility service providers to send you email and mobile alerts.

Put Down Extra Amount in Credit Card Balance
It is wise to use only 25% of the total credit card limit. One of the factors that affect the credit rating is the total amount you owe on your credit cards. Suppose you hold four credit cards and the maximum limit of each card is $3000. Your total credit card limit is $12,000 and you can use 25% of $12,000. However, if you have crossed the limit, you should put down more than the minimum amount due. This helps in improving the credit score.

Wider the gap between the total credit limits on the credit cards and the amount of debt reported, the better. The total amount left in the credit limit is taken into consideration by the banks and financial institutions when you approach them for a loan or a new credit card.

Do Not Close Unused Credit Accounts
One of the models used by the credit bureaus to calculate your credit score is FICO credit scoring model, which was developed by Fair Isaac Corporation. According to FICO, “Closing accounts can never help your score, and often it can hurt.”

Suppose you have several credit card accounts and are using only a couple of them, the total credit limit will be more. If you close the unused credit card accounts, it will lower the total credit availability and the ratio of balance-to-limit will become more. This will affect your credit score, quite badly.

Another point is, when you close one of your oldest credit accounts, it will shorten your credit history. This would not only affect your creditworthiness, but also make you unworthy of credit.

If the economy is booming and you have a good credit score, closing one of the unused credit accounts would not affect your score much. However, at the time of recession, you have a good credit score and want to improve the score, then closing the unused old credit accounts would affect the credit ratings badly. You need to take into consideration the current economic scenario before closing unused and old accounts.

When you apply for a new credit card, the card provider would check the length of credit history first before checking your credit score. Do not close your old and unused credit accounts because the credit card company would reject your application. The credit companies treat the customers who are perpetually in debt but have never defaulted on the minimum payments.

If you have a good and adequate credit score, then it is wise not to apply for new credit cards, even if it offers a good discount for new customers. Each new account can hurt your credit score, if it is not put to use wisely. Again, closing accounts can also be detrimental to your score. Therefore, remember to apply for a new credit account only if there is a need for it.

Get Professional Help
If you are neck-deep in debt, it is advisable to meet a credit counselor for credit counseling. There are many nonprofit credit agencies such as ‘Consumer Credit Counseling Service’ that help you out to formulate a debt repayment plan and provide debt counseling. Another option to improve your credit score, in case of high-interest debt, is to go for a debt consolidation loan.

Appearing for credit counseling is considered as a positive trait and the credit counseling references are removed from the credit report, once you are free of debt. This means there are no long-lasting entries of your debts, in your credit history. A survey conducted by FICO reveals that the people who approach a professional credit counselor for help, have been able to repay the credit, without defaulting or filing for bankruptcy.

Prior to approaching a credit counseling agency, check out the authenticity and the credibility of the counseling firms. Do not pay the credit-counseling firms, unless your contract with them is over. A credit-counseling firm would have to give you a written statement about their terms and conditions and also the services offered by them.

Avoid Filing for Bankruptcy
Filing for a bankruptcy should be your last resort. Do it only if you are badly in debt and have many black marks on your credit. When you file for bankruptcy, you could lose 200 points. This would affect the credit score if you have a score above 650. However, if you have multiple delinquencies and lapses in your credit report and if you have score below 620, it would not affect you much.

When you file for bankruptcy, the credit score will fall below 620 and obtaining credit with a favorable rate would become difficult. In short, the credit would become more expensive. You would also need to understand, the credit report becomes blemished for next ten years.

Do not hesitate to meet a good and reputed credit counselor once you know you have a poor credit score and you are not in a financial position to repair it. Remember, if a credit counselor asks you to file for a bankruptcy, take time out to cross-check with another credit counselor. Many of the profit-making agencies would be keen on filing for bankruptcy than on helping you to apply for debt consolidation loan.

To sum up, take into consideration the points given above while trying to improve your credit score. Credit score can be improved if you are organized and disciplined enough to follow a stringent repayment plan.

