Category Archives: Finance

5 Factors That Affect Your Credit Scores

Many people feel that they need an advanced degree to analyze and maintain their credit scores. Well, the true fact is that the process is actually very simple. 

It is important to mention that the credit score usually falls somewhere between 300 to 850. But the account holder does not just need to play with the numbers for credit score. According to the Velocifin, there are a few other factors that demand your attention to calculate and improve your credit score. This score is used by lenders to know whether you will be able to pay back the debt on time or not. That is why it is considered as a deciding factor to get a loan for your new house or vehicle. 

Factors that affect your credit score:

If you are also interested in making a big investment with the help of a loan, it is good to understand the factors that affect your credit score. This knowledge may also give you a better opportunity to improve this score with time. 

Here we have listed the five most common factors that are directly linked to your credit score:

Payment history: 

The first important ingredient of your credit score is your payment history. Note that even one missed payment can have a negative impact on the credit score. Lenders are always interested in giving loans to one who can pay it back on time. That is why they consider your payment history before accepting the loan application. The payment history holds 35% accountability in the FICO score used by lenders. 

Credit utilization:

The credit utilization ratio is counted by dividing the revolving credit currently in use with the total revolving credit limits. This ratio helps lenders know about the credit that you are utilizing and give an idea about how reliant you are for the available non-cash funds. Credit utilization makes up 30% of the FICO score, and if you are using more than 30% of the available credits, it gives a negative indication to the creditors. 

Credit history length:

The credit history length makes up 15% of the portfolio. It gives information about the tenure of your oldest credit account, the age of the newest credit account and the average age of all the credit accounts. Longer credit history usually leads to a higher credit score. 

Credit mix:

People that have top credit scores are more likely to carry diverse credit account portfolios. It may include their mortgage loan, student loan, credit card and car loan etc. The credit mix presents a report on how well you are managing a wide range of credit products linked to your account. It accounts for 10% of the total FICO score. 

New credit:

The history of credit accounts that are recently opened and the number of hard enquiries made by you while applying for new credit accounts for remaining 10% of the FICO score. If you make too many inquiries, it may lead to higher risk and can hurt the credit score by a considerable level. 

Now you have gone through the detailed information on what affects your credit scores.  

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The Best Trading Strategies on The Crypto Market

Are you worried about the plummeting prices and volatility of the crypto market? Well, such unpredictable times come in the investment sector repeatedly. The sad fact is that media often attract public attention towards negatives associated with this scenario. But only experienced investors know how to find out the great opportunities.

Studies reveal that many people lose money during a cryptocurrency crash just because they get panic about it. But those who stay stabilized with their powerful investment strategies can make considerable profits during such tough times as well.

Crypto Market

Here we are going to talk about some of the most trustworthy and reliable crypto market trading strategies that can boost your profits even during tough phases:

  1. Holding:

The strategy shows profits in the long run. The idea is quite simple; the investors can buy their desired cryptocurrency and hold it until the price goes higher than the amount on which they purchased it.

In order to ensure maximum profits with this strategy, one needs to study the market more carefully. It is important to do an in-depth analysis of currencies and choose the one that has a low price at the present time and is expected to grow. Invest in this currency and then be patient to wait for the growth.

It may be harder to maintain patience, especially when the currency shows sharp falls in the market. But you need to wait until the currency recovers all the falls and achieves a peak point to generate profits for your investment. For this, you must have deep knowledge about crypto signals as they can guide your decisions very well.

  1. Develop a crypto portfolio:

This strategy is inspired by the concept of balanced trading. It means the investor allocates his assets to a wide range of cryptocurrencies. Reports say that there are many cases in the market when some currencies can recover the falls made by other currencies. For example, the behavior of altcoins and bitcoins is like this. Some of the most important coins that can help you develop a solid strategy for balanced trading are Ethereum, Ripple, Monero, and Dogecoin.

  1. Scalping:

In the case of scalping, we basically take advantage of the tiny price movements in the market. The trades are places at quickly existing and entering positions to generate profits. The idea is to create maximum small trades that can help you avoid losses. It is not about maintaining higher returns for every trade; rather, the prime target is to maintain a higher ratio for win/loss. Generally, the size of losing and winning trades, in this case, is almost the same; but one needs to ensure more wins to develop a potential portfolio. Traders that follow scalping techniques do not invest in trades with higher volatility. They prefer a market with huge spreads so that a considerable level of profits can be generated through those gaps.

  1. Follow the Trend:

Following a trend can lead to some risky situations, especially when you don’t know the right time to open and close the trades. But once you know the tactics, it can help you earn more. Experts advise opening trades for a short time when the market is falling. However, if the market is trending up, you can open long trades to mark higher profits. The trend followers begin their trading only when a particular trend is established in the market and they exit out of the market when the trend is subjected to change. It is also named as position trading and you can use a variety of tools to maximize your profits in this case. The crypto signals can help you understand the trend better to make solid decisions at the right time.

