About Payday Loans

Payday Loans – More Information

• What is a payday loan? A payday loans is a short term cash loan to be repaid on your next payday. Excellent solution if you require a fast, short-term loan.

• What can I use a payday loan for? You do not need to justify to lenders what you require the the money for. You can use it for anything – from repaying bills to child care or days out.

• What do I need to qualify for a payday loan? All you need is to be over the age of 18, have a regular income and an active bank account with a debit card.

• How much can I borrow? This varies usually between £80 – £750 / £1,000 depending on the lender.

• How much do I have to pay back? On top of paying for the money you have borrowed, you must pay an interest fee. In the majority of cases this is £25 for every £100 you borrow, though this can vary between loan providers.

• Can I receive a payday loan if I have a poor credit history? Yes – payday loan providers will not run credit-checks on you, however, you do have to prove that you have the funds to repay the loan on your payday.

• How do I repay the loan? Usually a direct-debit will be setup between you and the lender, however, it can also be paid off by cheque or debit card directly.

• Does it matter if I am paid weekly? Most providers make the cash advance payable after the fourth payday, however, in some cases lenders will take on borrowers who get paid weekly.

• Does it matter if I do not own a home? No, as long as you can provide your address details this is not a problem.

• Does it matter if I am self-employed? Generally this will not be an issue as long as you have a regular income that is paid into your bank account.

• Will my employer be contacted? In the majority of cases this is not needed, however, if the lender does need to contact your employer this will not be done without your consent..

• How long does it take to get the money? This varies between providers, however, in the majority of cases it usually takes between 1 – 2 days.

• Can I roll over the loan to my next payday? Yes, you can defer the loan until the next payday, however, a repayment plan will normally be setup (depending on how much you can repay each month) and you will be expected to repay a percentage at the end of the month.

• Can I take out more than one payday loan at once? No – payday lenders would expect you to repay ALL payday loans before taking out another one.

• What documents do I require to take out a payday loan? The majority of lenders will not ask for documents, however, in some cases they may request you to scan or fax them copies of bills, address, etc if they need to verify any of your details.

Interested? Why not compare payday loans with Creditwindow…

Top Tips To Consider When Buying Life Insurance

It can be kind of hard figuring out what level of cover you need when you look to buy a life insurance policy.

We’ve compiled a top list of tips to consider when buying life insurance:

1. How much cover do you need?

It’s important that you carefully consider how much life insurance cover you require. If you have a family to support there is always the risk that you take out inadequate amounts of protection.

Whilst the majority of your life assurance cover is to help in repaying the mortgage, should you pass away before it’s been paid in full, there are other debts, bills as well as your kids to consider when looking for life insurance.

2. Critical Illness Insurance Benefits

This can be a pretty useful policy to include as part of your life insurance cover – it essentially pays-out if you are diagnosed with a critical illness, such as cancer or kidney failure.

3. Single life insurance cover over joint?

Ok – this sounds a bit of a strange one – but think about it. Two single life insurance policies provides double the cover for couples – ensuring that the surviving husband or wife is left with life insurance cover. In addition – two policies don’t cost much more than one joint one.

4. Critical Illness Could Cover Your Kids

Did you know that most critical illness insurance policies will automatically include £20,000 worth of cover for your children? Unfortunately it occasionally happens that a child falls ill with a critical illness – it’s absolutely devastating for many parents but at least a life insurance policy will cover things life medical bills… giving your child the best possible chance.

5. Be Honest On Your Application

Ok – this sounds a bit odd… but, if you are looking to get life insurance you are better off being honest on your application form. Failure to give all relevant information could result in devastating consequences – for you as well as for your loved ones. Did you know that life insurance firms call this “non-disclosure” and they can use it as a reason to reject a life insurance claim?!

6. Set Your Life Insurance Policy Up As A Trust

Setting your life insurance policy as a trust means that you can ensure the policy pays-out to the loved-ones you want when you die. If you don’t then the policy is written in to your estate automatically, increasing your inheritance tax liability.

7. Finally – ensure that mortgage life insurance is included as part of your policy

Mortgage life insurance is pretty important but it’s more important to make sure that your policy is comprehensive enough to cover outstanding mortgage repayments – especially since they could be pretty hefty. So don’t fib about your mortgage – be honest and make sure your family can repay the last of the mortgage after you pass away.

