Build Your Credit

Tips on How to Improve your Credit Rating

Build Your Credit - Tips on How to Improve your Credit Rating

Payday Loans: An Overview

Payday loans are a great way for people who have emergencies and need cash quickly. Those who do not have perfect credit, or would have a hard time obtaining a bank loan, often turn to these methods to find the money they need.

A payday loan is not like a traditional bank loan, in that one does not need good credit and or collateral. Rather than going for an extended period of time, payday loans are short terms loans with higher interest rates. They are usually paid back by the next paycheck or longer, depending on the lender.Payday lenders look at a person’s ability to repay the debt, not their past credit history. To obtain this type of loan a person needs a steady income and a checking account. Most lenders will want a reference or someone they can get a hold of in the event they can’t get a hold of the person obtaining the loan.

Europe has made it easy for those seeking a payday loan to get one fast. Some lenders require that a person travel to their location and stand in line. Europeans can take advantage of the text loan or they can do the entire application online. It is possible to obtain a loan from the comforts of home without every leaving. The funds can be deposited as quickly as in 24 hours and there are no lengthy applications wanting a plethora of information.

One requirement is the banking account. The reason for the checking account is because the lender will deposit the funds into this account. The account that is used to obtain the loan will also be the one the funds are withdrawn out of when it comes time to repay. This account must be in good standing and be able to be verified.

With the financial crisis being what it is, many people are turning to these alternative loans to help the out. Whether it is to avoid a utility disconnection or to pay for needed household items, the payday loans are easy to obtain, quickly.

Those who do not have verifiable income or have defaulted on previous loans would not be approved. Moreover, those that do not have a banking account would also not be good candidates. While the lending terms are much more lenient with these types of loans, the lender still wants to ensure they will receive their money with interest.

How to Attain a Good Credit Score

The world lives on credit. In many cases, credit is the only way individuals and families can purchase big-ticket items. However, the ability the obtain credit can vary from one person to another. The underlying issue is one’s credit score.

Essentially, a credit score is the method by which a person is ranked as a borrower. It is based on his or her past history of borrowing. Whether one has patronized a mobile telephone company, taken out a mortgage or any loan from a bank, charged something or has been named as the principal payer of the bills from a single household, there is a record of the transaction. This information should hardly be considered private because it is collected by various credit agencies. In the UK, the three primary companies responsible for this are Experion, Equifax and Transunion.
There are many factors used by credit agencies to determine an individual’s credit score. These include the loans and credit obtained by the person, how they were paid off, and how much he or she earns and spends. Those who have good earnings, spend their money wisely and pay off their debts will be able to attain a higher credit score. The actual scoring is based on a mathematical formula using one’s credit report, and how it compares with others. This number will be used to predict how good a credit risk any one person will be. In a practical sense, this will determine the difficulty one will have in taking out a loan, or how much one will pay in interest on an individual credit card account.
In the UK, the objective of everyone should be to achieve a credit score of 1,000, although the average rating in this country is 750. Those with a score of over 850 are in a comfortable position because it is assumed they are a good credit risk. Accordingly, they should have no trouble obtaining credit and having more reasonable interest rates when they pay back what they have borrowed or charged. Those with ratings of under 600 should consider themselves in some trouble when it comes to borrowing or charging, and should take steps to turn things around.
A bad credit score can come from a history of not paying back in time credit debt or defaulting on loans. It can also result from the absence of a credit history, which is common among the young, and is often found among recent immigrants, who have few “attachments” to their new country. Anyone can obtain his or her own credit score by signing up with one of the agencies.
Those who pay their bills on time and pay at least the minimum balance will in time be rewarded with a higher credit score. Among the other things one can do to achieve a higher credit score is to avoid store credit cards, which usually have higher interest rates, and use cash when possible. In the end, a good credit score comes down to looking good in the eyes of lenders.

How to Reclaim Bank Charges

Major banks are being required to reimburse their customers for the miss-selling of several of their financial derivatives instruments. These products have included interest rate swaps, caps, and structured collars. These products were sold as a protection against interest rate movements. However, the banking industry has been involved with some controversy about manipulating interest rates. One of these major banks was fined for changing the interest rates in favour of some financial gain for the banking institution.

