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Why Is Bad Credit Becoming “A Thing”?

Before worrying about this trend, let us first think about why the world is becoming this way. Is it because of poor global economy? Financial instability has hit a lot of countries, the UK included, and problems like unemployment, inflation, and poverty are sweeping across the globe. However, can we truly say that this is the only thing we can blame?

According to new sources, the UK is actually improving in terms of employment, although most jobs available are of low-quality and equally low pay. A lot of people in the UK are stuck with jobs they are overqualified for. Critics are now bashing the government for focusing too much on the GDP, which is on the rise, and ignoring other economic factors.

However, all in all, things are not looking bad for the UK, especially compared to other countries. Also, other parts of the UK are not as affected by bad credit as others. Orkney and the Shetlands, both islands in Scotland, came in with a 453.68 and 453.25 average credit rating respectively. According to interviews done by BBC News, it seems that people in Scotland are natural savers when it comes to money, and would rather borrow money from family and friends first before approaching financial institutions.

If so, does that mean that people are simply lousy at making financial choices? Do we spend indiscriminately and borrow casually? Is this simply a sign that we are bad at saving money and that we’re not good at making financial decisions.

If that is true, then more than bad credit services, we need personal finance management and guidance. We need services that help people right their financial wrongs BEFORE they suffer from bad credit. We also need to develop the industry that helps people recover from bad credit rating and teaches them to be more responsible in their financial obligations. Sure, there are a lot of factors that can’t be controlled, but if folks in Scotland still manage to save and stay on top of their credit scores, the rest of us can as well.


Common Misconceptions That Lower Your Credit Rating

Bad credit can handicap your way of living – from day-to-day expenses to insurance premiums and loan applications, your credit rating can limit your financial freedom if your score is too low. While there are still a lot of options available to people with bad credit, you should also focus on trying to raise your credit rating as much as possible, or at least prevent it from hitting rock bottom.

However, it’s difficult to properly manage one’s credit score, not just because it’s a complicated process, but because there are a lot of misconceptions floating around about how one should do it. In fact, there are a lot of beliefs out there that hurt your score more than do you good. We have compiled some of the most common misconceptions out there, plus the truth behind them.

Just Pay the Debt and You’ll Be Fine

People think that as long as they are able to pay off their credit card debt, they’re safe from bad credit. However, this is one of the many reasons why even financially sound people have poor credit scores. Some of you might think, “heck I have the capacity to pay everything, so why not max out my card?” I can handle it”.

Credit scores are more than just about paying debts or bills; it’s about how you spend your money. Your credit rating shows exactly how responsible of a person you are financially, and a person who always maxes out their credit limit doesn’t sound very financially conscious, even if they pay their credit card debts all the time.

There’s something called the credit utilisation ratio, which is your credit card usage over your credit limit. So if you max out your credit card all the time, you always have a 100% credit utilisation ratio, which can lower your credit rating. The lower your utilization ratio is, the better. It’s better to have several credit cards instead, and maintain an average of 25% utilisation ratio on all of them.

Loans Will Hurt More If you’re Already in Debt

So you have unpaid loans and credit card bills? Now your lenders are going after you and your credit rating has plummeted. So what do you do? This may be the last thing on your mind, but taking out a loan is actually your best option.

People often think this is crazy, because you already have a lot of financial obligations left unpaid, why make more? The misconception of not doing anything so your credit rating won’t plummet further might help keep it on the same range, but it won’t do you any good if you want to raise it.

Taking out a short-term loan, like payday loans or logbook loans in order to pay off larger loans is a good choice. These are called bad credit loans because they don’t utilize credit checks so approval is easy. Just visit sites like Top Logbook Loan and get connected with a lender easily. The process is easy and you can get your money within a day. Use this to pay off larger loans. Remember, not all financial obligations are the same – some damage your credit rating more than others, so pay off those first. Also, if you successfully pay off your small loans, your credit rating will increase.

If you are hesitant about taking out a loan, you can try secured credit cards instead. No, it’s not a crazy idea to apply for another credit card when you’re already floating in credit card bills. However, secured credit cards are easier to pay off, have lenient requirements, and each monthly payment made will reflect well on your credit score.

