Avoiding Credit Card Fraud

Using a credit card gives you the opportunity to build your credit profile and increase your purchasing power. While credit cards definitely have some advantages over other methods of payment, they are sometimes susceptible to fraud. If you become the victim of credit card fraud, it can be a particularly frustrating experience. Here are a few things to consider about credit card fraud and how to avoid it.

How it Works

It doesn't take much for someone to try to take advantage of you through credit card fraud. All a thief needs is the information off of your credit card, and then they can start making purchases online.

Another version of credit card fraud occurs when someone gets your personal information and then opens a credit card account in your name. At that point, then the individual can use the new credit card that they get from the credit card provider to make purchases.

Avoiding Fraud

One of the nice things about many Singapore credit cards is that they have anti-fraud features. If someone uses your card to make a fraudulent purchase, then you can call the credit card company and notify them. Many of these cards will simply take off the charge and you won't be responsible for it.

You also have to be careful where you use your card. Never give it to anyone to take out of your sight, such as at a restaurant. You also need to look carefully at any ATM that you put your card into. Some scam artists use a technique called skimming to scan your credit card information once it goes into the ATM. Make sure that there haven't been any modifications to the slot.

Also, you should never email your credit card information to anyone who asks for it. Use a secure order form only.

Check Your Credit Report

If you are concerned with the possibility of someone opening a credit card in your name, it's a good idea to check your credit report regularly. When you get your credit report, you can see what accounts you have open in your name. If anyone has opened an account in your name, you'll be able to see it on your credit report.

How to Avoid the Problem

If you are interested in avoiding this problem altogether, you need to safeguard your information at all times. Don't throw your credit card statements or personal records out in the trash without shredding them. If you are getting your credit card out to make a purchase, make sure that you keep it covered at all times so that no one will be able to see the information off of it or your PIN.

Considerations

Although credit card fraud is definitely a big problem in the world today, you can minimize the chances of any damage by taking a few simple steps. If you take the time to keep your information safe, you'll be at a much lower likelihood of risk in the future. When choosing a credit card, you should also make sure that you pick one that has a zero liability for fraud policy. This way, you can ensure that you're never paying for fraud out of your own pocket.

Is Gold and Silver Still a Buy?

Earlier in February this year, I wrote a short post on whether it was the end of the gold bull run.  Of course, I couldn't say for certain that the bull run in gold was going to end.  After all, there are renowned investors out there who were still bullish in gold for the long term.  I wrote a more balanced post on some reasons to buy gold or silver.  After all, investing in gold is something that most serious investors will consider doing as part of their asset allocation.

For those who have been monitoring the gold and silver spot prices, you should be aware that gold and silver prices dropped drastically in yesterday's trading.  Gold ETFs like SPDR Gold (Ticker: GLD) fell by almost 10% in a single day with hedge funds rumoured to have started the huge sell off.  Well, a correction was more or less expected since billionaire Jim Rogers (who now lives in Singapore) said that a correction was due. In fact, Jim Rogers believes that gold prices will head towards US$1200/oz. He will probably start buying at that level.

But is this more than a correction?  Because it seems that we are now in a bear market for gold and silver.  Worries about inflation in the United States with all the money printing through the quantitative easing programs seems to be unfounded.  Inflation remains low to this day.  And besides, the stock market has been roaring on for quite a few months.  So investors in gold and silver have probably missed out on the bull run in the stock market and are taking the opportunity to liquidate their holdings since the supposed dollar crisis/crash has failed to occur.  Many traders probably closed their positions too especially if they bought at the highs of US$1800-$1900/oz.

Is gold and silver still a buy?  It probably is.  But one will probably have to wait for the right price.  And also be reminded that unlike stocks, gold and silver do not provide any form of cash flow or dividends.  It is almost simply a store of value and a hedge against hyperinflation or "catastrophic" events.  Could this be the reason why Warren Buffet is negative on gold?

