Car Finance – A Quick Guide To Car Loans

Posted on March 4, 2012 by creditwindow
Car Finance - A Quick Guide To Car Loans

Find out more about buying a car on finance and find a car loan to suit your needs.

When you’re looking to buy a new car it’s not always easy to find the cash to help with the purchase – whatever that reason may be.

Let’s take a quick scenario – you’re current car is on it’s last legs and it breaks down whilst you’re out on the road. When your breakdown service eventually turns up to tow your car it turns out that it is simply not worth investing in the repairs. Effectively it could be more cost-effective to buy a new, more reliable car than to get your vehicle repaired.

Unfortunately many people find themselves in this type of scenario and with the economy in its current state many simply cannot afford to buy one.

If you find yourself in this state there are other options you can consider.

Buy A Second-Hand Car

Buying a second-hand car isn’t the worst choice but it’s worth bearing in mind that its life-span will be reduced when compared to a new vehicle, however, in the short-term at least you could save yourself money.

If you are struggling to find cash for a second hand car then you could consider a payday loan or even turn to your credit card. For a cheaper vehicle this option could be ideal, however, we appreciate that some people may want or even need a brand-new car.

Cars On Finance

If you are looking for a brand new car and are struggling to find the finances to fund your new purchase then consider buying one on finance.

There are a number of car on finance firms to choose from and all offer competitive APR interest rates – compare Creditwindow’s car loan companies to find a plan to suit your needs.

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Making The Most Out Of Your Money

Posted on February 28, 2012 by creditwindow
Making The Most Out Of Your Money

Find out how you can make the most out of your money and avoid credit card and payday loan debt.

Unfortunately, since the financial crash (what credit crunch?!) back in 2008, British people have been feeling the effects. Unfortunately this has resulted in a growing number descending into credit card and payday loan debt as a result of not making the most of the money they do have.

On the face of it – it seems pretty difficult to make the most of your money during this time of “economic uncertainty”. Oddly enough there are things you can do to make your money work harder for you… but what?!

Check Out The Budget Supermarkets

Personally I’ve started doing some of my grocery shopping at the local Lidl or Aldi. Did you know that you can make significant savings by shopping at the budget supermarkets like this? What’s useful about these two stores in particular is the ability to bulk-buy – similar to a wholesaler but for consumers – not businesses. So if you need to do a big shop then you could make significant savings by shopping at a budget supermarket. Don’t get me wrong – I still pop into Tesco or Morrisons for quick buys but if you’re looking to do a big shop then try out Lidl or Aldi and compare what you spend to some of the other retailers out there. You might be surprised.

Invest Your Money Sensibly

There are bank accounts out there that can help you make the most out of your money – through high interest savings accounts and current accounts that will actually give you cashback every month that a set amount is paid in (usually over £1,000 a month).

In addition to this you could consider looking at opening an Interest Savings Account (ISA) to help boost your investments.

Earn More Money

Easier said than done isn’t it?! Ok – to help keep your financial health in top form it’s worth considering an additional job or, if possible, look at taking overtime in an existing job. Boosting your income could make all the difference to your financial situation and help you to meet monthly bills and charges. It could also help to prevent you turning to the likes of payday loans and credit cards to help meet payments and descend into debt.

Sell Sell Sell!

If possible look at selling some of those unwanted items you have lying around the house. These could be unwanted Christmas gifts, an old TV or out-of-date computer. Remember – your trash might be other people’s treasure so it’s worth popping along to your local car-boot sale or auctioning these items on EBay. Worth bearing in mind though that you may find a face-to-face sale at your local car-boot sale to be far more effective – never underestimate face-to-face. Online shopping isn’t always the be-all and end-all!

Tighten Your Purse Strings

Try to spend less – by setting a monthly spending budget for the year (that you stick to!) could help you to control your cash-flow and could mean that you have a little more left over at the end of the month or even the end of the year. Certainly worth considering.

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Compare Payday Loans – Finding One To Suit Your Needs

Posted on February 25, 2012 by creditwindow
Compare Payday Loans

Compare payday loans - find the best one to suit you and your needs.

It’s easy to think that all payday loan companies offer the same product and base their lending on the same criteria.

