Personal Contract Purchase

Personal Contract Purchase

Personal Contract Purchase (PCP)

Personal Contract Purchase is a type of Car finance option available to people if they need to buy a brand new car. In Personal contract purchase, you have to pay a deposit amount in order to get the car. The rest amount is paid in monthly instalments over a specific period of time. At the end of your contract, you have the option to return the car or keep it by making a final payment.

personal contract purchase

How Does Personal Contract Purchase Work?

In order to get PCP, you need to pass the credit checks. The lender will look at your credit score, to know how risky it is for him to get in business with you. If you have a good credit score then there won’t be any problem to get this car finance.

After going through the credit score you will need to pay a deposit amount. This amount is normally 10% of the car value. You can get the car after paying the deposit.

But remember you don’t get to own the vehicle, you just get to use it. When you are using your vehicle remember to be within the bounds of your mileage, don’t go over your restricted mileage. If you do, you can be charged according to the extra mileage. So its better to get a deal with a good mileage number.

You should take care of your vehicle as well, no part should be damaged when you use it, otherwise, you have to pay the damage charges at the end of your contract.

When your contract ends you have the option to buy the car or return it. If you choose to buy the car you would need to make a final payment (Balloon payment). This payment is decided on the car’s Guaranteed Minimum Future Value (GMFV), it means it depends on what’s the car’s worth now.

If you decide to not buy the vehicle you can return it to the dealer without any further payments.

 

Things to Consider Before Going for Personal Contract Purchase

There are few things you need to consider before going for Personal Contract Purchase

  • The terms and conditions of the contract. If there are any fees charged
  • How much you would need to pay extra if there is any damage to the vehicle
  • See the repayment plan, how much you are paying monthly and I full. PCP is expensive than most of the car finance options
  • The extra charges you have to pay if you exceed your agreed mileage

 

Things to Remember When You Get in a Personal Contract Purchase Agreement

  • You don’t get to own the vehicle for the agreed duration, you can only use it
  • There’s a mileage restriction on your driving
  • They can take away your vehicle if you miss on your repayments for few months
  • If you want to cancel or end the deal, you can do it when you have paid 50% of the amount of your car value. If you want to cancel it before that you have to pay the difference
  • You will be paying more than any other type of car finance

 

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How to manage your debts?

Debt Management

Debt Management

Debt Management

 

What is Debt Management?

It is a process in which a debtor and a creditor make an agreement for borrowers debts list. This management scheme helps the borrower to overcome his debts. In this, creditors merge all the debts of debtors and secure them on a lower rate of interest. When the rate of interest comes down, the term of the loan increases. So, debt or loan management is a process of debt consolidation. Which helps a borrower to manage his lifetime debts. This management of debts is a process for all those borrowers who struggle to pay off their loans on time. They skip their payments and sometimes default on their debts. You can always consolidate your debts with bad credit payday loans UK

How do debts management plans help?

An economy of the country depends on citizens of the nation. So even government has run many debt management schemes where debtors get benefits. Some independent lending institutions also process management of debts programs. People take different types of secured and unsecured loans in their life. Sometimes they fail to make the payments. It ruins their credit scores and their credit rating keeps getting worse. They file for bankruptcy and insolvency.  Such debt consolidation and management programs keep saving them. And they can maintain a good credit history.

Debt Management

How to go for debt management programs?

These programs are available online. People with heavy debts can apply online or they can approach lending institutions. They can check and analyse programs as per their financial situations. They can opt for the long term and low rate of interest. Or they can opt for the short-term and high rate of interest. They can compare with more than two debt managers. These management companies get regulated by law and consumer protection act. These laws help to protect rights of borrower and creditors. Before management of debts, the debt manager checks the credit history of the borrower. And he decides to give him a quote to join all his debts. A borrower can also visit any credit counselling agency before seeking debt management.

How to get long term loans for bad credit 

Legal regulation for Debt management plans

In the United Kingdom, financial conduct authority controls the regulation of management of debts. This authority may impose charges and fines for improper behaviours and conducts. And it establishes a protocol for loan management plans. In some places, a group of people can create some individual voluntary management. Which may help to consolidate debts and making debts management plans. It is a wise idea to opt for such management plans instead of drowning in the debt pool. Sign for a debt management plan(DMP) right away.

 

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How to Save Money-Watch your Savings Grow

How to Save Money

How to Save Money

Getting started on saving some money is the hardest thing to do. There are a lot of ways to save money, but sometimes it can be difficult to figure out the simple ways. This article will help you in making a habit of saving money that could help you in your future financial plans.

Track Your Expenses

In order to save money your first step should be to figuring out your expenses. Figure out how much you spend. This can be done by keeping track of all the expenses, including everything. A chocolate, newspaper, coffee or any other thing you buy. After getting all the data, organize the numbers by their categories. It can be categorized as groceries, gas, mortgage repayments and total each amount. You can make use of your bank statements which are available online, or on the app. It gives you all the details about every penny that you have spent.

how to save money

If you need extra money for any unexpected event, you can always opt for small loans.

