Cheapest ways of exchanging currencies

Cheapest ways of exchanging currencies

International travel, whether for business or pleasure, carries with it an inherent need for preparation. One of the biggest concerns for the unseasoned traveler is how to obtain the different types of currency that need to be used in a foreign county. The simplest solution is not always the best for your bottom line when it comes to fees and the possibility of being scammed. There are several ways to exchange currency, either before you leave or after you arrive, and all come with their own risks associated with them.

Traveler's Checks
The most advertised way to pay when traveling internationally is to purchase traveler's checks. American Express and AAA.com are the most popular places to offer these financial instruments and come with reasonable rates. While easily available, travelers checks carry the burden of having to keep physical money on your person at all times. The risk of accidentally losing them or worse, having them stolen, is a huge deterrent. In addition, many retail stores in foreign countries do not accept travelers checks.

Banks
Before leaving the country, visiting the bank and exchanging currency there is a quick and easy solution. Bear in mind that exchange rates fluctuate on a daily basis so if you purchase it too far in advance, it may not hold the same value when you finally leave the country. The other downside to using a bank is essentially the same problem with traveler's checks, carrying large amounts of cash can lead to difficult situations.

Opening an account in a foreign country is generally not advisable unless you travel to that country often. Foreign countries have many of the same procedures as domestic banks when it comes to necessary forms of ID. You will need a drivers license, social security card, passport and birth certificate handy in order to fill out an application. Many foreign banks will also do a credit check which can take weeks to complete so if you need money immediately, you will have to make other arrangements.

Currency Exchanges
If you don't want to carry large amounts of money with you, there are currency exchanges available once you arrive in the foreign country. They are generally small kiosks set up in areas with a lot of traffic, particularly tourist traffic. While the location and accessibility is convenient, the fees and possibility of being scammed are higher. Usually they will list their fees and prices but vendors will often take advantage of the unwary customer who doesn't understand the foreign currency. Finweb.com suggests asking for a receipt and not allowing yourself to be rushed will help you avoid trouble.

Depending on the hotel, currency exchanges can be done directly by the front desk there. They may not list their fees or exchange rates however, and can be the most expensive way to get money. Airports will also have an exchange on location and while their fees can be high, they are more reputable than kiosks.

ATMs
In today's global economy, many banks operate internationally and accounts can be easily accessed through ATMs. The fees can be a small as 1%, and are available any time of day or night. ATMs eliminate the need to procure large amounts of foreign currency in advance, although multiple transactions can be pricey if your bank charges a withdraw fee in addition to normal exchange expenses.

The Bottom Line
Before rushing out and exchanging currency, decide what is best for you in your given situation. Knowing the different options available will help you decide which route is the most convenient, safe and economical for you.

Eight fashion rules for businessmen

You saw that Shahrukh ad on telly "The Belmonte Academy of Style". Yup we actually need one of those.

The reason's simple enough. Most executives as they start climbing up the corporate ladder get into these blind spots in which they have precious little idea about how they need to upgrade as far as their wardrobe is concerned.

Treat this article as a million dollar crash course on the basics of fashion and grooming that will stand you in good stead no matter how high you climb up the success ladder. It will ease your path and get you noticed as you have your head to the ground working to make a place for yourself in the big, bad world of business.

Must know fashion rules for the business savvy:

Rule 1: Look the part to get the part

Dressing to suit the part is the first rule of the game. If you aspire to be the CEO of a company but wear open-toed sandals to work, it will be a long time before you get anywhere near the CEO’s office, let alone run the organization.

To look the part, ensure that you have the basics of any business wardrobe in place, and you can be assured that you can alter your look by mixing and matching your separates. Without breaking the bank, it is entirely possibly to invest in a few stylish separates that will go a long way in spiffing up your appearance.

If for instance, you happen to have an important client meeting to go to with your boss, borrow a rich friend’s Tag Heur watch or expensive necktie and update your look with one touch of class.

Rule 2: Stick to the norm

Do your research. Even before joining the company you would have got an idea of the dress code of the organization during the interview or by a brief given to you by the human resource personnel. Stick to the company’s line of thought in this regard and don’t veer away from their accepted dress codes.