This is a mistake that’s not worth making – it’s important to choose carefully which is why many simply compare payday loans and what different schemes have to offer.

So why should you compare payday loan companies? Well it’s simple really – there are a number of criteria they tend to differ on, including:

Compare Interest Rates

I’m not necessarily talking about the Annual Percentage Rate (APR) – APR is an inaccurate measurement of the interest you repay on a payday loan so I’m not going into this again. The actual interest rate is a measurement over the course of a month – if we look at two lenders who use a “slider” on their websites we can actually take a look at the amount you would likely repay. Payday UK – for example, have an APR of 1737%, however, if you actually calculate it properly you won’t pay anywhere near this amount of interest.

Let’s assume you want to borrow £80 over a 30 day period. In effect you’ll repay the £100 plus interest of around £29 – which makes the repayment value £129. This makes your actual interest simply 29% – cheaper than some bank overdrafts or even affordable unsecured loans.

The same applies to Wonga – however, it actually works out at slightly more expensive with an interest rate over 30%. In spite of this it’s important to bear-in-mind that not all lenders will have interest rates as closely matched as this – some will undoubtedly charge more. But this is why it’s so important to compare payday loans before simply taking one out.

The Amount You Can Borrow

The amount of money you can borrow from a payday loan company is yet another thing to consider. You won’t be able to borrow the same amount from all payday lenders. For example, did you know that Wonga have set their first time loan limit to £400 – and they’ll only loan you the maximum if they’re sure you can repay this at the end of the month.

Let’s now quickly compare this to Payday UK who seem pretty willing to lend you full £750 first time around if you need it. However, like Wonga they will only lend you the maximum if you can repay it.

When comparing payday loans it is vital that you consider the amount you want to borrow and whether you can feasibly repay it at the end of the month. It’s also important to be completely honest when applying for a payday loan. The last thing you want is a huge debt that you’re unable to repay – that interest rate will only increase the more you leave it. This is why it’s ideal to repay the loan quickly (within a month / 30 day period).

So – take a look around and browse our range of payday loans. Most importantly – find a loan to suit you and your needs.

Find a payday loan

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Cost Savings – Cutting The Costs Of Your Utility Bills

Posted on February 20, 2012 by creditwindow
Cutting The Costs Of Your Utility Bills

Find out how you can cut the cost of your utility bills without turning to payday loans or credit cards.

Recently there has been talk about people turning to payday loans or their credit cards to help meet the cost of their utility bills – electricity, gas and water bills.

But let’s face it – turning to a payday loan is not a good way of meeting monthly bills. Credit cards and short term loans should only be used as a last resort.

But what can you do to help cut the cost of your bills. Let’s take a look:

Gas and Electricity Bills

According to recent figures the average gas bill is liable to increase in the colder months making many homeowners and tenants concerned. However, with the right kind of tools you can actually reduce the cost of your heating with relative ease.

One of the most popular ways of cutting your heating bill is by insulating your loft as this will prevent heat from escaping. In some instances you may be eligible for a grant to go towards the cost of insulating your loft. It’s certainly worth contacting the Energy Savings Trust to find out more.

Did you also know that if your boiler is relatively old you could be eligible to claim for the cost of a new G-Rated boiler (£400). However, it’s important to bear in mind that the scheme is limited to 125,000 applicants so it’s important to get the claim in early on.

Another way of reducing costs is by combining your electricity and gas bills so that you are paying off both in one lump sum every month – potentially saving you a fortune.

Energy Saving Lightbulbs and installing double glazing are more ways of saving money on your electricity and heating bills.

Water Bills

Did you know that water bills are rapidly increasing. In fact recently water bills leapt by 8.8% and many people are struggling to pay off utility bills as a result.

Fortunately there are ways of reducing the cost of water bills – let’s take a look at a few:

If you don’t already have one consider installing a water meter. A water meter simply records you water usaget and could help you to reduce water consumption considerably.

Try not to waste water. Every time you turn on a tap ask yourself whether it’s really necessary – it’s worth bearing in mind that a running tap can waste around 6 litres per minute. So ask yourself… do you really need to run the tap whilst your brushing your teeth?

Consider a water efficient shower head as this could help save considerable amounts of money when you’re having a shower.