Bought Nam Cheong Again

I previously did a trade on Nam Cheong and made some small gains.  Lately, I have entered into another position into Nam Cheong since I think that the stock has potentially more upside.  My entry price is at $0.25.  Nam Cheong has also announced dividends of $0.005 per share.  OCBC has a fair value estimate of $0.30 for this stock but I think I will probably sell it if it rises by 10%.  That sets my own rget price of Nam Cheong at around $0.275 to $0.28.

Vested interest.  Please do your own due diligence.

Mortgage Financing Made Easy: The ABCs of Taking a Housing Loan

By Property Buyer

We understand that comprehending the terms and contents of a loan contract, and finding the right mortgage that fits our lifestyle and financial capacity can be a challenge for borrowers, especially for first-timers. Thus this article attempts to shed some light about the process - from mortgage  selection, determining which interest rate serves you best, to meeting the requirements for the loan. The goal is to help you become aware of some of the advantages and disadvantages in selecting a particular loan package as well as to safeguard your pockets.

Establishing a good credit history

First of all, a loan can never be granted if you have a bad credit standing. The Credit Bureau in Singapore collects certain credit-related data, like all the credit  facilities a borrower has with the various financiers (but not the outstanding amount owed), and then makes the information accessible to credit providers on its membership list. The best way to obtain a good credit score is to pay your loan or credit cards on time. Late payments and defaulting on loan payments to any financial institution is bad because this will adversely impact your credit score. Having a low credit score will lock you out of loans with the best interest rates because the banks or lending institutions will decline your loan application. If you are planning to take a loan, then you should start creating a good credit history. The Bureau collects records of residents with a rolling 12-month credit facility. For closed accounts, the Bureau still shows the last 12 months history of the account before it was closed. On time payments normally gain a credit score of 12 'A'.

Owning multiple credit cards reflects weaker financial status

Most people think having many credit cards is an advantage. However, owning multiple credit cards can weaken your financial health as these plastics provide a false sense of financial strength, which is spending on borrowed money. Owning multiple credit cards in the absence of discipline usually ends up being highly indebted to banks. This means you should own fewer cards.

In addition, having excessive cards creates another disadvantage. This reduces the overall loan borrowing quantum of the borrower. Remember, that banks always compute your loan value based on your availed credit facilities against your monthly earnings. This means that even if you are not using the credit card, it has already reduced the amount of the loan you are allowed to avail for buying a new home.

Checking your credit score

You may personally request for a credit report from the Credit Bureau of Singapore. Find out if your credit facility and credit standing were correctly stated.

Finding the best house and location

We need to understand that finding the best house and location should be a house that meets our budget. Please do not avail a loan and buy a house that would make things difficult in the future. Live the kind of lifestyle your pockets can afford. Purchase a house with the amount of mortgage you find comfortable financing. The ideal way to select a loan and a house is to evaluate whether you still have the capacity to pay the monthly amortization when your financial situation becomes worse. To help you gauge if you can afford the rate and the monthly dues, you may want to use the debt-to-service ratio (DSR) formula based on a 30% affordability estimate as follows

DSR = Monthly Debt Service for Mortgage / Monthly Gross Household Income

In some aspects, some users of the DSR criticised it as a short-term measure of the borrower’s housing affordability. The discussion of other short- and long-term indicators of housing affordability, however, is beyond the scope of this article.

But you can still use the DSR formula for a variety of economic scenarios because in the course of the mortgage life, factors such as the rise or fall of the household income and the debt service normally take place. A good situation that could make use of the DSR is when you or one of your family members become unemployed, which means loss in earnings. You may also use the DSR when you see a pattern of increasing financial liability or debt service, which usually occur when there is a change or an increase in the financial market interest rates.

Overall financial liabilities

This is most important. You need to understand the impact of having too many loans or credit cards. You need to take into consideration the sum value of your total liabilities besides the DSR. One item to consider is the educational and medical expenses of the children or the entire family. Are you sending your children to school? Do you have any member of the family needing special medical attention? Yes or No, the answer directly affects your ability to pay the additional loan and the existing debts. In case of any future contingencies, you need to make sure you still have the capacity to finance the additional loan and pay the existing debts. The goal here is to avoid future contingencies forcing you to sell the house even at a very low price.

