CFI.co Blog - Page 18 of 47 - Business, Finance, Economics

Private banking is an exclusive service offered to people with a high net worth. The best private bank will give you a dedicated relationship manager and, in some cases, uses a team approach to give you expert advice on a variety of financial subjects.

Clients get access to a range of financial services, which may include financial planning advice, exclusive credit cards, portfolio management, investment strategies, retirement planning, and hedge fund investing among others.

While often used interchangeably, the terms private banking and wealth management don’t refer to the same thing. Wealth management is a broad category that deals with optimizing a client’s portfolio. Personal banking offers personalized care and management of finances for the extremely wealthy.

Do You Qualify for Private Banking?

Being the realm of the rich, private banking is not available to everyone who has a savings or checking account. The specific eligibility requirements vary from bank to bank, but the service is reserved for high-net-worth individuals. Some banks are happy with clients who have six figures in investable assets while others demand eight-figures.

Investable assets are any assets that are liquid or easily liquidated. They may include the money in checking and savings accounts, bonds, retirement accounts, money market accounts, trusts, and stocks. Understandably, many banking institutions don’t make their standards known.

It is possible to qualify for private banking even if you don’t meet the minimum requirements. A good example of an exception to the rules is the children of wealthy individuals. Banking institutions are always looking to the future, specifically wealth transfers. They want to make sure that funds stay with them even after the wealth changes hands.

Young professionals who, based on their education and career path, appear to be on the track to meeting minimum requirements may receive an exception. Commonly referred to as the emerging affluent, they can prove valuable clients for the private bank and wealth management firms in the future.

Should You Become a Private Banking Client?

The concierge nature of private banking is one of the factors that makes it such an attractive product. However, that’s not all it has to offer. Private bankers offer a one-stop-shop for all of your banking needs. That said, here are some of the benefits you can expect with private banking.

1. Dedicated Representative

The main perk of private banking is that you are assigned a dedicated representative, or a team of people, whose job is t understand your circumstances and cater to your financial needs. The representative makes it easier to initiate wire transfers, deposit checks, and more.

You will never have to worry about waiting on hold to talk to the next available representative. Because your dedicated manager has intimate knowledge about your financial situation, you won’t have to repeat your preferences every time you need something at the bank.

2. High Investment Returns

Banking institutions allocate the best-performing staff to the private banking division to manage the finances of high-net-worth individuals. The result is higher investment returns for the clients.

The average rate of returns from private banking investments is 7% to 13%. Sometimes that rate goes as high as 30%. The extensive resources offered by private banking allow clients access to investment vehicles like high-performance hedge funds. You also get expert advice on investment options with high rates of returns.

3. Access to a Network of Specialists

Your dedicated manager has got you covered and will connect you to the right specialists. They will connect you to the best tax attorney, estate advisor, investment analyst, or any other specialist you need. The ability to have your private banker set up meetings with these specialists can be a time-saving perk for you.

For many private banks and wealth management firms, having a comprehensive and multi-disciplinary team of professionals with expertise in different financial areas is the key to business success. It allows them to provide the best wealth advisory services, which is key when dealing with high-net-worth clients.

4. Perks and Discounts

Every private bank offers some perks for their clients as a reward for the large volume of business they bring. Services like estate management, tax preparation, wealth management & investment advice, and corporate checking will be offered at a discount.

The foreign exchange rates are attractive for clients involved in the export and import business. Those involved in real estate will benefit from fast-tracked transaction processing through lead advisors. You will get access to lines of credit at lower interest rates than regular clients.

If opening a savings account, the bank may give you a higher annual percentage yield. From time to time, private banks host exclusive events so that they can interact with their high-net-worth clients. And even with the ongoing pandemic, there are still virtual opportunities like virtual wine tasting to connect.

5. One-Stop-Shop

In addition to discounted products, private banking clients get everything consolidated under one roof. You get enhanced services from a dedicated manager, who acts as the liaison with different departments within the bank. This ensures that you only get the best without having to knock on every door.

6. Privacy

Customer dealings and transactions offered to high-net-worth individuals such as private banking are anonymous. You will have access to proprietary products, and the dealings will be confidential to prevent competitors from selling similar products to the same people.

A culture of privacy is important to the wealthy as publicizing personal information could compromise their business interests. It helps protect them in case of lawsuits involving their investments. For most, keeping personal information private provides a sense of security.

7. Business Benefits

If you are a business owner, a relationship with a private bank can help your business grow faster. You can open your business and personal account with the same private bank, and enjoy lending opportunities and other benefits.

