Every month, thousands of people across the UK apply for a short-term loan. Apart from the possible short-term influence on your credit score, can short-term finance affect your retirement? And if so, what can you do about it?
A poor credit score could leave you struggling to get credit
A poor credit score may mean that lenders are less likely to let you borrow money from them.
There are lots of myths surrounding credit scores. When you apply for a loan with a Financial Conduct Authority (FCA) regulated lender, your credit score will almost always be checked. When you apply for short-term finance, what is known as a ‘footprint’ could be added to your credit file, which may be visible to other companies for up to 12 months.
If you apply for short-term finance regularly, in a short space of time, you could look as if you are desperate for money.
Furthermore, some lenders can view applications for short-term credit as an indication that you may be prone to financial difficulties, as these kinds of financial products can sometimes be used by people who may already have a poor credit rating.
You could end up paying higher interest rates
A poor credit score could result in you paying higher interest rates on any financial products you decide to take out, in order to mitigate the potential risk, the lender may consider that they are taking by lending to you.
You may find it difficult to change your mortgage
Having a higher credit score could be useful in retirement if, for example, you want to remortgage, so that you can obtain better interest rates than you are currently on. A poor credit rating may make this more difficult.
Having a poor credit rating may also have an impact upon your ability to get finance for a new car that you may want to buy during retirement.
Not being able to save
Being in debt may make it almost impossible to save money.
Taking out short-term loans on a regular basis, to pay off bills or unexpected expenses, could leave you constantly having to pay back loans, rather than putting money aside.
Putting money aside for your retirement can help to make you much more comfortable financially, when you finally do stop work.
Reducing the impact of short-term finance on your retirement
There are some things that you may be able to do to reduce the impact of taking out short-term loans on your retirement.
Firstly, try not to make applications for payday loans unless you are absolutely sure that you need them. It is not a good idea to make speculative applications.
Secondly, do not apply for too many payday loans in a short space of time. For lenders, this may signal that you are desperate for finance.
Start to improve your credit rating
Finally, if you have a poor credit score, take steps to improve your credit rating before you retire. This could be achieved by, for example, ensuring that you pay off your debts on time. It may also be possible to do this through a ‘credit rebuilt card’.
You can check your credit score online if you don’t already know it.
Multiple applications for short-term loans could leave ‘footprints’ on your credit file. If you need to apply for short-term loans during your lifetime and find that you have a poor credit score, ensure that you work to repair your credit rating in the future, to help to avoid problems with finance during your retirement.
Young entrepreneur Stan Gershengoren is typical of the new breed of modern business consultants who are changing the way that businesses think and operate. The official Stan Gershengoren approach to building a thriving business is rooted in the vital importance of maintaining a strong base of clients, even if you operate exclusively online. How do you go about it? Here are seven steps to attract new customers to your business.
Identify the ideal customer
Finding something is much easier if you know where to look! But do you know what type of consumer you are looking for? Without a composite picture of your ideal customer, the task of attracting new interest in your business is much tougher.
You should take time to develop a clear idea in your mind of your target client. Try to think about what they want in life, what makes them happy or sad, and then work out how you can help to make their lives better. Beware of settling for broad stereotypes. Focusing on “millennials” will be little use to you as few products are likely to appeal to an entire generation, and nobody likes to be stereotyped or patronized.
Work out where they are based
When you know the type of customer that you are looking for, the next step is to find out where they are. Identify where they can be reached. For some people, that will be by mail, but others may be easier to reach through email or other media. Where to start looking will depend on your business, but forums and social media pages are a good place to start. When you find out where your ideal customers can be reached, you can craft the perfect message.
Be the expert on your business
If you have a deep understanding of your sector and a detailed grasp of your product or service, then you will be well positioned to attract new clients. Your knowledge will be apparent in every communication, and that will encourage potential customers to ask questions, and even seek you out for your expertise and assistance.
