The First National Bank issues a legacy credit card to individuals with low credit score. The offer of application is shared as an invitation by the bank with some specific details. Only, if you accept the invitation, there are certain procedures to log in with the help of the credential provided in the invitation.
Once you become a legacy credit card holder, all the card activities are reported to three agencies. Therefore, it paves the way for you to improve your credit score and ultimately get a Mastercard with a good credit score. The condition is to use the card responsibly and properly.
Advantages of a legacy credit card
You get purchase protection from this legacy card. Hence, you get to cover damages that may occur due to theft, or accident. Also, you get the option for zero liability if you have incurred any fraud buys. Well, there are many such advantages that you can avail of. Have a look.
Free of initial deposition
The Legacy credit card is accessed by those individuals who may own a secured credit card. However, there is no requirement to deposit an amount to utilize the card. Now, that is a great utility for individuals who don’t have liquid cash at present. With this card, you stand a chance of setting aside an amount for a secured credit card.
Cardholders have claimed they could easily increase their credit limit for a good period. The only criterion is to use clear off the dues on time. They have also added that they had incurred a reduction in their APR. You can get all of these benefits only if you show that you are responsible enough to handle these matters.
Online management of Account
Once you have been issued the legacy credit card, you will be able to manage your account online. Have a look at the features included.
- You can access your statement
- You can keep a track on the processing of the payment
- You can resolve disputes if any.
- You will have access to the Personal Identification Number
- Easy handling of your profile.
The above-mentioned features will help in processing the transactions and thus save you a lot of time. You don’t have to spend hours talking with the representatives of the customer service. Everything is available online.
How to apply for a legacy visa credit card?
This might be the question revolving in your mind. Well, here is a catch. You cannot apply for a legacy credit card. It comes with the exclusive feature of restricted availability. To put it simply, to own a legacy credit card you have to wait for the invitation mail from the back itself. You can say this the only thing that you may not like this card.
There may be many such individuals with low credit score, but who wish to issue a legacy credit card. In that case, you have nothing to do, but to count on your luck.
What to do after the mail arrives?
The invitation form will contain some credentials. You must keep a note of them. Find out the Reservation Number, and Access Code. Visit the page of First National Bank and fill in those two requirements and press continue. You can then proceed with the following details and register yourself as a cardholder applicant.
Unlike a secured card, there is no down payment here. The bank offers you a credit line ranging between $250-500. However, you are required to pay a certain sum as an acceptance fee. This acceptance fee will reduce your present credit line. Also, if you can clear off the dues on time, you will be freed from the credit line. Another important thing is the 30-day trial period. If after a month you feel this credit card is not of much help when you can return the card and ask for a refund. You will surely get back the acceptance fee.
Why do you need to pay the acceptance fee?
As mentioned above you can handle your profile online for easy access. Hence, you are liable to pay a sum on your account, before utilizing the same for a purchase. You are charged for your account set up, annual and programme fee. Every year on the same date on which you have opened an account the annual fee will be renewed. Additionally, you may have to pay an insurance coverage fee, whichever you have linked with this card.
Should you go for a Legacy Credit Card?
If you are sure that you can make payments on time, this card is just the right thing for you. It is going to help you in the long run. Have a look at the ways in which this card can help you in various ways.
Fix your low credit
If a credit report is awful, you have the option to counterbalance their effect with a Legacy Visa card for buys and satisfying the dues on schedule. In the event that you lack a good record of loan repayment, you can begin off by utilizing this card. Since banks won’t be eager to offer you a Visa.
Assurance and Insurance
Legacy Visa card provides buy security and travel protection to cardholders. Buy security protects any buy against burglary, misfortune or unplanned harm for a predetermined time span. Travel protection is intended for the individuals who fail to satisfy the card balance in the wake of utilizing it for movement costs.
This bank enables you to cross-check your status and make installments on the web. Online installments offer to maintain a strategic distance from data fraud and late installments because of deferral in installment conveyance via mail.
The yearly expense might be deferred off
At times, the card backer may forgo off the yearly charge when you buy a thing utilizing the Legacy Visa card issued by First National Credit Card. What else do you seek? Also Legacy visa competitors offer better rewards at a lower cost.
If you have low credit, a legacy credit is going to make your life better. Hence, if you get an invitation, do not hesitate to accept it.
Check Out All Debt Consolidation Loan Sources Before Selecting Any One
In this modern day, almost every household whether it is in America or Europe or anywhere in the world carry a debt or a multiple debts in any form. It can be a credit card debt or a personal loan, a student loan or a car loan, a consumer loan or a mortgage loan but everyone will carry at least one in any form.
Therefore, if you carry one or a couple of debts do not feel that you are alone out there. It is just that you will need to manage your debts proficiently so that it is well within your control. However, if situations do go out of hand, there are is still no need to panic and bring the house down.