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How To Make Extra Money Online?

If you are a student and reading this post then tell us, “What is that one thing which you are always short of?” Time? Of course, as you need to juggle between school, college and tuitions, but what else? Pocket money? Yes, you got it right! As a student, you might be trying to find means for increasing your pocket money. You got lot of expenses, after all! So, if you are among those who want to rip up the old rules and try something material, then this post is for you! We sleuthed out a creative way to make extra money online! Read further to explore!

sell game online

If you are a game lover, it’s likely that you are surrounded by many old games and consoles. Now that you have got latest version of play station, you can earn money by selling the old ones like PS4, Xbox One, Switch etc. It will create passive income for you which you can use for other expenses. Students are interested in game trade in and making extra money online. Here is why selling your old games can be beneficial!

  1. You make money: This doesn’t need any explanation! You increase pool of money which you can use as pocket spends, pay your educational loan installment, save for future or buy a gift for your parents! You can do lot of things with the money received and get due praise from elders! Selling your old stuff and making money while sitting at home will be appreciated by everybody.
  2. It’s remarkably simple: You needn’t burn your brain or energy to find a buyer. You can simply visit https://www.tradeinforcash.co.uk/ and select the model and specifications of your game to know the sale consideration of your product. This platform will quote the price which you will receive if you accept the offer. Once you agree, post your items with label and packing slip generated on the portal and receive the credit in your bank account/ PayPal account. It’s a no brainer!
  3. It frees up space in your room: By selling old games, not only you make extra money online but also free up some space to organize your room. Isn’t it a gift to mothers who always complain about the mess in your room?
  4. You help someone on this earth: There is someone who is longing to buy games, consoles but can’t buy it first handed for any reason! By selling your old games like PS4, Xbox one, you are indirectly helping someone in procurement of old version at a price which one can afford. An item which might be junk for you can be gold for someone!
  5. All products are accepted: At https://www.tradeinforcash.co.uk/, you can get quotes for all kinds of games, consoles and other items. This means that even if you are unable to find the version of your product in pre-defined options then you needn’t be disappointed. You can fill up ‘can’t find my item’ form on the website with the details and the team will get back to you within a span of 24 hours. They will provide your personalized offer after evaluation.
  6. It aids in controlling temptation: If your exams are approaching and you want to get rid of games to devote some time towards studies, this is one of the best ways! While you choose to buy the latest version after exams, it would be a great step to sell the old games and focus on grades.

We hope you don’t need more reasons to sell your old games. Visit now for the best price!

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The Heavy Impact Of Vat On The Technology Sector In Costa Rica

The Internet of things, artificial intelligence, big data, robotics … 

Are some of the advances that have been made in recent years with the aim of simplifying various tasks of our daily lives.

But if there is something that even science and technology, no matter how advanced, have been saved from: Compliance with the tax laws of the country they operate in.

There is no company that escapes its obligations to the State, regardless of its level of technology.

Companies established in Costa Rica, have to pay Value Added Tax (VAT), according to the new law No. 9635 – “Act Strengthening Public Finance”. This law came into effect on July 1, 2019.

Now, a few months in … how has VAT affected the industry? What is its economic effect? What changes have been made?
These are some of the key questions for the sector that we will address in this article about the impact of VAT on the technology sector of Costa Rica.

Taxed Technology

To start, a little background info: Before July 1 2019, what existed was the General Sales Tax (IGV – Impuesto General de Ventas), which was 13% and only applied for the purchase of products.

The new law not only came to replace the IGV with the Value Added Tax (VAT) but also to extend it to previously untaxed services.

With some exceptions, we now pay 13%, 4% or 2% for conultations, medical services, design, education, remodeling of properties, aesthetics, recreational services and others.

Regarding the purchase of technological products and services in the country and abroad – antivirus, licenses, software, computer programs, entertainment platforms – the maximum rate of 13% applies.

It also covers equipment maintenance services, custom software development, application development and network maintenance.

Blow to Competitiveness

Although the objective of the law is positive in trying to alleviate the fragile situation of public finances, it is doing so at the cost of the profitability and competitiveness of many companies, including technology.

When previously small companies only needed to hire accountants on an occasional basis, today they permanently require their services in order to fulfill the process in a timely manner; every month.

This translates into a minimum of three hours of work, which, according to the College of Private Accountants of Costa Rica, means a monthly outlay of about ¢ 72,500 (the professional time is set at ¢ 24,163). This equeals to about 130USD.

Another point to take into account is that the one who assumes the payment of VAT is the customer and the supplier is only limited to collecting the tax, generating a considerable increase in the price of services.