Moving funds from one account to the other will be hassle-free. Not to mention, you get to enjoy promos and discounts offered to regular clients.

Enjoy the Best of Private Banking

If you’re searching online for “private banks near me”, the guide above will help you choose the best private bank for you. Private banking makes it easy for high-net-worth individuals to manage their financial affairs in one place. It’s something to consider if you have over $500,000 investable assets and need the convenience of a bank concierge.

Finance

Matchmaking Private Finance and Green Infrastructure

ByCFI.co Blogger

The contrast between the scarcity of investments in infrastructure and the excess of savings invested in liquid and low-return assets in the global economy must be dealt with.
Greening infrastructure in emerging and developing economies would benefit from being able to attract greenbacks into the business.
Development of pipelines of projects with homogeneous regulations and standards, as well as with minimum mismatch between risks and comfort of private investors to manage them will be needed.

First appeared at Policy Center for the New South (July 7, 2021)

The world faces a huge shortfall of infrastructure investment relative to its needs. With a few exceptions, such as China, this shortfall is greatest in emerging and developing countries.

The G20 Infrastructure Investors Dialogue estimated the volume of global infrastructure investment needed by 2040 to be $81 trillion, $53 trillion of which will be needed in non-advanced countries. The Dialogue projected a gap—in other words, a shortfall in relation to the investment needs foreseen today—of around $15 trillion globally, of which $10 trillion is in emerging economies (Figure 1, left panel). The World Bank has estimated that, for emerging and developing economies to reach the Millennium Development Goals set for 2030, their infrastructure investment would have to correspond to 4.5% of their annual GDPs (Figure 1, right panel).

In addition to the need for infrastructure investment, there is a need for that investment to be ‘greened’ as rapidly and extensively as possible, in order to minimize the negative impact in terms of increased global warming. For example, the energy sector must be decarbonized by expanding the use of renewable sources instead of coal. Increases in use efficiency, and the elimination of subsidies for the use of fossil fuels, would be part of this strategy.

Transport is now responsible for 25% of the world’s greenhouse-gas emissions. This must be reduced by shifting transportation to low-carbon options, in addition to investments in energy-efficient equipment, and supporting the transition to electric vehicles and fleets.

A major part of the ‘greening’ will be in cities: improved water supply and sanitation services, changes in energy supply, waste recycling, and greater energy efficiency through better building standards and/or renovation of existing buildings. This transition, as for manufacturing and agricultural activities, will require investment in infrastructure.

A major obstacle holding back such investment is the lack of fiscal space, which is constraining public spending. This problem has been made worse by the fiscal packages adopted because of the pandemic. While the largest advanced economies can afford to increase their public debt, with a low risk they will face deteriorating financing conditions, this does not apply to most emerging economies, let alone low-income countries grappling with unsustainable debt trajectories (Figure 2).

Consequently, measures need to be taken to expand the options for private financing of infrastructure projects. Indeed, according to data from the Institute of International Finance, over the past 15 years, institutional investors with long time profiles in their assets, such as pension funds, have been gradually increasing their allocations to infrastructure investments and alternatives to fixed income instruments, equity, and other traditional instruments.

Stable and long-term returns from infrastructure projects dovetail well with the long-term commitments of those financial institutions, particularly in the context of declining long-term real interest rates on public and private bonds, as seen in recent decades in advanced countries. Surveys carried out by Preqin show fund managers already pointing to the decarbonization of energy as a factor in attracting private investment to infrastructure.

The biggest challenge is to build bridges between, on the one hand, infrastructure investment needs in non-advanced countries and, on the other, private sources of finance abundant in dollars and other convertible currencies with few opportunities to obtain returns compatible with their requirements on their liability side.

Building such bridges requires the completion of two tasks. First, the development of properly structured projects, with risks and returns in line with the preferences of the different types of financial intermediation, would help close the private financing gap in infrastructure.

Investors have different mandates and skills regarding the management of risks associated with types of projects, and phases of project investment cycles. They demand coverage of risks whose exposure is not adequate or permitted by regulation. The absence of complementary instruments or investors is one of the most frequently identified causes of failure in the financial completion of projects. Figure 3 provides a snapshot of the diversity of instruments and vehicles through which private finance can participate in infrastructure projects.

Taxonomy of instruments and vehicles for inrastructure financing

The constrained fiscal space in emerging and developing countries can be used to mainly cover such risks and enable the building up of investment, rather than replacing private investment: crowding-in private finance rather than crowding it out. National and multilateral development banks could prioritize this instead of financing total investments.

