75 Personal Finance Rules That Apply To Everyone

A “ground rule” is a mental acronym. This is a heuristic. It’s not always true, but it’s usually true. It saves your time and brainpower. Rather than reinventing the wheel for every financial problem, personal finance rules allow you to apply past wisdom to find quick solutions.

Today I’m going to make my best impression of Buzzfeed and provide you with a list of 75 ground rules for personal finance. Some are effective tip packs while others are math shortcuts to save brain space. Bet you will learn a thing or two from this list quickly.

Basic
These basic rules of personal finance apply to everyone. They are simple and universal.

  1. The order of operations
  2. Insurance protects wealth. It doesn’t build wealth.
  3. Cash for both operational expenses and emergencies, nothing more. Saving too much money means losing value in the long run.
  4. Time is money. Wealth is a measure of how long your money can be bought.
  5. Set specific financial goals. Specific number, specific date.
  6. Monitor your credit rating. Accommodation at least once a year.
  7. Conversion of wages into salaries: 1 USD / hour = 2000 USD / year.
  8. Don’t mess with town hall. Don’t cheat on your taxes.
  9. You can buy anything. You can’t afford all of them.
  10. Money saved is money earned. If you look at the bottom line, saving a dollar has the same effect as making dollars. Saving and earning are equally important.

budgeting


I like budgeting, but not everyone is as busy as me. However, if you are (or may not be) looking for a budget, these basic budgeting rules must be followed.

  1. You need a budget. The key to managing your financial life is to create a budget and stick to it. This is the first step in making a financial decision.
  2. 50-30-20 budgeting rules. After taxes, 50% of your money must meet your needs, 30% to meet your needs, and 20% to pay off debts or invest.
  3. Use the “sink tool” to save for a rainy day. They know it will rain eventually.
  4. Don’t confuse savings and checks. One saves, the other spends.
  5. Children cost about $ 10,000 per child per year. Family planning = financial planning.
  6. Spend less than you should receive. You can say “yes”. However, if you don’t measure your expenses (eg on a budget), are you sure you follow this rule?

Invest and Retire


In my opinion, the main “what you need to know” investment is for future financial success. The following basic rules will help you dip your fingers in this water.

  1. Don’t pick stocks. Instead, choose index funds. Very easy, very effective.
  2. People who invest full time are smarter than you. You can’t hit it.
  3. Rule of 72 (approved by doctors). The annual growth rate of the investment multiplied by the time of doubling is (approximately) 72. A 4% investment will double in 18 years (4 * 18 = 72). The 12% investment will double in 6 years (12 * 6 = 72).
  4. “Don’t do anything, just sit down.” -Jack Bogle how bad it is to worry about your investment and respond to the emotion.
  1. Bring matches to the employer. If your employer has a pension plan (e.g. 401,000, annuities) make sure you get as much free money as possible.
  2. Balance your investment before and after taxes. It’s hard to know what the tax rate will be when you retire. So if you balance your pre-tax and after-tax investments, your account will be balanced later too.
  3. Reducing costs. Investing in cost and expense ratios can cost you your profits. Keep these costs as low as possible.
  4. Don’t touch your retirement benefits. You may be tempted to dive into long-term savings for important current needs. But counter that desire. You will be thanked later.
  5. Realignments should be part of your investment plan. A portfolio that is starting to diversify can be the focus, with some assets performing well and others performing poorly. Rebalancing helps you calm diversification and reduce risk.
  6. The 4% pension rule. Save enough money for retirement so that your first year of spending is 4% (or less) of your entire hive.
  7. Save first for your retirement, the second for your child’s school. Retirees do not receive any scholarships.
  8. $ 1 invested in today’s stock = $ 10 for 30 years.
  9. Inflation is around 3% a year. If you want to be conservative, use 3.5% in your math.
  10. Shares earn 7% a year, adjusted for inflation.
  1. Are your age in bondage. Or have 120 minus your age in bonds. The heuristics, 30 year olds must have a wallet with 30% bonds, 40 years bonds with 40%, and so on. Recently, the “120 minus your age” rule has become more common. A 30 year old child must have a 10% bond, a 20% bond 40 year old, etc.
  2. Don’t invest in the unknown. Or, as Warren Buffett suggests, “Invest in what you know.”