So before you turn to your payday loan provider or your credit card – ask yourself if you really need to and whether there are ways you can reduce utility bill costs… it’s really not impossible to live within your means.

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Cost Savings – Reducing Your Fuel Consumption

Posted on February 20, 2012 by creditwindow
Cost Savings - Reducing Your Fuel Consumption

Find out how you can avoid turning to a payday loan or credit card to pay off your car's fuel bills.

Did you know that the price of petrol has almost doubled since 2001? Unfortunately the current cost of petrol is only set to increase and as a result paying less for your fuel may simply be unavoidable.

Turning to a payday loan or credit card is probably not a route you want to go down to help pay your car’s fuel bills. However, its worth bearing in mind that paying less on fuel isn’t completely out of reach.

Whilst a number of drivers might consider switching to electric or hybrid cars this might not be possible for those of us who simply can’t afford to buy a new car.

Let’s face facts – even a brand new Smart Car is going to cost far more than a small hatchback – such as a Ford Ka.

Taking that into consideration there are ways to reduce fuel consumption even if you can’t afford to buy a brand-new electric or hybrid vehicle.

Here are a few tips to help reduce fuel consumption:

Check your tyre pressure. Did you know that the condition of your car will affect fuel consumption? Well under-inflated tyres have what’s known as more “rolling resistance.” This simply means that your car’s engine will need to burn more petrol to keep going. Your local petrol station usually has a means of testing your tyre pressure and topping up your tyres if needs be extremely cheaply.

Reduce your speed. It’s pretty obvious if you think about it – the faster you drive your car, the more petrol is used up. By dropping your speed you will actually increase in the economy of your vehicle and you will use less fuel.

Use your air conditioner sensibly. Not many people know that using your air conditioner at lower speeds can increase fuel consumption… but it can. Sometimes it’s better to simply open a window if you’re getting too hot – except when you’re driving at speed. Driving at speed with windows open can also increase fuel consumption considerably – in this situation you’re probably better off using your air conditioner.

Check your car’s air filter. Were you aware that a dirty air filter can affect your vehicle’s overall performance? Well it can actually increase the amount of fuel your car uses so it’s certainly worth checking every now and again to ensure that it’s clean.

Don’t stop if you can avoid it. It makes sense that to get your car going it takes up more fuel than simply reducing your speed. If you’re stuck in slow moving traffic or traffic jams than it’s worth simply driving at an incredibly slow speed rather than speeding up and standing every few minutes.

Follow these simple tips and you won’t necessarily have to turn to the likes of a credit card or payday loan to help pay off expensive fuel bills.

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Applying For Credit – A Few Tips

Posted on February 19, 2012 by creditwindow
Applying For Credit - A Few Tips

Applying for credit isn't always what its cracked up to be. For many people with a poor credit history it's certainly not that simple.

With the British economy in the dire state it’s in many people are struggling to meet monthly payments. Unfortunately this can have severe consequences on personal debt as well as on the customer’s credit score.

Council tax bills and credit cards tend to be the most commonly missed payments – which will hardly come as a surprise to many. However, the likes of payday loan repayments are probably not too far down the list either.

So what can you do to ensure that your credit score is in tip top condition for the year ahead? Check out these top tips:

Pay off existing debt.

If you are looking at applying for a credit card, payday loan or other form of credit then it’s really important that you make sure you have repaid any existing debt you may have. Whether this is in the form of unpaid council tax bills, outstanding credit card balances or utility bills – it’s important to make sure your credit history has a clean bill of health.

Sign up to the Electoral Roll.

This might sound odd but did you know that signing up to the Electoral Roll is one of the best ways of improving your credit schore? A number of credit referencing companies actually check against the Electoral Roll to help fight identity fraud. This is why it’s essential that you make sure you’re signed-up to it.

Check what the credit reference firms have on file about you.

We see these adverts almost daily – especially since many of us spend so much time on the internet. However, it’s important to consider signing up to the likes of Equifax or Experian to keep a close check on your credit score. This not only gives you information on your credit history but it will also flag up any repayments you may have missed. It can also help to keep track of potentially fraudulent activity on any of your personal accounts – allowing you to remedy any issues that may arise relatively quickly.

Do you have a credit history?