Identifying attractive investment opportunities for different types of investors and combining these perspectives more systematically around specific projects or asset pools is a promising way to fill the infrastructure financing gap. The planning and integrated issuance—with different time profiles—of fixed-income securities, bank loans, credit insurance, and others, for the different phases from project preparation to operation, make that combination possible.

The second task to boost private infrastructure investment in emerging and developing economies is the reduction of legal, regulatory, and political risks. Transparency and harmonization of rules and standards can increase the scale of comparable projects and make it possible to build project portfolios. Non-banking financial institutions often highlight the absence of large enough project portfolios as a disincentive deterring the setting up of business lines focused on the area. This is a particular weakness in the case of smaller countries.

The contrast between the scarcity of investments in infrastructure—particularly in non-advanced economies—and the excess of savings invested in liquid and low-yield assets in the global economy deserves to be confronted. Greening infrastructure in non-advanced economies would benefit from being able to attract greenbacks into the business.

Watch Bridging Private Finance and Green Infrastructure

Otaviano Canuto, based in Washington, D.C, is a senior fellow at the Policy Center for the New South, a nonresident senior fellow at Brookings Institution, a professorial lecturer of international affairs at the Elliott School of International Affairs – George Washington University, and principal at Center for Macroeconomics and Development. He is a former vice-president and a former executive director at the World Bank, a former executive director at the International Monetary Fund and a former vice-president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at University of São Paulo and University of Campinas, Brazil.

Banking

The Ultimate Guide to Investment Banking

ByCFI.co

The global investment banking industry has skyrocketed over the past few decades. And it is only estimated to grow higher each year. From a whopping $102.84 billion in 2020 to $11.45 in 2021, this lucrative business has tremendous growth potential.

But you may be wondering – what is investment banking exactly? What do investment bankers do, and how does the process work?

We’ve got you covered. In this guide, we walk you through everything you need to know about investment banking.

What Is Investment Banking?

Investment banking is a division of a financial institution that serves corporations, governments, and other institutions. Investment banks are essentially the bridge between investors and corporations.

They help facilitate communication and achieve established financial objectives.

Investment banks carry out the following services:

Underwriting

Underwriting is the raising of capital or funds to support a particular organization. It is typically provided when a company wants to go public or launch its IPO.

Investment banks help companies do this by selling stocks and bonds to investors. This, in turn, benefits businesses because they have the capital needed for day-to-day business operation and growth.

Mergers and Acquisitions

Investment bankers offer advice and consulting for the M&A process as well. They typically aid in the process from start to finish.

What does M&A involve, you may ask. It is a process whereby corporations find and complete buying over another business.

The investment bank here will negotiate the best deal for the client. They will also use their contacts and networks to find growth opportunities.

Thus, investment banking represents both the buyer and the seller in an M&A deal.

Sales and Trading

In this sector, investment bankers act as dealers for the client. They help procure and seal trades to further the organization’s net capital.

This process can involve matching up various buyers and sellers.

What Do Investment Bankers Do

Investment bankers are financial advisors to corporations, businesses, and governments. Their success is tied to the success of the capital market. Thus, if the economy is doing well, more money will go towards investment bankers and their clients.

They also have a central role in launching IPOs or initial public offerings. They help with closing mergers and acquisitions, managing final company transfers and sales, and issues stocks and bonds.

Skills Required for Investment Banking

Investment banking jobs are high-stress and come with a lot of prerequisites. Following are some essential skills needed to succeed in the trade.

Financing

Every investment banker has to deal with arranging financing. The companies that banks represent will need funding for projects.

Whether it is building a new office or constructing a highway, the chances are that the corporation has used the services of investment bankers.

The bond will get priced appropriately, documented, and then published to become available for buyers.

Negotiation

M&A is a high-pressure situation that is liable to sudden change. Investment bankers need to be able to keep their cool and manage negotiations with ease through it all.

Negotiations can be lengthy with an ongoing series of offers and counteroffers. Thus, bankers are good at practicing fairness and mediation to ensure both parties get a good deal. There is also a fair deal of relationship management involved in the negotiations.

Financial Modeling

On an everyday basis, professionals in this field carry out financial modeling activities. This includes 3 statement models, discounted cash flow models, and more.

The process involves skills in analysis and research. Bankers need to anticipate future trends and outcomes into present workings as well. The best investment banks carry out a vast range of data analysis practices to provide better value to clients.

Investment Banking Process

The main aim of the process is to raise money. Below is a step-by-step explanation of how the process works, from start to finish.

