Have you heard of Lusha? Lusha, a Moscow resident, put together a stock portfolio that beat 94% of all of Russia’s mutual fund managers. That’s an impressive feat for anybody and in the investing world, when you’re successful everybody wants to know how you did it. Lusha is certainly the Russian equivalent of an Ivy League educated financial graduate who has worked for all of the biggest investment firms in the world. She was probably hand picked to be the next greatest investor and making big money with each of her equally brilliant stock picks.

Would you be surprised to know that Lusha has no formal investment training? Lusha has never been to college and knows nothing about investing. Lusha is a chimpanzee who makes a living riding a scooter in a Russian circus yet she beat 94% of Russia’s brightest investing minds. All she did was pick six random stocks from a list.

Is investing really that easy? Anybody who has been in the market for any period of time knows that making money in the stock market is far from easy but that might be because they don’t follow some basic, time tested rules.

Hold On

There are two types of investors: traders and investors. Investors understand that true wealth comes with time. Numerous studies have found that beating the market is an impossible task for anything more than a short term win. The only way to truly make money over the long term is to stay invested. Hold on to your stocks and let them appreciate in value over time.

The second type of player in the market is the trader. Traders are becoming the new normal in stock exchanges around the world and financial television would have you believe that the only way to make money is to make short term trades where profits are realized quickly. It might be more thrilling but for most, it isn’t profitable over the multi decade timeframe that people need to build wealth.

Diversity

Every investor has seen a big win from time to time. A stock suddenly rises 10% or 20% in one day giving the impression that more money should be poured in to that stock or sector. A professional golfer doesn’t practice for holes in one. They know that those events are more a function of good luck than skill. Instead, golfers practice skills that will put them in the best position to maximize success. Getting it close to the hole is more important than trying to land the hole in one.

Investing is the same way. When you don’t diversify your portfolio, you’re trying to land the hole in one. Spreading your money across asset classes, specific stocks and even different investment products puts you in the best position to see those steady gains. You’ll certainly have those days when a stock is up 10% but you’ll have equal amount of days where a stock is down the same amount.

Dividends

The stock market doesn’t give you much for free but dividends are the closest thing to free money. Although dividends aren’t completely safe, they tend to be much less volatile than growth stocks. If you could almost guarantee that you would receive a 6% return this year just from holding on to the stock, wouldn’t that be more attractive than holding a non dividend paying stock that might see an 8% gain?

If you’re looking to make a lot of money in the stock market, you have a much better chance of doing it with dividends than you do with growth stocks. If your money is going to be tied up, get paid for that. Limit the amount of growth stocks in your portfolio. Diversify your growth stocks with dividend stocks.

Do Your Research

Lusha didn’t have to do any research but she didn’t pick stocks that she expected to hold for many years. If the experiment would have gone on much longer, Lusha’s performance would probably end up the same or slightly lower than the 94% of people she beat. Random stock picking doesn’t work. You have to know what you own and why you own it. There might come a time where you have to sell the stock based on your research.

Finally

Don’t fall in to the trap of, “things are different now.” The markets still rewards the patient and punish the greedy. If you want to gamble, play the slot machines but if you want to make money over time, the stock market is the place for your money.

photo credit: etsy

This is another post from Credit Card Compare Blog - The Credit Letter, a creative personal finance blog where we love to share money saving tips and credit card reviews to optimise your wallet!

With so many credit cards out there, you can be left overwhelmed and confused with no idea which one would be best for you. It obviously helps if you know what you’re looking for so that’s what we want to help you to do, in this case specifically in the area of finding the best balance transfer deal.

What is a Balance Transfer Card?

A balance transfer card allows you to transfer a balance (or debt) from another place over to it and usually offers you a good interest rate for an introductory period on the balance transferred. The benefit of this is that if you’ve got an outstanding balance on a high interest rate card and are paying a fortune in interest, you can get a break and make some headway by enjoying a 0% or low interest rate for a period of time once you’ve transferred the balance. Of course there are different balance transfer rates and periods so not every card is as good as the next.

How do You Choose a Good One?

With so many different cards offering a balance transfer facility, it can be tricky and time consuming to settle on one. Here are some tips to help narrow down the field.

Your Balance

The main issue in picking a balance transfer card that suits you is the size of the balance you’re going to transfer and how fast you can pay it off. If you’ve got a small debt and can pay it off in 3 months for example, then a 0% balance transfer offer for a period of 3 months will suit you well. You’ll pay nothing on interest, every penny will go toward getting your debt down and you’ll be done by the time the 3 months is up.