Let’s look at the impact of VAT on the technology industry, reflected in a hypothetical case. Suppose you have a small software company dedicated to the sale of licenses inside and outside of the country. Although for exports it will not involve any change – the tax is territorial and therefore does not apply to consumption abroad -, in relation to local sales, which are subject to VAT with a maximum of 13%.

In practical terms, this means that, if before July 1, you sold a license for $ 200, after that date you must add the $ 26 tax, for a total of $ 226 (more than ¢ 15,000 difference from at the original price).

Faced with this scenario, the provider faces two equally complicated scenarios. One is to absorb the cost of VAT and the other is to lower the service fee so that the customer continues to pay the same or a portion of the tax is transferred.
In both cases, it would be sacrificing profitability and competitiveness in exchange for not affecting the customer’s ability to consume.

A little Extra on Top – Electronic Invoices

One of the steps prior to the implementation of VAT in order to reduce tax evasion was the adoption of the mandatory electronic invoice, since 2018.

With all of this and the benefits that this entails for the taxpayer, such as greater security and integration of operations, it is still an additional investment.
Although the Hacienda’s free platform exists, there are those who prefer to hire one of the 26 suppliers authorized to provide the service, the cost of which can be up to ¢ 50,000 for the issuance of 1,000 documents. (About 90USD)

So far, we have ¢ 72,500 (130USD) monthly accountant fees, plus ¢ 50,000 (90USD) of the electronic billing package, for a total of ¢ 920,000 (1630USD) per year.
And if we add to this the training of personnel and the eventual implementation of ERP-type business management systems, the sum could become much higher.

Does this mean that the new Fiscal Plan is bad? Do we return then to the previous Sales Tax and paper bills?

Neither one nor the other. This article simply limits itself to showing the reality as it is, without ignoring the sacrifices and investments that all change demands for those involved.

What other effects does the new law have on technology companies?

What is the best strategy to face them without compromising future stability and solvency?

Tell us in the comments and we continue discussing the impact of VAT on the technology sector in Costa Rica.

To read the original article on our site in Spanish click here

Show some love and share this article to keep everyone informed.

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How and Where To Invest Your Money As Student?

Generally, most of the students stay concerned about scoring good in their exams and searching for their dream job. Few others are more lined up in some extra-curriculum activities or sports. But there are few creative students that are always looking for some handsome investment opportunities.

In case if you are also excited to begin with strategic investments, it is good to go through the expert tips regarding how and where to invest as a student. We understand that you have limited sources of money and cannot take more risks; in such situations, expert guidelines can help you better plan your initial investments.

Invest Your Money As Student

Below we have highlighted a few details about how and where you can invest money for fruitful returns:

  • Gain more knowledge:

The very first thing you can do to make considerable profits as a student is learning about the best investment strategies in the market. The experienced investors have written several books to assist beginners in this task. These guidelines can help you better to analyze bonds, stocks, and mutual funds. In case if you find these books too expensive to buy; prefer to get them through online and offline libraries. Take some time to understand performance of top-rated stocks and study investment charts.

  • Pay off your debts:

Chances are that you are desperate to invest money to earn more, but it is not always so easy to risk your hard-earned money. Experts advise students to get started with pending debt payments first. It will help you avoid heavy interest rates in the future, and you can naturally save more. Soon, you will have more funds to invest in other areas to earn high profits.

  • Choose a brokerage:

When you are mentally prepared to move ahead with investments, it is the right time to open your brokerage account. Generally, there are two main choices: online discount brokers and traditional brokerages. For the first case, you can enjoy online trading with extended support of software and computer programs. Whereas for the second type of investment, you may need advice from experienced brokerages.

  • Investment diversification:

Putting all your money into a single big investment is a bad decision. Rather, you should divide the money into multiple smaller investments. It is good to keep extra funds in the bank account to handle the emergencies. Keep on judging market ups and downs and spread out your investment choices. It can also help you boost your returns and portfolio in the long run.

  • Start on time:

There is no point in delaying your investments. Rather, you should start early so that you can learn important concepts. It is good to check behaviour of various stocks online and then make strategic plans by consulting some experienced investors.

Another amazing option for students is to buy silver bullion bars when they are at a low price and then sell them when price goes up. It can help you to make considerable profits. Start by saving some amount right from the beginning days of your college education and then invest in silver bullion bars to multiply your returns.

  • Buy Investment Property:

In case if your family or friends can support you with this, it is good to purchase a valuable real estate or some rental property near your college. You can rent out rooms in this property to manage mortgage payments and with time, it can also generate a steady stream, of profits. Once you are done with your college, you can sell this property at a considerable profit or keep it rented out for continuous earning.

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