Home and car


For many of you, home and car ownership add to your daily finances. The following basic rules for personal finance will be of great use to you.

  1. The sticker price on your home should be less than three times the total income of your family. Being “home poor” – or owning a house that is too expensive for your income – is one of the most common financial threats. Avoid it if you can.
  2. Faulty device? Replace it if 1) the device is over 8 years old or 2) it costs more than half the cost of repairing a new device.
  3. Used or new car? The price difference is no longer the same as it used to be. The options are the same.
  4. The total lifetime value of a car is approximately three times the price of a sticker. Choose wisely!
  5. The 20-4-10 rule for buying a vehicle. Enter 20% of the vehicle in cash with a loan for 4 years or less and a monthly payment that is less than 10% of your monthly income.
  6. Refinancing a mortgage makes sense once your interest rate drops 1% (or more) of your current interest rate.
  7. Don’t pay your mortgage up front (unless your other base is fully covered). Mortgage interest is deductible and current interest rates are low. While paying your mortgage up front can save you a bit of interest, it may be better to use it to earn some extra cash.
  8. Set aside 1% of the value of your home for future maintenance and repairs each year.
  1. The average car costs about 50 cents per mile over its lifetime.
  2. The interest payment on a depreciable asset (such as a car) loses twice.
  3. Your primary residence is not an investment. You don’t have to plan to live in your house forever and sell it for a profit. The logic didn’t work.
  4. Pay for the car in cash if you can. Paying car interest is a waste of time.
  5. When buying napkin tops, follow the 70% rule to choose a property worthy of.
  6. ​​When buying rental property, the 1% rule is an easy way to judge whether you are getting positive cash flow.

Expenses and debts
Spend money (“What’s up?”). Then this personal finance rule applies to you.

  1. Pay off your credit card every month.
  2. I am indebted to use psychology to help yourself. Consider a debt snowball or debt avalanche.
  3. When buying, think about the cost of use.
  4. Make your expenses tangible with the “money diet”.
  1. Never pay the full price. Shop and do your research for the best deals. You can earn money by shopping online, win discounts with coupon codes or coupons for free shipping.
  2. The buying experience makes you happier than buying things.
  3. Shop by yourself. Peer pressure increases costs.
  4. Shop with a list and stick with it. These stores are designed to lure you into making an unexpected purchase.
  5. Spend on who you are, not what you want to be. I love to cook, but I can’t justify $ 1,000 worth of professional kitchen equipment.
  6. The bigger the purchase, the more time it will get. Organic versus regular peanut butter? Don’t take 10 minutes to think about it. $ 100,000 for a time share? Don’t pull the trigger when you are three daisies high.
  7. Use less than 30% of the credit available. The use of credit plays an important role in your credit score. Increasing your credit continuously will hurt your credit rating. Try to keep your usage low (preferably paying monthly).
  8. Unexpected wind? Use 5% or less for self-medication, but use the rest wisely (for example, invest in later).
  9. Try to keep your student loans below the annual salary in your area.

The mental side of personal finance
In the end, you are what you do. Psychology and behavior play an important role in personal finance. That’s why this code of conduct is so important.

  1. Think about taking breaks. Mortgage payments aren’t always an optimal use of the extra cash. But the serenity that comes with debt relief is immense.
  1. Accumulation of small habits that have a big impact. It feels like a baby step now, but take your time.
  2. Give your brain time. Humans can rule the animal kingdom, but that doesn’t mean we’re not impulsive. Give your brain time to think before making important financial decisions.
  3. The 30 day rule. Please wait 30 days before making a “Dollar” purchase. After waiting, if you still want it and can afford it, then buy it.
  4. Pay first. Collect money (in a savings or investment account) before you have a chance to spend it.
  5. Don’t fall into the double income trap as a family. If you can, try to maintain your lifestyle on a single income. If one partner loses his job, the family finances remain stable.
  6. Every dollar counts. The money can be exchanged. There are many ways to increase your source of income.
  7. Enjoy what you have before buying new things. Think about the performance curve.
  8. Negotiating your salary can be one of the most important financial steps you will take. Increasing your income is perhaps more important than anything else on this list.
  9. Direct deposit is the boost you need. If you don’t see your check, you are unlikely to issue it.
  10. Don’t let comparisons steal your excitement. Instead, use comparisons to help set goals. (Net value).
  11. Learn to win. Education has a five times greater effect on profitability than any other group in the population.
  12. If you don’t pay cash, you don’t pay on credit. Withdrawing a credit card is as easy as handing over a stack of money. Don’t let your brain fool you.
  13. Prepare a running bucket. Water flowing from below has the same consequences as water that goes up. We often overlook financial leaks (costs, for example) because they aren’t all that glamorous – but they shouldn’t be.
  14. Forget Jones. Use comparisons to motivate healthier habits, not useless expenses.
  15. Talk about money! I know you hate it sometimes (like politics or religion), but there is a lot you can learn from talking to your co-workers about money.
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There is a lot more to financing than loans and overdrafts

