Credit report errors can negatively affect you in many ways, but generally, they drag your credit score down. What’s more, your credit report measures your financial health. To prevent financial challenges from happening, you may want to request a copy of your credit report now, and see whether the following errors exist.
There are times when credit bureaus confuse one consumer with someone else or when credit reports list incorrect addresses. These incidents are primarily caused by identity or personal information errors. Here are some of the most common identity errors that you should look out for:
Your basic personal facts should always be updated whenever you move to another house, change your name, or use a new phone number. If you recently filed a divorce and have joint accounts with your former spouse, remove your name from these accounts to avoid suffering from incurring debts in the future.
Audit the number of open accounts recorded in your credit report. There are situations when a retail credit card or loan may be opened under your name, but you actually were not involved. It may happen due to clerical error or identity theft.
Clerical errors take place when another consumer coincidentally has the same name as yours. You’ll notice these errors easily when someone else’s information appears on your report. These errors can negatively affect your credit utilization ratio and credit rating, so you’d want to update your creditor right away.
Clerical errors take place when another consumer coincidentally has the same name as yours.
These unfamiliar accounts could also indicate that somebody deliberately stole your identity, either through your name or social security number. If you think you’re a victim of identity theft, give your creditor a ring as soon as possible. Recovering from the damage caused by this theft requires a long and complex process. It’s best to catch the thief right away and mitigate its potential financial and legal risks.
Errors may happen in the actual status of your accounts, too. Among all these inaccuracies, missed and late payment dates are one of the most alarming. If taken for granted, you may end up defaulting on your payments. Even worse, these errors can cut back your credit rating significantly.
Below are the most common errors that could happen in your account:
More importantly, your credit will be highly impacted if your closed accounts aren’t labeled properly and accordingly. You’ll know you’re badly affected once you get your credit score and see that your creditworthiness turns poor. With this in mind, these accounting errors should all be disputed before they end up negatively influencing your credit.
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Under the Fair Credit Reporting Act (FCRA), both information providers and credit reporting agencies share similar responsibilities in correcting inaccurate information in your credit report. However, the stepping stone in disputing errors in your credit reports starts with you.
According to the FTC, you should take the following steps:
In a nutshell, you have to reach two key contacts to resolve this credit report error issue effectively. Correct the inaccurate information at the credit reporting agencies or credit bureaus (e.g., Equifax, Experian, or TransUnion) and with your creditor or furnisher.
Everyone wants to have a stellar credit score. That’s why we keep making timely payments, having a solid combination of credit, and strategically maintaining a low credit usage. All of these will go to waste once a credit report error is neglected. Hence, you should keep close tabs on your credit reports and dispute inaccurate information at once.
But while cashback and reward cards give you the chance to get a percentage of what you spend back, you really need to do your homework before applying. You can apply for a credit card in many ways: you can use a comparison site, apply online, by post, over the phone or at a bank or building society. Below, Sarah Henshaw of Must Compare discusses why caution is necessary.
Firstly, with economies struggling around the globe and many nations already in recession, you should think twice before applying for any credit card. This is especially true if your job or income is looking precarious, or you're going to struggle covering your bills as a result of the current coronavirus crisis. Higher than usual interest rates mean these credit cards are generally best suited to customers who will pay the entire balance off in full every month. The moment you fall behind, the interest incurred on any remaining debt may start cancelling out the rewards you’ve earned. Plus, by dangling incentives to use your card, you’re more likely to ‘justify’ splurging on items you might otherwise have had the self-control to resist. If you’re trying to economise in this crisis, you’ll need to have the willpower to capitalise on cashback opportunities without falling into an over-spending trap.
Secondly, bear in mind that you’re cooped up at home right now, with limited access to high street shops. Although cashback on what you spend at the till might sound tantalising, if it’s not with a retailer you’d ordinarily visit, or you might not even be allowed to under lockdown rules, you're going to be waiting a while before reaping the benefits. Online shopping, unlike groceries and travel, doesn't generally yield the best perks on reward credit cards, so if your plan is to use it from your sofa make sure it’s fit for purpose first by looking at the small print.
If you’re trying to economise in this crisis, you’ll need to have the willpower to capitalise on cashback opportunities without falling into an over-spending trap.
When looking into getting a credit card, it is important to know the exact requirements needed to apply. Some card companies have been tightening their criteria due to COVID-19 and the new risks it poses, however many won’t announce any changes, so this will be another factor to look into.
If staying at home is giving you itchy feet, and you’re looking to stockpile travel points through your rewards credit card, bear in mind many hotels, airlines and cruise companies will be suffering at present. While this doesn't mean they won’t bounce back once movement rules are lifted, it could see some adjust their frequent traveller programmes and loyalty schemes to ride out the worst of it. You don’t want to be stuck with a pile of points you can’t use! Especially with the new updates on what countries you can and can’t go to without self-isolating for 14 days when you return. Remember, too, that once you've accrued them some rewards will have an expiration date. Another thing to check out before applying.