Searching for the right lending institution to finance your mortgage

It is the borrower’s duty and responsibility to perform some research about the market interest rates, and loan packages being offered by different banks or lending institutions. Market rates are constantly changing resulting in financing institutions constantly innovating their loan packages and products to meet the needs of borrowers. Find the best loan features that would fit your lifestyle and pocket.

The features of any mortgage package or product usually varies in terms of the rate. It could be offering a fixed rate, floating, or a combination. The combination of the fixed and floating rate is known as the hybrid loan. Some banks also offer interest-offset loans. To find out more about the various loan types, go here.

Selecting loan interest rates

The answer for this is really very simple. Find the rate you can afford to pay even in the presence of financial contingencies. Select a rate that would more or less provide affordable monthly payment throughout the life of the loan. It is best to think about this before committing to any loan because we should not be too confident or assume we always get the chance to refinance or reprice the loan during the course of the loan.

1. New regulations from MAS directly affects borrowers

We need to admit that the Monetary Authority of Singapore (MAS) regulation factor is uncontrollable. We are not in control here. MAS has the right to change and implement new regulations that may or may not directly affect our loan. New rules may make the borrowing terms and conditions tighter or more relaxed. A good way to explain this was the October 6 2012 mandate of loan refinancing. MAS implemented a 35-year cap on loan tenures for new and refinanced loan packages.

2. Change in interest rates

As we all know, banks change the interest rates of their loans. Sometimes, we may find ourselves facing higher interest rates when we wish to refinance/reprice.

To help you understand the impact of the interest rate and the timing, please read the clearer explanation/ example below

Loan Package X has an interest rate of 1.5% for the first three years, and 1.7% thereafter.

Loan Package Y has an interest rate of 1.3% for the first three years, and 2.0% thereafter.

For example, if you decide to commit or take Loan Package Y now because it has a 1.3% rate, which is lower than the Loan Package X of 1.5%,  because you expect to reprice or refinance the loan after 3 years (if you can see the 1.3% is only good for the first 3 years), then you might be disappointed if you discover that after 3 years, the cheapest rate available is only 1.9%.

It is better to start with the Loan Package X with a 1.5% interest rate for the first 3 years, and then 1.7% thereafter. Even if you have the option to wait for a lower interest rate after the first 3 years, you still would be paying a higher interest rate during the wait.

What message are we trying to drive home here? We need to understand that choosing the best loan package require good understanding of the system, loan regulations, market, and the movements of  interest rates. Thus if you are confused aboutchoosing the ideal loan, then you should speak to a professional mortgage consultant, who will offer free advice. Contact one here.  The consultants at iCompareLoan also use free reports from Singapore's most advanced cloud-based home loan analysis system (exclusive to them) to help you select the most suitable loan.

Reputable lending institution

Make sure you choose a reliable lending or financial institution. There are times when some lenders implement the right for a margin call when valuations fall.

Legal help in understanding the loan packages

The bank sends a Letter of Offer to successful applicants. Therefore, we need to understand the content of the letter especially the attached terms and conditions of the loan package before signing on the dotted line. In case you do not understand some terms, please ask the bank to send you a document that explains the Letter of Offer in simple language. If it is still vague and you still have questions, please consult a lawyer.

Are you planning to make a loan in the midst of changing jobs?

It is highly recommended that you wait for the loan procedure to be completed before you change jobs because lending institutions have a minimum employment period requirement in your current job before granting loan approval.

Additional credit card or new loan

You need to understand that additional credit cards or taking new loans add to your total liability, which affects your borrowing eligibility and amount. It is recommended that you do not make any other loan or credit commitments before loan disbursement.

