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Is it Worth Regularly Changing Current Accounts?

There are some people that swap their current accounts a lot. They choose different banks or building societies and swap over their salary, direct debits and standing orders to the new place. It can be a mystery to some as to why they do it and it can seem like a lot of work to do. However, there are often good reasons why people do this and it could be something which many people could benefit from.

Differences between accounts

Current accounts differ a fair bit between banks and building societies. Some will pay interest on balances, some will give rewards, some charge a fee in exchange for benefits and some have really competitive overdraft fees. It is good to have a think about what you want form a current account and what would benefit you to start with. Consider whether you use your overdraft or not and how much you pay for it. You will be charged interest but you may also be charged a fee. The amount you are charged will depend on whether you are using an authorised or an unauthorised overdraft. You can arrange and overdraft amount with the bank. If you stay within the amount that they agree to you will be charged a certain amount. If you spend beyond that or have no agreed overdraft then you will have to pay a larger amount. It is worth checking how much your bank charges and compare this to others to see if you could save money.

Interest

Although it is rare to get interest on a current account, there are still a few accounts that pay it. Others may give you a higher rate on a savings account of you also hold a current account with them. Check what your bank does and think about whether you would move to one that offered something better than they do with regards to getting a return for your money.

Paid accounts

Some people pay a fee each month for their current account but in return get all sorts of benefits which they feel give them back more than they pay for. This could include interest paid on the account balance, free insurance, vouchers or other benefits. If you think that this might interest you then it is worth taking a closer look at what is offered with these accounts to see whether you might be better off financially to get one of these. Do remember that something that is offered free is only worthwhile for you if you would normally use that thing but pay for it. If it is something you do not normally use then it is not worth getting.

Easy to swap

Swapping accounts is a lot easier than it used to be. Legally the bank of building society has to help you with moving the direct debits and standing orders so that it is easy for you. It makes sense to have the two accounts open together for a short period while you check that everything has swapped over and you have got your debit card, cheque book, paying in book or anything else you need to operate the account as well as finding out how to operate it whether you use a branch, telephone or online service. It can take a bit of time and there will be things for you to change and check. You may feel that it is just not worth the bother to do this. However, some people might think it is worth it.

Calculate your gains

Really it comes down to how much money you will gain from swapping and how much you feel that you time is worth. You might be happy to spend a few hours researching and organising a new account, swapping things and checking if you will make more than £5 a month. Some people may only be prepared to do it if they make £50 a month. We are all different, partly depending on how much money we have and so how much difference it will make but also in how much we value our time and whether we would rather do other things instead. It is worth considering though as some people find that it makes a really big difference and if you are struggling financially, it could make a significant difference to you.

How to get a Credit Card with a Bad Credit Rating

A credit card can be a really useful thing for us to have. It can be a very convenient way to pay for things adds security and so is particularly useful when using online and can even be used abroad. This means that it is something which many people would like to have, but they are not available for everyone. If you have a poor credit rating then it is likely that you will not be able to have one though and so you may have to try a few techniques to increase your chances of getting one.

Use your partners

Firstly it can be worth seeing if your partner (if you have one) can get one. If they can get one then they could have a secondary card holder and that could be you. Then you will be able to use a card. This will only work though if they trust you with money and they are happy to be responsible for the card repayments. If you have joint accounts then this is unlikely to be a problem though. Do think it through though as you do not want to have arguments about money based on having a card.

Improve credit rating

This may not be possible for everyone though and so you may need to think of other ways that you can get a credit card. It could be worth looking at your credit rating to find out why you are being turned down. There are places where you can access it for free and it will show details of things that are registered in your name including responsibilities for bills or ongoing payments such as direct debits as well as any debt that you have or had in the past. Make sure that all of the information is correct as any mistakes could make your credit report look worse than it should be. You may find that you will be able to find out your likelihood of being able to get a loan and what might be holding you back. It could be that your salary is not high enough, you have too many other debts or whatever. It is worth noting though that different lenders use different criteria for judging you and so something that may seem unattractive to some may actually be seen as a positive to another.

Apply to your current bank

You may find that you will have more luck if you apply to the bank that you normally bank with. They will be able to see what you are normally like and may help you because you are already a customer with them. If you have a branch locally it might be better to go and discuss it with the staff in there, they may be able to tell you whether it is worth applying or not. It might be that you will only be able to have a very small credit limit to start with. However, these tend to be reviewed every year and so if you are careful with the card and pay off the amount owed in full each month, then you are more likely to have your credit limit extended.

Research companies

There may be some credit card companies that are more likely to take on those with less good credit records compared with others. If you do some research online you may be able to find out who these may be and this could enable you to have a better chance of being accepted when you apply.

Apply to one at a time

It can be tempting to just apply to lots of lenders who offer bad credit payday loans at once and see who offers you a card. This certainly seems like a good idea but sadly it reflects badly on you. If you credit report shows that you have been applying for lots, then it will look like you are desperate for money and this will reflect badly on you and make it less likely that you will get accepted. Therefore it is much better to research first and only apply to those that are likely to accept you. If you do get declined then try another one. Do not try lots at once, even though it might seem that you will get a card more quickly. Even if you do get one this way it could result in you being less likely to get credit in the future.