Work Vs Play – Getting The Life Balance Right

It can be tricky getting that work / life balancing act right. Let’s face it – we spend most of our time at work and it can be very easy to fall into a routine where you do little of anything else…

So how can we get it right? Check out Creditwindow’s three top tips for balancing work, family and life in general:

1. Exercise

Did you know that regular exercise is not only beneficial for your health but it can also benefit your general well-being.

When you exercise a chemical known as endorphin is pumped into your body – this generates a general feeling of well-being and happiness. If you feel happy and good about yourself – this will benefit other elements of your life – from work, family and social life. Simple!

2. Relationships

Personal and work relationships are an essential part of life and it is pretty important to work on them. Unfortunately it can be difficult at times – no matter how much you like or love the other person. This can lead of anxiety and stress at times, especially when relationships breakdown.

Sometimes you have to know when to give yourself a break though. Let’s face it – you can’t be everything to everybody. Give yourself a little space – go for a walk in the park, jog round the block or simply have a quiet beer in the local. Whatever you need to do to make yourself feel better – do it! You owe it to yourself.

3. Look After Your Family

Family are pretty important and you need to make sure they’re looked after by giving them the attention they deserve as well as assuring they’re looked after no matter what happens.

Putting some form of life insurance in place is important – whether you’re looking for critical illness insurance to cover your family should you get a terminal illness or you want to make sure your mortgage repayments are covered should you die unexpectedly.

However, if you stay healthy, find time to unwind and enjoy life there is no reason why it can’t be a full and long one. It’s just about getting that balance right…

Getting Serious With Your Finances

With the start of a new year I felt it was time for a new post on keeping your personal finances in order. For those of you looking to take their finances more seriously – whether you’ve made it your New Year’s resolution or if you’re trying to plan for something special.

With the continued dire state of the British economy I’ve come to the realisation that there is no quick solution – and we shouldn’t expect one.

This is why it is so important to take control over your assets – whether you’re concerned about those unpaid debts, a reduced income or you’re simply struggling to make ends meet. For me it’s about looking after my family.

Whilst Creditwindow can offer a wide range of financial tools and products to help you its important to remember that resolving any finance related issue really lies with number 1 – you.

There are a large number of things you can consider when planning your finances for the new year, including:

  • Whether or not you really need that payday loan or credit card – this may seem like the simplest solution when faced with financial difficulty, however, a lot of the time you’re better off avoiding this. Debt will only add to your troubles – which is why I would recommend looking to the likes of the Money Advice Service - a Government run website that has been setup to help you manage your finances better.
  • Already in debt? Well – rather than going to a debt management company it may be easier (and cheaper) to look at one of the UK Debt counselling charities – such as StepChange - they offer free impartial advice and may be able to help you before you get into more trouble.

These really are just a few things you can do to help manage your money better and I don’t pretend to have all the answers, however, if you are looking for more advice I strongly recommend checking out our debt management articles for more help.

 

Protection For Consumers Under New Payday Loan Bill

In a new turn of events the British Government are introducing new laws to allow restrictions to be enforced on payday loan interest rates.

The Government is to make amendments to the Financial Services Bill to give the new Financial Conduct Authority (FCA – the replacement for the FSA) new powers to limit the high charges imposed by payday loan firms.

Essentially the FCA will have the power to investigate individual loan schemes and actually impose a cap on the amount of APR charged. However, it will be interesting to see how much affect this actually has – especially since an APR is an inaccurate measurement for a payday loan, given that it should be paid off by the next pay-date – i.e. by the following month. APRs are measured over a 12+ month period.

But the move does make sense – when a customer see’s an APR as big as 4000% it does cause alarm bells… but maybe this is why APR shouldn’t be used by short term lenders as a means of measure. A better representative measure would be an average interest rate over the loan period – i.e. one month.

Commenting on the new bill, Lord Sassoon said:

“We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure that the loan cannot be rolled over indefinitely should it decide, having considered the evidence, that this is the right solution.”

If this move makes payday lending fairer and more ethical, I for one am all for it.

Can Payday Loans Repair Poor Credit Scores – Revisited

Can Payday Loans Repair Poor Credit Scores - Revisited

So can a payday loan or short term cash advance really help a poor credit rating?

