Sam

I like writing about finance because it is something that I feel benefits a lot of people. It is something which I am lucky to know a lot about as well. I studies it and have read books on it and then written my own books and so I have lots of information that I would like to share with other people. This means that I love to write it into articles in all sorts of ways so that as many people as possible will be able to benefit from me being able to explain things and give them tips which I hope will really benefit them in the future.

What are the Advantages of Store Cards?

There are many store, particularly large chains, which offer the option of having a store card. You may wonder why you should consider taking them out though.

Interest Free Credit

When you buy something with a store card you will not need to pay for it right away. From the time that you buy it until a specified date you will get interest free credit. When you get your statement it will let you know when you need to repay the money that you spent and if you repay it all by that date you will not have to pay any interest. This can be really handy as it means that you can use the card to buy something and you have not got the money at the moment, you will have a bit of time to find it. You may even find that you will be paid before you have to pay the card off, which can be handy.

Deals

You may find that some store cards will allow you to have some sorts of deals, discounts or offers. Often the store will offer you some incentive for becoming a card holder and so you will be able to take advantage of this. It is wise to find out what the offers might be though to see whether it is worth it. You will find that some stores will have more enticing ones that others and so seeing which are the best could help you to choose which store to get your card from.

Buy Now, Pay Later

The main reason that some people like store cards is that you do not have to pay for things that quickly. When you get your monthly statement, you will have the option of repaying just a minimum amount of money which will cover the interest charge as well as a small repayment of what you owe. Then you will be able to leave the money unpaid. Each month this will happen and it could take you a long time to repay the debt. You can choose to repay bigger chunks or even pay off the whole lot if you wish, but it will give you the option to spread the repayment over a long period of time. You will need to be careful with this though because you will be charged interest and the interest on store cards can be relatively high compares to some other types of borrowing.

So, you can see that there are a lot of reasons why it could be a good idea to take out a store card. There are lots of shops that offer them as well, so you might think that it will be a good idea to get a few. However, you do need to be careful to make sure that you will be able to manage the repayments on the cards. Even the minimum payments might be difficult for some people to manage if they already spend almost all they earn or more. It is also worth noting that by just repaying the minimum you will hardly repay any of the loan and therefore the debt will be around for a long time and you will end up paying a lot of interest on it. So, it can be best to repay the full amount each month and then you will be able to take advantage of the interest free credit and the deals without having to pay the interest. You should be able to set up a payment that will automatically do this each month so that it is easy and you will not forget. You will just need to be careful to only spend money that you can afford to repay.

Which Stores Cards Should I Choose?

There are many stores that offer store cards and if you are thinking of getting one then you might wonder which one will be the best one to choose. There are lots of reasons for picking particular cards but it is worth thinking about the following as well as any that you can think of yourself:

Stores You Use Most

It will make sense to choose cards from the stores that you use the most. If there is a particular shop that you favour other others then it would make sense to choose that one. However, you could find that you shop at lots of different shops and so that is not an easy decision to make. It could be good to perhaps look at other factors instead.

Cards with Best Deals

A store card will often have a deal with it. It might be that you get a discount when you sign up or you get to go to a preview sale evening or other things. It is a good idea to investigate what the deals are on the cards and then you can compare them and work out which you think might be the most suitable for you.

Cheapest Interest Cards

It is also a good idea to look at the interest rate on the card. The cards will vary in how much interest they charge and so it could be a good idea to pick the one with the lowest interest. However, this will be more important if you think that you will not repay the card in full each month. Some people will repay the card in full and therefore they will not be so concerned with the interest rates. However, it is a good idea to find out how much they are as this could act as an incentive to make sure that it is repaid in full. Also you cannot be completely sure that you will always be able to repay the card in full.

Cheapest Shop

It could be worth considering getting a card for the shop that is the cheapest. This is because if you get carried away shopping with the card or you decide to shop more in the shop that you hold the card for, you will not have to pay out so much as things will be cheaper. Hopefully you will not get too carried away with your shopping and end up spending too much money but in case you do, it could be worth getting a card for a cheaper shop so that you can still buy lots of things without spending so much money.

So, you can see that there is a lot to think about when it comes to store cards. You will need to decide which might be the best for you with regards to how you expect to use them. If you think that you will always repay the full balance each month and therefore pay no interest, then it is good to look for the card with the best deals However, if you think that you will not repay the full balance each month you should more closely at the interest rates and the prices in the shop. It can even be worth thinking about whether getting a card at all is a good idea. You need to consider that if you spend a lot on the card, you could end up with high interest to pay and also with a big debt to pay. So think about whether it will be a good idea for you, based on how you tend to be with money.

