Fierce Competition Among Credit Card Providers

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Many of the lenders who take part in the UK’s credit card market are engaged in a pitched price war. This war has been slowly but fiercely waging for several years now, though has arguably now stepped up a notch and looks set to continue for a while yet. This will most likely mean a mixture of good and bad news for consumers.

The weapon of choice in this war is the interest-free introductory period, with providers offering longer and longer 0% deals to try and attract the biggest share of the customer market. This means that customers are finding they potentially have access to better and better deals for interest-free spending or 0% balance transfer (make sure you know the difference if you intend to apply for a 0% card).

This trend is particularly strong with balance transfer cards. Indeed, six of the UK’s major credit card providers currently offer balance transfer cards which will remain interest-free for a full three years. This means that those with existing credit card balances they wish to transfer in order to avoid interest will benefit from a full three years to clear the balance without having to transfer again.

However, despite the apparent keenness of credit card providers to offer deals that will tempt in new customers, these packages do not come without catches. Balance transfer cards may offer you a nice, long period to clear your balance without paying interest but this is offset somewhat by the fees that must be paid at the point of transfer. These are generally higher for cards that offer longer 0% periods, and tend to be around 2-3% of the balance you are moving over. Those who have fairly large credit card debts they are now trying to clear could find these fees quite heavy, and if you expect to clear your balance in one or two years then you might still get a better deal with a card that offers a shorter period.

Another catch is that while lenders are keen to attract customers to their deals as opposed to the offerings of the competition, they are still fairly cautious about who those customers might be. Lenders are reluctant to offer good deals to those with blemishes on their credit history. The better the deal, the pickier lenders are about those blemishes. While the price war that lenders are currently engaged in has caused some very good deals to enter the market, the very best ones might reject you for things as simple as a missed bill payment, and this rejection can then be seen by other lenders as a further mark on your record.

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Effective Ways to Recover From Bad Credit Scores

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In your finances and your financial stature, anything and everything can go up and down. Credit scores, which reflect your financial conduct, can go up and down depending on your financial status. There comes a time when improper financial decisions take a toll on your credit. But don’t fret, there are ways to recover from bad credit scores, as listed here.

1. Credit Unions

A bad credit score will make many lenders and financial institutions skeptical about you. But a credit union will not decide to approve your application based on your credit score alone. However, credit unions are not as big as banks. They can only provide for people who belong in the communities, professions or organizations they support. The choices for your financing are based on your financial capability and your actual conduct.

2. Credit Cards

Repaying your credit cards in full on a monthly basis helps your credit score rise up. Avoid paying the minimum amounts for credit cards as they can increase your interest fees. This could mean more expenses for you. A great way to use a card is to use it for items that you need. You should also consider using the card only if you need an item critically.

3. Debt Consolidation

People with great debts caused by financial mismanagement might turn to debt counselors or consolidators. These companies can help intervene between you and your lenders to arrive at a point to help you find a solution to end your financial problems. Debt consolidators ensure that the financing you receive, the income you get and your basic needs are all addressed carefully to end your credit ordeal.

4. Agreement-Based Financing

There are people, companies and organizations aside from credit unions that report your credit conduct to the monitoring bureaus. Car dealerships who provide in-house financing based on your conduct report to credit bureaus and help you get financing while improving your own credit conduct. Try to find them online and apply for their financing.

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Why You Shouldn’t Rely on Credit

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Ever felt that whenever you use your credit cards you somehow end up feeling guilty? This is not common for most people, but if you do, your subconscious might be telling you that you’ve are spending money that is not yours. Although it is not bad to have credit transactions, if you cannot repay your monthly dues using the card, you might end up in a big mess of debts that can be quite difficult to escape.

Credit cards are usually granted to applicants who have the financial capability to ensure that they can handle the repayments of their cards. Obtaining and using a credit card benefits the credit rating of the card holder given that he or she performs well in using the card responsibly. However, if you cannot make use of your card wisely, you can end up in bad credit.

Relying on your credit also disables your ability to have patience to save money or invest. While credit does give advantages in saving time, the ability to have patience is also compromised. Everything is easily accessible through the use of a credit card. However, people also forget that the best way to purchase anything is to have the money for it. Managing your finances to ensure that you have some left in the end is very important.

Again, there is nothing wrong with relying on credit cards and credit. But it is important to emphasize that credit should only be used for things that you need. For example, appliances and other home improvement materials you need. Credit cards can also get the items you need for a lower price depending on the card’s partnership with the establishment.

A credit card is a great privilege. However, if not used carefully, it can be the downfall of an owner’s finances.

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Secure Your Future Through Your Personal Finances

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Keeping track of your finances can be a messy experience, especially if you are not organized. However, it may be the key to obtaining a high credit score. You will need a good credit score when it is time to do things like purchase a home, take out loans, and apply for credit cards. This article provides some helpful personal finance tips.

Read the terms and conditions from your bank, but most debit cards can be used to get cash back at the point-of-sale at most major grocery stores without any additional fees. This is a much more appealing and responsible option that over time can spare you the hassle and irritation of ATM fees.

Sitting down with a financial planner can be a great tool for personal finance. Sometimes budgeting can be overwhelming. They can help you lay out your goals, figure out your expenses and start a savings plan. Make sure you are up front about your finances so that you can get the most from the experience.

Set up your savings account in a different bank than your checking account, and don’t give yourself online or ATM access. Do all of your savings account business in person, by mail or via the night drop at your bank. In this way, you will discipline yourself to leave your savings account undisturbed and eliminate the temptation to access it except in extreme emergency.

If a person is always ending up with single dollar bills left in their pants pockets from getting change they can use them in a fun way to possibly increase ones personal finances. If one uses the left over dollar bills for scratch off lottery tickets they stand a chance to win much more than they spent.

Use an online savings account to get the best interest rates. Many savings accounts pay little or no interest due to the poor economy. There are online savings accounts, like those offered by ING Direct, that offers rates four to five times better than traditional brick-and-mortar banks. These rates do come with some restrictions, so read the fine print carefully before opening an account.

Tackle your debt by paying down the highest-interest debts first. Typically, the highest interest rates are on credit card debt. Prioritizing the repayment of high-interest debt can save you thousands of dollars in interest charges, depending on your balances. As a bonus, putting money toward your debt is a risk-free way to “make” money, since you won’t incur future interest charges on debt that you no longer owe!

Creating a budget for one and even their family will assure that they have control over their personal finances. A budget will keep one from overspending or taking a loan that will be outside their ability to repay. To maintain ones person finances responsibly they need to take action to do so.

A metal detector can be a fun and exciting way to get some extra valuables and contribute to your personal finances. A local beach can often be the best place for someone with a rented or owned metal detector, to find old coins or even valuable jewelery, that other people have lost.

Even if you are young, start putting money regularly into a retirement account. A small investment at a young age can grow into a large sum by the time retirement comes around. When you are young, you have time on your side. You will be pleasantly surprised at how quickly your money will compound.

Now that you have a better idea of how to properly manage your finances, you are well on your way to economic prosperity. Those who manage their money well are proven to be more successful, and financial stability will help put your stressful life at ease for the long run.

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