Remember, applying for a new loan or credit card might be risky, but to improve your credit score, you need to create financial obligations that you can meet. By doing nothing and not taking risks, you’ll never get the chance to increase your credit rating.


The Bad Credit Market: Should We Be Worried?

Lately, the number of financial options for people with bad credit are increasing and gaining variety. Now they have just as many options when it comes to loans and credit cards as people who don’t have credit rating problems. If we look at the law of supply and demand, does the thriving bad credit market mean there’s a lot of demand for it? Does this mean more and more people are getting bad credit scores?

According to recent surveys on UK credit ratings, areas in London ranked the lowest. West Central London came in with an average of 372.76 credit score, North West London with 371.87, Southall with 370.38, East London with 361.56 and South East London with 361.15. According to financial experts, anything below 380 is considered as poor, so that statistics are particularly worrying.

With so many services offering options for people with bad credit, does it truly mean that there are a lot of people in the UK suffering from poor credit scores? Is it now that viable of an industry? And most of all, should we be worried about where this trend is headed?


Mobile Apps That Help You Manage Your Finances

In this day and age of technological advancement, there is a mobile app for everything, including managing your personal finances. While some people may see this as extreme, it’s better than keeping notes and paper records of everything. Because these apps are installed on your mobile phone, you can access all these information on the go.

If you take a look at Google Play or the Apple Store, you’ll see a lot of budgeting apps everywhere. If you don’t know where to begin, it’s okay. We’ve compiled a list of apps we tried and loved. We’re sharing it with you in hopes that it’ll also help you keep track of all your finances.


You might have known Goodbudget by its previous name, Easy Envelope Budget Aid. The app has been around for a long time, and it’s still quite relative. This app manages your household budget, from groceries to gas money. You can create different categories for each budgeting need, and set the target amount for each month. The app even notifies you when you’re veering off track from your budget. The best thing about this app is it’s free!


This is one of our most favorite apps for personal finance management. Available on the iPad and iPhone, MoneyWiz manages all your accounts, budgets, transactions and bills in an easy and readable manner. Not only can you track all your expenses and bills with this app, but you can schedule bill payments so you can get timely reminders when it’s nearing its due date. This way, you’ll never be late for another payment ever again! The app isn’t free – it costs £2.99, which in our opinion is well worth it.


The best way to save money is to buy what you need for a discounted price. However, it’s difficult to find out which deals are available on what establishments. However, if you live in the UK, Germany, Malta, Ireland and the Netherlands, you can download Vouchercloud. This is a free app that searches for discounts and promos near your location using GPS. If you find a voucher you want, you can simply select it and it will downloaded directly to your phone.

Meter Readings

If you feel like you’re spending too much money paying utility bills, this is the app for you. Meter Readings, true to its name, analyses your utility bills and based from the data it’s gathered, it will map out your current energy spending trends and give you a prediction on how much your next month’s bill will be. You can learn which months you consume more energy or water on as well. There’s also a feature exclusive to users in the UK that lets you compare prices and rates from different energy providers.

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Personal Financial Advise That Might Save Your Life

Everyone wants to know how to become more financially secure, even those who are already doing well in their lives. It is justified, because a simple slip in your financial decisions can cause major mayhem on your life that can’t be fixed easily.

However, the first step to financial security is changing the way you look at finances. Most people often look too far into the future or are obsessed with the present – to be financially successful; you need a bit of both. The reason why most people are having a hard time managing their finances is because they have the wrong mindset about money. Here are some of the best financial advice collected from different experts. We hope this changes how you view money in general and use this to make yourself more financially stable.

Happiness Should Not Be Equated With Money

A lot of people have it all, but are unhappy; on the other hand, there are people who have just enough but are content. It might be cliché, but people still think money can make them happy. So if they’re not happy, they must be earning too little or spending too much. They must be doing something wrong, right?

Not really. Studies show that people often connect their level of happiness with the amount of money they have and spend. Yes, it does make you feel good to splurge and pamper yourself, but don’t become dependent on it. While it’s not wrong to spend some money on yourself to feel happier, what happens during rough patches where you can’t? Shopping for new clothes isn’t wrong, but is it a good idea when you have overdue bills waiting for you?

