The Mungo Money Finance Blog

All over the world there are problems with the economy that are leaving many of us without the liquid cash we need to buy the things that we want and need. While you may not have the cash that you need on hand right now, UK credit cards can give you the financial backing that you may need at the time of the purchase and allow for you to pay the debt off as you go. Many people believe that they should steer clear of credit cards, but the fact is that if you approach them in the correct manner you will be able to increase your buying power despite what the economy looks like at any given time.

UK Credit Cards = Buying Power

The great thing about having any of the UK credit cards out there is that at any time you will be able to pay for something when you need it. For instance, if you have just made payments on your home and your car you may not have the money that is needed to visit the hospital if you get sick or injured. However, when you have a credit card on hand you can pay the bill on the spot. Then, you can make payments on the debt as you are able or when you get paid again you can pay off the bill entirely.

When you charge something on your card and then you pay it off in a reasonable time you are actually increasing your buying power. What you are showing creditors is that you are capable of purchasing something with their money and then paying them back on their payment schedule. When you do this you become a great candidate for more credit when you need it. If you are able to maintain good standing with your credit card company at all times you will be amazed at how fast they are willing to offer you more credit, if and when you need it.

Many people do not take their buying power seriously enough. A lot of people simply use their credit cards and then don’t bother to pay on them while other people don’t ever consider what UK credit cards can do for them. Whether you misuse them or never use them at all, you are doing yourself an injustice. Later on when you want to buy a home or a car you may not be able to get the financial support that you need to make it happen. If you apply for a credit card or two now and use them wisely and pay them back as indicated, you will find that your buying power is truly unlimited in the future as long as you are not trying to buy way outside of your means. Credit cards, when used properly, really can do wonders for you whether you are in a cash crunch, need to pay a bill or want to make a big purchase.

Always Compare UK Credit Cards

When you need a credit card you shouldn’t go out and simply opt for the first one that you come across. Instead, you will need to take time to compare UK credit cards. There are hundreds of them to choose from and it’s important to realize that they are not all created equal. Many people naively assume that credit cards are one size fits all, but this is simply not true. There is a card for everyone out there, all of which are just a bit different.

We’ve been busy developing the new Mungo Money website. We’re hoping to launch our improvements in the coming weeks to help you find the best UK credit cards for your needs.In the meantime, why not check out Totally Money? They help you to find affordable UK loans and have a very interesting blog full of tips!

With interest rates all over the place, many people are looking for low rate loans and they still can be found, you just may need to look a little bit harder and longer for them than you would have had to three or four years ago. Many people are still getting home loans, car loans, and personal loans for outstanding interest rates, so don’t be disheartened if you start shopping around for loans and you see some startling interest rates.

If you have decent credit you will find that it is quite simple to get low rate loans. When you apply for your loan the first thing that the lender will need is some basic information about you, including your name and your date of birth and some other personal information that will allow them to look at your background. If you have a history of paying off your debts and you don’t have a really high debt to income ratio you will find that you can get a decent interest rate that is around 7% and in some cases lower or a bit higher.

If you don’t have the best credit you might find that you could get better interest rates if you just wait six months and work on paying off some of the small unpaid debts that are causing black marks on your credit report. You know the ones, the 200 pounds here and 50 pounds there that you could pay off if you really wanted to? Even if you pay off a few of those it will raise your credit score substantially and will help you to secure a better rate for your loan.

Another way to obtain low rate loans is to look for a secured loan. A secured loan is one where you will put some money down on the purchase price, letting the lender know that you are serious about this purchase and you are not going to let the debt go unpaid. This can help you get a much better rate, especially when you are buying a home or a car. Securing the loan isn’t always simple, especially if you have to come up with 15% of the purchase price, but it will be worth it in the long run.

There is yet another way that you can receive low rate loans even if you don’t have perfect credit and that is to have someone co-sign on the loan with you. What this will do is have someone with better credit than you guarantee the loan so that if you don’t pay, they will. This can often lower your interest rate by as much as 3-5% and while that doesn’t sound like that much, it’s a lot when you are borrowing thousands of dollars.