Whether you are looking for finances to ensure the continuity or growth of your business, it is important that you explore all avenues early on.

“Plan, plan, plan,” suggested Paul Leith, founder of digital.accuthant, in a recent webinar on Swoop financing. “It’s too late when companies need financing tomorrow. So you have to think ahead and plan for months, if not years.”

Whether you are a business manager or a consultant, part of this planning process is identifying the types of financial needs and requirements that will affect borrower solvency. Clear loans for commercial banks with low interest rates can come into the account. But the way funding works today is likely to be better if you take the time to adapt it to your business needs.

Business Support Loans

In 2020, most businesses are likely to consider the various programs the government has undertaken to help SMEs during the coronavirus pandemic, including CBILS and BBLS. Applications for interest payments on these loans are coming soon, so borrowers may need to consider refinancing options while their business is still recovering.

What are the other financing options besides loans? Here are a few options to consider in different situations.

Asset-based financing

If you are looking to purchase equipment, consider renting rather than buying the product. This form of wealth finance is especially useful for startups or large companies looking to replace old equipment.

You must choose a finance lease or an operating lease. An operating lease is a better choice when you are looking to lease assets for the short term. You also don’t have to pay for maintenance and insurance of the assets you pay for financial leases.

Although renting can be more expensive than buying outright, both types of leases result in an asset that is shown as a rental expense, which can then be compensated for by profit when calculating corporate income tax.

Invoice financing

If you use bills to make a lot of payments, collection financing is very helpful. Some customers may take time to pay for jobs or purchases, which can slow down business cash flow and expansion plans.

However, in the case of invoice financing, the lender can advance up to 95% of the invoice value and the remaining 5% can be paid at a later date. In other words, you can unlock the value of your bill faster at the cost of the lender’s fees.

Note that there are discounts for invoicing and invoice factoring. The main difference is whether the customer knows that invoice finance is being used. In the case of a discount on an invoice, it cannot be disclosed that it is.

Trade finance

Various trade finance options are offered to importers and exporters. For companies facing cash flow problems, perhaps due to their seasonal nature, revolving loans would be a sensible option. This flexible and open loan allows the recipient to borrow money from a pile of money. All you have to do is pay monthly interest on the amount drawn from the pile before drawing more if necessary, not on the entire lot at once.

Funding R&D claims

To illustrate the dynamism of the financial world, an increase in tax credits for research and development has resulted in tax credits that allow businesses to gain early access to payments. Eligibility for this type of loan depends on the company’s real investment in the research and development type being eligible for the research and development tax credit.

In this case, the company can claim money within a week after talking to the lender, not in the month or year that HMRC can process the claim. This expedited route could be the ideal cash injection in this endeavor.

Unsecured finance

Some of the options listed are based on assets in the company, such as: B. unpaid sales invoices or tax breaks. Broader needs may be needed for broader needs – if the company’s trade history and credit rating deserve it. While the pressure to repay secured loans is more obvious, neglecting unsecured finances is a common way for businesses to get into debt.

The disruption due to Covid-19 is forcing companies and consultants to take a closer look at financial markets in 2020. Given the ongoing uncertainty surrounding Brexit, it is unlikely that these requirements will drop in the next year or two.

To ensure that the business stays afloat, apply the financial mantra that a clear understanding of the company’s goals, structure and financial condition will help you determine the right type of funding to be successful.