If the organization is conservative, stock up on formal clothing, and if the company policy is relaxed when it comes to work wear, you can buy more casual Friday dressing items of clothing.

Rule 3: First impressions count

You might be worried about not getting taken seriously because of a variety of reasons - whether it is about looking too young, too old, too boyish and so on. But if you want to change that perception, your choice of clothes is the first step.

Dress in a more mature manner in dark suits, warm tones, and wear formal accessories. Stick to a conservative haircut and go for the clean- shaven look.On the other hand, if you think you appear older than you are, try out a more contemporary haircut and update your wardrobe to the latest trends but in conservative colours.

Rule 4: Don’t flash

Avoid flashy jewellery like rings, body piercings, and so on, like the plague. The only accepted jewellery in a business setting would be a wedding band and a wrist watch.

Rule 5: Colors are the clincher

Offices requiring business attire will expect conservative suits in dark shades. Stick to pinstripes in gray, blue and black when it comes to suits. Patterns are ok when it comes to shirts but make sure they aren’t loud or bizarre. Invest in formal shirts in safe colours like white, pastel shades, navy, black and burgundy.

Rule 6: It’s a perfect fit

There’s nothing worse than ill-fitting clothing, whether too loose or too tight! Ensure that your shirt is fitted and that it flatters your body type and minimises any flaws. You can guarantee this if you get your clothes tailored by a good tailor. Suggestions for styles, colors and cuts can come from a tailor who’s good at his work and he can actually up your fashion anté considerably at work.

Rule 7: Good grooming counts

No matter how fashionable your clothes or how well they fit, if you don’t take care to groom yourself well, it is all a wasted effort. Your hair should be washed and combed neatly. Your nails should be clean and trimmed. Take care to see that your teeth don’t have bits of food sticking in it. And use deodorant or perfume to kill any possibilities of body odor.

Rule 8: Leave no stone unturned

Other important points to keep in mind are to always wear dark socks, keeps your shoes shined, keep your pockets empty, avoid bulky bags and not chew gum in meetings.

With these basic tips, you are sure to make a big impression when it comes to good grooming and sense of style. Though it might seem superficial, the care one takes with one’s appearance is actually a reflection of the type of person a man is, and seniors at work often make decisions based on the nitty-gritty of a person’s appearance. You wouldn’t want to risk your chances now, would you? After all, it pays to be prepared! 

6 Credit Report Items That Scare Lenders

You pay your bills on time and never miss a payment. If you're still having trouble with credit, something on your credit report could be scaring lenders.

Everyone knows the big gremlins that haunt credit reports: items such as bankruptcies, foreclosures and even late or missed payments. Less dramatic items can also spark some anxiety in skittish lenders.

When you apply for a loan or a card account, lenders review your credit score and pull your credit report. Or they may take that report and pump it through one of their own scoring systems.

If they don't like what they see, you could be rejected. Or you may get approved with less-favorable terms. And it isn't just new applicants who have to run the gauntlet. Credit card issuers periodically review their current customers' files, too.

Even more confusing is that different lenders zero in on different credit report items. So it's entirely possible that, even for the same loan, no two lenders will see your credit history in exactly the same light.

Think there could be something heinous lurking on your credit report? Here are six items that could scare lenders.

1. Multiplying Lines of Credit

Opening one new card is normal. Opening three in a short amount of time could signal something bad is going on in your financial life.

When it comes to credit card issuers, "the account monitoring window has shrunk," says Norm Magnuson, vice president of public affairs for the Consumer Data Industry Association, the trade association for credit reporting companies. "It used to be months and months. Now you find companies doing account monitoring monthly or every other month."

And the one thing those issuers don't want to see is that you're asking everyone in town to lend you money.

"That would raise some questions," he says. "It could be an indicator of something that's going on. I don't think it's in the best interest of any consumer to go out there and be a collector of credit lines."

2. A Housing Short Sale

"People are told short sales won't hurt their credit," says Maxine Sweet, vice president of public education for credit bureau Experian. "But there is no such thing as a 'short sale' in terms of how the sale is reported to us."