As well as the type of rewards on offer and where you can accrue them, there are countless other factors to look at when comparing cashback credit cards. Some providers offer a sign-up bonus that can boost your rewards – while others might charge a sign-up fee, uncompetitive interest rates, or an upper limit on the amount of cashback you can earn, which could make attractive headline ‘deals’ look altogether less appealing once you’ve read the T&Cs. Some cashback and reward credit cards come with minimum spending quotas before you're allowed to cash in your points, others have tough application criteria which, if you’re refused, could impact negatively on your credit score.
Additional support packages have been setup during this time of crisis, such as pay freezes on UK loans and credit cards, which aim to help people who are in debt and experiencing financial struggles due to COVID-19. The FCA (Financial Conduct Authority) have awarded those who have lost their jobs, or are receiving less income, with what they call ‘breathing spaces’ that allow them to request up to £500 overdraft for three months free of interest, or request a payment freeze. Make sure you keep up to date with these support offers as at the moment of writing this, customers have until the 31st October 2020 to apply. Many other sites have been covering the updates on financial help available, so it’s good to research your options.
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There are many websites that you are able to use to compare cashback and reward credit cards. Most will show you a wide range of cards available, from ones that pay a flat rate of cashback, to those offering different rates depending on how much you spend or where you shop. By looking at a big sample you should be able to better identify the card that’s best suited to your current spending habits or future needs.
It helps to have a goal in mind. Is there something that you are saving for? Selecting the right card for your goal can help you reach it quicker. Whether it is a 2021 luxury holiday that air miles can help you out with, or an all-out Christmas lunch with the family, you need to think about your goal and choose the best card for you.
If you’re still not sure whether reward and cashback credit cards are right for you, you can find more information about how they work, how to make the most of them and some common pitfalls online. You can also view information and advice on how to choose the right card and what to consider when applying in more detail. These cards can be a great way of making your money work harder but can equally turn into a real headache if they’re not used wisely. Always do the research first and you should reap the rewards as a result. If you are feeling financially worried or vulnerable, make sure you contact your card provider as they may be able to assist you.
Unfortunately, it appears that an oncoming recession is unavoidable. Recent figures have shown that the UK economy shrunk by 19% between March and May. Given that the UK went into lockdown in mid-March, this result is not exactly unexpected, but the personal finances of many consumers will still feel painfully strained – recent research from KnowYourMoney.co.uk shows that almost a third (31%) of UK adults have seen their income decline as a consequence of the coronavirus pandemic.
However, it is possible for consumers to regain control over their finances. What’s more, it is actually simpler than many assume. John Ellmore, Director of KnowYourMoney.co.uk, outlines the necessary steps below.
To gain a comprehensive understanding of one’s financial health, a thorough audit of finances is vital.
The best place to start is by reviewing bank statements and making a note of all incomings and outgoings. Though it may seem simplistic, it is a crucial tactic in identifying and eliminating problematic spending. For example, more than a fifth (23%) of UK adults were guilty of overspending during the lockdown period, but many might not realise they are spending so much. Taking note of such spending will help consumers to acknowledge such overspending and cut it out.
A financial audit could also encourage consumers to shop around for better deals on a variety of products, from groceries to home insurance. So many consumers fail to shop around for a better deal – 12.9 million consumers automatically renew their home insurance without investigating alternative suppliers, for instance – and consequently miss out on savings. Comparison sites are a great place to start; they save consumers time by searching the internet for numerous providers and present them clearly to consumers. All they need to do is choose an option that best suits their needs.
To gain a comprehensive understanding of one’s financial health, a thorough audit of finances is vital.
Credit markets tighten during recessions, which means it can be harder for consumers with a less than desirable credit score to successfully apply for a mortgage, loan or credit card.
However, it is possible to strengthen your score even in a tough economic climate. The best method to improve credit scores is to keep up with regular debt repayments, such as credit cards and utility bills.
That said, there may be times where finances are particularly tight and with larger repayments, such as mortgages, it can be difficult to keep up with regular repayments. If this is the case, consumers should consider speaking to their provider about a mortgage holiday, or temporarily making interest-only repayments. These options could reduce monthly household bills and offer consumers some financial breathing space. However, consumers should always consult with their provider before choosing these options, as they could negatively impact their credit score. These options can also result in people paying more in the long-term.
Perhaps the most important course of action is to start an emergency fund. Usually containing between three to six months' salary, this fund can offer a financial cushion should consumers suddenly find themselves being made redundant.
The best type of accounts for these funds are usually easy access savings accounts. They enable savers to instantly access their money when they need it, without any charges or losing interest. These accounts don’t usually offer competitive interest rates, but some can offer over 1%, so consumers should conduct thorough research before they choose an account.