Selecting the investment banker: Companies will find the right professional for their needs. They evaluate the individuals based on risk, size of funds, strategy, and more.

Brainstorming: The banker shares their insight on the amount to be raised, securities, and more. They also decide on the strategy and offering price.

Underwriting: The underwriting agreement is carried out.

Selling group: All the members of the underwriting syndicate and other parties form a group. They will manage the distribution of assets and determine how they can reach future investors.

Pricing: This is a sensitive issue. A low price can increase interested parties, but it dilutes earnings. A higher price may be a deterrent for investors, but it keeps the profits more solid.

Distribution: The security is distributed to individual investors. This can be done through the form of stocks, bonds, or more.

Stabilizing: Now that the company has distributed its security, it is time to stabilize it. It should arrive at a consistent price by maintaining a firm position in the market. It should also consistently bring in capital for the issuing organization.

Investment Banking Is an Exciting and Fast-Growing Industry

Investment banking plays a vital role in our economy. Whether it is the Wall Street appeal or just interest in the high profile and compensation for the profession, this career is famous for its high growth potential.

We hope this article provided insight into the exciting investment banking field.

Are you interested in learning more about business, finance, and economics? CFI.co (Capital Finance International) is the resource for you! With news, analysis, and commentary on worldwide markets, we have everything you need to stay informed and updated.

Click here to browse through our Finance articles!

Conferences

UAE to Host International Humanitarian Summit at Expo 2020

ByCFI.co Blogger

The International Humanitarian Summit will take place on the 30th of March, 2022 and will address major humanitarian issues such as racism, gender inequality, intolerance, and persecution, at the Expo 2020 Dubai.

Dubai (19/08/21) – The International Humanitarian Summit, was launched on the World Humanitarian Day, 19^th of August 2021, to be held on the 30^th of March 2022, in its mission to solve ongoing issues around the world including COVID 19 challenges and the persisting issues of racism, gender inequality, intolerance, and persecution.

The International Humanitarian Summit will bring together the international community of intellectuals, governmental institutions, human rights and philanthropic institutions, religious institutions, artists, media professionals, cultural associations and the private sector in order to discuss and shed light on the current concerns that need to be addressed, at the Expo 2020 Dubai.

Today’s crises are larger, more complex, and go on for years at a time. Providing humanitarian assistance has become much more difficult. The International Humanitarian Summit will voice out and discuss these issues in March next year, in order to lead, coordinate, and put efforts towards assistance overseas responding to humanitarian crises, natural disasters and manmade disasters. The International Humanitarian Summit will play a major role in promoting and assisting international humanitarian organizations that can better people’s lives and save more lives.

The United Arab Emirates is proud to host the International Humanitarian Summit, which will shed light on humanitarian workers who are reaching out to the most vulnerable people to save lives and alleviate suffering. In no other time has the generous, bravery, and sacrifice of aid workers been more evident or necessary. Around the world, humanitarian workers haven’t stopped saving lives despite the recent pandemic.

The Covid-19 pandemic was responsible for one of the largest humanitarian crises since the Second World War. Over the past few months, it has severely affected the humanitarian sector. The aid industry has suffered the most severe impact of all the industries affected by the pandemic. Countries from all over the world came together to provide medical supplies and medical professionals, however, other sectors of the aid industry received little support. Even with the global pandemic, the International Humanitarian Summit will continue to voice out issues and be a platform to inspire the world, serving as a catalyst for international crisis response in both diplomatic engagements and humanitarian assistance.

The United Arab Emirates has made its mark at the forefront of countries in the world in providing services and providing humanitarian aid and helping those in need around the world. And to crown this role comes the announcement of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, on Wednesday announced that the UAE would offer Golden Visas to charity and humanitarian aid workers in recognition of their efforts and sacrifices. The announcement to provide long-term residence visas was made on World Humanitarian Day.

In this regard, Mr. Dawood Al Shezawi, Secretary-General of the Board of Trustees, stated about the pioneering role of the United Arab Emirates throughout its history through humanitarian work at the regional and global levels “ The UAE policies put humanitarian and development work at the center, which is evident by the establishment of hundreds of humanitarian projects and institutions. Globally, the UAE plays a leading humanitarian role, dedicating resources and efforts to empowering communities and removing barriers to sustainable development.”

Gender Equality and Women Empowerment are topics that will be explored at the International Humanitarian Summit to enable private organizations and governments in promoting an equal world. Sessions will focus on creating an inclusive environment for women and people of determination within the society.