If you are lacking a credit history then it can be difficult to obtain any form of credit… sound strange? Well it probably is, however, lenders are less likely to trust customers who have no history of borrowing money. This is largely because lending firms are unable to see how you behaved previously when it comes to repaying debt – as a result they will be unable to predict how you are likely to behave when it comes to repaying the loan they extend to you. This sounds incredibly unfair but there are loan and credit card companies out there who will lend – however you may be restricted to a low balance and you may start off paying a higher rate of interest to begin with. In spite of this it is worth considering as this will improve over time and as a result you will improve your credit history as a result.

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Payday Loans – When Journalists Almost Get It Right

Posted on February 16, 2012 by creditwindow
Payday Loans - When Journalists Almost Get It Right

Payday Loans - When Journalists Almost Get It Right

I was reading an interesting article by Ashley Wassall – an editor for FTAdviser and specialist in retail finance.

Now this article is dated November 2011 but it’s still quite relevant even now as it touches upon the controversial subject of payday loans.

After his long-winded ramble about Field of Dreams he eventually started writing something that struck a chord with me.

In typical journalist fashion he starts off by giving payday loan companies a hard time over the size of their APR whilst purposely ignoring the fact that APR is a measurement over a year where payday loan interest is a measurement over a month (i.e. 25% as oppose to 1,125%). I’m not going to enter this debate yet again however as politicians and journalists alike seem to enjoy rubbing payday loan APR in everyone’s faces.

But I’ve digressed. What I liked about the article was his opinion that, like any other financial service (including IFAs), payday loans should be regulated. Currently, unlike most financial services, payday loans are not regulated by the Financial Services Authority (FSA) (at least when this article was written).

What is interesting though is that he calls for the principles of treating customers fairly (TCF) to be tightly applied not only to IFAs but also to payday lenders in an effort to improve the way companies treat their customers.

However, what he does leave out is the fact that many payday loan firms are members of the Consumer Finance Association (CFA) and under their terms the fair treatment of customers is absolutely essentially, as is being honest and up-front with people looking to take out a payday loan. In addition it’s worth noting that all CFA members are licenced and regulated by the Office of Fair Trading (OFT).

So is Payday lending poorly regulated? Maybe but probably no more so than any other financial product or service that is regulated by the FSA.

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Payday Loans – A Few Thoughts

Posted on February 12, 2012 by creditwindow

How Do Payday Loans Work?

If you’ve read any of the other posts on this website by now the reason you may want to consider a payday loan is probably pretty obvious, however, let’s take a quick look at why they could prove useful.

Whether you are having car problems, facing an unexpected bill or some other expense – a payday loan could potentially get you out of a fix.

I suppose the nice thing about a payday loan, as oppose to any other form of short-term loan, such as a credit card balance, is the fact that it can be made available to almost everyone – poor or good credit scores.

In fact a payday loan can be made available almost instantly (well at least within 24 hours really).

Applying For A Payday Loan

It’s really easy and quick to apply for a payday loan – far easier than a standard unsecured loan as the lenders don’t need to have quite as much information.

In the case of most payday lenders it tends to be a page of information you need to fill in. The payday loan company can then tell you within seconds whether or not you’re approved.

As long as you’ve been approved the company will simply ask you to enter your bank account details (so the loan can be paid in) and your debit card details (so you can repay the company).

The agreement then appears on the screen and you simply need to agree it – once agreed the money could be in your account the same working day. Pretty impressive if you think about it – it far outstrips the speed of an unsecured loan.

But are payday loans right for you?

It’s down to you really – if you have access to a credit card with a decent credit balance then you probably don’t need a payday loan. However, there may be instances where you may prefer to turn to a payday loan over a credit card, including:

  • Emergency childcare
  • Unexpected Bills
  • Paying for your MOT
  • Car repairs
  • and more…

How much money are you able to borrow?

Most payday loan firms will offer between £80 – £750 (£1,000 in some cases), however, don’t be fooled. Whilst you may be able to eventually borrow the larger amounts most payday loan firms will only lend what you can afford to repay. For example, you may be able to borrow £120 the first time around and then take out a larger amount once you’ve repaid the balance on this loan… but even then it still depends on your personal circumstances.

What if you can’t repay your payday loan?