I was re-reading an article on payday loans and credit scores that I wrote back in November 2011 and realised that it hadn’t really answered the question.

Well – it hadn’t answered the question to my satisfaction, which is why I felt it needed addressing again – so consider this article it’s official SEQUEL!

After looking at payday loans and the way they’re administered and whether they actually appear on credit scores I finally came to a conclusion that I was happy with.

A number of years ago, when monthly cash advances first made their mark in the UK, the industry was still too fledgling and too far removed from traditional financial services for it to be considered as a credit scoring factor. However, more recent research suggests that this is no longer the case.

When you take out a payday loan with a reputable supplier – be it Wonga.com, PaydayUK or QuickQuid, the loan will appear in your credit score.

More importantly – when you repay the short term loan this will also appear on your credit score. This suggests that payday loans could be more useful than a simple emergency source of credit.

Think about it for a minute… you badly need credit to help pay bills or help buy a new car. Unfortunately no one will lend to you because your credit history is just too poor.

But hang-on a second – you’re no longer the irresponsible spender you once were. But the lender or credit card company doesn’t know that – based on your credit score.

So you turn to a payday lender for a quick, short term loan – you repay the full amount at month-end. This positive repayment is shown on your credit history – indicating that you are once again a good bet.

Now I’m not advocating payday loans as the saviour of poor credit scores… but this example surely shows you the potential.

Brits Driven Off Roads By Growing Petrol Costs

Brits Driven Off Roads By Growing Petrol Costs

Brits Driven Off Roads By Growing Petrol Costs

Recent figures by the Department of Transport suggests that the ever increase in fuel prices are not only “fuelling” the recession but are actually pricing British motorists off the road completely.

With the cost of petrol teetering on the 140p per litre mark there is a very real fear that the ongoing hikes are simply going to bring the country to a standstill. The figures show that country roads saw a drop by 5.2%, heavy goods traffic dropped by 4.4% and the category that covers motorbikes, buses and coaches saw a whopping 19.2% drop.

The OFT have started an investigation into how oil companies set their pump prices… which is fine but let’s not forget that the UK Government keeps adding on fuel duty. It’s all very well the OFT investigating the firms behind our fuel but there is a strong suggestion that the source of our motoring misery lies with the politicians.

Quentin Wilson, a spokesperson and motoring expert for FairFuelUK told the Mirror:

“The Government has to recognise that the huge cost of filling our cars and vans has contributed to the recession.

“The first thing the Treasury must do is to bin the 3p tax hike planned for January and listen to FairFuelUK’s economic research, that shows a significant cut in fuel duty will stimulate growth and create jobs.”

In addition to this the cost of fuel is believed to be behind the spiralling debt problems in the UK as many low income families, young people are turning to credit cards or payday loans to help fund their motoring.

Young Drivers: Reduce The Cost Of Insurance With Telematics

Young Drivers: Reduce The Cost Of Insurance With Telematics

Find out how you can reduce the cost of your young drivers’ car insurance even before you pass your test!

Are you currently learning to drive? If so there is a chance you’re learning with an instructor with the odd bit of tuition from a kindly parent.

If you’re like any other young learner driver out there you’re probably a bit worried about how much your young drivers insurance is going to cost once you qualify.

Well if you look at buying learner driver insurance before you qualify you could actually reduce the overall cost of motoring. Here’s how:

If you take out provisional car insurance with iKube you will not only be covered whilst you’re learning to drive but you will continue to be covered after you pass. However, as with any car insurance policy it’s important to notify your insurer.

Some insurers tend to hike up your learner driver car insurance once you qualify – in fact some cancel it altogether. This seems a little sneaky to me…

So it sounds like a no-brainer – not only are you saving yourself money by taking out car insurance before you pass but it doesn’t increase after you do!

But, as with anything that sounds too good to be true, there is a slight catch. With iKube you agree to be monitored by a tracking or “telematics” device. This is simply a little black box that tracks the time of day you’re driving.

iKube simply asks that you don’t drive between 11pm – 5am. They ask this as late night tends to be riskiest time to drive. If you do drive late at night you incur a charge for driving late at night.

However, if you drive well, safely and avoid late night driving you could find that your car insurance premium reduces significantly when it comes around to renewing your policy.