Utilizing the latest digital technology via Events10x, the International Humanitarian Summit will take place in the form of a hybrid event, and will be a powerful dialogue platform which will discuss vital issues in order to achieve a peaceful, healthy and liveable society based on mutual respect and understanding.

The summit is powered with the most anticipated Global Leaders Debate who will discuss the increased fragmentation around the world due to extremism and intolerance, which play a destructive role in achieving global happiness and prosperity. The purpose of this debate is to bring together international leaders to discuss policies to counter these problems and to propose initiatives to further boost human fraternity and tolerance.

The International Humanitarian Summit will feature the Humanitarian Art and Photography Gallery, which allows artists and photographers from around the world to showcase their work while promoting humanitarian values. Through this, visitors will be able to cultivate knowledge, increase awareness and access leading academic archives. Furthermore, the event will also host a digital exhibition where local governments, private institutions and organizations from respective countries will unveil their humanitarian efforts to virtual attendees.

Humanitarian Stories will provide participants with the opportunity to watch encouraging stories about life-changing initiatives from around the world. By doing so, The International Humanitarian Summit will help improve society, as well as highlight individual and institutional efforts in shaping it.

For more information on International Humanitarian Summit, please contact Vyshnavi Menon, or visit www.internationalhumanitariansummit.com.

Conferences

Invitation to Participate in the IsDB Group Private Sector Forum

ByCFI.co Blogger

Date: 2nd September 2021, Tashkent – Republic of Uzbekistan

It gives us a great pleasure to invite you to participate in the Islamic Development Bank Group (IsDB Group) Private Sector Forum in conjunction with the 46 Annual Board of Governors Meeting in Tashkent —- Republic of Uzbekistan under the theme “Respond, Restore, Restart: Post- COVID Resilience and Prosperity for all”. The Forum will take place at the Tashkent City Congress Hall, Tashkent – Republic of Uzbekistan, on 24 September 2021 from 09:30 to 16:30 (Tashkent time).

The main objective of the Private Sector Forum is to highlight IsDB Group activities, services, initiatives and joint solutions in member countries (investment, trade and insurance). The Private Sector Forum shall provide a unique platform to network and establish business relations and partnerships with other leading representatives and counterparts from business community in order to share their related experience, success stories & best practices and to explore together the investment and trade opportunities offered by CIS countries. Furthermore, it will connect business communities in member countries by arranging parallel B2B and B2G scheduled meetings.

The Government of the Republic of Uzbekistan and the IsDB Group, conscious of the challenge linked to the exceptional circumstances posed by the COVID-19 pandemic and cognizant of the safety of all delegates and participants. In this regard, a comprehensive health and safety plan has been prepared, which includes risk mitigation measures, guidelines to manage the flow of participants, specific COVID-19 related hygienic measures, and pre-emptive safety procedures.

In this regard, we are pleased to invite your esteemed organization to participate and provide the necessary media coverage for this forum. We are confident that your presence and active participation in this important event will contribute to the successful achievement of its objectives.

For further information on the provisional program, registration and logistics, please refer to the Private Sector Forum website (www.IsDBG-PSF.org)

Contact details: Hassan Khalifa, (email: hkhalita@isdb.org,mobile: +966569326822)
Mohamed AI Saati, (email: mfs@isdb.org , mobile: +966554315181)

Please accept our profound regards and looking forward to receiving your positive reply at your earliest opportunity.

Yours Sincerely,

Budgeting

PayPal Accounts for Nearly Half of All Digital Wallet Complaints in the US, Almost 4,500 in the Last Four Years

ByCFI.co

Over the last four years, consumer complaints about digital wallets and mobile payment apps in the United States surged as more and more Americans choose cashless payments.

PayPal Accounts for Nearly Half of All Digital Wallet Complaints in the US, Almost 4,500 in the Last Four Years

Between April 2017 and April 2021, the US Consumer Financial Protection Bureau received nearly 9,300 complaints related to mobile or digital wallets, and the majority of them aimed at one platform.

According to data presented by StockApps.com, PayPal accounts for nearly half of all digital wallet complaints in the United States, almost 4,500 in the last four years.

PayPal Received 2x More Complaints than Square and Coinbase Combined

As one of the first and most significant players in the digital payments landscape, PayPal witnessed impressive growth since the pandemic struck. More than 67 million people started using its services in the last year alone, with the total number of users rising to nearly 400 million.

Unsurprisingly, given its wide user base, PayPal had the most complaints of all companies providing digital payment services in the United States. Between April 2017 and April 2021, PayPal received 4,431 digital wallet complaints, or two times more than Square and Coinbase combined, revealed the US Public Interest Research Group data. Furthermore, statistics showed most of them were related to managing, opening or closing a mobile wallet account.

