Author: Monica

Payday loans are a type of loan which some of us do not know that much about. This is because they are not a traditional loan that you will be able to get from your high street bank. They are a newish type of loan which are given out by specialists in payday loans which means that many people have not heard of the lenders before. They are quite different to many other loans and therefore it is worth thinking about when the best time is to use them.

When Credit Rating is Poor

A payday lender will lend to people even if they have a poor credit rating. We all have a credit report which shows how well we are doing with regards to managing our money and if we have missed lots of loan repayments or have borrowed lots of money. If it looks like we are not capable of repaying a loan, then a lender will normally not want to let us have any money and they will assume that they will not get it back again. However, a payday lender will still lend money in this circumstance and therefore can be a place for someone to get financial help if they cannot go elsewhere for it.

In an Emergency

Payday loans and no credit check loans are often arranged very quickly. Some of the lenders will even manage to get money to people within a few hours of them applying for it. Other will be available to lend money at night or weekends when other banks may not be open. This means that is money is needed quickly then they could be a useful option.

When You Need Small Amounts

Payday loans are for £100 to £1,000 generally and so if you need a relatively small amount of money then you will be able to use these to get that money. Sometimes it is not easy to only borrow a small amount of money and so this is where these loans can be helpful. It can be good to make sure that you do not borrow too much as that will be harder to repay and so having the option to only borrow a little can be very helpful.

Like with all borrowing, it is really important to make sure that this is the best type for you. You need to think about what you need the money for, what you can afford to repay, how much you are prepared to pay for the loan and how long you need the money for and that will get you started in working out which type of loan will suit you the best. Consider to start with whether you even need a loan or whether there are any alternatives or if you can avoid spending the money. Then think about how much you feel a loan should cost and what you are prepared to pay in this instance. Think about how much you can afford to repay and whether you want a lump sum or a series of instalments. Also think about how quickly you want to repay the loan.

 It is good to make sure that you consider all loan types and make sure that you are picking the best one. You also need to compare lenders so that you can make sure that you are getting the best value for money. Look at how much they are charging for the loans they are offering as well as the other terms of the loan and then you should be able to work out which will give you the best value for money.

We hear a lot about poor and good credit and what is good and bad but it can hard to know whether what we are hearing is right and whether it will make that much of a difference to us personally. It is worth knowing a bit about credit records though because it could be important for you.

What is a Credit Record?

A credit record shows our financial history. There are several companies that keep track of this information and hold the data. You can look at your own credit record, free of charge, by registering with one of the companies. It can be interesting to take a look at it as it will give you an idea of what sort of information is noted and also you can check to make sure that it is correct. You will see that it has records of any loans and overdrafts that you have and any missed repayments. It also has records of bills that have your name on and any missed payments on those as well. There is also information about you bank and credit card accounts and details of anyone you are financially linked to due to taking out joint accounts with them. There will also be details of any CCJ’s, house repossessions, bankruptcies, fraud or IVAs in the last six years.

Who Uses Credit Records?

There are different people that might be interested in looking at your credit report. Employers and landlords will look at them to check identity by way of the electoral role information but they will also look at insolvency records and CCK’s and this may impact whether they take on or not. Lenders will look at a lot more details than just this. They will want to make sure that you will be able to make the payments on the loan that you are applying for. Therefore, they look for evidence of this on the credit report. It is difficult to know exactly what they are looking for as they all differ but, you want to impress them. They will want to see that you can be relied upon and they will want to make sure that you will be able to repay the loan. However, they each have their own way of judging what will be good and this means it is not always easy to do the right thing to please everyone.

So, if you want to get a new job, rent a new property or borrow money then you will need to have a decent credit record. Therefore, you will need to try to improve it before doing these things if you think that it will mean that you will get turned down. Try not to worry about it but think about what you might be able to do to improve things. Make sure the details are correct and then try to repay loans and make sure you pay everything on time. This will improve your record and should help you to be able to get the job, home or loan that you need in the future. It will take time to build it up, but do not worry about it but just make sure that you star on track with these things. It can be helpful for you personally as well because if you repay loans you will save money in interest, you will owe less money and you will not have to pay any late payment charges. You may also have to learn a bit about how to manage your money better or budget which is always a very useful thing to learn.

There are many people that use online banking, but there are still some that do not want to use it or do not see the advantage in it for them. Obviously, we are all different and have different needs with regards to banking but it is worth thinking about the advantages of online banking so that you can decide whether it is something that will work out well for you. It is good to keep revisiting things like this as your needs may changes and what banking offers may change as well. Below are a few advantages of online banking.

Easier to Budget

When you have online bank access, it means that you can check your balance at any time. You can also monitor payments going in and out and things like that. It means that if you want to buy something but are not sure if you can afford it, you can quickly look at balance and find out. You can do this with an ATM or by popping into a branch of your bank, but that takes effort and relies on you leaving the house. It might be that you are online shopping in your PJs and you want to buy something and just need to check if you can afford it or you might have family at home and cannot leave or your branch just may not be open at convenient times. So if you are trying to stick to a budget or just make sure that you do not overspend, then this can be really useful for you.

Can Bank at Any Time

The fact that you can bank at any time is very useful. Banks have limited opening hours, even on their telephone helplines and so if you need to check something, make a transfer or whatever, then you do it whenever you wish, whether that is in the middle of the night, at the weekend or at any other time when they are not open.