"The way the account is closed out is that it is settled for a lesser amount than you agreed to pay originally," she says. "The status is 'settled.' And it's just as negative as a foreclosure."

One tip: Negotiate so the lender doesn't report the difference between your mortgage and what you repaid as "balance owed" on your credit report, says John Ulzheimer, formerly of FICO, now president of consumer education for SmartCredit.com. Your credit score will take a heavyweight hit, but this action will slightly soften the blow, he says.

Sweet's advice is not to discount the notion of a short sale, just go into it with your eyes open.

"It may be the right decision to get out of the house," she says. It may be "better than a foreclosure in terms of the economy, moving the house and moving on with your life. Just don't expect to walk away with no impact to your credit history."

3. Someone Else's Debt

Here's something you might not know: When you co-sign on the dotted line to help someone else get a loan or a card, that entire debt goes on your credit report.

While the fact you've co-signed is neither good nor bad, it does mean that -- as far as any potential lenders are concerned -- you're carrying that debt yourself. And it will be included in your existing debt load when you apply for a home mortgage, credit card or any other form of credit, says Ulzheimer.

And if the person you co-signed for stops paying, pays late or misses payments, that bad behavior will likely go on your credit report.

So when someone tells you that co-signing is painless because you'll never have to part with a dime, you can tell them that's not true. Co-signing means agreeing not only to repay the obligation if necessary, but also to allow the debt -- and any nonpayment -- to count against you the next time you apply for credit yourself.

Co-signing for a friend or family member "plays well at the Thanksgiving table, but it doesn't play well in the underwriting office," says Ulzheimer.

4. Minimum Payments

While creditors make money when you carry a balance, lenders who view your credit report don't like to see you paying just the minimums.

"It suggests you're under financial stress," says Nessa Feddis, vice president and senior counsel for the American Bankers Association. "You may be defaulting," she says.

Paying minimums once in a while doesn't necessarily signal a problem, she says. For instance, paying minimums in January, after holiday spending. Or paying minimums one month as you wait for your annual bonus to arrive.

But consistently paying minimums month after month signals that you can't pay off the full balance, and your current and future lenders will see that as a giant red "stop" sign when it comes to granting additional credit.

5. A Lot of Inquiries

This is similar to soliciting a lot of new credit. When lending standards tightened, a lot of borrowers, especially subprime borrowers, were having trouble getting credit, says Sweet. That meant that they had to apply multiple times to try and get what they wanted.

And, with the VantageScore at least, that "actually influenced the impact of inquiries -- they are more important than they used to be," she says.

With the FICO score, the impact of inquiries has remained about the same, according to Ulzheimer. Every time you allow a potential lender to pull your credit report, your score can take a small hit. The exact impact varies with the consumer, the score and the number of inquiries.

And if you're applying for a home, auto or student loan, you can minimize the damage by making all of your applications within a two-week period. When you do that, the score bundles all the similar inquiries and treats them as one. Unfortunately, there is no similar grace period for credit card applications.

6. Cash Advances

"Cash advances, in many cases, indicate desperation," says Ulzheimer. "Either you've lost your job or are underemployed. Nobody takes out cash advances against a credit card because they want money sitting in a bank somewhere."

Because the interest rate is generally higher than for the credit card charges, "you're generally borrowing from Peter to pay Paul," he says.

How it hurts: First, the cash advance is immediately added to your debt balance, which lowers your available credit and can lower your credit score, says Ulzheimer. And all potential lenders will see your score.

Second, larger card issuers regularly re-evaluate their customer's behavior. To do that they often pull the credit report, the FICO score and the customer's account history and put those three ingredients through their own scoring systems, says Ulzheimer. Many of the those scoring models penalize for cash advances, which are often seen as risky, he says. Since your account history is available only to that issuer, only your behavior score with that card is likely to be affected, he says.

However, if the issuer slices your credit line or cancels your account, that could impact your credit score. And that could affect your relationship with other lenders.

The U.S. Economy Since 9/11

Much has transpired on the economic front since terrorists attacked the U.S. on Sept. 11, 2001. The nation weathered two recessions; homeowners suffered record foreclosures; workers faced double-digit unemployment; and investors trudged through a lost decade -- stock markets aren't much better off today than they were ten years ago.