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An important element of building an emergency fund is consistently saving – after all, 28% of consumers were guilty of not saving enough money during lockdown, according to our research. So, consumers should try to set up a direct debit between their current account and savings account, making it easier to keep money to one side.
Additionally, some banks give customers the option to round up on purchases, and place the difference in their savings account; for example, if a customer bought a T-shirt for £14.20, they have the option to round the price up to £15, and place the extra 80p into their savings.
Consumers must always remember that help is available if they find the financial burden too much. If it’s financial help they need, there are various schemes, such as mortgage help schemes, that can off assistance. Alternatively, debt charities such as StepChange can offer invaluable emotional support and help consumers get their lives back on track.
Financial management can seem overwhelming at the best of times; however financial anxiety has been amplified in the wake of the coronavirus. However, it is vital that consumers don’t panic. By taking simple steps, consumers can work to protect their finances against recession, and give themselves some much-needed peace of mind.
The coronavirus outbreak has waylaid the best-made plans for the finances of many people, so successfully managing your money through 2020 is now looking to be much trickier than it was before. However, many of the same principles still apply.
Whether it's saving for a rainy day or creating a budget to help you take control of where your money is going, managing your finances will help you stay on top of your bills and create a financial cushion for your future. You can start taking steps to become more financially literate at any time, so this guide will provide you with some tips on how to manage your money effectively in 2020.
Whether you choose to write out your budget with a pen and paper or you prefer to go digital and use a spreadsheet or an app, having a budget in place each month is vital to managing your money efficiently. Budgeting is a great way of seeing clearly what you have coming in and going out, so you can see if you’re overspending in a certain area and redirect that money to savings or debt payments.
Many people have additional payments to make each month in the form of loans or cards, so you should make 2020 the year that you tackle your debts. It makes sense to pay off the debts which charge the highest rate of interest first, and then pay off the rest afterwards. Some examples of debts you should look to pay off include credit cards, store cards which typically have a very high rate of interest, and personal loans.
It makes sense to pay off the debts which charge the highest rate of interest first, and then pay off the rest afterwards.
A good tip if you have a few debts is to list out all of the loans or cards you have, along with the minimum payments you need to make as per the terms of your agreement, and the interest rate. You can then categorise these from highest to lowest, so you have a clear view of what needs to be paid.
If you haven’t been checking your credit score on a regular basis, this is the year to start that habit. You can use online tools to get a free credit report that will show you any errors or potential fraud that you may be victim too, as well as give you a good overview of your finances. It’s important to have a good credit rating for larger future purchases such as a mortgage on a property, so it pays to check in every so often and see how you’re performing.
So many of us push the idea of saving for retirement to the bottom of our priority list because if feels like such a distant problem. But you can never start saving too early and having a plan in place from an early age will provide you with greater security when the time comes to leave your career.
Pension specialists Reeves Financial point out that "no matter how old you are it is never too late to think about financially planning for your retirement and paying into a pension scheme. It is actually a tax-efficient way of saving money”. So, if you’re currently without a pension plan, now is the time to do your research and set one up so you can begin preparing for the future.
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Some people can find it difficult to get motivated by savings, and it’s understandable – there are often things we want or need to spend our money on more immediately. But it’s often easier if you set a goal so you know what you’re working towards. The first step with any savings plan is to have emergency savings in place – money set aside should something happen out of the blue, such as your car breaking down or if your boiler breaks.
Aim to have two to three months’ worth of expenses set aside in an easy-to-access account for these moments. After you have that saved, you can think about longer-term goals you may have, such as taking a holiday, planning for extra money to have on hand when you have a child or for a wedding. You’ll be surprised how quickly your money piles up, even if you just save £50 a month towards your goals.
It can be all too easy to bury your head in the sand when it comes to money, particularly if you’re worried about your finances. But having control over your money and how you manage it is the best solution to help you tackle your worries head-on and plan for the future. With these tips, you’ll be in a great position by the end of the year to feel more financially secure and able to start building your nest egg.
The coronavirus pandemic has left many businesses scrambling to adapt. The lockdown and social distancing measures now in place – likely to remain in place, in one form or another, for many months to come – are forcing organisations of all sizes and sectors to reconsider how they operate. Ammar Akhtar, co-founder and CEO of Yobota, shares his thoughts on what the newly adapted financial sector might look like.
As we so often hear, we must prepare for a “new normal”; a world where office working, unrestricted travel and regular visits to bricks-and-mortar premises for essential services is going to become increasingly rare. In short, the transition from physical to digital is being greatly accelerated.
In the finance industry, there is a huge amount at stake. Firms that are unable to deliver their services while the physical world is largely closed off from us are at risk of being left behind by their competitors.