For example, you are applying for a housing loan but want to have a new car too. A week after you have received your approved in principle home loan notification, you finance a new car using a separate car loan. After you had taken home your new car, the lender or bank discovered you financed your car with a car loan. The only option left for the bank is to reduce the loan quantum because of the additional loan you just took for the car. The reduction of the housing loan amount makes it impossible for you to afford the house you want. The deal goes off and the 1% deposit you made would be forfeited. You lose more than you gain by taking both loans. It is important to patiently wait and understand how certain decisions about loans and other related services could affect your housing loan. If in doubt, turn to a Singapore home loan consultancy.

About Property Buyer
http://www.PropertyBuyer.com.sg/mortgage

We are a research-focused Singapore mortgage consultancy which helps you compare Singapore home loans either for new loans or refinancing. We use loan reports from Singapore's best loan analysis system (exclusive to us) athttp://www.icompareloan.com/consultant/ to serve our customers.

Our services are completely FREE to you as the banks pay us a referral fee upon loan disbursement.

SMS: (65) 9782 8606
Email: loans@PropertyBuyer.com.sg

Join us at Facebook:

www.facebook.com/iCompareLoans

www.facebook.com/SGpropertyBuyer

www.facebook.com/sghomeloan

Random Thoughts

These are all random thoughts that I have been having the past few days.  The first is really about my investing philosophy.  I slowly come to realise that after reading so many books on investing, I am not really certain which school of thought I belong to.

Are markets efficient or are they inefficient?  Should I just do index investing as suggested by gurus like Bogle or is it possible that one can actually find good stocks like Warren Buffett.  And that is also about finding good stocks beyond what is considered luck or statistically insignificant results.  But if you invest in the market index, then during the bear markets, it will also mean that you perform as badly as the entire stock market.  And that by itself is a scary thought.

Another area is capital appreciation or dividends.  Should I work towards building up a greater sum of capital first before going into dividend investing? Really mixed thoughts about this.  For every attempt at capital appreciation, one is almost certain to introduce risks and possible losses to capital.

Is the bull market here to stay or is there going to be a coming collapse?

Will gold and silver continue to shine?

Will Greece still be in the Euro?

Will the US dollar continue to depreciate?

Is the US stock market rally justified by fundamentals?  Or is it just another bubble?

When will the China bubble collapse?

Random thoughts in my head with no answers....

Do You Know What Are Home Loan Consultancy Sites?

By Property Buyer

If you are seeking some information about home loan consultancy sites,  then you are looking at the  right article. Home loan consultancy sites can be really helpful if you are thinking about taking a mortgage in some critical stage of your life.

Working procedures of online home loan consultancy in Singapore:

1. What do mortgage consultants do? 

Home loan consultants work by providing the requirements and information about the home loan packages offered by different banks in the country. They act like a medium between you and the financial institution which will provide your home loan.

In the beginning, they will take your overall details and assess  your financial profile to suggest the most suitable home loan as they are knowledgeable  about all the different Singapore home loans available. 

Home loan consultants provide this free service as they are paid a percentage of the loan amount from the bank itself.

The banks in Singapore maintain this relationship with home loan consultants because they get to save on sales staff.

2. Different online home loan packages

Some of the home loan consultancy sites offer you different comparison tools to compare the home loan packages from different banks , or the same bank. I have a great exemplary site which can provide you this service apart from the usual mortgage advisory services.

The home loan comparison system at iCompareLoan.com perform that in 4 easy steps only. Before that, you need to provide some important information such as:

• Quantum
• Duration
• Type (fixed or floating rate)

Based on this information, the system will display you the available home loans.