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Day off: “I can’t afford to lose my job”

After working full time for the past 27 years, the layoffs were a shock.
He was first taken out, after which he was told that his last job at the garden center and restaurant was no longer available.
I am very worried. “I can’t lose my job. “”
Her determination to return to work meant spending as much time as possible applying for jobs and sending letters to employers.

Instead, he has to spend hours on the phone arranging a hold or “interruption” of payments on his Barclaycard credit card.
Paying £ 200 a month is his only debt, he said, but it took many disappointing calls to set up a gap in pay while he was looking for work.
“I was mad at them but they have been very good the last few days – they froze the account and made sure I was okay,” he said.

Coast Guard
With 85% of adults in the UK having at least one loan, paid holidays are an important protection for people whose finances have been hit hard by the coronavirus crisis.
A sudden drop in income while at work or after a layoff has an immediate and unexpected impact on their ability to pay bills.
According to UK Finance, which represents banks and other lenders, around 2.5 million people have taken mortgage leave since the pandemic began. There are still about 162,000 mortgage deferrals.
On top of that there are two million deferred credit card payments and personal loans. There are still 97,300 credit card agreements and 64,400 for personal loans.
Covid: what is universal credit – and what other benefits are available?
How to save money working from home this winter
The city’s regulatory agency, the Financial Conduct Authority (FCA), expects large numbers of people to continue to need help.
His research shows that 12 million people in the UK are experiencing financial losses – meaning they are struggling to pay bills or pay back loans.
Approximately 31% of respondents saw a decrease in income after the pandemic outbreak, with households typically accounting for a quarter of income.
Those of black color and ethnic minorities were more likely to be affected, 37% receiving income.
People between the ages of 25 and 34 are more likely to change jobs because of the pandemic.

The paid vacation proved to be a savior for Garrett, whose finances would be “screwed up” without him. A month before the castle, she and her fiancé bought their “home for life.”
“Our household income fell by 85% overnight, and without our mortgage payments and using our marriage savings, we would not be able to pay our bills or our meals. Everything was very tight,” he said.
Coronavirus is holding back plans to get married next year. Now they are pregnant too.
“We managed to pay off our installments after three months of vacation. It’s good that we’re fine, we’re still busy and we still have a house. But our life has changed, ”he said.
“The house we bought needed work, we didn’t have a functioning bathroom. It was tiring and tiring, but we were able to survive.”
Not everyone gets the same life line as him.

More than 30% of those surveyed by Turn2Us, a charity that helps people experiencing financial hardship, said they were unaware of the salary disruption. A similar section says that late payment of rent or mortgage is not available to them.
For those left with little room to breathe the bill, the holidays will change from late October.
The current holiday – usually three months – lasts until its expiration date. All new holiday payments agreed from the end of October may be subject to additional conditions.
It is important that the late repayment of the loan is recorded in the borrower’s loan records.
This could affect their ability to borrow money in the future – not only for large loans such as a mortgage, but also for loan agreements such as cell phone contracts.
What help is there?
Creditors and utilities emphasize that support continues to be available while regulators have established rules and guidelines to ensure people are treated fairly. They include:
Mortgages: Businesses need to reach those who are still struggling to pay and offer to help meet their needs. This can be a short term paid vacation or a long term payment plan. You need to identify the vulnerable and help them find free, independent debt counseling. Withdrawal hearings could resume in early November, but not for those detained. Regulators say this is a last resort
Loans and Short Term Loans: As with mortgages, lenders need to be flexible in ensuring they support people who are having problems and identify those at risk. Those who have been included in the payment plan should not see their debt grow out of control. Therefore, interest, fees, and charges should be reduced if necessary
Rent: As during a blockade, tenants who are struggling to pay their rent will need to talk to their landlord to come up with a payment plan. However, the eviction cases will be retried in court (with some caveats) and people should not be asked to leave at Christmas. Bailiffs are not allowed to enter the houses in the Level 2 and 3 areas
Energy costs: Prepaid metered users who are unable to charge will find it helpful, most likely because they are self-isolating and unable to reach stores. A “realistic and sustainable repayment plan” is offered to any gas and electricity customer who has difficulty paying. So far, the agreement has been voluntary with the supplier, but will be required by law from December 15.
Insurance: Customers who have paid for vacations or are experiencing financial problems can reassess policy risks for cheaper or longer payment periods or reduced or cancellation of fees if they contact their insurance company instead of their insurance company
Car Financing: Lenders are urged to offer assistance in relation to the coronavirus situation. Depending on your circumstances, it is possible that you will negotiate a lower payment or that you will be charged less interest. If there are no realistic repayment options, the lender can return the car
Council Tax: The Council has a Hardship Fund designed to reduce payments for those who find it difficult to pay.
Citizens Advice is concerned that new, stricter restrictions in parts of the UK, including different systems in the UK, will leave people vulnerable.
“When I worry about a perfect storm where people who are already struggling to survive financially will really suffer,”
During the holidays, your small room can breathe financially and spiritually.
“My father tries to support me, but his health is fragile, so I’m worried about him,” she said.
Like many families, their physical and financial health can be a problem for a while.