Rising to this challenge invariably means turning to technology. Indeed, fintech has been championed as the future of the finance sector for a decade now, but it has taken COVID-19 to bring about a “fintech revolution” in any meaningful sense.
The increasing prevalence of financial technologies has been a common subject in both consumer and business contexts for many years. The so-called fintech revolution promised open access to data, hassle-free banking experiences and fairer deals for customers.
Yet only relatively small steps have been taken towards this vision. Until now we have only really witnessed a cautious adoption of this technology as consumers, regulators and established banks became familiar with what it can enable – and this has still come at considerable investment.
The so-called fintech revolution promised open access to data, hassle-free banking experiences and fairer deals for customers.
Now, though, things are finally changing. Technology is now not just a competitive advantage for financial services firms; it is essential to their very existence.
Today, people must be able to access critical financial services digitally. From taking out a new product (a loan or a credit card, for example) through to managing their finances and receiving advice, this must all be possible from within one’s own home. But more than that, the process of doing so must be fast, painless and personalised as possible.
There are credit marketplaces in the UK which already offer pre-approved loans that can be opened in just a few minutes with minimal clicks. This is possible because the lenders have made progressive choices in the way they develop or utilise technology.
Conversely, many finance companies still have data, systems and processes that are completely reliant on legacy technologies and on-premise servers. Simply put, these firms are under threat of becoming the Blockbuster or Kodak of the financial services sector (that is to say, businesses that were far too slow to respond to technological change).
For financial technologies to be successful, two things are essential: interoperability and cloud computing.
Over the past decade firms have too often taken a piecemeal approach to adopting fintech; they have deployed specific technologies to solve isolated problems. That is because fintechs – financial technology startups – are typically created with that very focused mindset.
For financial services companies, particularly banking providers, a much broader perspective is required. Not only must each element of a business’ operations be built around best in class technology, but the technology must also be interoperable – it must fit together to form entire systems and processes that work seamlessly together.
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Take the example of someone applying for a credit card – something that is increasingly common as a result of the economic hardship brought about by COVID-19. There are various different stages that an applicant will need to pass through – identity verification; credit scoring; advice or product recommendation; application and assessment; and, if successful, creating the account.
Using interoperable fintechs on a cloud-based platform removes time, complexity and human interference in all of those processes. Data can be rapidly shared and analysed, allowing for the appropriate products – better yet, personalised products – to be shown to the user. There is no reason that an applicant cannot go from the start of the process to the end by themselves in minimal time; so long as the credit card provider invests in the technology that enable them to do so.
We are in the midst of what, in ‘business speak’, they would call a paradigm shift. We are moving past the stage of thinking about financial technology as simply being a means of checking one’s account or transferring someone money. The fintech revolution is gathering speed, and it will lead us to a more open, connected form of banking where one can see and manage all their finances digitally, as well as accessing personalised advice and products all from the comfort of their sofa.
In this primarily digital landscape, financial services firms who cannot deliver an exceptional level of service to customers – be it consumers or business – risk losing them to those who can. Now is the time for the sector to embrace fintech to its fullest and build systems that are not just adapted to the new normal, but actually help to shape it.
Across the UK, lenders have approved nearly £27.5bn in government backed loans, through bounce back and business interruption loans, to more than 650,000 businesses affected by COVID-19.
This is an astronomical effort by all involved to keep businesses afloat, but it’s not been quick enough for many ailing businesses. The total amount of business loans available amounts to £330 billion, and businesses should be receiving these funds at a much faster pace then we currently are. Matt Cockayne, Chief Financial Officer at Yapily, explores how open banking may be the solution to these businesses' issues.
It’s clear lending will be needed throughout the year to help these businesses stay afloat as they reopen. And while lenders could be a lifeline for SMEs over the coming months, it’s thought that many believe that future lending or loans are too high risk, or that they just can’t tell what the future holds to lend to businesses. This is likely to cause further frustration for business owners who, until coronavirus happened, ran successful, growing businesses.
This has created a conundrum for the UK business landscape. As we emerge from the initial COVID-19 fallout, businesses need financial support to stay open and to ensure the economy bounces back, but lenders are either too slow or too wary of lending too much to businesses who are facing huge pressures to avoid going bust. To solve this problem, we have to look at new ways of accessing and sharing financial information to make quicker and better decisions. And in open banking, I believe we have a solution that answers these problems and more.
The initial backlash in response to the government's three loan distribution schemes (BBL, CBIL and CLBIL) has centred around frustrations in the time it took to distribute essential funds. To keep up with this demand, lenders have to make faster decisions. But without the right information about the borrower they can’t make them consistently or fairly.
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It is normally standard for lenders to request three months' worth of financial statements, but through the CBILS scheme, lenders must now request six months. This can slow the process down for businesses, providing an added layer of friction in finding and sharing bank statements, and an added layer of delay with the lender having to review the statements manually. Through open banking, lenders can gain instant access to up-to-date financial information and can retrieve historical data in just seconds.