Dealing with such situation
There is no need to sulk in such situations as you can easily mend this situation either by yourself or with the help of a professional debt counselor. All you will need to do is look for easy and effective ways to deal with such a situation. If you want a professional expert to help you out then to begin with you can look up at nationaldebtreliefprograms.com for tips, advice and solutions.
As the most suitable method you can incorporate all your debts into one. This you can do by taking out a debt consolidation loan. The features of this specific type of loan are:
- You will get a high amount to borrow which will enable you to pay off multiple debts you owe to multiple creditors
- The loan will carry a very low rate of interest and extended loan tenure to repay
- The monthly payments will be significantly low and there will be no chances of losing track since you will have one monthly payment to make
- Depending on your eligibility and other contributing factors you can take out a secured home equity loan, an unsecured personal loan and
- For credit card debts especially you can transfer the debts on multiple cards into a new card carrying low rate of interest.
This type of loan will help you to accomplish your primary objective: to pay off your existing debts.
Source of consolidation funds
There are different sources from where you can avail a consolidation loan. A lot will depend on the specific source you choose as well as your eligibility and credit worthiness. Ideally, the single monthly payment that you will have to make once you take on such a loan will be much less than the combined total of all the debts that are paid off using it. This means you will be able to free up more spendable cash.
Apart from the traditional banks, there are many different companies that specialize in providing such debt consolidation loans. However, there may be other sources as well for funding at your disposal.
Depending on the specific source that you choose, the rate of interest, requirements as well as other terms and conditions of the loan may vary greatly. These factors will also depend on your personal financial circumstances as well. This means that a few of these sources may be better for you than the others.
Home equity loans and lines of credit
If you have a home in your name then you can avail a HELOC or Home You Could Use a Home Equity Loan or Line Of Credit.
- This type of loan will allow you to borrow against the equity that has been accrued.
- You will get such home equity loans from many different lenders apart from the banks at affordable interest rates.
- If you take out a loan up to $ 100,000 the interest on it will also be virtually tax deductible always which is a major advantage of taking out a HELOC when you consider consolidating your credit card or other personal debts.
However, you must be aware that the home equity loans and lines of credit will use your home as collateral security for repayment of the loan. This means that if you fail to repay, your home will be at the risk of being taken by the lender.
A 401(K) plan
If you have a 401(K) plan or a retirement plan at the place of your work, you can also use it to borrow money during such situations when you wish to pay off your debts.
Once again, these loans carry a favorable interest rate simply because it is your own find that you are borrowing from.
However, the downside of this kind of borrowing is that the specific amount of money you borrow from it will lose the earning potential forever. That means, till the time you do not repay the amount borrowed, you retirement fund will not grow for this specific time.
Using your life insurance policy
Specific types of life insurance policy allow you to borrow money when you need. If you have such type of life insurance policy which accumulates cash value, you can easily use it to borrow against that policy.
However, just like any other sources this too will have a few financial implications down the road. It is therefore nest to consult with your insurance agent to know the details and be sure before you opt for it.
Other sources to look for
Apart from the above, you can also ask your family and friends though they are not the best choice always. Nonetheless, keep in mind that they are valuable relationships that can help in times of need but make sure that you do not ruin it just because of money.
If you ever borrow from friends and relatives, make sure that make a contract with them for the protection of both the parties. This will also mean that you will treat them just as you would for any other lender with the same respect. Make sure that you pay them back in a timely fashion and thank them for their favor shown toward you.
It is all up to you as to which source you will choose according to your affordability and preferences.
The things that can invariably lead to a person acquiring debt
Finances are often hampered due to negative impacts. Whether personal or in business, fiancé is an important aspect. For an individual, the financial backbone is built through his/her income sources. When the income sources bring in sufficient quantity of funds, then it is assumed that the financial condition is sound but if the income sources are getting diminished then the financial system is going to suffer setbacks.
The plurality of income and expenditure sources
The avenues from where money enters the system can be multiple or single. For example, a person who is engaged in numerous jobs will have different sources of income whereas people who are dependent on a salaried job have to utilize funds form only one source of income. Other than earning directly interest acquired from investments is also a form of income. Hence the total income for a person on a monthly basis should be calculated by taking all the income sources into account.
As money is earned from different sources money is spent in various places. There are some basic needs which have to be covered so that survival is assured. These basic needs are fulfilled by spending money on acquiring those essential items like food and clothing. Apart from the requirements, there are several places where money has to be spent by an individual. These places are enlisted below:
- Tax, rent and utility bills
The home where a person resides can be rented or self-owned. If the place is rented, then monthly rent has to be given to the property owner. However, if the place is self-owned, then necessary tax has to be paid. Living in a home also requires the payment of electricity and other bills. Hence for the residential place, a portion of the earned money has to be spent.