These are all straight forward ways to get low rate loans, but sometimes you just need to shop around to find the right opportunity. When it comes to finding a loan you cannot be in a hurry, instead you need to shop around to find the right loan at the right time. For some people this search comes to an end in one day and for other people one year.

In a perfect world, we would all have the money on hand to pay for everything we needed and wanted.  Unfortunately, this is not a perfect world and occasionally most of us will need to take a personal loan, even if that loan is just to pay for a car or some other significant purchase.  Taking on the extra debt isn’t necessarily a bad thing.  You just need to be careful about the choices you make.
Here are some tips to help you make the right borrowing decisions.
Is a Loan the Right Choice? 
Before you start shopping around for a loan, you should try to determine if a loan is the best option for your needs.  In some cases, you might be better off with a low interest credit card, particularly if you have a period of paying no interest.  Since a number of credit cards offer 0% interest on balance transfers, such as the Barclaycard which gives you 12 months interest free plus no interest on football season ticket purchases, you can end up saving a lot of money with this option.
If you do decide on a loan, do not opt for a secured loan.  A secured loan means you are guaranteeing that you will repay the money by offering collateral, such as your home or your car.  You could end up losing your property for failure to keep up with the loan payments.  Try to take out an unsecured loan or extend your existing mortgage instead.
The Basics of a Good Loan 
Before shopping around for a loan, you need to create a budget and determine how much you can afford to pay back each month.  Without that information, you could end up taking on more debt than you can afford which will get you into trouble.
Once you know what you can afford, borrow as little as possible for the shortest time you can afford.  Even though a long repayment period may make your monthly payments lower, you will end up paying more in interest.
Besides looking for a loan with a loan interest rate, you also need to make sure you won’t have a penalty for early repayment.  It’s always a good idea to try to pay down your loan as quickly as possible so you end up paying less in interest.
The bottom line is you need to shop around for the best rates and the best deals.  Building a good relationship with a lender you trust who also offers you good loan options will be helpful to you later on as well.

When you were taking out a mortgage, car loan, or other type of debt, there’s a good chance someone tried to sell you PPI (Payment Protection Insurance).  If you bought a policy and meet certain requirements, then you could receive a refund of all the money you’ve paid towards that policy.
Background on PPI Refunds 
The Office of Fair Trading (OFT) and Financial Services Authority (FSA) have been investigating PPI for awhile.  As a result, they have discovered that a number of the policies have actually been mis-sold and are, therefore, not considered valid.
When the OFT and FSA describe the policies as mis-sold, they could mean several things.  One common problem is that the insurance actually ends up costing more than the consumer anticipates.  In most cases, those small monthly payments end up costing more than the total interest by the end of repayment.
Another issue is that PPI is often automatically included in the loan fees.  If you don’t carefully review a breakdown of the loan fees and costs, then you may end up paying for something you never asked for or did not want.
PPI Refund Requirements 
The most obvious requirement is you must currently have PPI or have had the insurance within the last six years.  If it’s been more than six years and you still have your documentation, you can still try to get your money back but you’ll be facing a bigger battle.
Another requirement is that you cannot have made a successful claim against your policy.  If so, you are no longer eligible for the refund.  Plus, you should keep in mind that by asking for a reclaim you are essentially requesting cancellation of the policy.  If that’s not what you want, then do not try to recoup your losses.
Besides these requirements, you need to fit into a specific category of mis-selling.  For example, if you weren’t told the details of the policy or if you weren’t asked about your employment or past health problems then you may be eligible for a refund.  If you already know that your lender has been fined for mis-selling, then it’s a good bet you should be eligible for a refund, too.
Remember that PPI is not necessarily a bad idea, but these lenders are simply not providing you with the best options.  For example, you could get similar protection with a separate policy and save about 70%.  That’s why you really need to look around at all of your options before taking out a loan.
Keep in mind that if you do receive a refund, it might be a great time to start a savings account which could also be useful protection.  Nationwide Regular Savings is a good choice if you want a good return on your investment.  Another choice is Britannia Tree-for-all Savings.  When you open an account with them, a tree will be planted so you’ll also be helping the environment and the stability of your financial situation.

