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Is a 24.99% APR high for a first credit card?

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In modern times, it is undeniable that credit cards have emerged as the most widely used payment method amongst the cashless payment options. The primary and most important feature of credit cards is that they provide the customers with the lucrative opportunity of using the banks’ funds for their own expenses, and then allows them to pay it back after a certain time period. 

However, if all of it is really this good, then why do people fret when it comes to applying for their first credit card? A major factor behind this initial indecisiveness is the different charges and interests that come with the card. 

One of these is the APR or the Annual Percentage Rate that needs to be paid when one does not pay back the bank within the billing period. When the bank allows you to spend a certain amount of money, they also expect you to pay it back within a certain period. On failing to do so, you are charged with an Annual Percentage Rate. 

This might lead to questions like “how does the APR work?”, “what are the usually charged rates?”, and “is 24.99% APR good for a credit card?”. Here is a brief guide to help you answer all these questions.

How does Annual Percentage Rate work?

When we say the customers are allowed to use the bank’s money for personal expenses, it does not imply that they can borrow as much as they want. Each customer is allotted a certain credit limit based on their assets, credit score etc. 

This is a cash limit in credit cards that fixes the maximum amount of money that can be paid through the card. Now, each card has a fixed billing period, and the money spent through the card is to be returned to the bank by the customer at the end of each billing cycle.

 If the customer fails to pay back the owed money within the due date, then the overdue sum is carried forward, and the interest charged on it annually is the APR or the Annual Percentage Rate. It can be also looked at as a form of a penalty fee that’s charged because your initial billing period was extended.

Standard APR Ranges

As the APR pertains to the amount that would eventually be paid by defaulting customers, it is always advisable to check it before applying for a credit card. So, if someone is charged 24.99% interest (something that’s common in many banks), one is bound to question — is 24.99% APR good for a credit card? The answer to this all-important question lies in the word “Annual”.

 It is to be noted that 24.99% is the annual rate that gets divided over 12 months, so the monthly rate comes down to a little over 2%. To put it simply, if your card charges an APR of 24.99%, then you pay an interest of a little over 2% for every month when you fail to pay your bill.

 However, an interest rate of 24.99% is considered a little high for first-time credit cardholders, as the average interest rate is considered to be approximately 19%.

There are pros and cons attached to both high and low APR cards.

 The primary difference between them is that one needs a substantially better credit score (around 700) to qualify for a low APR card. However, the cards charging higher interest rates do come with better rewards and complimentary privileges.

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Business

How are the Cardboard File Holders Beneficent for Your Businesses?

Everyone wants to manage their files and magazines systematically. To reduce the daily work routine stress, the cardboard file holders are an ideal option for holding all the paper stuff together at one specific place.

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How are the Cardboard File Holders Beneficent for Your Businesses

Everyone wants to manage their files and magazines systematically. To reduce the daily work routine stress, the cardboard file holders are an ideal option for holding all the paper stuff together at one specific place.

The file holder is perfect for storing documents, files, booklets, and more. It comes in a wide range of different colors for the holder design. It’s collapsible for easy use.

The wholesale cardboard file holders are highly efficient & valuable for office and home use to keep your document safe and presentable. There are a lot of benefits or services of the magazine holders. Some of them are listed below:

  1. Classic-styled Storage

The material of the Kraft paper design of the magazine holder gives the file holders a rustic yet great professional look. Thus, it becomes classic-styled storage for the documents, magazines, and papers being beneficial for assembling your daily work task documents placed ahead.

  1. Durable Design

The 120g corrugated cardboard, mainly used for cardboard file holders, is made to hold up and maintain your files and is thus very biodegradable. The durable construction of the cardboard file holders is ideal to use.

  1. Made from Corrugated Cardboard

The materials chosen for the file holders or magazine holders are made very secure and efficient for use, keeping in mind the customer’s or users’ requirements. These corrugated cardboard file holders are firm and sturdy and can withhold the shipping and traveling pressure that retains the shape of the holder without destroying it.

    

  1. Ideal for Open Frame Shelving

The cardboard magazine holders, specifically designed for an aesthetic appeal, are great for open frame shelving; the papers get not only secured but in place and handy when needed.

 

  1. Suitable for A4 and Foolscap Files

The cardboard file holders are primarily suitable for the A4 and foolscap files, maintaining a protective and great layout. The files of such sizes are mainly ideal and adaptive for keeping them intact to the holder.

  • It is designed for the storage of magazines, A4 files. 
  • It is foldable so that you can easily store it when not in use. 
  1. Easy to Assemble

The file holders are easy to assemble and maintain documents as it provides ease of access and reduces daily work hassle, hence being efficient and usable.

The cardboard file holder stores and organizes all of your materials intact and organized. The holder contains the log files, folders, project folders, and user’s manuals. It is available online in several different colors, all packed in, and it is perfect for general storage in a classroom or on the teacher’s desk. 

Got more Questions?

Or want to get the cardboard holders for your businesses as well? Move out to the Boxes Xpert Hub; they’ve got some excellent packaging stuff that can prove to be very useful and can help in marketing your brand.

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Business

Why Franchising is the future of all Business?

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Why Franchising is the future of all Business

The basic idea behind the franchise is setting up an individual business, and upon success, it expands on different locations. A franchise system is introduced in the 19 century and is no new to us. In fact, according to the recent market reports, the franchise system of doing Business is multiplying day by day. The majority of the individual business owners are also looking for franchise partnerships, proving that Franchises are the future of all global businesses. 

1. The fact can’t be denied that the starting of any business requires a tremendous amount of capital. If you opt for working with an international franchise, then the initial investment will undoubtedly less. You could use the spare money somewhere else.