This means they can quickly onboard customers and determine lending limits, without needing to send documentation such as bank statements, ID or other documents back and forth as you would traditionally. By gaining instant access to bank statements and a secure verified source of income, lenders can quickly analyse credit decisions in real-time, and make better, more informed decisions, which is crucial as we begin to step into the new normal.
Up until now, the government has relied on a panel of lenders - established banks and the likes of Funding Circle - to distribute the schemes. But as the crisis continues, more loans need to be disbursed, presenting an opportunity for smaller lenders to play their part to support SMEs too.
One of the biggest struggles of the schemes has been around lenders being unable to meet the demand for onboarding new customers. Some businesses have reported that it is taking longer than expected to open a new account and receive essential funds. However, if conducted through open banking, these processes could be sped up and enable more lenders to operate and offer their services to UK businesses.
One of the biggest struggles of the schemes has been around lenders being unable to meet the demand for onboarding new customers.
This isn’t just a benefit for lenders in terms of meeting soaring demand, it also means an added layer of trust and greater loan personalisation for customers. Lenders can make fairer and more accurate decisions, based on a customer's financial picture.
With lenders able to grant more loans quickly and efficiently through open banking, businesses will have faster access to the much-needed cash required to stimulate the economy; keeping companies running, people in jobs and ensuring spending continues across the country. Lenders will also have the opportunity to monitor the borrowers finances after the loan has been granted, with the borrowers consent of course, to offer continued support and create future offerings if required.
As more businesses across the UK seek government support, the role of lenders will continue to grow in importance. But rather than shut up shop due to the risks at play, they should utilise open banking to make better, informed choices to ensure the economy recovers quickly.
Benjamin Franklin said it best: "If you fail to plan, you are planning to fail.” We all need goals and objectives. Some of these should be ambitious and fanciful. We all have our dream house or dream vacation — even if we know it may never truly come to pass.
But you need some real-world goals grounded in reality. Ultimately, these practical items are what should be populating your “bucket list.” Sure, always keep a few unlikely-to-achieve items in your back pocket. But you want to really focus on the ones that you know you can — and will — tick off.
And don’t procrastinate! Your bucket list is hopefully long and full of great experiences. There’s no time to waste letting them just sit there.
Yes, achieving some things will be more difficult for many people this year for a variety of reasons. But don’t use excuses and instead focus on the other goals that you still can attack. And if you need a little inspiration, set your sights on checking off the following three 2020 bucket list items.
For every person, in every line of work, there is always some thing that you know will help you develop in your career. Maybe it’s learning a new skill, like becoming a spreadsheet or data wizard. Maybe it’s improving your communication ability, like mastering public speaking so you can get your ideas heard. Maybe it's finding a mentor who can help you see something that you keep missing. Or maybe it is sitting down and devising a new strategy or process to improve your company that will surely knock the socks off you boss and earn you that promotion. But no matter what it is, get started today.
We all need to improve our financial literacy, strategy, or discipline in one way or another. It’s time to stop hoping and start doing. Do you keep tapping into your savings for discretionary purchases? Are you failing to put away enough for retirement? Are you throwing away too much on interest payments? Or, God forbid, do you still not have a good budgeting tool that keeps you on task? Perhaps now more than ever, you need to work to get your financial life in order, and you should look at all the financial services tools out there to help you get it done.
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While being financially disciplined is great, that actually isn’t the problem for many people. Some are too stingy and fail to hit their bucket list items out of an overabundance of caution. If that’s you, maybe now is the time to splurge a little. Do so responsibly, but recognize that there are some great prices out there on toys and luxuries that you may have been eyeing for years. Maybe today is the perfect time to buy that RV you have always wanted and do some road trip traveling to dream locations. Along with good deals, you can also find fantastic credit financing options that offer perks and cash back rewards.
Achieving your lifelong goals is never easy. That goes double in a year like this. But there are always ways to look at your bucket list from a different angle and start checking off some key boxes no matter what.
It doesn’t have to be all skydiving and flights to Paris. There are other objectives you can pursue even today. Start exploring your professional development goals, work on hitting a key financial benchmark for you, and don’t forget to find creative ways to splurge on yourself — and even travel.
The world may be more complicated than ever — but it’s still your oyster. Even when everything is turned upside down, your life can still be whatever you make it.
For the most part, the blockbuster film 'Back to the Future' was way off with its outlook on what society would look like in 2015; we don’t have flying cars or hoverboards. But Robert Zemeckis might have been onto something with his portrayal of ‘future’ payments. One of the common methods of payment in the film’s futuristic society was made by thumbprints, not a far cry from what many can already do with their smartphones. Ian Bradbury, CTO for Financial Services, Fujitsu UK, explores what the future of payment is being shaped in the real world.
