Our credit scores are important things. They’re the basis on which lenders decide whether or not to extend credit to you, whether that’s for something as small as a new mobile phone or catalogue account or as large as a mortgage.

Without a good credit score, you may be denied everything from a credit card to a car loan, or at the very least, be charged far more for being a risky lender. So it makes sense to ensure that your credit score is in the best shape it can be. To check, get a copy of your credit report and read it carefully.

You can buy a copy of your credit report online for just a few pounds from agencies such as Experian and Equifax. Once you have it, you can assess it and look for ways to improve it if your credit history is poor. There’s a range of things that will damage your score, some of which are quite surprising.

Late payments form an important part of your payment history. If you’re consistently late, your score will be damaged. Non-pay

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Banks and financial institutions do not loan money to be generous. They make loans because they can make money by charging interest. Interest rates can range from one or two percent up to 36 percent. The rate of interest that you will have to pay depends on the institution you borrow from, what the money is used for and your personal credit history.

Secured and Unsecured Loans

The interest rate is based partly on the risk involved with any loan. Secured loans are tied to an asset of some kind. If the loan payments are not made on a regular basis, the asset can be repossessed. This includes mortgages, car loans and any other loan where something of value is offered as collateral. Unsecured loans are not backed by any type of collateral. These loans carry higher interest rates because the bank does not have an asset that they can take possession of and sell to recoup their money.

Institutions

Credit unions typically offer the best rates, partly because they have a very limited and select clientele. Read more…

Since the coalition government were formed on the 12^th of May 2010 between the Conservative and the Liberal Democrats, their main priority has been to reduce the deficit. This deficit refers to the gap between the amount of money the government receives and the amount it spends. Previous governments had overspent due to governmental borrowing, further increasing the level of national debt. So when the coalition government was formed, the deficit reduction was on the top of their list of priorities.

This has resulted in a series of public spending cuts, and a tightening of belts both for businesses and the general public. The government decided to cut many public bodies, as well as staff and budgets from local councils in an attempt to curb the amount they were spending. Taxes were raised, especially for those on higher incomes, and other taxes and charges have been included as a way of generating extra money into the government’s coffers.

Despite the apparent need, when cuts are quite severe, this can often have a detrimental effect on the growth of the economy. A

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Young Brits are increasingly viewing the “culture of debt” as a normal part of their student life. However, there are always good ways to save some money.

Data released by money education charity Credit Action has published new figures regarding the financial status of today’s university students;

• Almost two thirds (65%) of youngsters planning to apply to university said they were concerned about their ability to manage and cope with money and finances at university. 
• Almost half of them (46%) admitted they have never had discussions with parents or relatives about personal finance and 27% had never received any form of financial education. 
• Consequently, 27% of respondents mentioned financial issues something which was putting them off the idea of university and only 10% spontaneously cited getting into debt as a fear. 

Saving money tips 

Pay off your student loan ASAP; the interest that you will have to pay from your student loan (between 5 to 6% interest rate) will cost you more than whatever money you aim to save. Therefore

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