The whole process is illustrated in figure 1 and figure 2 as follows:

Figure 1: Step 1 of Loan Comparison System

Source: www.iCompareLoan.com/new_loan

Figure 2: Step 4 of Loan Comparison System

Source: www.iCompareLoan.com/new_loan

3. Desired reports for your home loan

A home loan report shows  the comparative information about the different Singapore home loans formalities and requirements for different banks of Singapore. These reports are provided by a few home loan consultancy sites like iCompareLoan.com , which offers a loan analysis system. This service is almost free or given for a small fee and it is the most advanced in Singapore. This analytical system can generate very helpful reports by comparing many  home loan packages. In these reports there are included various information such as interest cost savings from refinancing or new loans, building-under-construction loans, amortization tables, and so on.

You can see the log-in page in Figure 3:

Figure 3:  Loan Analysis System

Source: www.iCompareLoan.com/consultant/




Benefits of home loan consultancy sites:

1. Save time and effort

How can home loan consultancy sites make life different for you?  The answer is that they can save you valuable time and effort. In Singapore  there are over 16 banks that can provide a mortgage. Together they have almost 50 types of loan packages to offer. Now, if you are thinking about inquiring each and every home loan package then you have to visit each bank website. But, more often than, you will not be able to find the most basic information about the loan on these sites. Not even the interest rates or the lock-in period.

Rather these sites will direct you to their bank officers for further details ; thus you have to speak with over 10 officers to find the most suitable mortgage. In this case, home loan consultancy sites can help you sift through all the packages and compare their features in easy-to-read tables.

Through the free DIY loan comparison tools, provided by consultancy sites as well as by iCompareloan.com , you can generate tables comparing the main features of various loan packages. This can be achieved with only a few simple steps saving you plenty of  time and effort.

For more comprehensive advice you can contact the mortgage consultants as the loan packages and their features can change ever so often.

For a borrower it can be difficult to be constantly aware of all the changes. A mortgage consultant, on the hand, is well aware of all the changes as it is his job.   

2. Unbiased loan advice

Before you decide to take a mortgage from any bank you need unbiased advice about the offers of different banks. This information can only be provided by mortgage consultants as they are not beholden to any single bank. On the other hand, if you seek  advice from a  bank officer he will try to convince you about the merits of the loans offered by his bank.  He  also cannot provide you with information about other banks' loans.
So, the best advisors are the mortgage consultants who know enough to provide information.

3. Extra assistance

Home loan consultants not only can provide you with information about the various different loans, but they can even assist to make an application for your desired mortgage. They are happy to assist you in putting in order the required documents for the loan application. As the paperwork can take up a lot of time so your loan application can be delayed too.

When the loan amount is over $2 million, mortgage consultants can even negotiate a good interest rate during the approval process.

About Property Buyer
http://www.PropertyBuyer.com.sg/mortgage
We are a research-focused Singapore mortgage consultancy which helps you compare Singapore home loans either for new loans or refinancing. We use loan reports from Singapore's best loan analysis system (exclusive to us) at http://www.icompareloan.com/consultant/ to serve our customers.
Our services are completely FREE to you as the banks pay us a referral fee upon loan disbursement.
SMS: (65) 9782 8606
Email: loans@PropertyBuyer.com.sg

Join us at Facebook:
www.facebook.com/iCompareLoans
www.facebook.com/SGpropertyBuyer
www.facebook.com/sghomeloan

Simply Bread Breakfast

Breakfast was at Simply Bread again.  It was a rather relaxing day with little appointments to keep up with so there was time for a nice and slow meal.  Tucked away between 5th Avenue and 6th Avenue, the location is perfect.  Not too far flung yet secluded enough and away from the crowds. A respite from your usual shopping malls.

The crowd is a mixture of Caucasians and Singaporeans (or Asians).  Everybody seems to be ordering 2 Eggs but that is not what I ordered.  French Toast with Ham Steaks is on my mind.

Their french toast is not your typical thin sliced bread soaked in egg mixture.  It is something I haven't tried elsewhere.

The ham steaks are as always - GOOD.  Comfort food at its best.  Thick slices of honey baked ham with some honey drizzled over it.  Well, that set me back by ten dollars and cents thirty-five (GST not included).  But whose counting?

And the meal was made complete with the usual cup of coffee and milk.  =)