Do I Need a Payday Loan?

It is always a good idea to ask yourself whether you really need the loan that you are considering. Whatever type of loan it is, there will be consequences of getting it and this means that you need to think the decision through. So, asking yourself whether you need a payday loan is a really sensible thing to do. There are a number of things that it would be wise to check when you are considering the answer to this question.

Is it Worth the Cost?

It is a good idea to fins out how much the loan will cost and whether that is an amount that you are happy to pay. You should be able to find out from the lender how much the cost will be. You might just be tempted to try to estimate it yourself based on the interest rate but this is not really accurate, partly because the maths is tricky but also because there may be more costs as well as the interest, such as fees. Especially if you’re looking at loans without a credit check. It should be easy to find out from the lender too, just by contacting them online or by phone. Once you have a figure then it could be a good idea to think about whether you are happy to pay that much on top of the cost of the item you are buying with the money.

Can I Repay it?

It is a good idea to also find out how much you will need to repay and when you will need to repay it. This should allow you to be able to calculate whether you will be able to afford the repayment. You will find that there are different rules for different loans and so you will need to check. It is then wise to actually look at your previous bank statements to see what you would normally be able to afford. Think about whether things will be different now and you will be able to work out whether you feel that you will be able to repay the loan. This is really important because if you do not manage to repay the loan, you will have to pay extra charges which means that you will have even more loan costs, which no one will want to ever have to pay.

Is it the Best for the Job?

It is also a really good idea to think about whether this loan will be the best solution for you. Consider why you are borrowing the money and whether the loan will be the best solution for you. It is a good idea to think hard about why you are thinking of getting the loan and whether you think that it is the best thing for you to turn to. Consider other loans and whether they might be better for a start. Look at the cost of other loans, the repayments terms and other features and think about whether any of those will be better. You also need to think about whether there are alternatives to borrowing a swell. If you have savings, for example, it could be better to use those instead of the loan. If you do not have savings or do not have enough savings, then it can be a good idea to think about whether you could save up. This will take time but if the purchase is not urgent then you may be able to do this. It could also be worth thinking about whether you even need the item at all or whether you can just go without it and manage without buying it.

Will I be Allowed a Payday Loan?

There are many different loans and some have quite strict rules and regulations about who can use them. They might have all sorts of restrictions and it is good to know what is allowed and what is not. With a payday loan there are a few requirements that you have to adhere to.

  • Over the age of 18 – this is a legal requirement in the UK and so would apply to any loan that was being taken out. It makes sense that only those considered to be adults will be able to take out a loan. This is because they will be more likely to have a reasonable income and be capable of repaying it and they are more likely to be more responsible.
  • Live in the UK – UK loans are only available to residents of the UK. If you live elsewhere then you will need to borrow from the country that you live in.
  • UK bank account – you will need a UK bank account so that there is somewhere to pay the money that you have borrowed in to. You will also need an account to set up the direct debit so that the loan gets repaid. This is set up so that the loan is repad automatically when you need it to be. It is good to have this in place so that you do not forget to repay the loan as this will lead to you having to pay extra charges which you want to avoid if you can.
  • Have an income – It will also be necessary for you to have some sort of income. You will need to repay the loan on the day that you are paid and therefore you will need to be receiving pay in order for this to be possible. It may not necessarily need to be a salary though. You may find that you will still be able to have a loan if your income is from a pension, interest or benefits. It will be worth checking with the lender though, to find out.

As you can see, there are very few rules which you have to consider when applying for a payday loan. This means that many people will be eligible to have them. Of course, when you apply for them, the lender may have their own individual restrictions. For example, there are some that will only lend new users a small amount of money to start with. Then once they are able to prove that they can repay it, they will then allow them to borrow more. This is a way of building up trust with the lender as they do not worry about the credit score of the borrower so will need another way to find out whether they can trust them to repay the money that they have been lent.

The problem with this is that it can be all too easy to borrow money. As there are very few restrictions it means that almost everyone will be allowed a loan and this can lead to lots of borrowing. If you need money in an emergency and have compared your options and this is the best one and you are sure you will be able to repay the loan then it could be a good option for you. However, if you just want some money so that you can treat yourself but know that you will not be able to afford the repayment, then this is not a good idea at all. So make sure that you think things through and consider your financial situation and what you will be able to afford.