This is something worth thinking about. Payday loans can mount up over time if you don’t pay them off quickly. However, most payday lenders will offer something known as a loan deferral. This simply means that you can defer the loan repayment for another month… however it does incur interest. This is why it’s absolutely essential to try and repay the payday loan as quickly as possible. The last thing you want is to descend into debt if you can avoid it.

Find a payday loan

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Is a credit card right for you?

Posted on February 7, 2012 by creditwindow
credit cards

Find out if a credit card is right for you with our quick guide to credit cards.

This is only a question you can answer – credit cards can give you the flexibility to make payments on demand – whether its an unexpected bill or some other expense. However, it’s worth bearing in mind that you will need to meet a minimum monthly payment to help keep your credit under control. The more you can afford to repay the better.

A credit card is essentially designed for short-term borrowing – like a payday loan, for example. The only real difference is the interest rate tends to be lower and you get a card to make payments whilst on the move or online.

If you’re looking for a larger amount over a longer period then you may be better off looking at a personal unsecured loan or secured loan.

Credit cards are more suitable for travel, booking hotels, paying bills or helping to meet monthly expenses when things are a bit tight. The last thing you want to do is blow all your credit on something major. Besides – not only will this mean that you have no spare credit but it could also mean you are unable to repay the balance and descend into credit card debt far quicker.

What About My Credit Score?

That’s a good question when you think about it. If you have a poor credit score you could help repair this with a credit card… there are credit card companies and banks who will give you one on the condition that you agree to make the mandatory monthly repayments.

However, if you are still in significant debt then the worst thing you could do is take out a credit card as you could descend further into debt the more you spend. In the end it is up to you… if you think you could manage a credit card then go-ahead – there are major benefits to having one.

Other than the ability to borrow small amounts on a credit card what are the other benefits to having one?

When you think about it a credit card is so much more than simply a means to borrow money to help pay for goods, services and bills. Some companies actually allow you to build up your airmiles and some will give you airmiles up-front.

Other credit cards come with different benefits – such as lower interest rates or a far larger starting balance. There are even some credit cards that will give you cashback when you shop at certain places or spend over a certain amount… you simply need to take a look around and find the best deal out there.

If a credit card doesn’t sound like your cup of tea check out this article on alternatives to credit cards.

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Payday Loans Are Legal

Posted on February 5, 2012 by creditwindow
Are payday loans legal?

Are payday loans legal? Find out for yourself...

The question over the legal nature of payday loans has been passed to-and-fro between politicians and financial regulators ever since this form of short term loan hit the UK, back in the early Millenium.

Payday loans have been called into question largely due to their large Annual Percentage Rate (APR) and the fact that most payday loan firms are willing to lend to people with poor credit, previously unheard of in the unsecured loan market.

Payday Loan APR – Why It’s Misleading To Customers

It’s important to remember that a payday loan APR is subjective – it’s essentially a short term loan that’s taken out over the course of a month. This means that the APR (which is measured over a 12 month period) is actually misleading to customers.

Payday loan regulations state that an APR needs to be clearly displayed on the company’s website. The only real problem with this is down to the fact that a customer will usually repay the loan by the end of the month… so the interest accumulated will be a fraction of what the actual APR is.

For example, you will end up repaying £125 back – this is only at interest rate of 25%. This is a minor amount compared to what you would repay on a yearly loan. In fact it’s equivalent to a standard unsecured loan with a 25% APR.

Payday Loans – For People With Poor Credit

Payday loan companies can and do lend to people with a poor credit history. Let’s face it – many people go through a tough time and it’s not always their fault. They may have lost their job or had unforseen expenses they may not have been able to meet. Payday lenders don’t believe these people should be discriminated against because of a mistake or an unfortunate circumstance.

This is why payday loan firms will lend to customers with poor credit scores. They will accept a customer’s word that they will repay the loan at the end of the month and will make concessions if the customer struggles to repay it in one go. This is usually referred to as a deferral – where the payday loan repayments are split down into monthly manageable repayments.

Payday lenders are not demons – they’re not there to charge you bucket loads of interest at the end of the month. Essentially, as long as you’re honest and up-front with them, payday loan firms can be very understanding – or at least as understanding as a lender can be.

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