Cheaper than taking out a payday loan to pay for your car insurance? Damn right it is!


iKube Insurance is a young and learner driver insurance product – to find out more please visit: http://www.ikubeinsurance.com

Image: FreeDigitalPhotos.net

How to Control Anxiety Over Bad Credit

How to Control Anxiety Over Bad Credit

How to Control Anxiety Over Bad Credit

It’s not uncommon to find yourself in a poor financial situation. Layoffs, underperforming investments, unforeseen expenses, and budgeting mistakes can all lead to issues with managing your finances, and when those issues start to cause debt, it can lead to bad credit.

Bad credit affects people more than just financially. It can also lead to a great deal of stress. Those that are suffering from bad credit often feel as though their lives are going to be forever changed – as though they will be unable to overcome their credit issues.

This can cause a lot of stress, and indeed, it appears as though many people suffer from anxiety issues because of their financial situation. That’s why it’s important for your mental health to control this stress while you rebuild your credit.

Tips to Control Stress Due to Bad Credit

· Create a Financial Plan

Easily the most important tool for controlling your stress is to have a plan in place to rebuild your credit. Your budget should be planned out as best you can, with details that will ensure that you keep to it. Financial planning gives you an eye towards the future, and it shows you how you’re going to make sure that your credit score sees genuine improvement over time.

· Create an Emergency Account

Related to creating a financial plan is creating some type of emergency account that you can use to pay off bills in the event of an unforeseen expense. It’s not just planning for the unforeseen expenses – it’s also preparing for the other bills you need to pay in order to keep rebuilding your credit. When you have this emergency account, you’ll find yourself less concerned about what happens if something comes up financially.

· Learn Proper Credit Strategies

It’s also a good idea to take some type of credit class or research smart credit decisions. When it comes to controlling your anxiety about your finances, knowledge provides a great deal of power. As long as you know what the right decision is each time, you won’t doubt yourself and you’ll be far more confident when you’re dealing with your debt.

· Organize Your Bills and Bill Pay

Organization is also an important tool for reducing the stress of low credit. You know that you’ll have to make every payment from now on, and if you’re still finding every bill and forgetting which ones are due when, you’ll put yourself in a position to panic. Sign up for bill pay when possible, and make sure that you have some type of reminder calendar to ensure that you make each payment on time as needed.

· Find Free Finance Hobbies

Finally, it’s helpful to get a little bit of extra money in your pocket when you can, in order to fund the emergency fund and decrease the stress you experience over finances. See if there is anything you can do for free (no financial investment) to earn a bit of extra money. Even something like mowing lawns or starting a blog can be beneficial. You may only work a couple hours per week on these projects and make very little, but that extra money can fund your account and reduce some of your financial stress.

Controlling the Anxiety of Poor Credit

One of the main reasons to have good credit is so that you can improve your quality of life. But if you’re letting the stress of overcoming your poor credit impact the way you feel, then you’re not experiencing that quality of life you crave. Use the above tips to reduce anxiety while you rebuild your credit and you’ll find that you’ll not only improve your credit score – you’ll improve your life as well.


About the Author: Ryan Rivera experienced significant stress from his financial decisions. He has a website about controlling anxiety at www.calmclinic.com.

UK Workforce Turning To Payday Loans, According to Unite

UK Workforce Turning To Payday Loans, According to UniteAccording to research undertaken by Unite increasing numbers of workers are turning to payday loans since their wages run out before month-end.

According to the report London-based workers are thought to borrow the large majority of payday loans for housing.

The report suggested that two fifths of workers who take out these short term loans use the money for a variety of things – including rent / mortgage, food and utility bills.

This raises concerns that if consumers are unable to meet the cost of living through wages it’s unlikely that they will be able to repay the payday loan effectively.

It should be noted that the ridiculously high APR attached to payday loans is not an accurate measurement of the interest repaid as it’s over a yearly period. However, whilst this may be the case it’s also worth bearing in mind that, if constantly deferred over a number of months, the levels of interest mounts up – leading to spiralling debt problems.

Whilst payday loans are clearly useful if you need a quick solution to help pay emergency bills they should only be used as a last resort or if you’re absolutely sure that you can meet repayments on your next payday. Otherwise it may be worth simply calling the company you owe money to to arrange a repayment plan. Whilst this may not appeal it is a safer way of controlling your debt than turning to a short term solution.

If you do need a quick solution then compare payday loans with Creditwindow.