- Medical bills and health check-up
Health check-up is extremely necessary, and it is wise to get oneself checked at periodic intervals. This activity requires the payment of fees. Similarly, if medicines are consumed on a daily basis, then it becomes part of the monthly budget which cannot be reduced because taking prescribed medicines is vital.
- Insurance policies
Being insured is one of the best ways to handle the financial problems. Presence of insurance will help a person to acquire money for an emergency situation like medical treatments. Property insurance also helps in recouping the loss of property due to accidental damage. There is a list of damages against which the property is insured, and a person applying for an insurance policy should know the terms and clauses of the insurance. However, insurance like life insurance and property insurance are often chosen by most individuals. To keep the insurance coverage intact monthly premiums are paid which is another form of expenditure that is part of the budget.
Apt from all these well-known monthly expenses there are other types of costs like renovation and furniture purchase that requires a lot of money.
The agents that cause debts in the financial structure
For an individual managing all the expenses require a lot of organizational skills. If costs are way more than the financial capacity of a person, then the scarcity of money will be observed. In such cases, it might be impossible to meet the expense obligations for the requirements. When debts occur due to the formation of unpaid loans then browsing through debt consolidation reviews which are available online might offer some suggestion and aid.
In a person’s life debts are insidiously caused when loans are not repaid. Hence it can be said that the nonpayment of loans is the main problem. This problem can be caused by many factors. Some of these factors are discussed below:
- Lack of money for paying the loans
A loan is taken to solve the financial lack, but after taking the loan if the financial situation does not improve then it can be understood that paying back the loan will become even more difficult. If the financial condition remains the same or becomes worse after taking the loan, then it will be impossible to honor the repayment obligations.
- Lack of additional sources for rebuilding the financial structure
A loan is an aid which helps in solving a financial problem. But the loan is the only aiding factor that contributes to restoring the finances. If a person is in a dire situation and has taken loans to acquire funds then he/she also needs to work upon the additional factors for steadying the financial situation for example, looking for resources that will augment the income, rerouting investments into a better earning scheme, limiting unnecessary expenses, cutting down some important costs etc. These factors might differ from person to person but merely taking a loan and using it up without laboriously trying to alter the financial situation positively will lead to a situation where no money will be available for the payment of the loan.
- Presence of an unsavory credit score
The credit score becomes negative only when the financial obligations of an individual are not fulfilled as per the terms of the lending institutes. But debts are also caused by this poor credit score in a roundabout way. When the credit score is poor then the options for taking a loan form a new source diminishes rapidly because lenders consider people with poor ratings as high-risk applicants. But if the individual requires credit, then he/she has to take money from lending institutes that levy a very high rate of interest. Hence for a person who is already in alot of financial trouble as is evident from the adverse credit score will have to face the added pressure of paying more interest on credit. Hence new debts can occur if the personal finance is not adequate.
Thus, it can be understood that debts can form due to a variety of reasons but being vigilant about one’s finances will help an individual to deal with financial problems in a headstrong manner.
Cost saving and better loan management are the dual goals of debt consolidation
Loans are instrumental for making businesses grow especially for startups and small businesses. Even large corporations heavily depend on borrowing for business expansion. Loans may also be required for maintaining the business operations because of the uncertainties of cash flow that puts enormous pressure on finances. When talking about business finance, it is all about loans and borrowing, and it is quite natural that business owners are used to it. Even the steady businesses face uncertainties at different times, and this makes it impossible to do some steadfast financial planning to maintain a steady flow of money. It is almost impossible for entrepreneurs to forecast the fund requirements for many months in advance accurately and they must stay prepared to meet any unforeseen financial requirement that may crop up interim.
It happens that in some situations businesses experience a heavy outflow of cash and the management suddenly faces so much cash crunch that they are unable to meet payroll expenses. Businesses must make use of growth opportunities that suddenly crop up, and it requires immediate investment for which it is necessary to arrange for funds instantly. Since this is an unplanned investment, it becomes imperative to avail loans for seizing the opportunity which could be too costly to miss. Many such unforeseen requirements of funds keep coming up, and borrowing is the only way to cope with the situations. To meet multiple requirements of funds arising at various times or sometimes at the same time, business owners get used to living with several loans.
Learning to cope with loans
Many loans running concurrently are something quite natural for businesses, but often the task of managing multiple loan accounts and dealing with several lenders becomes quite harrowing. Since the borrowing happens at different times, the lenders are not only different but also the loan amount, interest rates and terms differ. Keeping track of several loan accounts with varying dates of payment and varying amounts becomes a very tedious job that requires a dedicated workforce to look after, and managing loans can become a costly and confusing affair. Creating additional resources to service the loan accounts and paying too much attention to it distracts the focus of business and threatens to hamper growth prospects. But at the same time, it is impossible to run businesses without taking loans. Knowing how to deal with loans conveniently will make life easy for business owners and this is what you can learn from this article.