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These are bills you don’t have to pay off quickly

A sudden, steep but highly anticipated recession means we are all desperate to raise money over and over again and whatever we do, we need to pay off that debt as quickly as possible to strengthen our finances for turbulent times ahead. .

For the most part, this is absolutely correct advice. But not always.

Those with serious debt problems should seek advice from charities such as StepChange, which can develop personal plans for amortization or debt relief.

But if you haven’t and managed to manage your bankroll with unexpected cash in Covid, or if the crisis has left you in annoying but largely manageable levels of debt, here are a few strategies you can use.

Repayments: credit cards and overdrafts

We’ve always known credit cards are an expensive way to borrow money, but now, with the new reverse overdraft fee rules that generate a typical interest rate of 40%, overdrafts in particular are very expensive, although they don’t always realize it.

You’re right to pay it off as quickly as possible, and of course that applies to business cards, thresholds, or payroll loans – the most expensive form of mass loan out there.

Although the “snowball” method of paying off the smallest debt for the first time is gaining popularity with its psychological surge, experts urge debtors to focus on paying off the most expensive debt first. This is likely your overdraft. Clean it up and consider canceling setup if possible. It’s not worth it.

With a 0% reduction on old credit card balance transfer transactions, the days back and forth between free credit transactions without ever being paid back are fast fading away.

Millions of people take vacations to pay off debts. What happens when you finish?
Start by putting the balances on all of your cards below half of the total available balance to reduce the impact on your credit score. Then pay it off quickly and firmly.

Maybe you’ll pay it off: mortgage and personal loans

Long-term loans with lower interest rates sometimes don’t even feel like debt, they just sit in our brains under a file called an “Account”, as if we need something constant in life that we can’t escape.

However, paying a few pounds a month on a mortgage or loan can significantly shorten the term and thus the amount of interest you end up paying. But there is a warning.

First, these products often have an early settlement fee (ERC). Mortgages, in particular, are often a burden if you pay more than 10 percent of the amount you owe over a certain period or in the first few years.

Car loans often impose similar fines depending on the type of funding you have arranged to finance. A fixed rate may be required to pay off car financing and may be covered if early settlement is possible.

Second, as soon as you return the money, they leave. So, if you find yourself in the midst of a corrosive economic pandemic, for example, and you need extra cash to filter you out, this is not a flexible product to return some money even if you are a model borrower. By now, you are probably already exercising your vacation options.

Set up an emergency fund of between three and six months for your usual living expenses before embarking on an overpayment journey.

Another question that arises is whether paying off long-term debt at a low interest rate is the best way to use your money. Horrible cash savings today, even with fixed rate offers that block your money for several years, may not be able to pay you back more interest than you saved on a loan.

On the other hand, investing money can outperform our current very low interest rates, especially with such a long investment horizon. Getting the advice of an independent financial advisor is certainly something, although some investment vehicles have ridiculous management fees given today’s volatile stock market.

Don’t pay: student loans

Around 130,000 UK-based alumni made additional voluntary payments worth £ 2,740 each in 2019/20. Another 10,600 returned for an average of £ 4,310 before going into debt.

But it might be a useless exercise.


Student loan companies have been accused of promoting unnecessary payments
Students, starting university this year and receiving full tuition fees and maintenance loans, could owe more than £ 61,500 on departure, Hargreaves Lansdowne estimates. To get it back in full, they will need a salary of £ 53,100 – provided they don’t take career leave or get a raise.

