Tag Archives: unsecured lending

Alternatives to Credit Cards

Credit cards are a very popular way of obtaining credit easily, however, since they largely rely on a good credit history it can prove difficult to obtain one if you have experienced debt problems in the past.

Credit cards – what alternatives are there

Fortunately there are alternatives to credit cards but just what are they and what benefits do the likes of pre-paid debit cards, logbook loans and payday loans have for people with a bad credit score?

In this article we explore exactly what these financial products offer and why they may be a better solution for you…

Pre-paid Debit Cards

What are pre-paid debit cards and what are the benefits?

Pre-paid debit cards are a very recent, popular form of paying for products and services, similar to credit cards… with a significant difference.

A pre-paid debit card looks a lot like a credit card, and gives the user the ability to purchase a range of goods and services, however, the card holder must pre-load the card with their own money. This means that there is no real risk of running into debt as it has no credit or overdraft facility.

Like credit cards, Pre-paid debit cards can be used for the following:

  1. Draw cash out at ATMs all around the Globe
  2. Shop securely and safely on the internet
  3. Make train or flight reservations
  4. Book hotel rooms
  5. Buy groceries & fuel
  6. Share money with friends and family abroad
  7. Pay bills
  8. And a range of other services…

Logbook Loans

What are the benefits of logbook loans?

Logbook loans work by using your existing car as security against the loan, whilst you enjoy the benefit of still driving it. Typically, Logbook loan providers can lend anything between £500 – £50,000 which you then have to repay over an agreed time.

Logbook loans are usually paid out on the same day that you apply, which is perfect in an emergency. Logbook Loans can be used for any purpose, including:

  • Unexpected expenses and bills
  • Fuel or an urgent supermarket shop
  • Help in starting your own business
  • And a variety of other requirements…

Payday Loans

What Are The Benefits Of Payday Loans?

Payday loans are an extremely useful alternative form of credit if you have a poor credit score.

Payday loans are a form of unsecured lending that are lent based on:

  • You are in permanent work
  • You are earning over £750 a month
  • You are paid on a monthly basis
  • That you have a valid bank account
  • You are over the age of 18

So if you are looking for alternatives to credit card funding there are plenty of other products out there and plenty of companies that will still lend to you. Just make sure you repay any debt you accumulate back in a timely manner and this will help to improve your credit score and help you to take out mortgages and credit cards with a reasonable rate of interest.

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UK homeowners struggling to meet credit card and loan repayments

Debt management help may be needed by British consumers who are struggling to meet personal loan and credit card repayments, according to a survey by YouGov.

The report showed that around 1 in 6 households in the UK are experiencing difficulties with their mortgage.

A further 18% of british homeowners also reported that it is a constant struggle to meet monthly repayments on their mortgages. This is a significant rise from the 10% reported last year in 2009.

Even more worryingly, the report shows that the number of home reposessions actually represents the highest levels the UK has experienced since the mid-90s.

Campbell Robb, Chief Executive of Shelter, commented:

“Clearly this shows what a difficult year it has been for many homeowners, with thousands of people literally hanging on to their homes by the skin of their teeth.”

“With potential interest rate rises, higher unemployment and steep increases in food and fuel bills on the horizon, it seems unlikely things are about to get easier for homeowners any time soon.”

Mr Robb went on to urge the UK Government to ensure that support is offered and maintained for struggling homeowners and to ensure mortgage lenders are playing “their part too so that homeowners are not faced with the prospect of losing their homes.”

On another note, the Consumer Credit Counselling Service, have revealed that many people are turning to friend’s sofas as they have chosen to rent their property to meet their mortgage repayments.