by Susheel Rao | Jun 21, 2023 | Culture & Money
A bank will issue a credit card, which is a payment card that allows the cardholder to borrow money to make purchases or pay for services. It lets people do business without cash and gives them an easy way to buy things online, in shops, or over the phone. Credit card security is critical because it may protect you from identity theft, fraud, and financial loss. If your credit card is lost or stolen, someone else may use it to make unauthorized transactions, harming your credit score and leaving you responsible for the costs.
Tips for Your Credit Card security:
Monitor your account:
Check your credit card statements on a frequent basis to ensure that no fraudulent transactions or unauthorized activity have occurred.
Keep your credit card secure:
Always store your credit card in a secure location, such as a wallet or handbag. Do not Leave it unattended or conspicuous in public places.
Memorize your personal identification number (PIN):
If your card includes a PIN, memorize it rather than writing it down. Do not reveal your PIN to anyone.
Protect your card details:
Be cautious while disclosing your credit card information. Don’t give your card number, expiration date, or CVV (Card Verification Value) to people or businesses you don’t know or trust.
Be aware of online transactions:
Before making an online purchase, make sure the website is safe. Examine the URL for “https://” and a padlock icon in the browser bar.
Be alert of phishing scams:
Be skeptical of emails, phone calls, or text messages that solicit your credit card information. Legitimate organizations will never ask for your credit card information by email or phone.
Use secure networks:
Use secure, password-protected networks while making online purchases or accessing sensitive information. Avoid using public Wi-Fi networks since they can be easily hacked.
Avoid using public Wi-Fi networks:
Do not use public networks to make purchases or access your accounts. These networks are generally not secure and can be vulnerable to hackers and cybercriminals.
Many credit card companies send transaction alerts via email or text message. Enabling these alerts will notify you of any unexpected activity on your card.
Shred sensitive papers:
Shred old credit card statements, receipts, and other documents that include your card information. This keeps criminals from gaining access to your personal information.
Make sure your credit card company has your most recent contact information. If they identify unusual behavior on your account, they will be able to contact you swiftly.
Don’t bring more cards than you need:
Leaving cards at home that you don’t need will reduce the chance of fraud or theft. Owning multiple credit cards is a tricky subject. It has got it pros and cons, It is adviced that you do not carry all of them together
As UPI now allows credit cards, you can now leave your cards safe at home and transact using them via UPI. This is another tip for credit card safety.
Conclusion:
Remember that these tips can help make your credit card safer, but you should also stay up-to-date on the latest security practices and be on the lookout for possible risks.
by Susheel Rao | Jun 20, 2023 | Culture & Money
Entrepreneurship can be a great way to help yourself and other people live better lives. But, just like any other business, starting your own business has both pros and cons that you should think about before jumping in.
Advantages of Entrepreneurship:
Independence and Control:
One of the best things about being your own boss and running your own business is that you are in charge. You have the freedom to choose what to do, set your own goals, and decide where your business will go.
Opportunity for Innovation:
Entrepreneurs have the chance to make their creative ideas come to life. They can find gaps in the market, make new goods or services, and come up with new ways to do things. Entrepreneurship supports imagination and makes it easier for new ideas to come up all the time.
Profit Potential:
If a business is successful, the owner can make a lot of money. As a business owner, you could make more money than if you worked for someone else. If your business is good and keeps growing, you can make money from it.
Personal Growth and Learning:
Being an entrepreneur is a process of personal growth and learning. As a business owner, you learn a lot about leadership, marketing, finances, and fixing problems, among other things. It gives you a chance to grow and get better as a person. You also learn a lot about financial management.
Flexibility and a good balance between work and life:
Being in business often gives you the freedom to choose where and when you work. You can set your own hours and find a mix between work and life that works for you. This can be especially helpful for people who want a more open way of life.
Disadvantages of Entrepreneurship:
Uncertainty about money:
Starting a business comes with financial risks. There is no promise that you will make money right away or in the long run. It may take a while for a business to start making money, and there’s always a chance of losing money, especially in the beginning. Entrepreneurs must be ready to deal with unclear finances and control risks. There are high possibilities of you trying to acquire a secured or an unsecured loan.
Workload and stress:
Being an entrepreneur takes a lot of time, effort, and commitment. Business owners often work long hours, especially when they are first starting out and trying to grow their business. Running a business comes with a lot of stress and duty, which can lead to burnout and worry.
Lack of Stability:
Unlike traditional jobs, running your own business doesn’t come with the security of a regular paycheck. Especially in the beginning of a business, income can come in at odd times. Entrepreneurs must be ready for their income to change and be able to handle their money in a way that works for them.
More responsibility and making decisions:
As the owner, you are in charge of all parts of your business, including making decisions. This can be stressful, especially when you have to make important decisions that can make or break the business. Some people struggle a lot with the weight of their responsibilities.
Few Resources:
It usually takes a lot of time, money, and other resources to start a business. Entrepreneurs may have trouble getting the money they need, finding skilled workers, or getting the tools or buildings they need. Having few resources can be a problem that needs to be solved in a clever way.