Biometric payments are one part of a wider movement in society away from physical money. Credit and debit cards have been around since the middle of the twentieth century, but over the past decade, there has been a notable decline in the support for cash, with some retailers removing cash payments entirely. And that isn’t necessarily a bad thing.
While cash is important in maintaining the anonymity of payments, there is a lot to dislike about it. It’s easy to lose, steal and damage cash while also being expensive to produce, distribute and store. It is also a known carrier of infectious diseases, something that has been highlighted in the wake of the COVID-19 pandemic. But it is also clear that we cannot move to a cashless society until more is done to ensure the estimated 2.2 million Britons who rely on cash are not left behind.
There are ways that banks can help society transition seamlessly from physical cash to digital cash. Consumers will always adapt to changes in which we store value to trade, so we need to make sure we do it right.
Biometric payments are one part of a wider movement in society away from physical money.
Many banks are in a delicate position where most consumers now use some form of paperless payment – but not all. Meanwhile, over a third (36%) of consumers in the UK want their bank to be more innovative in their use of technology, showing an appetite amongst the public for more modern services.
But security remains a crucial aspect when considering a cashless society. One reason for cynicism is that going cashless would eliminate the anonymity of physical payments; the free and willing private transfer of value from one individual to another is considered by many to be a basic human right.
And over a quarter (26%) of consumers do not trust traditional banks to keep their data safe – a figure that rises up to a third with challenger banks. Therefore, there is no guarantee that digital-only payments would be universally accepted as there is not a unanimous trust in technology. That is arguably one of the biggest challenges we face in moving to a fully cashless society.
The western world has a historical love affair with plastic cards; they have been around for decades and we are used to them being the main form of cashless payment. But not every citizen is able to apply for a bank card. For example, one of the basic requirements for a bank account is a home address. However, for the homeless population of the UK, that is not possible. Therefore, if not considered, a cashless society could worsen the inequalities that some face.
There are ways to get around this. Some initiatives are being developed so you don’t need a bank account to receive and use digital cash. For example, you can receive a Mastercard prepaid card which you can use anywhere that accepts payments from the company. This eliminates the need for identity checks or registration and is inclusive to those who do not qualify for a bank account. Further investment in those initiatives will be key.
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Offline digital wallets can also store, manage and transfer digital currency while not connected to the internet – which is critical in replacing the ‘off-grid’ functionality of physical cash. Smartphones are often used as offline digital wallets and developing that technology would limit the need for further investment in infrastructure.
It’s also not implausible that ‘smartcards’ – bank cards that use biometric authentication – will become the norm in years to come. They can be designed with a low-cost e-ink display, which requires no power, that can show how much balance the user has. Not only would they enhance security in digital payments, but it would also eliminate the need to register for a bank account.
There are clear challenges in moving to a cashless society. It requires certain investments so that no one loses out. At the same time, it must provide the anonymity that many consider being a basic right.
Yet if you consider measures such as offline digital wallets and smartcards, many of those challenges can be met. The technology needed to go cashless is already available – it now needs to be seamlessly integrated into everyday life.
After weeks of being put under stringent lockdown measures due to the COVID-19 pandemic, people will be bracing for difficult days (or even weeks) ahead even as these measures are gradually lifted.
Even then, people need to make ends meet in one way or another. And while it is difficult to know how and when this crisis will actually end, it is important now more than ever to make good financial decisions.
Let's take a look at a few important tips for how you can keep yourself from going under in these difficult times:
The coronavirus, which causes the deadly disease known as COVID-19, has permeated local and international news since it was first detected in China. Now, it has become a crisis that governments are desperately trying to contain.
If you have been following the news lately, chances are you have been on a spending spree for essentials. With quarantine measures in place, many are now finding it hard to stock up on the essentials like toilet paper.
It is easy to be confused with all the information out there regarding the pandemic. If you let your guard down and make unnecessary purchases as a result, you can do yourself a lot of harm.
Whatever happens, it's best to remain calm and follow government advisories. At this point, the best you can do is to prevent the spread of the virus and get updates from trusted news sources. This will help you gain clarity as you figure out what to do with your current resources.
Whatever happens, it's best to remain calm and follow government advisories.
Having a credit card is convenient, but when you are in the middle of a serious health crisis, you have to do what you can to get by.
Luckily, consumers in the US can breathe a sigh of relief as major credit card providers have agreed to waive payments for March and possibly beyond. All you have to do is to contact the number on the back of your card and ask your bank about how you can get relief.
It’s important to note that providers such as American Express and Capital One have allowed cardholders to skip payments without interest. Other banks such as U.S. Bank and Wells Fargo have also announced that they are offering to waive fees and provide other forms of hardship assistance. Again, you will need to contact your bank and see what they are offering.
This is a reasonable time to dip into your savings account.