Coming back to the real world, the average annual payout is now under £ 1,000 a year – just £ 120 in the last decade.

Unsurprisingly, the Institute for Tax Research (IFS) found that only 17 percent of graduates will complete their loan in full.

“It’s very worrying to send your kids to college to run into tens of thousands of pounds in debt – and nobody likes the idea that most of it will pay off in their fifties,” said Sarah Coles, a personal finance analyst at Hargreaves. Lansdown.

“However, if we focus on official student loans, we might lose money – and ignore the really problematic commitments students accumulate along the way.

“Most graduates will only pay back their student loans after they are written off. However, many are so worried about taking on debt that they make additional payments.

“For some, this would be a sensible approach based on careful calculation, but for many there is a real risk that this additional payment will be a waste of money,” he warned.

“During their studies, they’ll borrow thousands of pounds which can be returned to bite off.”

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Surprising tips for your personal finance strategy

Are you looking to take control of your finances, save money for your goals, and find hidden ways to cut costs? You already know that you need to save, fund 401,000, and pay off your debt in case of an emergency. But what else can you do?

Read on for seven tips to follow when creating your personal finance strategy.

  1. Make time for your personal financial strategy

Just like creating a financial budget to save money, you need to plan the time and time intervals for reviewing your finances. During this time, you can plan your savings goals, check for errors in bank statements and checking accounts, and consider other ways to save.

  1. Reduce monthly profits

Whether you’re paying too much for your utility bill or unused service, you can spend a lot more than you want. Next time you receive a credit card statement, look for services you can’t do without, such as: B. Maintenance costs. You may also be able to lower costs, such as a gym membership.

Make sure to check your regular monthly bills. Look for ways to reduce costs, such as: B. Using less electricity. If there are mysterious accusations that you don’t understand, call them and ask about them.

  1. Explore

People who compare prices often get big savings. For example, car insurance costs can vary up to thousands of dollars per company. Find out if you can switch plans to lower costs for internet, cable, cellular, insurance, interest rates, or other services.

  1. Avoid bank fees

Banks derive most of their profits by charging various fees. A customer can pay $ 5 per month for account management, $ 3 for ATM transactions, and $ 3 for paper statements.

When choosing a bank, buy and compare costs. You should also look at online banks or credit unions, which often offer free checks.

  1. Use separate savings accounts for different purposes

Using multiple bank accounts can help you save money for specific purposes. When you transfer money to a separate account, you will not be tempted to spend it. Use this system to save on annual expenses such as car insurance or additional perks such as travel.

  1. Build good credit

Your credit worthiness affects bank loans, credit card balances, and interest rates. Check your balance annually with the three big companies Equifax, Experian and TransUnion. To build good credit, pay your credit card bills on time, avoid applying for a new card whenever possible, and use your old card regularly, even if you have received a new one.

  1. Consider a payday loan for emergencies

If you need cash right away for an emergency like auto repair, consider a payroll loan knowing you can cover the loan with your next paycheck. When you need to take out a payday loan, make sure you understand all the costs and financial costs.

The first step

If you plan your personal finance strategy now, your choice will soon pay off. When you are in control of your finances, you have the freedom to reduce debt and meet your savings goals. You will be happier – and richer!

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Best student credit cards for September 2020

Whether students are on campus or homeschooled this fall, there are still a lot of costs to return to school. And when checking accounts are no longer available, many of these purchases must be debited to the credit card. But it’s not always easy for a student to get one – especially if they don’t have a steady income.

The reward is a catch-22: important to have but hard to come by – unless you already have one. Student credit cards solve this puzzle by providing options for those with a limited credit rating. Credit card companies take the plunge in the hope that most students will work full time and remain profitable customers for years.

Most credit cards require applicants to have a good credit rating (around 650 or more) and at least several years of credit worthiness. However, you don’t need one to get a student credit card, although some evidence of experience and financial responsibility will help. The publisher checks income sources – including from part-time jobs or parental savings – as well as information on checks and savings accounts to get an idea of ​​the applicant’s savings and expenses.