It is with great pleasure that I announce the relaunch of Mungo Money UK.

Both Mungo Money and  the Money Saving Blog (Money Talks) have been redesigned and updated to offer a better slection of credit cards, personal loans and saving accounts.

The look and feel of Mungo has been totally re-engineered so that you can find the product you need quicker and easier. We’ve got a brand new star rating system in place so users can review products that they have applied for, letting new customers know the real deal!

So Happy New Year from Mungo Money UK and enjoy the new website!

Credit card debt may seem like a big problem, but it doesn’t have to be.  In today’s world, most people need to have at least one credit card, even if that card is reserved mostly for emergencies.  You only run into problems with credit card debt when you start taking on more than you can handle and when you don’t make smart borrowing decisions.
Let’s look at way to have that credit card debt without the problems.
Choosing the Right Card for You 
The bottom line is that you can’t accept every credit card offer you receive.  You should shop around.  A little searching should tell you that not all credit cards are created equal.  For example, some credit card debt will incur interest at very high rates which means you’ll have a harder time paying back that debt and you’ll end up paying a lot more for it.
To determine the right credit card debt, ask yourself this question:  How do I pay back my credit cards?
If you pay your balance every month and don’t accrue any interest charges, then look for a card that will reward you for making those purchases and forget about checking the interest rates.
Everybody else, you need to pay attention to those rates.  Avoid high rate cards.  Look for the best offer you can possibly get.  Of course, the interest rates available to you will be determined by your existing credit scores so your options could be limited if you’ve had some debt problems in the past.
Keeping Interest Low While Carrying a Balance 
Most of us do carry our credit debt with us but that doesn’t mean we have to end up paying huge amounts of interest in exchange.  One way to keep your interest amounts low is by transferring balances between cards that have a 0% interest period.  For example, you might move your balance first to the MBNA Platinum card that offers 0% interest on balance transfers for 12 months then before that period is up transfer the balance to the Halifax 9.9% card which has no annual fee and no interest on balance transfers for 9 months.  Since the Halifax card has a lower interest rate, you could keep the balance here or you could switch again.
Either way, you’ll be saving yourself interest for a full 21 months.  That gives you a long time to pay down that balance.  Once you find a card with a low interest rate and decent rewards for your purchases, then stick with it and continue using it wisely.

Credit cards can be a hazard to your financial health.  However, they can also be powerful and useful financial tools that allow you to save money not just pack on the debt.  The problem is most people don’t understand that not all credit cards are created equal.  By using one card for all your needs, you’ll end up paying more and getting less.
That’s why we need to talk about how you can choose the right credit cards for your needs.
Which Credit Cards Do I Need? 
Answering this question depends on your own financial habits.  If you use your credit cards mainly for balance transfers then you need a different card then if you want to make purchases.  Likewise, if you want to hold onto a single credit card for a long time you’d want a different card than someone who doesn’t mind switching cards periodically.
For example, if you want to do a balance transfer, then look for a credit card that offers you a long interest-free period on these types of transactions.  The Abbey Credit Card card offers twelve months while the Royal Bank of Scotland card offers 13 months.  Try to pay off the entire balance during that interest-free period so you can save money.
If you have store credit cards, it’s a good idea to transfer those balances.  Most store credit cards have very high interest rates, even for customers with good credit.  Transferring the balances will allow you to take advantage of the store card’s benefits and save money on the interest.
Remember if you do have a separate card for balance transfers, then that card should never be used for anything else.  Most of the cards which use these offers to entice new customers to sign up have other ways of getting money from you IF you use the card for purchases.
When you want a card for purchases, then what you want depends on how you pay your debt.  If you pay the balance every month, shop around for a card that gives you the best rewards.  Cash back programs that return a percentage of your spending to you annually are a good choice.  If you prefer to keep your credit revolving, then look for a low-interest rate so you don’t pay more than you have to for your debt.
Another Important Point for Travelers 
Traveling in foreign countries usually involves dealing with exchange rates, but if you have a Visa or a MasterCard then using those cards can make it easier for you.  Plus, if you choose cards that are designed specifically for this type of use then you can save a significant amount of money during your trip.