Budget

After you have gathered all the information regarding your spending each month, you can work on your budget from the recorded expense data. This will help you to shade lights on things that you are overspending and help you manage it within a budget. You should also include expenses that occur once in 3 or 4 months, such as car servicing, house maintenance.

Start Saving Money

Once you have made a budget, you should include a savings section in it. Try to save money from your monthly wage. Start small, start saving 5 to 10 % of your income. Increase it gradually every month within your financial limit.

If you are spending too much money cut back on something which is not necessarily required. Like eating outside, taking a car for short distances, entertainment, etc.

Save for Something – Set a Goal

Save money for something, set a goal that you have to meet. No matter what that goal is, a short-term goal or a long-term goal. Some of the examples of it can be:

  • Family vacation
  • Buying a new car
  • Kid’s education
  • Buying a new house

There are many other reasons to save money, you just have to decide what you need the most.

Move Money to Your Savings Account

One of the easiest ways to save money is by transferring a sum of amount to the savings account. You can make use of automatic transfers that most of the banks provide nowadays. You just have to choose how much amount you have to transfer into the savings account. This will reduce your temptation to go on a spending spree.

Watching Your Savings Grow

Check how you are progressing each month. This will help you to identify your problems and fix it, besides just saving money. This can also help you make decisions for any long-term needs.

 

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What Are No Guarantor Loans?

 

No Guarantor Loans

No Guarantor Loans

Loans are good financial products when we need cash urgently. There are various deals floating in the market and making a choice can be difficult indeed. Lenders are increasingly offering no guarantor loans to UK residents. But what are they actually? Are they even beneficial? We will cover:

  • What are no guarantor loans?
  • Who can apply?
  • How much can you borrow?
  • How much do they cost?
  • Are there no guarantor loans for bad credit?
  • Does a credit check happen?
  • Advantages and disadvantages of these loans
  • How and where can you apply?

No guarantor loans

What is No Guarantor Loan?

No Guarantor loan is loan which do not require a co-signer or a guarantor in order to co-sign the repayment of the loan or home mortgage. A guarantor is someone who makes the repayments if the borrower fails to make it, this happens only in guarantor loans.

These loans are a good financial help to those people who don’t have anyone to vouch for them during a financial crisis. There are also payday no guarantor loans designed to last you till the next paycheck. Taking out these loans for your next holiday or paying vet bills can indeed prove worthwhile.

However, lenders are more likely to charge you a higher interest rate if there isn’t a guarantor who can back you. This is good from lenders perspective as they are confident they can get their money back. But, borrowers who haven’t had a reality check of their finances often find themselves deep into debt. Failure to make repayments may land you with a CCJ which you should avoid at all costs.

Who Can Apply for No Guarantor Loans?

Any person who wishes to borrow loans for bad credit no guarantor should fulfil the following eligibility criteria:

  • At least 18 years old
  • Valid bank account
  • Permanent UK resident
  • Minimum monthly income from employment or benefits
  • Proper address

 

How Much Can You Borrow?

Usually, every lender has specific minimum and maximum lending amounts. Remember that the amount you borrow should exactly suit your needs. It shouldn’t be either too low or too high. Both can lead to greater financial issues. Most lenders lend no guarantor loans from £100 and up to £10,000. More than this amount you should try for long term loans which are really good options.

 

How Much Do They Cost?

As is the case with unsecured loans, they come only at a high interest rate. There are two reasons for this: one, the lender doesn’t ask for any collateral and two, having a bad credit may prove quite a deal-breaker. Most people don’t fall within the “good credit” category and therefore, struggle to get access to no guarantor loans. Compare deals for their APR and only then settle on one particular loan product and lender. Some lenders may offer APRs as low as 3.9%.

 

Are There No Guarantor Loans For Bad Credit?

Yes, nowadays it has become quite common. High-street lenders and banks may refuse credit to people with a poor credit score. However, there are some new and credible lenders who prefer to look past an individual’s financial past and credit score. They believe that history doesn’t necessarily define the future. So, loan approvals purely on the basis of affordability. If you earn enough to be able to afford a bad credit loan without guarantor, well that’s great news. You’ll be eligible with most lenders even if you own up to a bad credit score.

 

Does a Credit Check Happen?

To be honest, yes. A credit check is done by any lender you apply to. This is basically in keeping with the laws for FCA-authorised loan providers. Care is taken to see that no search footprint appears on your credit file. Because if your file shows too many searches, things become more difficult. Although this doesn’t mean that it’s a great influential factor. It’s worth noting that an affordability assessment matters more for loan providers than what your history has been.

 

What Are Advantages and Disadvantages of No Guarantor Loans?

Advantages –

  • Apply quickly and easily on a lender’s website
  • No paperwork involved so time-saving
  • No guarantor required
  • You can get loans even if you have a bad credit(Bad Credit Loans)

 

Disadvantages –

  • A higher rate of interest than secured loans
  • Riskier to lenders
  • Can be hard if you have a very poor credit score
  • You have to repay within a few months

 

How and Where Can You Apply for No Guarantor Loans?

