How To Choose The Right Credit Cards

What To Look For When Choosing Credit Cards

First Published Date : December 23, 2010 ADawnJournal.com

When it comes to picking a credit card, you will be bombarded with a wide array of options and an overload of information. This will make you even more confused, even if you are not confused enough yet. Today, I will discuss some factors you need to consider before making your decision.

Annual Percentage Rate or APR

Annual Percentage Rate or APR is the interest you pay to your credit card company for carrying a balance. In other words, this is your cost of not paying balances in full every month and using the credit card company’s money. If you pay off your balance in full, you don’t need to worry about Annual Percentage Rate or APR that much. This will give you more flexibility to pick credit cards with other features. If you carry a balance, pick a credit card with the lowest APR possible. Make sure the APR is not a promotional one and available only for a limited time. Picking the lowest APR credit card will save you tons of money for the lifetime of the loan.

Annual Fee
In general, try to avoid any annual fee. However, if you carry a balance some credit cards with annual fees offer lower interest rate or APR than those cards with no annual fee. Do the math and if you find out that an annual fee credit card will save you more money in terms of carrying a balance, pick an annual fee card with the least interest possible.

Balance Transfer

Some credit cards will give you a balance transfer option with a low introductory APR. You need to make sure of a few things before you jump into this feature to save some money. I have discussed this in another article and I recommend you read it here: How to Use Your Credit Card Balance Transfer to Your Advantage

Grace Period

Grace period is the time you have to pay off your balance after making a purchase without paying any interest. If your credit card does not have a grace period, you will start paying interest as soon as you make a purchase. In many countries, there are credit cards with no grace period. In Canada starting in 2010, due to the federal government’s new credit card regulations, federally-regulated financial institutions are now required to provide at least a minimum 21-day grace period on new purchases, and this is applicable on new purchases when you carry a balance as well.

Rewards Credit Cards

These days, I see no point in using a credit card without any rewards. A rewards credit card offers you points or rewards just for using it. Rewards can be in the form of cash back, Air miles, Aeroplan miles, merchandise, and so on. I prefer cash back, as it does not restrict you to using your points on anything specific. If you use reward points or miles, make sure they don’t expire and are easy to use without restrictions and hassle.

A Few Other Things to Look For:

I always make sure your credit card provides the following:

– Free Purchase Warranty: This feature protects your purchases against theft, loss, damages, etc. for 90 days or so depending on the credit card company.

– Free Extended Warranty: This feature doubles the manufacturer’s warranty for an additional year.

– Free Price Protection: This feature refunds the difference if you see the same item you bought at a lower price anywhere else.

– Free Collision/Loss Damage Waiver for Rental Cars: This feature insures you for rental cars if it’s lost or damaged. You save money on the rental company’s insurance that otherwise you would have to pay.

-  Free Travel Accident and Baggage Delay Coverage: This feature covers you from travel accident injuries and baggage losses or delays.

It is important to note that you may not be able to get all the free features I mentioned above in one card. What I do is carry two or three credit cards giving these free additional features and whenever I need a feature covered, I use the credit card with that feature. A Dawn Journal has a credit card section with lots of credit card articles. Make sure you read them and don’t for get to recommend A Dawn Journal to your friends and family.

What Happens To Your Stocks When Company Goes Bankrupt?

Your Shares and Bankruptcy

First Published Date : January 10, 2011

Before buying stocks, you should consider the various risk factors. A company going bankrupt or going through debt restructuring presents serious risk, for example. Today, I will briefly discuss what can happen to your shares should the above happen and how to minimize your risks.

Bankruptcy or Restructuring

Here are some scenarios that may happen in case of bankruptcy or restructuring:

– When bankruptcy happens, creditors have priorities before shareholders when it comes to getting their money back. Preferred shareholders are in a more advantageous position than common shareholders to get back their money. Preferred shareholders may get little (or none); however, it is unlikely that common shareholders will get anything at all. If the company is liquidated (totally out of business), both shareholders are prone to not get anything.

– If the company continues to operate under bankruptcy protection to restructure itself (meaning getting out of debt), most of the time it issues new shares when it emerges as a restructured company. Old shares often get cancelled or delisted in this situation. Investors are likely to lose everything.

How To Protect Yourself

Any type of investment involves risks. Though it may not be possible to eliminate your risks completely, you may be able to lessen your risks to certain degrees by doing the following:

– Know what you are getting into before buying anything.