When you have a credit card, you’re going to use it. As a result, you’ll probably end up racking up a tidy balance and accruing interest every month unless you’re one of those few people who pay off their entire balances. However, you can find ways to cut back on that interest if you know a few tricks.

Making Balance Transfers Work for You
Balance transfer refers to the payment of one credit card balance with another credit card. As a result, you end up with no balance on one card. Let’s say you owe £1000 on Card A and you have a high interest rate – maybe 18%. If you keep paying on Card A, you’ll end up paying off the balance eventually along with a large amount of interest. That interest adds up and makes repayment take a lot longer which means you’ll pay more interest and so on.
The only way to break that cycle is to transfer your balance to Card B, preferably a card that offers you a period of interest-free repayment. For example, the Barclaycard Football card offers 0% interest for 12 months on balance transfers. Even if you continue paying just the minimum balance – which, incidentally, is never the best idea – you’ll be able to lower that balance considerably before you begin being charged interest.

Other Important Points
You need to realise one important thing: credit card companies view balance transfers as a separate type of transaction. They usually charge less interest and offer longer periods of no interest on these types of transactions then they do on purchases. If you combine balance transfers and purchases on one card, then all of your payments will be applied towards the transfers first so you end up paying a lot more in the long run.
The best idea is to have two separate credit cards. One is just for balance transfers. The other is just for purchases. That way you can find the best deals for each separate type of transaction. With a card for purchases, you want to find a low interest rate and also any rewards you can receive for making purchases, such as a cash back option.
Now after you transfer your balance, you should work hard to pay the entire thing over the interest-free period. You should also avoid racking up large purchase debt on the other card so you don’t end up paying off one balance just to have to contend with another.

Many of us have learned the hard way that getting your credit card payment in the post on time is no guarantee that you won’t be charged a late payment fee.  Plus, if you’re already near your limit that extra fee could send you over the limit even by just a small amount and that means you’ll be charged an additional fee for that.
Those fees add up, plus you have to pay interest on those fees every month until you pay them down.  And you’ll keep racking up fees until you get back under the limit.
At least that’s how things were, now things are a little different.  The Office of Fair Trading believed those fees were too exhorbitant and worked with the UK government to make them unlawful.  Now if you had to pay any of those outrageous fees during the last six years, you could get your money back.
The Steps to Follow to Recoup Credit Card Fees 
To get your money back, you first need to know how much you paid in fees.  Obviously, a guess isn’t going to do the trick.  If you haven’t kept your last 70+ statements (and most of haven’t) then you can call your credit card company and ask for a comprehensive list of all your charges.  This is your right under the Data Protection Right.
Before you do anything else, you need to be prepared for the credit company to close your account in retaliation.  Just transfer your balance to a low-interest card and you’ll be in good shape.  If  that’s not an option and your card is closed, file a letter of complaint.
Next, write a letter to the company requesting your money back.  When you make your claim, add in interest.  If you get to court, you could be entitled to up to 8% interest on those fees so asking for it now could be a good idea.  You may get your money back immediately or a reduced offer.  If not, you’ll need to take the company to small claims court or a financial ombudsman service.
Avoiding These Fees & Using Your Winnings 
Even though the fees were wrong, they are generally a sign of other financial problems.  To prevent paying these types of fees in the future, you should try to set a budget and stick to it.  Don’t borrow more money than you afford to pay back and always make your payments on time.  It’s also a good idea to keep your balances low enough that a missed or late payment won’t send you skyrocketing over the limit.
If you are finally victorious in reclaiming your money, then consider putting it into a savings account.  You’ll be surprised how quickly it can grow and, after all, saving your money is a good habit to start.