UK Personal Finance Information
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|| Managing Personal Finances || Why Do I Need Finance? || Credit Card Options || Loan Options ||
Managing Personal Finances
Personal finance can come in many forms, and is basically a way to afford the things in life that are important and need doing, but unfortunately you can’t afford through standard living. So of course borrowing money from a trusted lender or a bank can help you out, and what you borrow you pay back each month with added interest (depending on the APR and the years you have to repay it).
Some borrowers and lenders may ask for collateral which means you will have to put down your house as security (secured loans for people with bad credit), or even your vehicle (logbook loan). Others simply charge higher amounts of interest and limit the borrowing (unsecured loans online). On an average scale for an unsecured loan you can look at borrowing anything up to £25,000 depending on how much you earn and your credit rating. Over £25,000 you will need some form of security as the risks get higher for the lender.
Your credit rating is normally a major factor in terms of if and how much you can borrow, for example is your credit score is bad then applying for a credit card with a low APR will surely end in disappointment, however applying for a bad credit rating credit card you are more likely to get accepted even if the APR higher. In turn you can build your credit history and repair it at the same time giving you a more positive outlook in the future.
Why Would I Need Personal Finance?
People need personal finance for a number of reasons, from the basics of whether you have an unexpected bill that needs extra money to help pay it off, repairs that need to be made to your home, a family holiday, a new car or even a conservatory, these are the main reasons why people take out some form of personal finance. If you apply for a credit card the lenders will normally rate you on your credit profile and then give you a limit that you can use on the card, and the same goes with unsecured loans online. Secured loans as stated in the first section of this page require security in the form of a house or a car so it doesn’t solely rely on credit scores.
What Types of Finances Are Available?
There are a variety of UK personal finance solutions that you can choose from, below gives a brief explanation of the main types that are available to you.
Credit Cards:-
Prepaid Credit Cards – A new type of credit card that can help build and repair your credit rating whilst helping you steer clear of debt. 100% acceptance rates and no credit checks mean that this card is a must have for personal finance. The money you top up with is the money you will spend so there are no hidden fees; no borrowing from lenders and the card works the same as a normal credit card. More information on this can be found in the Prepaid Credit Card section.
Balance Transfer – These types of credit cards are a great way of transferring your existing debt to one card and paying a lower monthly interest rate. By using a balance transfer card you can significantly reduce the amount of debt that you owe in a relatively small time period. More information on this can be found in the Balance Transfer Credit Card section.
Low Interest – Usually aimed towards those with an excellent credit rating, these cards offer a substantially low interest rate meaning monthly repayments aren’t as much as standard credit cards. More information on this can be found in the Low Interest Credit Card section.
Loans:-
Unsecured Loans Online – Usually known as personal loans these loans are ideal for small to medium purchases but hold a higher APR because there is no security measures tied in with the loan such as houses or cars, so the risk to the lender is slightly increased. A great loan for those that don’t want to risk collateral. More information on this can be found in the Unsecured Loans section.
PayDay Loans – Are quick and easy loans that are ideal for those that need anything up to £700 in a month to pay off unexpected bills or car repairs. The loan term is usually one month and the amount borrowed is taken out of your wages the following month. More information on this can be found in the Payday Loans section.
Secured Loans For People With Bad Credit – For those that need to borrow over £25,000, these loans usually need some type of collateral from you to give the loan company some security in case you fail to meet monthly repayments, and they tend to have a lower interest rate because of this, making them ideal for home improvements and home repairs. More information on this can be found in the Secured Loans section.
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