Apart from the lenient eligibility requirements, the best student credit cards offer the following features:

Special rules for new loans as a minimum late payment fee and no APR penalty
Lower credit limit – usually between £ 500 and £ 2,000
Cashback price
“Fair” APR – usually between 15 and 20%
We have evaluated 19 credit cards offered specifically for students. We have selected four cards that stand out on a number of criteria including APR, credit approval, cashback rewards and easy eligibility requirements. Check out our photos below, as well as some answers to frequently asked questions about student credit cards at the end of this article. We will update this list regularly.

How do student credit cards work?

Student credit cards offer individuals with limited or no credit the opportunity to start building a credit history. They usually have a lower credit line than regular credit cards and have no annual fees. And they often have features that are useful for beginners, including delaying payments, increasing credit limits over time, and resources for credit training. Compensation amounts can be lower than standard refunds and travel credit cards, making student credit cards a lower risk and financial instrument for compensation.

Is a Secure Credit Card a Good Choice for First Time Credit Cardholders?

Secure credit cards provide a way to build or repair credit. However, they are more suitable for people with bad credit ratings than non-credit ratings. Secure credit cards also require prepayment of your credit limit. For a £ 1,000 loan, you have to give the bank £ 1,000. In fact, the bank will return the money on your own – sometimes for an annual fee or high interest rates. If you have no other options, a secure credit card can be used. However, this shouldn’t be the first choice for a starter loan.

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10 mortgage lenders have developed the market as a whole

The top 10 mortgage lenders remained unchanged in 2018 both in terms of gross loans and outstanding mortgages. This is based on data from UK Finance’s largest mortgage lender.
Among these, these banks controlled 82.4% and 82.2% of the market share, respectively; This is an increase from 80.4% and 82.1% in 2018.
At the top of the list for 2019 and 2018 is Lloyds Banking Group with a mortgage loan balance of £ 286.4 billion and a gross loan value of £ 46 billion in 2019.

Lloyds Banking Group alone holds a 17.2% market share in gross lending and 19.7% in mortgage lending.
The rest of the top 10 on both lists include: Nationwide Building Society (£ 189.8 billion and £ 33.7 billion, respectively); Santander (£ 165 billion and £ 30.9 billion); NatWest Group (£ 147.5 billion and £ 33.5 billion); Barclays (£ 142.7 billion and £ 24.9 billion); HSBC Bank (£ 96.7 billion and £ 20.1 billion); Virgin Money (£ 59.5 billion and £ 9.3 billion); Coventry Building Society (£ 42.1 billion and £ 8.6 billion); The Yorkshire Building Society (£ 36.7 billion and £ 7.8 billion); and TSB Bank (£ 28.9 billion and £ 5.9 billion).
Outside the top 10, it is mostly occupied by big, established names, however, there have been some notable changes in the rankings.

Skipton Building Society increased gross lending from £ 4.1 billion to £ 4.6 billion, up from 13th to 11th on the list.
Meanwhile, Topaz Finance increased its mortgage value from £ 11.2 billion in 2018 to £ 18.3 billion in 2019.
Legal & General Home Finance also saw significant increases in mortgage value from £ 3.1 billion to £ 4.2 billion and over £ 2.2 billion to £ 3 billion.
Metro Bank fell from £ 4.2 billion to £ 2.3 billion a year, down from 12 to 16 on the list.
Lloyds Banking Group also topped the list for the value of mortgage loans to buy and sell (BTL) – at £ 48.6 billion, although that’s down from £ 50.57 billion in 2018.
However, in terms of BTL’s gross loan value, BTL is ranked second by the Nationwide Building Society. Here Nationwide is up from £ 4.48 billion in 2018 to £ 6.6 billion in 2019, compared to a drop from £ 5.53 billion to £ 5.02 billion for Lloyds.
Although the key players in the top 10 BTL mortgages remain pretty much the same, there have been significant moves across the rankings.
The top 10 lenders who increased their gross loan value at BTL in 2019 include Barclays (£ 3.89 billion to £ 4.13 billion), Santander (£ 2.33 billion to £ 2.47 billion) and the NatWest Group (£ 1.36 billion to £ 2.08 billion). ).
Lenders to this group who cut their gross value on BTL loans include the Coventry Building Society (£ 3.82-2.8 billion) and Virgin Money (£ 2.26-1.88 billion). , Paragon (£ 1.58 to 1.47 billion) and Leeds Building Society (£ 1.32 to 1.16 billion).
In terms of BTL market share in 2019, the top 10 lenders on the list held 74.6% by gross loan and 73.2% by mortgage; This compares to 75.2% and 72.4% in 2018.
In 2019, gross borrowing was £ 268 billion, 0.3% lower than 2018; Gross borrowing for loan purchases was £ 42.2 billion, up 4.2% for 2018.
Loans allocated on the BTL market increased by £ 1.1 billion and in the overall market by £ 0.4 billion. Bank lending increased by £ 2.7 billion and £ 7.5 billion, respectively.