The following are several factors that may be important to consider when reclaiming any bank charges on a business account:

1. The major banks that originally were investigated for such excessive charges were Barclays, Lloyds Banking Group, HSBC, and Royal Bank of Scotland. As of late, there have been other banks included in the list of banking institutions that may be required to repay any banking charges for financial derivatives. Clydesdale and Yorkshire banks have recently included their derivatives customers as those that the bank may consider for paying out compensation.

2. All of Britain’s four major banks have agreed to pay out compensation to those customers who may have been mis-sold banking products. Seven other smaller lenders have agreed to look again at their derivatives customers’ accounts. There may be eleven different loan types that could contain features described as being mis-sold. The FSA has now barred these products from being sold to the public and to small businesses.

3. Contacting the bank directly is the current agreed-upon method of reclaiming any of these bank charges. The Financial Services Authority is saying that over 40,000 of these interest rate swaps may have been sold to small businesses. These banking products may include fixed-rate loan products, also. The inclusion of the additional types of mis-sold products has significantly increased the potential number of cases that may be compensated.

4. The investigation has been under way by an independent regulator. Some customers are saying that the investigation is taking too long or that the compensation agreement is too complex. There are some concerns that these independent reviewers are offering judgements on these cases with some bias. If this is the concern of the banking customer, then legal action may be the only recourse for compensation of these bank charges.

5. A group of solicitors has agreed to finance several hundred of these mis-selling cases. They have agreed to look over the form of compensation offered and whether the compensation should be accepted. Current court settlements have seen some banks returning all of the derivatives premiums paid and writing off any breakage fees. In the cases involving an interest rate swap, the swap has been cancelled.


The banking industry has agreed to reimburse several of the bank charges that have been mis-sold. These banking issues have the potential to overtake payment protection insurance as the most expensive error to date. The history of British banking has included some scandals, but mis-selling derivatives products may prove to be the most costly.

Tackling Debt With Baby Steps and Organization

Debt is notoriously demanding, but it is not an evil force that may rule your life. Debt is an entity, and it can be managed, tackled, and disposed of, by following a few methods. A mountain of debt can, and will be managed, if one is to persevere and follow guidelines that are organized, logical, and approachable.

Consider All Options!

Before diving too far into your mountain of debt, try to consider your options. Take a notebook and write down what you can do to manage the task. Often times, a professional can help in this situation. Just because their is a stigma against bankruptcy, and you were also told it was awful, it may be a logical decision for you. Keep your options open. Debt lenders can purchase debt, or stall payments of the debt without fines for a period of time. This way, you can feel comforted, and begin making the task of debt payment just a bit more manageable- or omit it entirely. The options are there- you just need to explore them.

Revamp Expectations

After you explore your options, you will have no choice but to revamp your expectations. This means being realistic, focusing on what works, and how it will work. Many have attempted to dissolve debt, and have failed because their expectations were lofty and unreachable. This demotivated them to continue. yet with realistic and centered goals, you can take considerable though manageable stabs at the debt that lies in front of you.

Detailed Goals in Tiers

After reforming and burning your expectations into memory,. it is time to make a goals list. This is not as easy as listing a bunch of items down. Each goal must have substance, and be backed up by a list of ways you will accomplish that goal. It is not as if you can list “pay off 1/2 of student loan” without a plan on how this very task will be accomplished. Structure your goals in tiers. What are you short term 1 month goals? Is it pay the bills on time? Now consider your 6 month or year-long goals. Is it doubling your monthly earnings, or do you have the goal of paying off one particular loan? Lastly, you must consider your ultimate goal- how LONG will you need to get out of debt? 10 years? 20 years?

By placing a tier of goals, you keep the overwhelming nature of debt at bay, controlled and focused in steps. By organizing your expectations and keeping all options open, you allow yourself the room to manage an initially insurmountable debt into a series of manageable payments. Debt can be overwhelming and massive, but it does not need to control your life. There are ways to make the mountain collapse into a little mound- time, patience, and organization.

5 Tips to Rescue Bad Credit

These days the world seems to be centered around credit ratings. Many insurance companies review potential client’s credit before estimating rates for things such as auto insurance, home owners insurance, and renters insurance. Many employers evaluate the credit of potential employees before beginning the hiring process. Lenders rate credit before considering possible customers for loans. Sadly, people who have bad or blemished credit often suffer with it for many years, paying higher insurance premiums, higher interest rates, and even missing important job opportunities. Bad credit doesn’t have to stay bad, however. With the proper dedication, determination, and patience, consumer’s credit scores can improve drastically.