Conclusion
In the end, it’s important to think carefully about whether or not to become an entrepreneur. Even though the benefits could be great, there are a lot of risks and things you have to give up. If you want to know if being an entrepreneur is the right choice for you, you should think about these pros and cons.
by Susheel Rao | Jun 19, 2023 | Culture & Money
A business loan that doesn’t need any kind of asset or property as protection is called “unsecured.” For protected loans, on the other hand, things like land, tools, or stock are used as security. Unsecured loans are given out based on the borrower’s credit history and how strong the business is thought to be.
In an unsecured business loan, the investor looks at the borrower’s credit background, financial records, company plan, and other relevant factors to decide if the borrower can pay back the loan. Most of the time, the loan is given based on the borrower’s personal and business credit, as well as the business’s financial health.
It can be hard to get an uninsured business loan for a number of reasons:
Higher risk for lenders:
Unsecured loans don’t need security, so if the client doesn’t pay back the loan, the lender has nothing to lose. Because the investor is taking on more risk, they are more likely to lose money. Because of this, lenders tend to have tighter standards and more thorough reviews to lower the amount of risk they are subject to.
Creditworthiness assessment:
Lenders heavily rely on the creditworthiness of the borrower when considering unsecured loans. They look at the borrower’s personal and business credit scores, payment records, and financial documents to see if they can pay back the loan. If you don’t have a great credit history or if your business doesn’t have much credit history, it can be harder to get an uninsured loan.
Limited financial documentation:
Unsecured loans often require a detailed understanding of the borrower’s financial situation, including revenue, cash flow, and profitability. Without security, lenders use this information to figure out whether or not the user can pay back the loan. If your business is new or you don’t have a lot of good financial paperwork, it can make it harder to get a loan.
Smaller loan amounts:
When compared to protected loans, most unsecured loans are for smaller amounts. Lenders may prefer bigger loans with collateral because it gives them more protection. If you need a big loan, getting an uninsured loan might be harder.
Conditions in the market and the policies of lenders:
Conditions in the market and the policies of lenders can affect the supply and rates of unprotected loans. When the economy is unclear or credit markets are tight, lenders may be less willing to take chances and limit their risky loans. Also, every lender has its own risk tolerance and screening standards, which can make it even harder to get an uninsured loan.
There are still ways to get an uninsured business loan, even though these problems exist.
Here are some ways to get unprotected loans for your business:
Get pre-approved:
Before you try to get a loan, get pre-approved by a lender. This will help you figure out how much money you can borrow and how much interest you’ll have to pay.
Have a good business plan:
Lenders want to know you have a good business plan and are likely to succeed. Your business plan should include your financial forecasts, your marketing plan, and a study of your competitors.
Show that you have good credit:
If you have good credit, be sure to say so on your loan application. You can also send a copy of your credit report to the company.
Have assets:
If you have any assets, make sure to list them all on your loan application. This will show the investor that if you can’t pay back the loan, you have a plan B.
Conclusion
To improve your chances of getting an uninsured business loan, you should keep your credit score high, have a good business plan, and provide a lot of financial documents. You could also look for lenders who specialize in uninsured business loans or look into other ways to get money, such as crowdfunding or business credit cards.
FAQs
- Can I obtain an unsecured business loan with bad credit?
- While it can be challenging, some lenders specialize in providing unsecured business loans to borrowers with less-than-perfect credit. However, you may need to provide additional guarantees or accept higher interest rates.
- Are there any government programs that offer unsecured business loans?
- Yes, certain government programs, such as Small Business Administration (SBA) loans, offer unsecured financing options for eligible businesses. These programs often have specific requirements and may require collateral or personal guarantees.
- How long does the approval process for an unsecured business loan typically take?
- The approval process can vary depending on the lender and the complexity of your application. It can range from a few days to several weeks. It is advisable to prepare all necessary documentation and provide accurate information to expedite the process.
- What is the difference between secured and unsecured business loans?
- Secured business loans require collateral to secure the loan, while unsecured loans do not. Secured loans offer lower interest rates and higher loan amounts but require specific assets to be pledged as security.
- Are there any specific industries that face more challenges in obtaining unsecured business loans?
- Certain industries, such as startups, high-risk ventures, or those with inconsistent revenue streams, may face more challenges in obtaining unsecured business loans due to perceived risk factors. However, each lender evaluates applications on a case-by-case basis.
by Susheel Rao | Jun 19, 2023 | Culture & Money
In 2022, the Reserve Bank of India said that users will soon be able to add their RuPay credit cards to the Unified Payments Interface (UPI), which will let them use their credit cards to pay with UPI.
When UPI first came out, users could only pay with their bank accounts. With the new feature, you can pay with your credit card by reading the merchant’s QR code, so you don’t have to carry your card with you everywhere.
Step by step activation to make UPI payments through credit cards:
Install a UPI-enabled app:
Download and install a UPI-enabled mobile app from your bank or any other authorized UPI provider. Popular UPI apps in India include BHIM, Google Pay, PhonePe, and Paytm.
Link your credit card:
Follow the app’s instructions to link your credit card to the UPI app. This process may involve entering your credit card details, such as card number, expiration date, and CVV, to establish the connection.