Not all of the problems that have plagued the U.S. economy can be tied to 9/11, though there are arguments to be made that some can. Judge for yourself. Here's a look at where the economy was a decade ago, on the eve of the terrorist attacks; where it is today; and what happened in between.

Federal Deficit

Then: $128 billion budget surplus in 2001

After 28 years of deficits, the federal government finally managed to produce a surplus for four straight years starting in 1998, including $236 billion in 2000 and $128 billion in 2001. Long-term prospects were rosy. "The outlook for the federal budget over the next decade continues to be bright," the Congressional Budget Office said in January 2001, forecasting an $889 billion surplus in 2011. Of course, the CBO's projection at the time assumed that revenue and spending policies would be maintained.

Now: Projected $1.3 trillion budget deficit in 2011

Sweeping tax cuts passed in June 2001 came at a time when the economy was already in recession on the heels of the dot-com bust. Then came 9/11. Subsequent wars in Iraq and Afghanistan have a price tag in excess of $1 trillion and counting. While the deficit actually shrank between 2004 and 2007, the Great Recession necessitated costly government intervention, including the Troubled Asset Relief Program of 2008 ($700 billion) and the economic stimulus package of 2009 ($800 billion). The federal deficit was $1.3 trillion in 2010. CBO projections put the deficit again at $1.3 trillion for 2011.

The Dow

Then: The Dow closed at 9605.51 on Sept. 10, 2001

The Dow Jones Industrial Average climbed mightily in the 1990s, more than quadrupling in value during the decade as individual investors poured into the stock market. The 10,000 barrier was breached in 1999, and the sky seemed the limit. But the events of 9/11 dampened an already weakening economy. When trading resumed after the terrorist attacks, on Sept. 17, the Dow sank 684 points, or 7.1%. Lingering effects of a recession that officially ended in November 2001 kept the Dow from finding firm footing above 10,000 for another two years.

Now: The Dow closed at 11,493.57 on Sept. 1, 2011

The Dow topped 14,000 by October 2007, an all-time high. But the 18-month Great Recession, which began officially in December 2007, took a toll on the average—especially its financial components. Shares of American Express (AXP) fell 63% during 2008; Bank of America (BAC) dropped 60%. In September 2008, Kraft Foods (KFT) replaced American International Group (AIG) in the Dow. In June 2009, Citigroup (C) was bumped in favor of Cisco Systems (CSCO). The Dow has climbed 76% since its bear-market low of 6547 on March 9, 2009. Trading ahead of the tenth anniversary of 9/11 has been extremely volatile.

Unemployment

Then: 4.9% (August 2001)

The unemployment rate was 4.2% at the start of 2001, but the unfolding recession lifted joblessness to 5.7% by year's end. The economic drag of 9/11 contributed to the labor pains. An estimated 600,000 jobs were lost as a direct consequence of the terrorist attacks. Of those lost jobs, 226,000 were in travel and tourism. At the World Trade Center, 1,100 businesses were disrupted. It took four years before the unemployment rate returned to its pre-9/11 level.

Now: 9.1% (August 2011)

After stabilizing at a healthy 5% or below in the mid 2000s, unemployment began to accelerate in 2008 as the Great Recession went into full swing. The U.S. ended up losing 2.6 million jobs that year. The jobless rate peaked in October 2009 at 10.1%, a level not seen since 1983. Today, about 14 million Americans are out of work, and there are few signs of rapid improvement on the labor front. Long-term unemployment remains a stubborn problem, with 6.0 million workers unemployed for at least 27 weeks.

Housing

Then: $156,600 (median home price in 2001)

The median price of an existing home in the U.S. in 2001 was $156,600. The homeownership rate at the start of that year was 67.5%. The Federal Reserve had a tight monetary policy in place going into 2001, with the target on the federal funds rate at 6.5%. (The fed funds rate, the interest that banks charge each other for short-term loans, influences rates on other loans, such as mortgages.) As the recession unfolded, the Fed began to lower rates to stimulate economic growth. Four rate cuts were made in rapid succession after 9/11. The fed funds rate ended 2001 at 1.75%. By 2003 it was at a 50-year low of 1%.

