Life insurance enables individuals to cover their family members against financial risks that may arise in the future. So, one must not overlook its purchase. If one can afford it, they could consider picking a policy with a higher coverage. Moreover, there are several errors that one could make when buying a life insurance policy, which could result in limited benefits for their family. Here are five such mistakes to avoid. Focusing only on the premium amount Several buyers pay attention only on the premium amount they are supposed to pay instead of looking into more about the coverage and its terms. Doing so could result in buying a policy that is insufficient for meeting the requirements of the policyholder’s family. So, one must consider factors such as future goals, children’s education fees, and inflation instead of only focusing on the premium. Relying on the employer’s insurance coverage Employers generally offer a basic level of life insurance coverage. So, one must not completely rely on it for protection and should consider getting supplemental life insurance. Moreover, one may be able to secure a reduced premium rate when they opt for the life insurance provider associated with their employer for standard coverage.

Credit cards have made transactions incredibly convenient, as users can choose to pay later for any purchase. Such flexibility ensures that one’s purchasing power does not depend on one’s bank balance. Today, several credit card companies offer attractive benefits on purchases, including cashback and reward points, and have emerged as highly lucrative for users. However, one needs to exercise some caution while using credit cards. So, here are some credit-card habits to avoid: Applying for many cards at once Users often have multiple credit cards to split large expenses so that there is sufficient credit available for each card. However, applying for multiple credit cards successively can trigger multiple inquiries, which can negatively impact the credit card holder. So, it is best to avoid applying for multiple credit cards simultaneously. Not making timely payments Delaying credit card payments repeatedly can affect one’s credit score, which can cause problems with securing loans. In most cases, banks either reject loans or charge high-interest rates for those with poor credit scores. Many employers also reject candidates with a negative credit report. Paying credit card bills on time can help improve one’s credit score. Frequently paying through EMIs Equated monthly installments (EMI) allow users to repay credit card debts flexibly in parts over a specific time frame.

Scamming is a common concern today, with many people losing hard-earned money to online hacking, fraud, and phishing. Over 2 million frauds are reported in the country each year. What started off with seemingly harmless spam messages has evolved into phishing emails and malware activity. Further, fraudsters can pose as banks and other financial institutions to get one to divulge confidential information. So, here are a few banking scams to know: 1. Credit card scams Here, one may receive calls from someone claiming to be a representative of their respective card company. They might share a link to let one update their profile or application or even upgrade their credit card. One might even receive calls saying the card issuer is checking for possible fraudulent activity in their account. This is a believable claim, so one should verify the caller’s details, seek official communication from the caller over mail to check credentials, and avoid clicking on any links till then. If one suspects wrongdoing, they should block the phone number of the caller and call the official bank helpline number to verify the details. 2. Check overpayment scams This is a common way of scamming those who participate in online auctions.

A debit card makes it easy to access money from the bank or an ATM. One could easily spend what’s in their account without carrying cash or writing a check. However, each bank sets its terms and conditions associated with a debit card. Those who sign up for one online without a second thought might often incur unwanted charges. With this in mind, here are four mistakes to avoid when applying for a debit card. Going for the first available option Several banks offer a series of debit card options to customers. However, in a hurry to get things done, people apply for the first card they see online. Doing so may result in paying higher fees than one should or signing up for features that one does not need. Individuals must always take their time when applying for debit cards to ensure they sign up with a suitable provider. Not reading the fine print One of the common mistakes people make when applying for a debit card online is ignoring the fine print. While a bank may offer a debit card free of charge, it might be conditional on eligibility criteria. For example, one might incur charges if they do not spend a certain amount within the first year, such as $500.

Although the world is shifting to digital transactions, people continue to use checks as a mode of payment. Moreover, many people prefer to secure or guarantee future payments with post-dated checks. However, since checks are not readily available, one needs to know how to order them. This knowledge is especially important for those ordering for the first time. So here are a few ways in which one can order checks to meet their financial needs. Banks If one has a bank account, one can easily order checks. Moreover, if one has previously ordered checks from their bank, they can reorder by visiting the bank’s website. However, those who are ordering checks from their bank for the first time would need to connect with a customer service representative or visit the bank in person for details. To ensure security, one will have to verify their identity by presenting a valid government-issued photo ID. Similarly, one can also order checks from a credit union. Some banks and credit unions like Wells Fargo, Chase, Bank of America, Navy Federal Credit Union, and Ally Bank offer the first few checks for free. Online printers If one wishes to order checks with customized designs, one can easily do so through online check printers.

Credit cards let you access products and services immediately, with the provision to pay for them later. The cards come in handy when you are short on cash and do not intend to borrow money. However, credit cards can also be tempting to use frequently as it is possible to convert balance due into loans and pay only the minimum balance. So, here are 10 common mistakes to avoid while using credit cards: Making only minimum payments You can avoid penalties and interest fees by only paying the minimum amount due. But this means it will take you a long time to clear the credit card debt, ultimately affecting your credit score and creditworthiness. So, you should avoid carrying forward the due amount. Converting to multiple EMIs Credit card companies may allow you to make equated monthly installments with interest applicable on the debt. But multiple EMIs just add to your original bill making it difficult to pay off the debt at a later date. Using up all the credit Experts advise maintaining your credit utilization ratio between 10% and 30% to make it easy to make monthly payments. Having a large balance due can bring down your credit score.