Square came second with over 1,200 complaints in this period, with unauthorized transactions as the top issue.

The digital wallet service for buying cryptos, Coinbase, ranked third with a total of 755 complaints related to digital wallets or nearly six times less than PayPal. PNC and JPMorgan Chase &Co. round the top five list with 594 and 324 received complaints, respectively.

Total Number of Digital Wallet Complaints Surged by 5,200 in a Year

Although the number of digital wallet complaints has been constantly growing since 2017, the last year set a new record.

Statistics indicate that between April 2017 and April 2021, the US Consumer Financial Protection Bureau received a total of 9,277 complaints related to mobile or digital wallets. More than 1,000 complaints were received in the first year. However, in the year preceding April 2021, the number of complaints surged to 5,200 or nearly 60% of all complaints received in this period.

Statistics also revealed there were 970 complaints in April 2021 alone, nearly double the previous complaint peak in July 2020.

The global shift towards a cashless society and the surge in the use of mobile wallets are expected to continue driving the rising number of complaints. In 2021, mobile wallets are set to become a $2.5trn worth industry, growing by a massive 25% year-on-year. Nearly 20% of the total transaction value or $468.1bn will be generated in the United States.

The full story can be read here: https://stockapps.com/blog/2021/07/27/paypal-accounts-for-nearly-half-of-all-digital-wallet-complaints-in-the-us-almost-4500-in-the-last-four-years/

Lifestyle

6 Factors to Consider When Choosing a Self-Storage Facility

ByCFI.co Blogger

Whether you are in between moves or simply have excess items around the house or office, it’s evident you need more space. A storage unit will provide you with a secure place to keep your valuable items.

These days, there are a lot of storage units you can rent which can make your life more organized. However, with so many options, how do you find the right storage facility? Here are six factors you need to consider when choosing a storage facility.

1. Security

Before choosing a self-storage facility, you want to know how safe and secure its storage units are. A secure self-storage facility like iStorage should have the following features:

Security guards to minimize the chances of crimes happening in the storage facility
Security cameras
Fence
Fire safety: Check for fire extinguishers, detectors, fire alarms, sprinklers, and detectors
Storage unit features: The storage unit should be clean and air-conditioned. There should be pet control measures in place, and the floor level should be high enough to avoid water flow

2. Location

If you need frequent access to your valuables, it is advisable to choose a storage facility in your area for convenience. However, the location will matter less if you will rarely need to access your items. In addition, keep in mind that you are more likely to get inexpensive storage facilities outside of urban centers.

3. Fees and costs

There are a number of factors that will ultimately determine the cost, including contract type, minimum storage period, and additional fees. Explore different contract types to see what is convenient for you. Check if the facility has a minimum storage period and what happens if you want to access your items before that period lapses. You also need to consider additional fees, along with what happens when you make a late payment or miss a payment? You don’t want to incur extra expenses or lose your storage unit.

4. Size

You don’t need to pay for space that you don’t need. A great self-storage provides a variety of sizes. Before choosing a storage facility, make a list of items that you want to store and how much they would take. Depending on the item you want to store, you may want to make sure they can fit in a storage unit both in terms of the height and width.

5. Accessibility and convenience

It is important that you access your items any time you need them, but that may be a problem if the storage facility is not open. Some storage facilities are closed after the regular nine to five working hours and during weekends, while others are open 24/7. For convenience, it is advisable to choose a storage facility that is open round the clock.

6. Check your home insurance policy

Review the terms of your home insurance policy to see whether the valuables will be covered if you move them outside your home. Most home insurance policies do not cover items outside the home, so it is advisable to look for a storage facility that offers insurance as part of their rental package.

Endnote

Whether you are moving or you have a ton of excess things on your hands, a storage unit can come in handy, and these tips will help you find the right storage facility for your storage needs.

Budgeting

5 Steps You Should Take to Repair Credit

ByCFI.co Blogger

Your credit status is more or less the same as your health. Unless you keep on monitoring and evaluating how you are doing, you may find yourself in the red zone. In the UK, Experian, one of the major credit reference agencies (CRAs) has mapped out using data the average credit scores for 391 areas. When you key in your age and then select your region, you’ll get to know what the average score is for that specific area.

5 Steps You Should Take to Repair Credit

Depending on the CRA you use to assess your scores, you will find yourself in any one of the following 5 categories- Excellent, Good, Fair, Poor, Very Poor. If you lie in the ‘Poor’ or ‘Very Poor’ categories, you need as a matter of urgency, to repair your credit. If you fall in the ‘Fair’ group, your score is average meaning you have some work to do to push yourself up the pyramid.