Whether it's a time deposit account, notice accounts or a fixed rate savings account, it would be practical to use this money as a buffer to get you through the entire quarantine period. At any rate, ensure that you can withdraw the amount you need without any penalties.
So long as this crisis lasts, it is important to keep your spending to a minimum. This may mean scaling down on non-essential expenses such as streaming subscriptions and luxuries bought online. These are sacrifices you may need to make to keep yourself financially afloat in the next few weeks or until the crisis passes.
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Another way you can slow down the depletion of your hard cash reserves is to make full use of gift cards, loyalty points, and discount vouchers. These will really come in handy if you are going out shopping for groceries.
And considering that this is a national health emergency, you should consider making use of cards that help you pay less for prescription medicine. Check out prescription discount card details for where and how to find the best deals.
One good thing right now is that mortgage providers are offering different types of mortgage relief interventions for homeowners who can defer making payments through a 90-day period.
If you are in a difficult situation, it is best to contact your lender and see if you can strike up a forbearance agreement.
If you're renting an apartment, make sure to talk with your landlord to discuss new payment terms and see if you can avoid paying late penalties. Local governments are prohibiting evictions from taking place. This could give significant relief if you have been displaced as a result of the pandemic.
In such extraordinary times, you need to keep your finances from dwindling. This might take simple sacrifices or leveraging government aid efforts. In either case, your financial survival will depend at least partly on the measures you take.
Income Analytics today announces the launch of its tenant income risk indices and benchmarks – a new and unique set of indicators for quantifying tenant income risk using data on over 355 million global companies from leading global provider of business decisioning data and analytics, Dun & Bradstreet.
Income Analytics redefines how the global real estate industry can access, analyse and deploy company credit data on tenants, real estate assets and investment portfolios, enable real estate professionals, investors and lenders to receive ‘real time’ analysis of underlying tenants creditworthiness and, with confidence, appraise anticipated future performance and ultimately likelihood of default.
Income Analytics reports and dashboards incorporate new proprietary analytical tools and scoring (INCAN scores) alongside the existing credit report data including:
As a global institutional asset class (US$30.2trn1), real estate requires the same analytical analysis as equities and bonds. As stated by Andrew Baum, Professor of Practice, Said Business School, University of Oxford: “The value of real estate investment is ultimately determined by the level, duration and quality of the rental income paid by your tenants.”
Income Analytics provides a range of tools comprising:
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Matthew Richardson, Co-founder and Chief Executive Officer of Income Analytics commented: “At Income Analytics, we have created a truly unique and much needed set of tools and analytics for the global commercial real estate industry. No industry specific product for investors and lenders to assess and monitor the changing quality of their tenant income over time currently exists. More worrying is that very little has changed since the sub-prime crisis of 2008 and the recent global crisis caused by Coronavirus makes the need to access accurate and current income data more important than ever before. Our aim is to provide the real estate industry with a critical tool in which to assist investment decisions and investor reporting.”
Maxwell James, Chairman of Income Analytics stated: “Income Analytics has created a new and world class set of indices and benchmarks for the commercial real estate market. The insight that these measures bring is already resulting in better informed investment decisions by our existing clients. The application of these analytical methods offers the potential for investors and lenders to greatly enhance transparency and risk appraisal of portfolios or loan books at this critical time.”
Edgar Randall, Commercial Director UK & Ireland, Dun & Bradstreet commented: “Dun and Bradstreet is delighted to be partnering with Income Analytics to provide commercial data and analytics that support innovation and digital transformation across the real estate industry. Our aim is to provide a comprehensive risk solution for commercial real estate teams by combining our data with Income Analytics’ expertise and new platform to deliver actionable insights to drive business performance.”
Income Analytics was founded by and is led by an award-winning management team with unique experience and a strong track record in data monetisation and analytics in the commercial real estate sector. Biographies can be viewed at the company's website.
In light of the current COVID-19 situation the formal launch event has had to be postponed but details will follow in due course.
Managing a household budget is not always easy. Some months, there may not be enough money coming in to meet all of your needs. In other circumstances, you may have big plans or big projects on your mind that will require more funds than you currently have access to. In these cases, knowing where to find the financing you need is important.
Personal loans are a great choice for accessing extra funds in a completely straightforward way. Depending on your ability to take on new debt or your current plans and needs, a personal loan may be just what you need to move forward. If you want to make an informed decision about whether this kind of financing is right for you, then it can be helpful to know how personal loans are commonly used.
Let’s look at five specific reasons why you need to consider a personal loan.
Home renovations are a great way to use the funds from a personal loan. Usually, home renovation projects can rapidly spiral over budget and quickly overwhelm the ability of homeowners to pay for everything. To see your projects through to fruition, and to avoid leaving your property in a half-completed state, then it is prudent to apply for a personal loan. Best of all, home renovations can actually add value to your home which makes a personal loan even more affordable in the long run.