Make yourself the answer
By setting yourself up as the answer to your customers’ problems, you will be giving them a great reason to try your product. This can be achieved by getting out there and creating content, through webinars or blogs, as well as networking. You will gradually earn a reputation for expertise, and as long as your sales conversion process is well-designed, you should be able to turn followers or fans into customers.
Direct response marketing
An important aspect of reaching out to customers is to try to encourage them to take a specific step, such as asking for more information or joining an email list. One effective direct response technique is to create adverts that offer potential customers something for free, but there are many methods in the direct response marketing arena, and it is a good idea to take the time to master this area of marketing.
Synergy is an important part of modern business, and you can give your business a major boost by linking up with other companies that provide complementary services. For example, if you run a website-building business, why not consider linking up with a company that specializes in SEO? Creating partnerships is also about building those vital human relationships that will ultimately lead to more customers returning and recommending you.
You’ve followed all the steps – now what? Well, it is important to finish the process by following up on all those tasks that you’ve initiated along the way. After doing the hard work, make sure that you follow up to build on those potential leads and conversations to turn them into income. Remember that you should never neglect the follow-up when trying to boost your client base.
You can adapt and tailor these approaches to your own needs, but by following the steps outlined here, you can significantly improve your chances of establishing a strong and growing customer base that will help your business to thrive.
A point that cannot be ignored is the popularity that instant online loans have gained in today’s highly competitive market. Owing to some fundamental characteristics, the demand for instant loans – both instant small loans as well as larger loans, has significantly risen (directly of course contributing to their upsurge in popularity). Let’s go ahead and look at how this form of credit has become so widespread in the Indian market today.
Instant cash loans online are available quite easily today, thanks to the presence of multiple lenders in the market, each fairly capturing a piece of the enormous pie. It is mostly owing to the demand for this type of loans that the number of lenders has risen in the market today. There are several instant cash loan direct lenders that applicants can approach and get their amounts in absolutely no time.
Instant Loan Approval
One of the most impressive features of instant personal finance is the instant approval that applicants get. After filling out details, lenders obtain credit information from the bureau and based on the applicant’s credit profile, he/she will receive instant approval. If certain parameters in the customer’s credit profile doesn’t meet the lender’s internal credit norms, the applicant will instantly be given information on rejection of his/her loan application.
Same day disbursals
Same day disbursals are another reason for these loans to rank high in the popularity quotient. After receiving instant approval and submitting the KYC and income documents, a final loan offer is sent to the applicant, following which the loan amount is disbursed on the very same day. This aspect is particularly helpful when applicants are dealing with an emergency of sorts. So quite clearly, in the midst of an emergency, instant loans have been the go-to saviours without doubt.
Gone are the days when applicants had to submit a large heap of paperwork as part of the loan process. Lenders who are active in the “instant loan” space have stitched a system that does not require abundant paperwork as part of the application process. This is another crucial aspect that has helped this type of finance to become more popular among potential customers. As such, things are way easier to deal with in a digitised world, isn’t it?
A wide range of amounts
Let’s say you are on the look-out for personal finance for a list of reasons. When you zero-in on a lender for your loan, you can choose a loan amount of your choice – this range includes amounts that are as low as Rs. 25,000, stretching up to amounts as high as Rs. 25 Lakhs. Depending on your financial requirement, you can pick a loan amount. However, note that the approved amount will depend on your monthly income, your credit score, and your repayment patterns in the past.
Affordable Interest Rates
The interest rates on this type of loans are affordable, and more or less similar to rates offered by traditional lending institutions such as banks. Even though there are several institutions that claim to offer the lowest interest rates in the market, the interest rates are dependent on the applicant’s credit score and credit repayment history. There are many Fintech Lenders in the market that offer instant loans to both salaried and self-employed individuals at the most affordable rates in the market.
Personal finance for low credit scores
Low credit scores can often come in the way of loan approval. As instant small cash loans are a type of personal loan and personal loans are unsecured (not requiring collateral), the credit score is perhaps the most dominant parameter that gives creditors an idea of how an individual has handled his/her credit in the past.