As long as your score is less than 999 on Experian, 710 on TransUnion and 700 on Equifax, there is something you need to do. With a good credit score, you stand a high chance of getting approved for almost every credit you apply for, and you’ll also get competitive rates. In this article, you will learn 5 steps you can implement right away to repair and boost your credit score.

Check Your Credit Score

It is not practical for you to begin repairing your credit unless you first know where you stand. Running credit checks with Experian, TransUnion, and Equifax will give you an accurate view of where to start.

Apart from getting to know your score, use the credit report to check the accuracy of the information entered by the CRA. For instance, there could be accounts fraudulently opened under your name or inaccurate personal information.

You can dispute any erroneous information in your credit report by filing for a Notice of Correction with the concerned CRA highlighting the specific information you are contesting.

Pay Up your Bills on Time

Late or missed payments can put na massive dent in your credit score. On the Experian scoring model, payment history has a weighting of 35%. This means more than a third of your score depends on how well you keep up with your bills including credit card payments.

If you have a problem keeping up with your bills schedule, try automating your payments so that bills are cleared as they fall due without your intervention. In case all your bills fall on the same date, consider rescheduling them so that you can get a reprieve in between.

Be upfront with your creditors. If there is an option for alternative payment plans that can lower the monthly amounts payable, explore them. For instance, if you are experiencing financial hardship, credit card companies can reduce your instalments until you get up on your feet.

Repay your Debt

After payment history, the second-largest component in terms of impact on your score is your credit utilisation rate. The amount you owe in credit card debt divided by the credit limit you have available gives you your credit utilisation ratio.

While it is understandably difficult paying up your debt, you are much better off paying it piece by piece until you get it paid in full. For instance, instead of making only the minimum payments on your credit card facility, consider whittling the card balances down to zero.

You can also consolidate your loans to help you manage them better. Get a loan that can help you pay off all other debts so that you can only remain with a single obligation to service. You can take a competitively priced non guarantor loan to help you clear your credit card balance.

The beauty with strategy is that these loans do not appear on your credit report hence won’t affecting your score. On the other hand, when you pay up your credit card debt, you will receive a boost in your score.

Avoid Making Multiple Loan Applications Successively

When repairing your credit, the last thing you would want is multiple hard enquiries on your credit file within a short span. This means lenders are checking your credit status to help them evaluate if you are fit for their products.

As one hard enquiry after another hits your credit report, lenders will increasingly see you as a credit risk trying to save your skin by borrowing from multiple sources. The impact this has on your credit score can be huge.

As an alternative to borrowing from different sources, try shopping for one credit facility say an auto loan and then consider offers from different lenders. The scoring model treats this differently from opening a lot of credit cards in one go.

Consider Getting Help Repairing Your Credit

Other than working yourself lame trying to rebuild your credit all by yourself, you may want to try other strategies to quickly move you up the scoring ladder. Here are some of the ways you may want to look at.

You can become an authorised user in an account that is always paid up and in good financial shape. Ensure the primary user has an excellent record that you can piggyback on to rebuild your credit score.

When applying for credit, consider getting a cosigner with good credit standing. The joint consideration by the lender may increase your chances of getting approved and boosting your score.

The third strategy you can use is that of opening a secured account. In this account, the lender requires that you put in an amount of money against which they advance credit. You can not be issued with credit card debt that exceeds the amount you have in the account. This ensures you are always secured, making you a responsible borrower.

Conclusion

While a bad credit score isn’t something to be proud of, it shouldn’t weigh you down either. With a solid stepwise credit repair plan, you can improve your credit score and take it as high as you want to. Starting by knowing where you are at and facing the situation as it is, will firm your steps and point you in the right direction.

Business

How to become a top commodity trader

ByCFI.co Blogger

Commodity trading is a bit different than currency trading. The new currency traders often think that they can trade the commodity market without gaining special knowledge about the industry. But doing so, they are making a big mistake. If you want to become a top commodity trader, you should follow some specific guidelines. Most importantly, you need to have a strong mindset that you will learn new things.

Learning new things regarding trading business is a very tough task. But if you take rational steps it won’t take much to become a profitable trader. Let’s see the key steps which we can follow to become a top commodity trader.

Develop a strong basic

Commodity trading requires strong basic. Without having sound knowledge about the supply and demand zone, it is nearly impossible to find the perfect trading opportunity. You might be thinking that you know everything about this market and easily make a big profit without doing the proper market analysis. But this not the way professional traders execute their trades. They rely on fixed sets of logic and execute the trades after doing the in-depth market analysis. So, start working hard and learning the basics of trading.