Personal loans can be a great way to consolidate your outstanding debts. If you are having a hard time keeping track of your debts and cannot manage to pay back numerous loans to numerous lenders, then simply the situation. Pay back all of your outstanding debts with a large personal loan. This way, you will only have one loan to worry about, and usually at a much more reasonable interest rate.
Sometimes, life throws us into situations that we did not expect. Whether your health has suddenly declined or the health of someone in your household is threatened, then the bills can add up quickly. Since health is far more important than anything else, it is worthwhile to take out a personal loan to finance your medical bills.
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If you have big plans in your future such as securing a mortgage to buy a home, then you will need a good credit score. If your credit has suffered in the past, however, you will need to improve it first. Taking out a personal loan and then diligently repaying it allows your credit score to rise and will leave you with more options for credit in the future.
It is not generally advisable to use personal loans for discretionary spending. Purchases that are not truly needed are better afforded through diligent saving rather than relying on credit. This is because the interest payments you will make on a personal loan make the overall cost of this spending more expensive.
However, in some cases, discretionary spending on credit can be justified. Indeed, the choice is a personal one. For example, if you are offered a once-in-a-lifetime opportunity to take a dream holiday, then a personal loan can be useful. Nevertheless, be sure to weigh the pros and cons carefully.
Beyond the five reasons outlined here, there are many more reasonable uses for the funds you can receive from a personal loan. If you have projects or expenses that you need to cover quickly, then find a reputable personal loan provider and start the process of securing this funding right away.
While it may sound obvious to conclude that the net profits of a business are the most important indicator with which to measure a company’s worth, the reality is that cash flow is just as important, and sometimes even more so. There are a lot of reasons for this – one would be that profits can be manipulated in the income statement more easily than cash on hand can. Net profits may be seen as a theoretical concept, while the cash that is accessible to the business is the more concrete way to see how an enterprise is actually doing.
Consider how profits can be determined largely in non-cash terms – they can be in the form of assets such as receivables. Some of these decrease in value over time, which limits the accuracy by which profits are measured. Some receivables can even be totally insignificant in the future – if for example a client pays too late, or worse, if they don’t even pay at all – then the asset that determines the value of the corresponding net profit decreases, which decreases net profit as well. This is the reality of business – that is why it is important to manage your cash flow wisely.
Cash flow measures the liquidity of an enterprise – and this is indicative of your overall paying capacity. The bigger the amount of cash the business has on hand, the more reliable they appear to their employees, suppliers, and other creditors – these entities can rest assured that they will be paid their due in a timely manner.
These are just some of the reasons why it is important to effectively manage the cash flow for your business. Here are some ways you could do that:
If possible, have your customers pay immediately upon delivery or before they receive the goods or services they ordered from you. Prepayment is the best option, and it works – this is how most eCommerce businesses conduct their transactions. They usually ask for proof of payment before they deliver the items to their customers.
If possible, have your customers pay immediately upon delivery or before they receive the goods or services they ordered from you.
If prepayment is not possible, push for cash payments upon delivery. This is pretty reasonable for most retail-scale businesses.
For industry-scale trading, where the volume of goods and/or services and the corresponding amounts are considerably larger, do your best to get the shortest payment terms from your customers as possible.
Invoice them as early as you can. This will ensure that you have done your part in guaranteeing timely payments. It will also show your clients that you are taking your collections seriously. This is the best way to be professional about your intentions.
You can ask your suppliers to extend you credit terms, and you can attempt to make this as long as they will allow. This will let you be able to keep your cash in your hands for as long as possible, giving you leeway to pay for more pressing concerns. Just make sure that you don’t miss your deadlines, as some suppliers may charge interest rates for overdue payments. This is something you should avoid at all costs – as it will defeat the purpose of the exercise.
If you have initially already extended credit terms to your clients, you may find yourself in need of reprieve in future situations. Some clients may also be unreliable in terms of meeting deadlines. You have the option to sell your receivables to get the cash you need immediately. For example, some staffing companies enroll in payroll funding, where the financing company purchases unpaid invoices from you, allowing you to have cash 24-48 hours after the invoice is presented for sale. Sometimes, you can even get your money within the same day if you request this specifically.
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This is a great way to manage your cash flow more reliably. If you have a long list of creditors, with receivables that won’t get settled any time soon, this may be a viable option for you.
You can get creative in terms of how to get more cash-based sales, so at least you have a steady flow of liquid assets. Offer discounts for cash on delivery or prepaid transactions; give incentives for customers who pay on time; and conversely, set minimal penalties for late payments, just so they’re encouraged to meet their deadlines, and be faithful to their terms.
These are just some of the preliminary guidelines that can help you manage your cash flow better. Remember that there are small ways you can tweak your cash flow to work in your favor, and explore workable options that will help lighten your load.