Do not Need to Rely on Local Branches

These days we often find that local branches of banks are closing. There are more and more high streets which no longer have bank branches on them anymore. This is because less and less people are using them as they are switching over to telephone, online and mobile banking. This means that you may find that you branch shuts and this means that you could have to go to a different town in order to find one. However, if you use online banking, then you will not need to go into a branch of your bank and therefore not have to travel or worry about whether your branch will stay open or not every time there is news of banks closing their branches.

Might get Better Rates

Some banks only operate online and they save the expense of having to have high street branches. These savings might be passed on to their customers and therefore they will be able to improve their rates. This could mean that the charges will be lower or that a higher return can be gained on savings. This may not always be the case with this type of bank though, but it can be worth investigating and comparing them to see whether you can gain from moving completely online. It could be worth it if you are able to get a better return on your savings or be able to borrow money at a lower rate. By staying with a high street bank you could be missing out on some really good deals that you cannot get without being online.

There are lots of different options for borrowing these days and it means that we do have money available when we need it. However, sometimes we do not wait until we need money but just borrow it to treat ourselves. Some people are against doing that and it can be a bit confusing as to whether we should borrow for that reason or whether we should just wait for emergencies. So, whether you are considering a personal loan or any other type of loan, it is wise to think about whether it is a good idea. Perhaps musing over the following points could help you to make up your mind more easily.

• Does it Offer Value for Money? – it is worth remembering that every loan has a cost and so we need to know how much that is and then we will be able to work out whether we think that it offers us good value for money. Consider what you are using it to pay for. Let’s imagine it is a car you are buying with the money. Consider the cost of the car, then add on the cost of the loan and think about whether you still think the car is good value taking into account that fact that you have to pay those borrowing fees as well. It is also worth thinking about the fact that you will have to find the loan repayments, which might be stressful and if you miss any you will have extra fees to pay.
• Can you Repay it? – it is really important to think about whether you can repay the loan. Make sure that you find out how much you will need to repay and when, before you take out the loan. Then, look back over your bank statements to see whether you think that you will be able to afford them. Look carefully at the money you normally have coming in and what you have to buy either because they are essential such as food, or because you are committed to paying it such as mobile phone contract. See whether you would still have enough money left, after paying for these items, to be able to afford the loan repayments as well. You may need to go without some of your non-essentials and you need to consider whether this is something that you are prepared to do or whether you would rather not borrow so you were not in this situation.
• Do You Have Alternative Options? – it is always good to think about whether there are any alternatives to borrowing. Borrowing has a cost and if you can avoid that cost then this will benefit you. Start by thinking about whether you really need the item that you are buying with the loan. You could just go without. Then think about whether you are prepared to wait for it, as you could take to save up the money rather than borrowing it and having the item immediately. This can be tricky, especially if are used to always having what you want right away, but it will be a cheaper option for you. If you cannot wait, then consider whether you have other options to borrowing. For example, you might have some savings that you can use and this could help out or you might be able to get an advance on your salary or perhaps find an opportunity to earn a bit more money somewhere. If there are no alternatives, then look to a loan, but ensure you choose the right loan type for you as well as finding the lender that offers the best value for money.

If you take out a mortgage then you will need to put down a deposit in most cases. The deposit is a lump sum of money, that will be used to pay off some of the property that you are buying. Most lenders will require one and it can be a significant amount of money – often up to 10% of the value of the property. This means that you will need to put a big effort into saving up. However, there are things that you can do to make saving up easier.

Set up a Dedicated Account

It is a good idea to start by setting up a dedicated account where you will be able to put the money that you are saving up. Keeping it in a different place to where you put other savings will mean that you will not accidently spend it on other things. It also means that you will be able to see how much you have more easily and hopefully that will encourage you to keep on saving.

Pay Money in Each Month

In order to make sure that you keep adding money in then it is a good idea to set up a regular monthly transfer that will pay money into the account regularly. This will allow you to be able to make sure that you are building up the savings. It can be tricky knowing how much to transfer, but look back at your bank statements and see how much you tend to have left over at the end of each month and use that amount. You can always change it and add in extra lump sums of money when you have them available.

Cut Down Spending

It can be a good idea to have think about whether you can cut down your spending. It is something that might feel really hard but actually can be easier than you might think. Firstly, you might be paying more than necessary for the things that you buy and if you switch to a cheaper provider, retailer, brand, insurer, lender etc then you could save a lot of money. Do consider value for money though as you do not want to have replace things more quickly because you have not paid out enough money for them. However, you also need to think about the fact that if you do switch then you could notice no difference at all apart from the fact that you are paying less. It can therefore be a good idea to think about all the things that you buy and whether you can buy them cheaper and save money. Even small savings can be significant when you add them all up.

Another way to spend less is to buy less things. This can feel a lot harder than buying the same number of items and paying less for them. Although it will take time to compare prices and choose the items that will provide the best value for money, it will not feel like you are depriving yourself. However you may need to cut down on non essentials if you want to have more money available to save.

Consider Earning More

It can be a good idea to think about whether you might be able to earn more money. You may be able to take on more hours of work, to try to get a better paid job, but that is not always easy. It could be easier to sell items that you own and no longer need or to find some freelance work online or temp work. There are likely to be opportunities available but you will need to think about what will suit you. You may find that online work is not paid so well, but you may feel that it is still worth doing because you will be able to earn that extra money that will mean that you can buy your home sooner.