Find a good broker

Without gaining access to a robust trading platform, you won’t be able to do the perfect market analysis. Most retail traders think that they know everything about the market and they don’t have to trade with the high-end brokers. But after taking the trades with the low-end platforms, they start to look for the best commodity broker. By choosing a good broker, you can avoid many technical problems, and thus you will be able to make better decisions. Never try to ignore the importance of a well-reputed broker. If you do so, you will keep on losing money and eventually blame the market.

Learn to analyze price action signals

To trade the commodity market, you should learn to deal with the price action confirmation signals. Once you master the art of price action trading strategy, you should be able to take the trades in a standard way. This will improve your decision-making skills. Usually, the traders execute the trades at the important support and resistance level without taking any confirmation. But if you do the math properly, you will notice the support and resistance level are often broken. And the false spikes can easily hunt down the stop loss. To avoid such problems, we can rely on the price action confirmation signals and execute the trades without having any major problems.

Learn about the chart pattern

Professional commodity traders are very good at analyzing the major chart. Learn about the major chart pattern so that you can execute the quality trades without having any major issues. Forget about the aggressive approach and look for reliable trade signals based on the chart pattern. Though it will be tough to take the trades you do have the option to use the paper trading account. At the initial stage, start learning about the continuation chart pattern as it will make the overall trading process easier. And if you take the trades with the help of a reversal chart pattern, you should look for the price action confirmation signals.

Trade with low risk

To survive in the commodity market, you must know the fact, losing trades are very common. If you try to ignore the losing trades, you are going to lose money most of the time. So, to protect your trading capital, you should stick to the basic 2% rule of money management. At times you might have the urge to trade with higher risk but you must control this greed. Unless you systematically control your greed factor, you will keep on losing money and eventually blame the market. That’s why always follow standard rules at trading and take the trades with discipline.

Business

How Purchasing Tradelines May Improve Your Financial Situation

ByCFI.co Blogger

It may shock you to learn just how much your past financial mistakes can impact your future purchasing decisions. Even a late or non-payment could end up costing you several thousand dollars due to lending institutions and banks seeing you as a high-risk borrower.

While you can’t turn back the clock, you may be able to improve your financial situation in a straightforward way – by purchasing seasoned tradelines. The following information may enlighten you as to how.

Wider Job Prospects

Surprisingly, authorized user tradelines might be able to make you a more desirable employee on paper for businesses looking to hire you. Many companies look at the payment history and credit reports of people they are considering hiring.

While your non-payment on a TV doesn’t make you a bad person, employers can see it as a reflection of how responsible you are. Improving your credit score with AU tradelines may make a difference to your job prospects in the future.

More Loan and Credit Card Options

Some people fear applying for loans and credit cards because they believe their poor credit history will have them turned down. If you do apply, your credit score may even mean you’re not eligible for some of the more competitive interest rates that may be available.

With a seasoned tradeline of a suitable age and credit limit, that may change. A tradeline may be able to boost your credit score and make you eligible for better interest rates that make everyday living more affordable.

Better Mortgage Options

Even if you’ve done everything in your power to reduce debt to improve your chances of mortgage approval, your credit score may still work against you. Many lenders see a low credit score and associate it with poor money management. You may then be seen as a high-risk borrower and have to pay higher interest rates as a result.

In many situations, purchasing a tradeline can assist with broadening your mortgage options. The higher your score, the more lenders may be lining up to offer you competitive mortgage lending rates.

Pay Less on Vehicle Insurance

Vehicle insurance companies have made an unusual discovery. People with lower credit scores may file more claims. As they are in the business of making money, they often charge those people higher rates. You may be able to save money on your monthly payments by improving your credit score.

Improved Rental Possibilities

Finding the perfect property to rent for your family can be challenging with the best credit score. However, it’s often even more so with a patchy financial history.

Many landlords and property managers screen tenants and view their credit scores to determine how safe or risky they are as a tenant. Even if you’ve only had one blemish on your record, it can be all it takes for a property investor to decide to choose someone else.

At least 90 days before you start your search for a new rental property, consider purchasing an authorized user tradeline. By the time prospective landlords start running checks on you, your credit score may already be improved.

There are plenty of ways to improve your financial situation, such as getting a higher-paying job and cutting your costs. However, in the long-term, purchasing tradelines may also be among the best. If you’re in any of these situations above, it may be worth looking at your options.