2. In a franchise, multiple owners work together. The most significant advantage of that is creativity. Since more and more people get involved in the process and hence better ideas

3. You don’t have to worry much about earning customers’ trust in a franchise because you are already working with a big brand; you have loyal customers for years. 

4. Working under an influential name will give your speedy business growth, hence fewer chances of business collapse, and basically, you have any as such business liabilities. 

5. Advertisements and brand promotions come to you very quickly. 

6. The tricky part is the legalization. When a franchisor hires the partners, they sign a contract called a franchise agreement, where they mention the franchise’s rules and regulations. The best time to see the franchise contract review is to pay any fee or sign the new agreement contract. 

7. You are your boss. You have ample room for showing your creativity, and with the title comes the responsibility. You have the responsibility of managing the store and handling the staff.

8. When problems arise, the franchisee is given a technical team and an expert, hence better decision-making power. Individual business owners lack this sort of facilities. 

9. The international franchises will give great exposure in the market as the franchise’s principal assets are the brand value.  

Like every other Business, minor problems arise in the franchise business, for example.

Many big brands running successfully for years resist any change in their Business, like changing their menu from physical menu cards to digital menus, not leaving the cash registrar, and more. 

1.Dealing with a bossy franchisor is very tough, as they resist your ideas, and you are left with very little space for creativity. 

2. Even though policies are identical for a brand, you must be aware of the hidden fraud before signing the contract. 

3. Apart from these, the list of pros of franchises goes on, and so these problems should be neglected in front of them. 

Conclusion:

The franchise industry is on continuous heat. The owners are making an intelligent move by accepting more and more changes in technology, business model, working type, etc. The franchise system makes the Business build more robust, sustainable, and easy to run, making it a preferred choice among the young individual businessman. 

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Business

How to Professionally and Mindfully Fire a Problem Client

To tactfully fire a client, instead of lying, come up with a proper plan that involves preparing an excuse, outlining the specifics and having that difficult conversation

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How to Professionally and Mindfully Fire a Problem Client

Whether you’re an entrepreneur, freelancer, or the CEO of a company, firing a problematic client is not easy.

Some clear signs make it evident that the client you are working with is challenging and not worth the stress. Broken communication, unrealistic demands, late payments, and lack of professionalism/boundaries are some of the telltale signs.

Ending the relationship that too on a positive note is challenging just like it’s challenging to pick the right performance appraisal methods for your organization. Have no fear, check this no-fuss guide to fire a problem client:

The Don’ts to Keep in Mind

Here’s what you are NOT supposed to do:

  • Even though it’s the client’s fault, don’t blame them explicitly. Instead, push the blame somewhere else.
  • Never fire them without completing their project. If you can’t do that, at least give them handouts on how to complete the task. You can also train your replacement.
  • Don’t get into discussions about your decision. You owe no unnecessary explanation.
  • Don’t fire them over text or email. It’s best to meet them in person or have a video call.

Tips To Fire a Client the Professional Way

Now let’s have a look at the actual steps to let go of a problematic client: 

Know When It’s Time to Move On

Sometimes, you can’t fire a problematic client even if you badly want to. It happens so when they are your only high-paying client. But if you can financially survive without a problematic client, it’s a good idea to move.

Signs you should let them go include unanswered messages. Walking up in the middle of the night fretting about the client. All of this could be affecting your mental health.

Don’t drown yourself in the worry about how you would replace the income if that client is lost. If you are finding yourself bitching about the situation with your friends or family, it’s time to let them go. Life is too short to work with people who stress you out. Part ways with them and start your hunt to find better-paying clients.

Prepare the Excuse

Okay, the next big task is to prepare the excuse. Some people just don’t leave you that easily. They may try to negotiate. Since you have made up your mind, you need to give a solid reason.

Here are some examples:

  • We are increasing our fee
  • We are experiencing a conflict of interest with another client
  • We are taking a new strategic direction.

Do It Mindfully

Never let go of a client from a place of anger. You may have frustrations but voicing them emotionally doesn’t always help. Some clients are just not ready to hear the points you are trying to make. It’s best not to point the finger. Just say that you have got to move on.

You would have to develop some thick skin when having that “you are fired” conversation. Remember one thing, it’s not your job to teach a client how to treat others better. The only thing you can do is set boundaries around how you allow others to treat you!

Professionally, you must give notice a month in advance. Firing a client mindfully is also about finding a better work balance. Don’t bring emotions into the client’s conversation. Keep things professional.

Suggest Your Replacement

You can always recommend another freelancer or business to take over. This isn’t mandatory but there is no harm in helping a client look for another agency even if they frustrate you.

Outline the Specifics

Make sure you provide some details before leaving. Such as:

  • The date you would be officially done
  • What pending work are you most likely to finish?
  • What work you won’t finish?
  • Your expectations in terms of the final payment

Have these in written and send them over via email after having a phone call or a meet-up just to make sure everyone’s on the same page. Writing a formal client termination letter is important just so you have proof that this conversation occurred. Although you might never need it, it’s smart to have everything documented.

You are now ready to have the conversation.

Prepare to Answer Some Questions

Much like a real-life breakup, client and agency breakup is never simpler like “thanks for letting us know. Wish you all the best.”  After receiving a thoughtful message from you, the client might ask some questions. You need to be prepared to answer them promptly.

What if the client is aggressive and they request you to stick around? In that case, you this script:

“Thanks for your feedback but our decision is final. As mentioned earlier, here is a list of what to expect….”

Learn and Improve

Parting ways can be cringe-worthy but enlightening at the same time. There must be some valuable lessons you can extract from it.

It’s not always easy to identify problematic or high-maintenance clients right from the first conversation. However, it is worth figuring out if there are any takeaways from this experience. Perhaps, it may have made you realize that you are better off working with small businesses.

Hold onto this valuable information, improve the business process, keep growing and learning.

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