Most lenders have a simple application process. You can apply for no guarantor loans online on a lender’s website. All you have to do is go to their website and click on the application form on the home page. After clicking on the application form, a webpage will open with a number of fields to fill in. After filling it in, click on the Submit button. Your application will land in the credit provider’s inbox and they’ll start the processing. If you get approval, they’ll transfer the cash to your bank account on the same day.

 

Read more:
How to Save Money

 

Small Loans Without Credit Checks

Small Loans Without Credit Checks

Small Loans Without Credit Checks

 

Small loans without credit checks are low-value loans which are credited to the borrower’s account without any credit checks.

To elaborate the above, let’s understand what are small loans exactly and dig deep into the concept of credit check.

What Are Small Loans?

Small loans are a type of low-value loans which the borrower can repay in a short period of time. These type of loans are considered more often over long-term loans when the person has to care of some unforeseen expenses. The unexpected expenses can be fixing the leaky ceiling, paint job of the house, bike repairing, etc. The reason may also be something that is not in your monthly financial plan, like birthday, house remodeling, buying new stuff for your room, etc

A small loan can be repaid anytime between 1-12 months according to the borrower’s convenience. The amount ranges from £50 to £2000. It has usually a higher rate of interest compared to other loans.

A lender has to do a credit check in order to check the past transaction and credit history of the applicant.

So what exactly is credit check? How is it useful? What results does it give? How is it beneficial to the lender?

Credit Check

A Credit check done by the lender to extract the credit history of the person who applies for a loan. A credit score an outcome of the past history of applicant’s financial transactions. There are tools online which help to get our credit score, the credit score is usually between 0-999 depending on the tools. Each tool follows a different procedure to grant a score.

Higher the score higher are the chances of your loan getting approved as you have a good credit score and history. Having a bad credit score, on the other hand, can be a problem as it points to a low credit score.

So how to get a loan for having a bad credit?

small loans without credit checks

The answer to that question is Small loans without credit checks. 

Small Loans Without Credit Checks

One of the major reasons for rejection on loan is bad credit score which shows during credit checks. People who have a bad credit score or history can apply for small loans without credit checks instead of going for loans which goes through the long process of credit checks.

The main advantage of small loans without credit checks is that it saves a lot of time that goes in the credit check procedure by totally skipping it. This type of loans is beneficial for the people who have a bad credit score. Small loans are available for short term and if looking for big amount you should try for long term loans.

How to Get Small Loans Without Credit Checks?

The procedure to get a small loan is simple. Choose a lender according to your convenience and visit their website. You would find an application form on the website, click on it and fill in the details correctly. You get loan amount in to your account within minutes of applying without any credit check.

 

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What are Loans for Bad Credit No Guarantor

 

Loans For Bad Credit No Guarantor

Loans For Bad Credit No Guarantor

Loans For Bad Credit No Guarantor

 

To understand loans for bad credit no guarantor, we need to first get a hang of bad credit and no guarantor.

 

Bad Credit

The lenders verify your credit history in order to check your score to determine if you are a good candidate to grant credit to.

The credit score falls into two main categories good credit score and bad credit score. The credit score can be between 0- 999. Higher the score, higher are your chances of getting a loan. Low credit score usually makes it difficult for the person to get a loan from the lender.

Refer below to see the distribution of bands according to your credit score:

Score

Band

0-279

Very Poor

280-379

Poor

380-419

Fair

420-465

Good

466+

Excellent

 

The credit score depends on a number of factors, basically, it depends on how you manage your debts and finance. It means that you should have a good debt clearance rate, you should make your repayments on time, no repayment amount should be pending.

Having a bad credit score makes it hard to get a loan, but it isn’t impossible. If someone lends you money even if you have a bad credit, the chances are you would have to pay it with interest rate higher than usual.

Loans For Bad Credit No Guarantor

No guarantor

No guarantor means that you don’t need a co-signer in order to get a credit from a lender.

To understand the No guarantor let’s take a quick look at what Guarantor loans mean. They are loans which require a co-signer in order for that borrower to get a loan from the lend.

That means if for any reason the borrower is not able to make the repayment of his credited loan, the guarantor i.e. the co-signer will take up the responsibility for paying the loan amount on behalf of the borrower.

 

Now we know that what bad credit and no guarantor actually means, let’s understand the concept of Loans without Guarantor.

 

So, what are Loans for Bad Credit No Guarantor?

Loans for bad credit no guarantor is the type of loan which can be given to a borrower despite his bad credit score or even if he does not have any bondsman.

People often don’t apply for loans because of their bad credit score and because they don’t have anyone who can back them.

But that is not an issue for lenders now as they are giving loans to people having a bad credit and no guarantor.

 

How To Get Loans For Bad Credit No Guarantor?

As mentioned above getting credit is now a lot easier even if you don’t have a guarantor or you have a bad credit. The easiest part then that is applying for a loan, there are a lot of lenders accepting online application. Fill in the details submit and the amount gets credited to your account with 15 minutes.

 

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How to Apply Small Loans Without Credit Checks