Verify your credit card:
Some UPI apps may require additional verification steps to ensure the security of your credit card. This could include one-time password (OTP) verification, biometric authentication, or other security measures.
Create a UPI ID & Set up UPI PIN:
Once your credit card is linked and verified, you may need to set up a UPI ID in the profile section and a UPI PIN within the app. The UPI PIN is a four- or six-digit code used to authenticate UPI transactions, and the UPI ID is a unique ID with a combination of numbers and letters.
Activate UPI payments:
After setting up your UPI ID and PIN, you should be able to start using UPI for payments through your credit card. The app will typically provide options to make payments, request money, or perform other UPI transactions.
1. Convenience
For consumers, one of the biggest benefits of using UPI for payments is convenience.
Transactions can be completed within seconds with just a few clicks. There is no need to carry cash or wait in line at the ATM or bank branch.
Additionally, UPI benefits consumers by eliminating the need to enter personal banking details on an insecure website. All transactions are conducted through a secure payment gateway.
2. Low transaction fees
In addition, UPI benefits consumers by providing a low-cost alternative to other forms of payment.
UPI transactions have low transaction fees, making them an attractive option for smaller payments.
3. Security
Another benefit of using UPI is its enhanced security. All transactions are processed over a secure network that uses two-factor authentication and Advanced Encryption Standard (AES) encryption. This makes it more difficult for hackers to gain access to financial information.
Additionally, UPI benefits from using biometric authentication, which provides further protection against identity theft and fraud.
Banks which allow Rupay credit cards on UPI:
At present only 6 banks have allowed Rupay Credit cards on UPI
- Punjab National Bank
- Union Bank of India
- Indian Bank
- HDFC Bank
- Canara Bank
- Axis Bank
Conclusion
UPI-credit card transactions offer a great balance between convenience and security when it comes to online payments. By combining the best of both methods, customers can enjoy a safe and secure payment experience with added financial protection.
by Susheel Rao | Jun 16, 2023 | Culture & Money
Overview of UPI (Unified Payment Interface):
Unified Payment Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). Launched in 2016, UPI enables instant money transfers between bank accounts through mobile phones using the UPI platform. It facilitates seamless transactions by linking multiple bank accounts to a single mobile application, providing users with a convenient and secure way to make payments, which makes it a very popular payments system in India. UPI operates on a “push” and “pull” model, allowing users to send and receive money easily. With our knowledge of the benefits of UPI, we wonder of the absence of UPI in USA.
Features of UPI
Interoperability:
UPI allows users to transfer funds between different banks and payment service providers.
Instantaneous Transactions:
UPI transactions occur in real-time, ensuring the immediate transfer of funds.
Secure and convenient:
UPI employs multi-factor authentication and encryption protocols to ensure the security of transactions. Users can access UPI services through mobile apps, making them user-friendly and widely accessible.
Multiple Payment Options:
UPI supports various payment methods, including peer-to-peer transfers, QR code payments, and in-app purchases.
Integration with Third-Party Apps:
UPI can be integrated with various third-party applications, enabling seamless transactions within those apps.
The absence of UPI in USA
Legal and compliance factors:
The US banking system works under different legal frameworks and has well-established payment systems and infrastructure. Existing payment networks like the Automated Clearing House (ACH) and card networks create a competitive environment in which UPI would have to deal with legal requirements and make these systems work together. Compliance with rules about money laundering, protecting consumers, and meeting security standards could make it hard to implement UPI into USA.
Fragmented Market:
There are a lot of different players in the US payment market, such as banks, card networks, and startup companies. Because of this, it is challenging for a new payment system like UPI to gain widespread adoption and establish relationships with various groups. People who are already in the market might be hesitant to join a new system that could hurt their market share.
Existing Payment Infrastructure:
The US has a well-established payment infrastructure that includes card networks and computerized fund transfer systems like ACH. These processes have been in place for a long time and are a big part of how the US economy works. To compete with these well-established networks, a new payment system like UPI would need a lot of work and money.
Consumer Preferences and Habits:
In the US, customers are already used to using credit and debit cards, digital wallets, and other well-established payment systems. For UPI to work in this market, customers would have to agree to use a new payment method, which can be a slow and difficult process.
Payment systems Similar to UPI
China’s WeChat Pay and Alipay:
These payment systems, integrated with social media platforms, have achieved massive success in China, enabling a wide range of transactions beyond payments.
Sweden’s Swish:
Swish allows real-time peer-to-peer payments and has gained widespread adoption in Sweden, replacing cash transactions significantly.
Kenya’s M-Pesa:
M-Pesa is a mobile money transfer system that revolutionized financial services in Kenya, especially for the unbanked population.
Conclusion:
The absence of UPI in the US market could have far-reaching implications, both for UPI innovators and consumers. It could limit UPI’s potential to become a global standard for digital payments and delay its adoption in other countries. Additionally, it could deny US consumers the benefits of UPI, such as its convenience, low transaction fees, and security. The success of UPI in other countries like India indicates that it is possible for similar systems to be adopted worldwide. It is therefore essential that UPI innovators continue to strive for the acceptance of UPI in USA.