Overall, construction and intermediate lending declined in both markets – construction companies by £ 1.1 billion in BTL and £ 1.8 billion in the full market and intermediate lenders by £ 0.8 billion and British Pound 3.5 billion, respectively. .
Calum Bilbe, data and research analyst at UK Finance, said: “One possible explanation for this growth in the big banks is the decline in lending from direct competitors that coincides with the introduction of ring fencing in early 2019.”
He added: “In short, fencing means that by early 2019, the UK’s biggest banks will have to separate their main UK banking business from other banking activities (eg investing).
“With retail banking in the UK limited, there are a number of things banks can do with money from borrowers’ deposits.
“Because average savings are higher than loans, these large lenders have used excess retail savings in ring organizations to increase mortgage lending.
“This surge in mortgage supply has helped significantly lower the average cost of new mortgages as larger construction companies and mid-sized lenders compete with the largest banks to attract borrowers for their products.
“In addition, larger lenders can use the Internal Rating Based Rating (IRB) to weigh capital (as opposed to the standard small firm approach).
“This further lowers the costs for larger creditors by helping lower prices.
As a result, under the Standard Approach, smaller lenders make it more difficult to compete in mainstream markets where restrictions and IRBs allow the largest firms to dominate market share.
“This does not reduce the diversity of the mortgage market as specialist lenders continue to expand in market segments that require manual credit, such as self-employed customers or customers with more complex incomes.
“Large and sometimes medium-sized companies are less competitive in this segment because their largely automated systems cannot find the right approach to these loans.
“Overall, despite the largest bank market share with many different types of lenders, the mortgage market remains competitive and meets all borrowers’ needs.”

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Student Loans

Student funding is the official government fund for tuition fees and living expenses.

Student loans cover course fees and are paid directly to your university or college.

Maintenance loans are designed to help with living expenses such as room and board. The amount you earn depends on your household income, where you live and where you will study. Usually it is deposited directly into your bank account at the start of each period.

Both must be returned upon graduation and earn above the minimum wage.

You will need to apply to the student finance authority in your country. You can do this online at gov.uk/apply-for-student-finance, depending on whether you live in England, Wales, Scotland or Northern Ireland.

Now I go to another university

How many maintenance credits you get depends on where you live. If you’ve signed up for funding but now need to update your details – for example, changing your university – the easiest way to do this is by logging into your student finance account.

How many maintenance loans do I get?

According to currency tip site Save the Student, the average is £ 6,480 per year. Every country in the UK has its own set of rules so it depends on where you live. Complicated and very dependent on household income. For example, in the UK, the maximum loanable for live-at-home students for 2020-2021 is £ 7,747 and the minimum is £ 34, £ 10. If you don’t live outside of London the maximum and minimum amounts are £ 9,203 and £ 4,289 . If you don’t live at home in London that’s £ 12,010 / £ 5,981. In general, you will get the most if your annual household income is below £ 25,000 while the minimum is above the threshold between £ 58,000 and £ 69,000.

My family has experienced a sharp decline in income due to the coronavirus

You may qualify for a higher level of funding. Again the rules of how they differ. In the UK, you can file an “Income Statement for the Current Year” if you believe your household income for the tax year (2020-21) is at least 15% less than the tax year you are inquiring about. to provide details (for those departing in the coming weeks this is 2018-19). This is a similar system in Wales. In Scotland, the Scottish Student Awards Board may reconsider funding for students based on current income projections if income figures fall to a lower grade. Northern Ireland’s income must have decreased by 5% or more to be revalued.

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