If you’ve got a much larger balance and it will take you say, a year or more to pay off, a 0% balance transfer rate for 3 months won’t do you much good at all because you’ll then revert back to a high interest rate, which will make it difficult to continue to make headway. In this case, you’d be better off with a low balance transfer rate for 12 months giving you a reasonably low rate (much better than 20%!) for a longer period. This will minimise the amount of interest you pay on that debt and give you the extra time you need to pay it off.

So the first thing you need to do is figure out what sort of figures and time frames will work best for the balance you’re wanting to transfer. Find some cards that offer what you’re looking for and then hone in on the comparison from there.

Choosing a Credit Card

Another important factor to consider as you choose your card is what kind of credit card user you are. Are you a debtor, always carrying your balance over and usually just making minimum repayments and paying the interest, a transactor, or a frequent flyer who is a stickler for paying off your balance each month to avoid the interest? The way you use your credit card will need to play a big part in the choice of credit card you make.

If you’re a debtor, you’ll want a card with the lowest ongoing purchase rate possible, if you’re a transactor, you can get away with a higher interest rate card that may have other features you can benefit from, such as a rewards program. A suggestion we would make here is this: If you’re a debtor, become a transactor! You will save yourself and thank yourself in the long run!

Other Features

So by now you’ve determined what kind of balance transfer rate and period you’re looking for and what kind of credit card user you are (and therefore what kinds of interest rates would be sensible to go with).

Next you want to look at things like:

• Annual fees
• Interest free days
• CANNEX Star ratings or equivalent ratings
• Rewards/frequent flyer programs
• Extra features like 24 hour emergency services, insurances, additional cardholders, etc.
• Maximum credit limit
• Credit card provider

Again, what you’re looking for will be determined by you, your spending habits, your preferences and your lifestyle.

Annual Fees

In terms of annual fees, you always want to make sure that they’re worth your while in that you’ll get more than what you pay in fees out of the card. Otherwise the fee negates the purpose of having the card and costs you rather than helps you.

Interest Free Days

In terms of interest free days, you’ll need to be aware of what suits you and make sure your card caters for what you need (longer or shorter interest free period). If you’re organised, spending within your means, on top of repayments etc. (a transactor), the shorter period could well be fine for you.

CANNEX Star or Equivalent Ratings

CANSTAR CANNEX star ratings are a consumer-friendly benchmark that help you compare financial products based on their rates and features. CANSTAR evaluate literally thousands of products from hundreds of finance institutions using a sophisticated ratings methodology, which is under constant review by their financial analysts to ensure its accuracy and validity in the current market. This is a good way to get a feel for what the experts think of the card you’re considering.

Rewards Programs

In terms of rewards programs, you’ll want to ask yourself whether you actually need it or can benefit from it. Keep in mind that to benefit from a rewards program you usually need to spend a lot. If you’re a small spender, you probably won’t earn enough points to really get you much. Always read the terms and conditions of the rewards program. Check if it’s free, what the points earn rate is, what the real value of a point is, whether points are capped or expire, what you can redeem points for, etc. Don’t sign up for a card with a rewards program unless you’ve done the maths and actually know you’ll get something decent out of it.

Extra Features

A lot of extra features like 24 hour concierge services, insurances, additional cardholders at no extra cost are only available on higher level cards. Again you need to evaluate what your income, spending and needs are and what you will benefit most from. There’s no point having extra features you can’t realistically benefit from!

Maximum Credit Limit

What is the maximum credit limit you can get? Does it suit your needs? Remember higher is not always better, especially if you can’t control your spending. Limits are set in place to protect you from spending more that you’re able to repay. Just make sure your credit limit meets your needs and spending (and ability to repay).

Credit Card Provider

You want to choose a card from a reputable, accessible provider with good customer service. Look up some reviews online. Don’t just pick the bank you’re with but be open to great deals with other providers that might even be better than what your bank has to offer. Remember, not all the banks are equal – some banks are better at balance transfers.

Putting it All Together…

So by now you’re getting a bit of a profile together of the type of card that would best suit you and you’re thereby narrowing your search. You’ve now got the data to select the options you want.