Now: $173,100 (median home price in 2010)

A good case can be made that the Fed's super-low rate targets, which were prompted by the 2001 recession and exacerbated by the 9/11 attacks, played a key role in the housing bubble. From 2000 to 2005, housing prices rose at an 8.26% annualized rate, vs. 4.22% annualized during the 1990s. The median home price peaked at $221,900 in 2006. Then the bubble burst. The median price fell 2% in 2007, 10% in 2008 and 13% in 2009. It ticked up 0.6% in 2010, but at $173,100 it was well below peak prices. Homeownership, which hit a high point of 69.2% at the end of 2004, has since retreated to 65.9%, the lowest level in 13 years. 

Air Travel

Then: U.S. airlines flew 34.9 million passengers

In August 2001, U.S. airlines carried 63.8 million passengers and employed more than 520,000 workers, but the 9/11 terrorist attacks had an immediate and profound effect on the industry. The number of passengers was nearly halved in September 2001, to 34.9 million. The federal government quickly intervened. The Air Transportation Safety and System Stabilization Act, signed into law Sept. 22, 2001, gave airlines $5 billion in immediate assistance and $10 billion in loan guarantees to prop up the industry.

Now: U.S. airlines flew 63.8 million passengers

U.S. airlines flew 63.8 million passengers in May 2011 (the latest data available), the same number that took flight in August 2001. But flying isn't the same as it was ten years ago. Among the travel-related legacies of the terrorist attacks are tighter carry-on restrictions and longer security lines at airports. Creation of the Transportation Security Administration, now part of the Department of Homeland Security, itself a direct result of 9/11, was approved on Nov. 19, 2001. The TSA currently has 50,000 employees and a budget of $8 billion. Due in large part to consolidation, the number of workers in the U.S. employed by airlines has fallen 26% since 9/11 to 383,000. 

Gold

Then: $271.50 an ounce (Sept. 10, 2001)

It's no secret that some investors scurry to gold in times of uncertainty. Gold is considered a hedge against inflation and a weakening dollar, among other things. The week after 9/11 was no exception. Gold prices jumped a quick 8% on the heels of the terrorist attacks. The precious metal continued to rise steadily after 9/11, doubling in value by the end of 2005.

Now: $1821.00 an ounce (Sept. 1, 2011)

Gold shot into the $600s per ounce in 2006, a range where it bounced around until the second half of 2007. That's when signs of trouble at financial institutions, especially mortgage lenders, began to emerge. Gold first breached $1,000 in March 2008, but it wasn't until the fall of 2009 that prices stayed in the quadruple digits. Gold has exploded recently amid recession fears and stock-market volatility, surging past $1,800 an ounce. Since 9/11, the price of gold has gone up more than 600%. In contrast, the U.S. dollar has lost about one-third of its value since 9/11. 

Oil & Gas

Then: $1.53 per gallon gasoline/$27.66 per barrel oil (Sept. 10, 2001)

Oil is a commodity with a volatile history. Prices are often driven by global demand, the stability of producing nations and the whims of speculators. In the days after 9/11, the price of West Texas Intermediate crude rose 7% to $29.59 a barrel. However, oil quickly retreated as fears of economic slowdown trumped worries about scarce supply from the Middle East. Oil prices were little changed on the first anniversary of the terrorist attacks. As for gasoline, the national average weekly price for a gallon was $1.51 as of Sept. 10, 2001.

Now: $3.65 per gallon gasoline/$88.93 per barrel oil (Sept. 1, 2011) 

Oil began to climb appreciably in 2004, and by 2008 it had been bid up to nearly $150 per barrel, largely due to concerns that global demand could outpace supply. Gasoline topped $4 per gallon in the summer of 2008. More recently, oil has fallen to $88.93 a barrel on a weaker outlook for worldwide demand. Gasoline is now at $3.55 per gallon, about $2 more than it went for on 9/11. Still, oil and gasoline are diminishing resources. According to the International Energy Agency, oil's share of total global energy will shrink from 33% in 2008 to 28% in 2035