Find the root cause of the problem
Borrowing is not bad for business andloans are the backbone of business finance. Sometimes, loans can pose problems for business owners only if the amount is so big that it is beyond your capacity to repay or if you are unable to manage the loan accounts smartly. Dealing with multiple borrowers is often the most strenuous part of borrowing which puts too much pressure on business owners as they find it difficult to balance the finances and ensure timely payments. Missed payment dates can be very bad not only because it damages credit score but because of the intense follow up by lenders that can be a very bitter experience and hard to deal with. The apparent loss of trust turns lenders more aggressive as they become doubtful about recovering their dues and keep chasing hard for payment which gives sleepless nights to borrowers.
Debt consolidation is the solution
When faced with such a situation, you must never panic because there are ways of mitigating the problems by carefully analyzing the situation. If funds are available for making monthly payments but handling multiple lenders and managing many loan accounts that run concurrently is the cause of discomfort and inconvenience then there is a simple solution to the problem. By talking to the debt management at experts at Nationaldebtrelief.com, you can explore the option of consolidating the debts so that you have only a single loan account to deal with. It means that you can still enjoy the outstanding loan amount but without the stress of handling several lenders. The method ensures financial buoyancy while focusing on better loan management without affecting your borrowing goals.
Focus on the business and not loans
Although business owners must arrange for finances, they must devote the maximum time for running the business efficiently and plan for growth. It must never happen they spend so much time thinking about finances that they are unable to concentrate on the core areas of business that can lead to business growth. But this is what happens when poor loan management creates so much stress that you spend most of the time to work out ways of managing the loans in a better way. The distraction can be very damaging for a business that suffers from a lack of proper support.
To reverse the situation and bring back the focus on business operations and growth without being obsessed in managing loans, debt consolidation is the most preferred solution that gives a fresh lease of life and encouragement to drive the business in the right tracks.
Take one big loan
As you can understand from the literary meaning of the term debt consolidation, it is the process of replacing many loans by one big loan so that it becomes easy for borrowers to handle the loan account provided they have money for making monthly payments. The first step in the process is to make a list of lenders to figure out the total outstanding debt and then find out a new lender who agrees to lend that amount so that you can pay back all existing lenders and left with just one new lender and a single loan account. But before you take the decision, you must be sure that the arrangement will work for you after taking into consideration your overall financial status and your business goals in short as well as long term. Your business comes first and whatever you decide must have a favorable business outcome.
Cost saving opportunity
When you go for debt consolidation the most visible benefit is that you can do away with multiple lenders while continuing with the loan but differently. Since your business is dependent on the amount you have borrowed and you still have access to the money, you can address the financial needs of business very well. But there is another big benefit that you can derive from debt consolidation that though not visible affects your finances positively.
When you are taking a debt consolidation loan, you get the opportunity to bargain hard with the lender and avail better interest rates than what is prevailing. By lowering the interest, you can lower the monthly payments and in the process generate saving. You must keep this aspect in mind when shopping for a debt consolidation loan. Getting a loan at a lower cost is a huge benefit as you can use the additional money for business betterment.
Work out the best numbers
It is a numbers game when you are looking for lenders willing to offer debt consolidation loan. Since the new loan must help to pay back the existing loans and even save money, you must compare multiple offers to work out which offers are best for the purpose. Do some number crunching and try out various options to see, which offer gives the best benefits. The task might not be easy if you try to do it manually as you must compare too many variables to arrive at the right decision. To do it fast and correctly, you can use some online calculator created especially for debt consolidation that gives you the complete picture of the loan offered to you by considering the tenure, interest rate, and other costs.
Recoup your finances and credit history
People might avail debt consolidation out of desperation, which is partly true but not always. When done out of desperation, debt consolidation might not give you the desired benefits except that you can reduce the number of lenders. You must take a positive approach to debt consolidation by treating it as a resource for re-organizing your finances. When you get a favorable debt consolidation loan that generates saving, it allows you to bolster your finances.
Taking a fresh loan means that you get a fresh opportunity of servicing the loan in a disciplined manner that helps to improve your credit history. This is very important for business owners as they must avail loans as long as they are in business.Therefore, your aim must be to hit two birds with one stone – better debt management and cost saving and not just doing some fire fighting activity that provides momentary relief without any long term gain.
The process of debt consolidation might sound simple, but its implementation is not easy as it entails hard negotiation with your existing borrowers and finding out a lender for a debt consolidation loan. It is not easy to make your borrowers agree to accept your proposal for paying back. By engaging a debt consolidation company both tasks of negotiating with borrowers and finding a new lender become easy.
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