Your Earning Capacity Will Save You Always

Some people think about long term investments and retirement plans. While it’s not wrong to think about the future, don’t forget that your most valuable asset right now is your ability to make money. As long as you don’t lose that, then there’s always hope, no matter how difficult your financial situation is.

Capacity doesn’t just mean keeping your job. This is why most people should think about extra ways of earning income. Remember there are a lot of financial options like bad credit loans and secured credit cards, but they all need one thing – proof of income. Even with poor credit ratings and a mountain of debt, as long as you can earn money, there are options and solutions for you.

Value Your Time As Well

The reason why people seem to spend so much money on things they don’t even truly need is because they don’t value their time. Yes, the amount they earn is important to them, but they forget how much time it took to earn it. For example, if you earn £600 in a week, would you spend it all in a day? It might sound weird, but it’s true – a lot of people spend in a day what they earn in a week. This is not a good habit as it shows how little people value their time.

When In Doubt, Invest

People often think investing their money is out of their reach because they’re earning too little. However, it’s still a good idea to invest your money before spending it on other things. Be selfish – spend money on something that would benefit you and only you. When you spend a day at the spa, yes you are pampering yourself, but you are indirectly spending money on the people attending to you and the business itself. Investing is like giving money to yourself, for your own long-term benefit. Build financial safety nets like retirement or emergency funds as soon as you can.


Securing a Loan Even With Bad Credit

If you find yourself with more than a couple of outstanding credit card bills, overdue rent, and lenders knocking on your door, you might feel the need for extra cash. While it’s not a long term solution to your financial situation, it can smooth things over and give you time to compose yourself while you think of ways to get out of your financial pit. The quickest way to secure fund legally is through loans.

However, if you’re having financial problems, chances are you also have a bad credit rating, and loans and bad credit don’t generally mix well. You see, lenders see people with bad credit as high-risk clients, meaning there’s a huge probability that you’ll run off without paying the loan. It’s understandable – unpaid loan are bad for business, so lenders tend to stay away from poor credit rating. Applying for a loan, especially through your bank, will often lead to rejection.

Don’t despair though – there are a lot of options you can consider even if you have a bad credit rating. It’s not the end of the world, and there’s still a chance of getting approved even if you have a bad credit rating. Below are just some lending alternatives you can try.

  • Loans with guarantors/co-signees – The more questionable your ability to pay is, the higher the chance for application rejection. However, sometimes you don’t even need to be fully responsible for the loan. Look for loans that allow for a guarantor or co-signee. Even if your credit report looks terrible, if you have someone who’s willing to share the responsibility, then you’re golden. It could be a friend or relative – as long as they have good credit rating, your chances for loan approval are good.
  • Credit unions and charitable organisations – Some people have been there, meaning they’ve had bad credit all their lives and have gotten out of it somehow. Some organisations are made up of people like these, because they believe they have the opportunity to give other people a chance to redeem themselves. Credit unions are also a great idea as they are more lenient and understanding about people’s circumstances. It’s not all business with them, so they tend to show more sympathy.
  • Home Equity – If you own a home, you can use it to secure a loan. Lenders are often more lenient towards people who put up material possessions as collateral, because if something goes wrong, at least they get something in return. Be careful though, as your home or assets can get repossessed if you don’t pay your loan.
  • Payday Loans – These are loans taken directly against your paycheck, hence the name. It’s good as a last resort, if you really need cash quickly. However, remember these are taken directly against your paycheck, so you have to surrender your debit account.
  • Logbook Loans – These are similar to home equity loans; however, instead of giving up your home’s documents, you give up your vehicle’s documents. Processing is quick and easy with logbook loans so it’s a great option if you need money quickly. As with home equity loans, your car can get repossessed if you neglect to pay back the loan.

Remember, just because you have bad credit doesn’t mean you have to stop enjoying and living life to the fullest. It doesn’t mean you have to run out of options, especially if those options would help you solve your problems. With the options mentioned above, you are one step closer from getting that loan approval you need to start repairing your finances.