I’m going to tell you how to write a check and why its important to write one. First to write a check make sure you or that person has money in their bank account so the check doesn’t bounce, because if the check bounces you’ll have a fee and you’ll have to owe money back.
Next you write the printed amount in the upper right corner in the little box, also make sure you write the amount you are giving them close and big so no one can add more money to the check. Also write the amount in pen so no one can erase and change the amount of money you are giving away.
After you wrote the printed number of how much you are giving you have to have the written amount on the line to the left in words. Then you have to have the payee, that is who or where the check is going too. Also you will have to fill out the memo line on the check is for like for example a birthday gift, groceries, bills, and etc. That just helps to keep track of where you spent it.
After all you have written and printed those steps, the next steps is writing you signature, writing the date, coping down the check number, and writing down in your bookkeeping. These are all important because writing your name will let the bank its really your signature. Then writing the date and check number in your bookkeeping to keep track of what day you wrote that check and where that check is going. Also bookkeeping will keep track of where each check number went.
I am going to be tell you about online banking. Online banking services allow you to do many of the same things you would do in a bank, all from the privacy of your home computer. When having an online bank account you have have multiple accounts, such as checking account and savings account. This way you can transfer money into which ever bank account you want. Most people now-a-days like using online banking because it gives them the ability to receive and pay bills electronically.
Virtual bank is only accessible online or over the phone. You can use virtual bank’s website to handle many common banking tasks, just as you can with the website of a traditional bank. There are several pros and cons of using an online bank. Pros are paying bills, like I said earlier it is very easy to pay your bills. Also it is a simple set up and use, all you need to do is set up the account and a few clicks away you have a new online banking.
Online banks can be accessed 24 hours unlike usual banks. There are some cons that come with online banking such as security. Security is a big issue people have because there are computer hackers and identity theft. Nothing can stop these people that are doing these types of things. Also there is no ATM online bankers can go to without having a transaction fee. This means that every time online bankers want to use an ATM to get money out they are charged a $3 fee to their account because they done use the banks that the ATM machine requires. Finally there are some pros and cons of online banking.
Credit Risk, first off what is credit risk, it refers to the risk that a borrow may not repay a loan and that the lender may lose the principal of the loan or the interest associated with it. Interest payments from the borrow or issuer of a debt obligation a lenders rewards of assuming credit risk.
There are many different types of credit risks including market risk, operational risk, liquidity risk, business risk, systemic risk, etc. There are many different tips to help try to avoid credit risk, one is Debt-to-Income Ratio. This is when you are evaluating someone credit. The debt-to-income ratio can tell you a lot about the potential borrower’s financial situation.
Second one is Credit Score this is a number derived from a formula that looks at the persons credit history.
The third one is Income, in order to repay the debt, the borrower will have to have a certain amount of income.
You need to decide how much income an individual should have based on how much money he was trying to borrow.
Last but not least, Cotllateral this will help you recoup the money that you have lent if the loan goes into default.
Today I’m going to talk about the difference between credit and debit and which one is better to use. To start off you can have both credit and debit card, but which one should you use more then the other?
Well I suggest you use debit, because when you use your debit card to make a transaction, you are using your own money. Instead of using your credit card you are actually borrowing money from the bank and the more you use it the more your credit goes down. Say you do use your credit card and you have a low credit you can be able to build your credit up by paying back what you owe, don’t use your credit card, pay back a loan, and make a budget.
Also the better credit you have the more you can buy things in the future, for example a house and a car, just things like that. Afterwards a debit card is the most reliable money transaction you can use today! A reason why is because it is your own money you are spending instead of borrowing. Nothing bad happens to you when you use your debit card. Finally, this is some of the differences between credit and debit cards.