      • Review your Credit Report:

Mistakes on consumers credit reports can cause negative marks resulting in lower credit scores, so it is important for consumers to review their reports regularly. Many people obtain credit monitoring services from independent companies in order to keep track of changes to their credit reports. These companies charge a nominal fee to closely monitor credit inquiries, reports of late payments or collections activities, and changes in credit scores.

      • Pay Credit Balances Down:

One of the main factors considered when calculating credit scores is the ratio of the amount of credit available vs. the amount of credit used. When consumers continuously use the maximum amount of credit available to them, they appear to be financially strapped. Paying down balances tends to show lenders that consumers are able to meet their financial obligations.

      • Use the Credit you have Available:

When consumers display responsible use of credit lines and borrowing limits, they relay the message to lenders that they are able to manage their finances in a mature way.

      • Pay Bills on Time:

When payments and other monthly bills are reported to be more than 30 days late, it creates a very negative impact on consumers credit scores. In most cases, showing a steady payment history for even just a few months can raise credit scores noticeably.

      • Don’t Overextend:

Consumers should be weary of overextending themselves. Debt to income ratios play a significant part in determining consumers credit. When the amount of income available is too low in comparison to the amount of debt used, The risk that consumers may not be able to meet their monthly obligations rises.

Consumers Beware

There are a number of companies that advertise the ability to erase negative items from consumers credit reports, raise credit scores overnight, or repair credit reports are a waste of time and money. There is no legal way to remove accurate information from credit reports, nor are there techniques that can improve credit scores quickly. Reparation of consumers credit reports takes time, patience, and determination. Following the tips provided above can significantly improve bad credit in less time, allowing consumers to enjoy lower interest rates, lower insurance premiums, and better employment opportunities.

How to improve your credit rating

If you are suffering from problems with adverse credit that are stopping you from getting a mortgage, loan, mobile phone contract or any other kind of financial product there are ways you can go about improving your situation.

A person’s credit rating is one of the main pieces of criteria that companies use when assessing the eligibility of an applicant for their services.  People with poor credit are generally considered to be high risk which means a company might refuse them services through fear of not being paid.

There are many services that are offered depending on a credit score.  These include:

-          Utility bills

-          Mortgages

-          Credit Cards

-          Loans

-          Mobile phone and landline contracts

-          Satellite television

-          Bank accounts

So how do you improve your credit score?

This will depend upon your circumstances.  Obviously someone who is in a stable financial position is going to find it a lot easier to improve their credit score than someone that is struggling.

Many people find themselves in a vicious circle where the money they earn isn’t enough to cover their credit charges so they miss payments which makes their credit score even worse.  If you fall into this category then you might want to consider speaking to a debt management company, apply for an IVA or even consider bankruptcy.

Obviously these are drastic options.  Most credit companies are willing to negotiate repayments rather than losing their money altogether so it would make sense to speak to each individual creditor separately and come to some sort of arrangement.

Many people commit themselves to credit agreements and services that they don’t need.  If you can’t afford a new sofa, don’t take out credit to buy one.  If you already have Freeview digital television and are short on cash, don’t over burden yourself with having to pay for Sky TV.

If you are in a position where you are able to cover your monthly payments but have a poor track record there are a number of steps you can take to get your rating back on track.  Be warned this won’t happen overnight.

The first and most obvious thing to do to build your credit score is to make payments on any outstanding debt and make sure you pay your utility bills.  Late payments on such things as water bills will likely show up on your credit report so be careful not to fall behind with these.

Once you have your finances under control, you are now going to want to prove to creditors that you are responsible enough to make repayments.  To do this you will need to take out credit and services and pay promptly each month. The problem is that many people with poor credit ratings aren’t eligible for many such services.

There are a number of credit providers out there that specialise in dealing with people with bad credit records.  For example, the company Vantage offers credit cards to people from most financial backgrounds.  If you take out a card with a company like this, ask for a minimal limit and spend a very small amount on it.  Each month pay off the balance in full and again make very small payments.  You will find your credit report will show a 0 every month that you do so which means you paid your balance off on time.  The more zeros your report shows, the better your rating will get.