– If you do not understand the company, or if it seems to be too complicated business model, most likely it is not your cup of tea.

– If you do not have the financial expertise to pick stocks or buy investment products, seek advice from a qualified and trustworthy financial professional.

Becoming a successful investor is an ongoing learning process. Always keep learning and broadening your financial horizon.

Singapore Airlines Business Class Review: KUL - SIN

Kuala Lumpur to Singapore | Singapore Airlines Business Class

My first flight from Kuala Lumpur to Singapore was on Singapore Airlines SQ 107 Airbus A330-300. This was a short distance, only 296 km. Total flight time on the itinerary said 1 hour.

The aircraft was old and showed its age. I had a window seat and no one was sitting next to me. The seat was comfortable and there was a pillow provided. There was no blanket, but none was needed due to the short flight. Also, the amenity kit was provided.

Once the flight departed, I saw flight attendants were rushing to serve food. I realised that the flight was even shorter than 1 hour, and hence the rush.

I had tomato sauce and mutton curry tortilla. There was no big food menu like you usually get on business class because of the time limitation.

I went to the washroom just to make a video. It was spacious and clean, but I didn’t see much amenities.

I came back to my seat, but didn’t feel like making it lie-flat or recline. Before I knew it, it was time to land in Singapore. No wonder flight attendants were rushing to finish serving food. The flight could not have been more than 40 minutes.

My overall impression was how pleasant flying Singapore Airlines business was. However, I would be happier if I had a newer plane. I wouldn’t hesitate to fly business class again on Singapore Airlines.

My layover time in Singapore was only 1H, 45M to connect to EVA AIR BR 226. I was a bit worried about completing all the formalities to catch my next flight on time.

China Launches New Residential Real Estate Tax start

China’s New Property Tax

First Published Date : January 16, 2011

China is finalizing plans to launch a trial property tax to tame its overheated real estate market. China’s financial hub, Shanghai and Chongqing in Southwest China are among the firsts to taste this new tax. The new tax is expected to be 0.5 to 1.5 percent.

China has long debated having a residential property tax. However, this has never been applied out of fears that it may harm market. Currently, China has real estate tax only on commercial properties. Some tightening measures such as higher down payments, purchase restrictions, hiking lending rates failed to cool down inflated asset prices. This new property tax may be China’s last weapon to curb inflated prices.

Analysts widely believe this new measure should curb speculative demand and should help driving down prices lower in the long run. However, disagreements remain strong as well. Despite some measures taken, housing prices in major cities rose by more than a fifth in 2010. The State Information Center predicts property investment will grow about 20 percent (jumped nearly 40 percent in 2010 from a year ago) in 2011 due to tight property policies.

China recently started to allow its citizens to invest in foreign countries. For example, Wenzhou, which is located in the east, now allows its citizens to make up to 200 million U.S. dollars foreign investments annually. It is expected, but not with certainty, that the newly proposed property tax implementation will be able to curb excessive real estate growth along with many other measures (some mentioned above). Only time will tell.

My Recent Cuba Trip and Life With Brand New Perspectives

Destination Cayo Santa Maria, Cuba

First Published Date : January 28, 2011

Living in one of the wealthiest nations on Earth where resources are plenty and where many of us can afford to buy anything we want, we often forget how fortunate we are and take everything for granted. My recent trip to Cuba added brand new dimensions to my life, and I am more grateful to God (or mother nature, if you don’t believe in God) than ever before for what we have.

To help you visualize what I really mean, consider that in Cuba:

– You have no freedom.

– You are not allowed to start a business and make money (like anywhere else
on Earth).

– There is no wage difference between a highly-educated professional and a general worker.

– You don’t own anything. Everything belongs to the government.

– Let’s say you have a cow and you get milk from this cow; you wont be able to keep this milk and the cow belongs to the state as well.

– You are prohibited from using the Internet and can’t read any newspaper and books as well.

– You are not allowed to leave your own province.

– Boarding on a plane and going to a foreign country is an impossible dream which will never come true.

– And much more.

However, there are good things I have noticed in Cuba as well. Today, I am going to take you to my Entrepreneur Journey site to read a very different type of article based on my Cuba experience. Let me disappoint you ahead of time if you are hoping to read a nice travel-log type of article, because it isn’t. Although it has some travel elements, it is more filled with socio-economic aspects – the Cuba I have seen and analyzed from different angles. What I can tell you for sure is that you will like it – because it is different.