We’ve got two tools that can help you narrow your search from here. The first is our search tool, which you’ll find on the left hand side of the home page and any category page. Enter in what you’re after and we’ll bring up the cards that best match your search. It’s then your turn to browse and look at the finer details of each card to pick the card with the best balance transfer deal and overall benefits for you! Secondly, if there’s a card you really like you can always pop it into Beat My Card, a unique tool to help you find the card that will save you the most money based on your spending profile.

For an even more in depth advice, visit the Credit Card Compare Learning Centre where you’ll find our mammoth balance transfer guide.

Remember to prioritise the features that you’re looking for. In this case a good balance transfer deal that suits your needs is number one. Keep in mind that you can’t usually transfer a balance from one card to another within the same bank and that missed or late payments may cause you to lose that great balance transfer deal you worked so hard to get!

Happy hunting and we hope you find a great balance transfer card that will help you get your debt down fast! Debt free is where you want to be!

An Updated Selection of the Top Balance Transfer Deals

	Credit Card Offer	Purchase Rate (p.a.)	Balance Transfer (p.a.)		Annual Fee	Apply now
			rate	period
	St.George Vertigo MasterCard Low interest rate & long balance transfer deal. Fast 60 sec approval.	13.24%	0.99%	12 months	$55	Featured Card more info
	ANZ Platinum Credit Card Overseas travel insurance & domestic flight inconvenience insurance. No annual fee for first year.	0%	0%	6 months	$0	Editor’s Choice more info
	CUA Platinum MasterCard Credit Card Earn shopping rewards points as you spend.	20.24%	0%	9 months	$89	Editor’s Choice more info

This is another post from Credit Card Compare Blog - The Credit Letter, a creative personal finance blog where we love to share money saving tips and credit card reviews to optimise your wallet!

While shopping with your credit card is usually perfectly secure, there is cause for concern in this age of fraud, phishing and identity theft. There are precautions that you really should take with your credit card to protect yourself from falling victim to fraud. Just a few simple tips can help you to stay safe and be more confident when it comes to the security of your cards. Check them out!

Protect Your Personal Identification Number (PIN)

You should memorise your PIN and then destroy anything that it was written on. Don’t keep it in your wallet or purse as a reminder and never tell anyone what it is, including friends and family members. When entering your PIN into any electronic terminal, ATM or otherwise, don’t enter it where someone else could possibly watch. You may feel silly doing it, but shielding your hand while you enter your PIN at a busy ATM or restaurant could save you a lot of hassle.

Sign it, Immediately!

After receiving your credit card, sign the signature strip on the back right away. It’s tempting not to, especially with chip and PIN technology becoming more common, but not signing your card makes it so easy for a thief to forge your signature and make off with your cash! It’s probably best to not allow anyone else to use your credit card, even if you think they are trustworthy.

Shop Carefully Online

You should deal only with sites that you know are reputable. Anyone can create a website, so you should be absolutely sure that a site is legitimate before doing business with it. If you are unsure, request information about the company. Also ask about its refund and returns policies. When shopping online, look for the little padlock symbol at the bottom of your browser window. If it is there, it means that the site you are on is encrypted, which makes it harder for another person to intercept any information that you send over the internet from that page.

When shopping online, don’t respond to high pressure tactics when a site may try to entice or force you to give them the details of your credit card right away – a tactic often linked to fraudulent practices. Never provide your credit card information – or any sensitive information, for that matter – via email, which is not secure and can be read very easily by others. You shouldn’t trust a company that asks you to pay via email.

Legitimacy Matters

Never give the details of your credit card out to anyone unless you are absolutely sure that they are legitimate. This goes for phone calls or emails from people claiming to be from your credit card company or bank.

One very common scam is perpetrated by requesting for details to be updated via email. These emails are designed to look like they are from a bank that you do real business with, requesting that you update your banking details or submit your credit card information in the name of a security update. This kind of email often includes a link and asks you to click on that link to enter your information. The website that you are led to is not associated with your bank or credit card provider and is owned by a fraudulent person who will receive any information and personal details that you enter, which they will use to make charges to your card. Don’t respond to this type of email and never follow links included in them. If you have any doubts, contact your credit card company or bank and report the fraudulent activity.

Keep a Close Eye on Your Credit Card

When you are paying for things at, for example, a shop or restaurant, keep your card in sight at all times, especially if you are travelling overseas. When signing for a purchase, double check the amount that has been charged to make sure that your card was not scanned more than once.