Easy Ways to Get Out of Debt

Almost everyone has debt in some form or another, but if you are one of the people with excessive amounts of credit card bills, you are probably feeling the weight pulling you down. You don’t have to feel that way though. Getting out of debt is a long process in most cases, but ultimately, it will be worth it in the end. There are a lot of different ways to handle your financial situation, but here are a few simple ways that The Motley Fool recommends if you are working to get out of debt.

Put one foot in front of the other

One way you can work on getting out of debt is through trying to just take one step at a time. If you can afford it, make an extra payment once every few months or pay a little more every month to reduce the number of total payments. One example might be paying $400 a month on a car payment instead of $375 or paying one extra house payment every year to reduce your mortgage by 4 years. Just doing a little extra when you can goes a long way, even if it doesn’t seem like much to you at the time.

Consolidate all your debt

Debt consolidation is a really popular method for paying off your credit card bills because it allows you to have one payment every month instead of focusing on multiple payments for multiple lines of credit. Oftentimes, you can also get a lower interest rate on the loan than you had on the debt, giving you smaller payments and making it so you owe less money in the end.

Start with the most expensive debt

Every time you finish paying off a credit card bill, you’ll feel accomplishment, which will give you the drive to focus on another piece of debt. There are a couple of ways to do this. In some instances, you may want to start with your smaller bills and pay off that one first, so you can feel the high of paying off debt and get the urge to pay off more. In other instances, it makes more sense to start with the most expensive debt, or the debt with the highest interest rate. If you follow this route, you’ll end up paying less money over time.

Ways to Become a Chartered Market Technician

There are trillions of dollars flowing in the economy and expertise in understanding financial markets can give you an edge to create a promising career. Thanks to the establishment of the non-profit global organization, ‘The Market Technicians Association (MTA)’, in 1973, proper training procedure for studying financial markets came into existence. The journey from pencil graphs to high-tech computers has been rewarding for numerous chartered market technicians who have been in this profession for a couple of decades.

While some have invented new or improved methods of financial analysis, many have moved on to become well-established financial analysts, teachers, investors, educators, and mentors. Some have even formed their independent brokerage firms.

Becoming a Chartered Market Technician

Candidates who aspire towards this career option, must firstly study the official website of the Market Technicians Association (MTA). The MTA provides certification programs in which candidates are required to demonstrate expertise in numerous aspects of technical analysis. This exam is conducted in three levels, the first two being MCQ-based tests and the last one, an essay-based test.

In the course of a few years, the MTA has certified nearly 3000 members worldwide and it has become popular in financial marketing services for training competent candidates. To become a CMT, one has to pass all the three exams conducted by the MTA.

Candidates must be able to read, as well analyze financial charts and graphs. The relationship between price patterns and fluctuating markets, and every associated minute detail must be understood well. Candidates are also provided advanced training in numerous facets of the financial markets. It is good to have some background in finance and commerce to become a member of MTA, so that it is easier for candidates to grasp the concepts.

To pass the tests, candidates have to go through 3 levels of tests. In the first level, they are tested with the basics of charting methods, terminology, and ethical principles. In the second level, applications like Dow Theory, Elliott Wave, intermarket, etc. are the subjects of testing.

In the last and most vital part, candidates are tested on the basis of essays that must be well-researched and written properly. Those who have a background in finance, especially a bachelor’s degree in relevant subjects, or those who are working in fields related to finance, securities, financial services, fund management, and stock markets can appear for the test to enhance their careers.

To join the MTA, one is required to become a member of this program and every individual must be sponsored by at least 3 other MTA members. There are certain terms and conditions that must be followed by every member joining the organization and all these have been specified on the official website. It has to be remembered that passing the tests conducted by the organization is recognized by U.S. Securities and Exchange Commission and it is also regarded equivalent to passing Series 86/87 examination. This is certainly a great career booster for individuals in the finance field. Even the Financial Industry Regulatory Authority (FINRA) prefers employees who have passed the first two levels of the exam, as an alternative to the more difficult – Analysis Series 86 examination for technical analysts.

Chartered market technicians are required in the finance sector for diverse jobs, just like chartered accountants or certified financial planners. Candidates interested in this career must make efforts to get relevant education and carve a niche for themselves in this segment of the market.