If you have delayed paying your loans or are debt-ridden, your credit score is likely lower than you think. Credit scores generally range from 300 to 850, with anything under 580 considered ‘bad.’ This can be because of short credit history, massive debt to your income, or a combination of all. Bad credit can lead to a disadvantage in winning the lender’s trust. Here are seven ways to get a personal loan with bad credit: Check your credit score and credit reports Before applying for a loan, look carefully at your credit score and reports. With this, you will be able to identify any negative marks on your record and correct errors or old debt before applying for a new loan. Ensure that you can repay the loan If you have bad credit, don’t take a loan you can’t repay. This will worsen your score. Instead, use a personal loan calculator as you shop for loans to estimate monthly payments and review your budget before finalizing one you can afford. Compare bad credit loans While a bad credit score may not get you the best interest rates, it does not mean that you need to settle for the worst. Having cordial terms with your community bank can help you get better agreement terms.

An individual might consider applying for a loan for several reasons, including purchasing a new vehicle or house, starting a business, or for an emergency. Sometimes one may even borrow funds despite having sufficient money to maintain liquidity. Today, banks offer a range of financial options to those looking for reasonable interest rates and repayment schedules. If you plan on taking out a loan, here are a few types of loans for various occasions. Mortgage loans With the help of a mortgage loan, you can cover the purchase price of a home, excluding the down payment. The purchased property is considered collateral, which can be foreclosed if you miss making repayments. Since buying a home is significantly expensive, the repayment schedule stretches between ten and 30 years or higher based on the borrower’s financial situation. Personal loans You can apply for a personal loan and use the amount for anything you wish. It could be used for payments towards weddings, home improvement projects, or for emergency expenses. A personal loan is usually unsecured and does not require collateral. The amount may also have a fixed or variable interest rate and repayment terms extending from a few months to a couple of years.

As the end of the financial year closes in, many people find themselves scrambling to file income tax returns in time this year. The Internal Revenue Service (IRS) issues strict guidelines for ensuring a smooth and quick tax filing process. The last thing you want is a notification from the IRS citing an issue with the income tax return submission. So, here are six mistakes to avoid when filing your income tax return: Filing returns prematurely You might receive documentation regarding your current financial status, and this information has to be updated with the IRS. Filing prematurely can result in mistakes like omissions that only delay the processing of returns. Choosing the wrong form or filing status The IRS issues several forms for individuals, businesses, commercial establishments, and government entities to file returns. Ensure you choose the correct form and update the filing status on the official website. If there are dependents in the house or you are filing for a joint return, your filing status can vary accordingly. Making calculation errors Adding the wrong amount, excluding critical tax breaks, or even making mathematical errors while computing your income tax return are issues that IRS software can detect. However, miscalculating the return can delay the process.

The Internal Revenue Service, or IRS, is the governing authority that processes tax returns filed by individuals and businesses and issues refunds. The IRS has issued sizeable refunds worth thousands of dollars in recent years. Individuals can use the money to meet daily expenses and pay pending bills. But to be eligible for prompt refunds, here are some common mistakes you should avoid while filing your tax returns this year. Updating the wrong filing status The IRS lets you file as a single taxpayer, a married taxpayer filing jointly/separately, a qualifying widow/widower, or a sole head of the household. Entering this information correctly is critical while updating the return. Filing under the wrong section can delay processing and refunds. You might even be subject to penalties if there are errors in the calculation. Not reporting all taxable income Salaried employees working for an organization should properly mention any income subject to taxes on Form W-2. Freelancers can report their income using Form 1099. Different kinds of employment and earnings are subject to different tax slabs. The bottom line is that you should never underreport your earned income in the said financial year. If the IRS notes discrepancies, it can order an audit that will lead to subsequent penalties and interest.

Buying a house is a big step, no doubt. Since it is a long-term and expensive investment, it requires proper planning and analysis. One should only take out loans after careful research to ensure financial stability. As applying for loans is time-consuming, rushing through paperwork can lead to negative results. One can avoid most such mistakes with better planning and execution. Here are a few common mistakes to avoid when seeking a home loan. Not monitoring credit score Maintaining a healthy credit score before applying for any loan is important. Poor credit or a bad repayment history will lower the score, disqualifying the borrower from beneficial home loan schemes. A credit score of 700 or more can qualify for preferred loan terms and options from the best banks. If the score falls behind 700, take care of any prior settlements or written-offs by paying them back to establish a good record. Making these changes may take time, so always plan before applying for the loan. Overestimating the repayment capacity When estimating their repayment capacity, people frequently ignore their monthly expenses. Financial difficulties may arise from high monthly expenses and a loan with a high EMI. It is advised that EMI payments should not exceed 30-40% of one’s salary.