As the market has tremendously evolved in the recent past, there are instant cash loan direct lenders that offer loans even to individuals with low credit scores. While such is the case, most lending institutions, however, do not entertain profiles with instances of defaults over the last 12 months.
Qbera, a lending Fintech company that offers instant cash loans online to salaried individuals, considers profiles with a minimum credit score of 600.
Today, in the course of the post, we’ll discuss a few tips with the help of which you should bring about changes in financial planning when your life goals or situations change. Read on to unravel.
You want to dedicate yourself to full-time volunteering activity
There is no dearth of inspiration around. The kind of financial fortune you have always had – actually let you make significant contributions to the society. While all this while you were happy contributing to non-profit organizations while enjoying your abundance, you have now decided to dedicate yourself to full-fledged volunteering activities. It could have been that trip to a village inhabited by impoverished families that heralded the change in you. The premium luxury retirement village that you had invested in – may not really be in your scheme of things anymore—quite simply because you think that such opulence is mere selfishness, when there are so many people struggling to meet ends.
That brings us to the fact that retirement (or rather financial) planning is not only for the ones living from paycheck to paycheck but also for the ones who actually enjoy excesses. Your finances will definitely be impacted by your decision.
You will need to figure out the kind of money which will be required to fulfill your “social” goals—are your retirement savings enough or is there a post-retirement part-time job on the cards?
The retirement villa you had invested in – is now useless. You cannot let it lie unused. Figure out whether you would want to rent it out or sell it off.
Since you have understood the simple joys of life you will no longer be spending on expensive bags, clothes, shoes, and jewelry. This will obviously lead to lower expenses. Lower expenses mean that the amount of money that you will be drawing from your saving is lower as well. The expectation of your return from the corpus will be lower as well.
You’re getting a divorce
That calls for long-term financial changes as well. All this time, your finances were understandably tied to that of your partner’s. You might as well have been completely dependent on your partner as far as keeping a track of finances was concerned. The key is to start tracking. As you sense that a divorce is inevitable, do make sure that you are slowly taking hold of your own finances and preparing a future budget well ahead. Revisit the ways you have been handling finances all this while.
Which needs were exclusively met by you? Do you think that you’ll be seriously cash-strapped once you’re single? Have you already started looking for an apartment for rent? Is that within your budget? Would you have to reach out for quick cash assistance in the form of Lendgreen quick loans online to fund your needs? Invest time in tracking down possible expenses post divorce and weighing your ability to meet them. Do bring in joint investments as well. Bring all this before reality hits you—i.e. before you’re actually divorced.
You’re changing your career route
You might as well be on the verge of leaving your job to materialize your entrepreneurial dreams. Do not forget that business capital is not only meant to sponsor initial business needs like hiring, setting up inventory and zeroing in on online or offline store addresses but also it acts as a cushion when it comes to handling cashflow crunch. What was your salary? Can you expect a similar turnout in the first few months? If not, are you ready to embrace the lifestyle changes required to compensate for the gap?
You Don’t Have to Make the Extra Effort to Get Your License
Working for a living and caring for kids is a tall order sometimes. If you already work a full time job and have family to take care of in your home, you probably don’t want the extra hassle of having to drive to school to attend classes. Luckily, there is a great new way for you to get your real estate license in Nevada without having to go through all of this extra hassle. Going to school is no longer a chore.
Have You Ever Thought About Taking Classes on the Web?
Were you aware that you can get all of your credits via the internet? These classes run just like a regular college course. You listen to the professor, do the prescribed course work, and take the tests. The credits you earn for attending the class count just as much as any that you may have earned in the regular manner. Best of all, you never have to leave the comfort and security of your living room. Your family and kids will continue to be under your supervision as you earn your real estate license.
Attending Classes on the Web Opens Up a New World of Opportunity
Thanks to the web, you can learn more about getting your real estate license in a whole new way. The very best thing about attending classes on the web is the opportunity that doing so will open up for you. The sooner you attend these classes, the sooner you can earn your real estate degree in Nevada. Get in touch with an online university in your area to learn more about this amazing new opportunity.