Double Check Your Statement Online

By regularly checking your balance online or over the phone and carefully reviewing your monthly statement, you can catch problems quickly. If you find any transactions that seem suspicious at all, call your bank immediately.

Keep Your Receipts

Whether you are shopping online or in shop, be sure to get a record of the transaction. Just as you can get a receipt from a shop, you should print out a receipt when you purchase anything online. By having these records, you make it easier to check your purchases against your credit card statement.

Store Your Credit Card Safely

Don’t bend it and keep it separate from magnetised objects (such as a workplace security pass), or it could be deactivated inadvertently.

Destroying Your Expired Card

When your credit card expires, cut it up with scissors or put it through a shredder so that it is properly destroyed. Make sure you permanently destroy any chip that may be embedded in the card and when you throw it out, ideally put the remnants into separate bins.

This is another post from Credit Card Compare Blog - The Credit Letter, a creative personal finance blog where we love to share money saving tips and credit card reviews to optimise your wallet!

It can happen to anyone! You’ve been out shopping and swiped your card at the checkout only to be told that unfortunately your credit card has been declined. Immediately you are embarrassed. Recollections of previous spending sprees may come to mind along with the realisation that up until now you’ve only been making the minimum monthly payment. So when you reach your credit card’s credit limit, what can you do? Here’s some helpful tips if you’ve found yourself in this awkward position.

1. Stop Spending!

What’s the easiest fix when you’re in this situation? Stop spending! That’s right, lock your cards up somewhere cold and dark so that they won’t see the light of day for a long time. If your credit limit has been maxed out on one card, it may be tempting to simply whip out another card that you have lying around and start racking up the debt on it. This is to be avoided as you will only get yourself into an ever deeper hole, one that gets more difficult to get out of with each additional purchase. So if you’ve got a card with a credit limit that’s been maxed out, take it as a signal to stop spending!

2. Start Paying Back Debts

Paying back your debt is every bit as important as curbing your spending. Now is the time to implement that budget you know you should have done years ago. Now is the time to stop buying rubbish with your card and start to get rid of the debt.

Work out what your fixed payments are each month (car loan, home loan/rent, utilities) and allocate a budget to cover them. Then estimate how much you’ll need for the necessities of life (food, fuel) and set aside money for that. You’ll also want to start saving some money and build up an emergency fund so that when that rainy day comes, and it inevitably will, you won’t have to use your card to meet the unexpected expense of fixing your car or paying to have a plumber sort out your burst pipes. Once you have those covered, you’ll hopefully have some cash to spare. You could use that money to treat yourself, but in a situation such as this that would be ill-advised. Instead you should use any free money to pay off your credit card debt as fast as you can. If you don’t feel up to it, and you should, then check out this post about getting into the right frame of mind for getting out of debt.

Apart from not having the stress of being in debt, paying back your debt will mean that your ratio of debt:income is improved, making you look like less of a risk for the bank – yet another reason to get rid of your debts!

3. Asking for a Credit Limit Increase

Ideally you shouldn’t just capitulate and ask the bank for an increase, but it is a (poor and unwise) option when you can’t actually really afford it. Asking the bank to increase your credit limit is something that you should try and avoid for the simple reason that you would only be giving yourself more rope to hang on. You’ve been warned!

4. Transfer Your Balance to a New Card

One of the best options open to you is to apply for a balance transfer credit card and transfer your balance to a different card so you pay less interest. There are various high credit limit balance transfer cards available that should be capable of accommodating all or most of your debt, allowing you to save hundreds of dollars in interest alone each month while the introductory period lasts.

If you do decide to consolidate your debts onto a single balance transfer card, resist the urge to spend. In most cases the introductory rate only applies to the balance transferred, so any new purchases will be as expensive on your new card as on your existing card.

5. Above All, Act Now!

As is the case with so many financial decisions, the worst thing you can do is to bury your head in the sand and do nothing. If you’ve maxed out your card, now is the time to take action because if you can curb frivolous spending and get your debts under control, you can wave goodbye to this problem fairly quickly!

This is another post from Credit Card Compare Blog - The Credit Letter, a creative personal finance blog where we love to share money saving tips and credit card reviews to optimise your wallet!

How Long?

Two weeks is the typical processing time for a balance transfer. This is the time it takes between the bank receiving your application and the balance (or balances) being moved onto your new credit card.

A Look at the Process

The balance transfer is a straightforward process that is relatively uncomplicated. The whole process goes like this:

1. Filling in the form – After choosing what card you’d like to apply for, and ensuring that you meet the bank’s criteria, you can start filling in the application for. This normally takes only a matter of minutes.
2. Receive a decision – Some banks will give you an instant decision on whether or not you have been approved. Be aware that this is a preliminary approval, so the bank may ask you to provide additional details.
3. Providing evidence – Some banks may require you to call in with a local branch so that you can prove your identity. Occasionally you may be asked to hand in your payslips in order to prove your income is as was stated on your application. The bank may also check your credit file for any evidence of late payments and other signs of your credit worthiness.
4. Application is processed – If you have applied for a balance transfer, the bank will pay off your existing balance and move it to your new card and begin charging interest on it at the introductory balance transfer rate.

How to Speed up the Balance Transfer

The single easiest way to speed up the balance transfer process is to file your application online. Some cards will give you a decision within 60 seconds, which is much faster than filling in a form by hand, mailing it to the bank and then waiting for them to contact you with their decision.

Top Balance Transfer Offers

	Credit Card Offer	Purchase Rate (p.a.)	Balance Transfer (p.a.)		Annual Fee	Apply now
			rate	period
	St.George Vertigo MasterCard Low interest rate & long balance transfer deal. Fast 60 sec approval.	13.24%	0.99%	12 months	$55	Featured Card more info
	ANZ Platinum Credit Card Overseas travel insurance & domestic flight inconvenience insurance. No annual fee for first year.	0%	0%	6 months	$0	Editor’s Choice more info
	CUA Platinum MasterCard Credit Card Earn shopping rewards points as you spend.	20.24%	0%	9 months	$89	Editor’s Choice more info

This is another post from Credit Card Compare Blog - The Credit Letter, a creative personal finance blog where we love to share money saving tips and credit card reviews to optimise your wallet!

It’s well known that the banks are very strict in how they analyse a credit card application, especially after the ruination of the global financial crisis. However, applying for a new credit card doesn’t have to be a stab in the dark. If you can take care of some basic things, it is possible to improve your application and boost your chances of instant approval.

The Difference Between Conditionally Approved and Approved

There are credit cards with instant approval whereby the bank will give you a decision within 60 seconds. So does this mean that your application has been approved and your card is in the post already? No, that’s no the case. If you get an instant decision, that generally means the bank has conditionally approved you pending proof of your income and existing outlay. Keep this in mind when applying.

1. Sweat the Details

An application for a credit card is all about getting the details correct, nothing less will do. During the application you’ll be asked for details such as your home or business address, state of employment (self-employed, employed), salary, existing outstanding debts and your monthly expenses.

It’s really important that you get these details correct because the bank will ask for supporting evidence such as payslips and bank accounts. If there’s a difference between what you’ve said you earn, for example, and what your payslips say, then your application could be declined.

2. Check and Improve Your Credit Rating

The banks use the credit scoring system to determine your credit worthiness. It’s a large part of the whole application process. Your credit score is worked out on previous and existing lines of credit such as your monthly mobile phone contract, mortgage and car loan. This allows the bank to see how much debt you currently have, as well as your payment history. If you have fallen behind on any of your repayments, it will show up and the bank may decline your application.

However, errors do happen. You can check your credit rating to make sure that the debts listed are yours and that the address on file matches yours. If you spot any mistakes you can contact the credit rating agency and request to have them corrected.

3. Get Your Details Together

As well as filling in the form accurately, you also need to make sure that you include all the details that you can. If you fail to tell the bank about a large outstanding loan, the bank will see it on your credit file and think you’re trying to hide something from them. Get your details together in one place, then start to fill in your application.

4. Apply for a Suitable Card

There’s no point applying for a prestigious credit card (like the Citibank Select) If you are are on an average income. In a situation like this, you’d be much better to apply for a credit card for average earners. So when you’re choosing what to apply for, check what the bank’s requirements are (available on our site) and make sure you fit the bill.

5. Don’t Apply for Lots of Cards in Quick Succession

One of the easiest mistakes to make is to apply for multiple cards within a short period of time. The problem with this is that it not only looks bad to the banks, but it can also damage your credit score, which means you can get trapped in a circle of declined applications, further damaging your credit score and making it even more difficult to be approved in the future.

Image: kenteegardin

This is another post from Credit Card Compare Blog - The Credit Letter, a creative personal finance blog where we love to share money saving tips and credit card reviews to optimise your wallet!