Balance Transfer Credit Cards

What are balance transfer credit cards?

As we know, a credit card has many features. As per the feature of the credit card a borrower may transfer his funds from one card to another to make the payment. Hence, this process of transfer is balance transfer. Also, such credit cards are balance transfer credit cards. In balance transfer credit cards, a borrower utilizes the credit limits of all the cards. In fact, he may wisely make the funds transfer from one card to another right before the due date. Overall, this helps the borrower to rotate his funds without paying high fee and charges. So, the virtual credit limit of the credit cards works like the real money. By doing such transfers, again and again, the bank may increase the credit limit of the borrower later. As a result, a borrower feels stress-free after managing his finances.


How do balance transfer credit cards work?

Apparently, a balance transfer is a facility of a credit card given by the bank. Also, it is not evident that you will get balance transfer facility in all the credit cards. In fact, it may be there or it may not be. So, to utilize a balance transfer facility, a borrower should confirm the bank about it. As a result, if the bank approves a balance transfer to the borrower, a customer may use this service. On the contrary, there are charges applied by the bank for taking this service. In fact, the borrower should inquire about all the charges before using this service. Whatever the amount you transfer in another credit card. That will be the due amount for the credit card bill.  You may pay it before the due date to avoid late charges.


Lower your debts with balance transfer credit card

There are a lot of people who use several credit cards. When you use a number of these credit or store cards you can end up in a big pile of debt. The interest rates on cards are usually high up to 25-35%. So you can use a balance transfer credit card to cut out on some of the debts. All you have to do is transfer your high interest rate credit card to a cheaper credit card with a low interest deal. By doing this you can easily lower your interest rates, in some cases it can 0 with a 0% transfer card.

balance transfer credit cards

However, your card issuer can set a limit on the amount of money which you can transfer. But this doesn’t stop you from moving your debts if you stay in your transfer limit. Mostly the issuer lets you transfer about 95% of the credit limit to your new card.

Know how you can get guaranteed bad credit loans for small expenses.

Why are balance transfer credit cards so popular?

Seems like, every credit card holder uses a credit card because the credit limit helps us to manage finances. In a few cases, the card user extends the limit by using more cards. So, he may manage this by transferring funds from one card to another. Although it charges a fee to transfer the balance yet it is nominal and less than late charges. Therefore, to use the credit card smartly, a balance transfer facility is worthy. Likewise, this transfer can take place from another to some other credit card. Hence, the balance transfer credit cards help the credit card users to manage their funds. Also, if you use this facility properly, you may not need to borrow small loans for your sudden needs.


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How much deposit do I need for a mortgage?

How much deposit do I need for a mortgage

How much deposit do I need for a mortgage?

 Mortgage, to put in simple terms, is the amount that you borrow in exchange for your property title deed. It comes with the condition that conveyance of your title will become void upon the payment of the debt.

Many people take out a mortgage to buy a property in the UK. Most people, especially the first-time buyers, tend to save money to ensure they can buy a property. For many, it is not possible to arrange the entire price of the property.

Guaranteed loans, homeowner loans or unsecured loans could help you arrange funds. But, most people prefer saving a certain amount to use it as a mortgage deposit.

“How much deposit do I need for a mortgage?” It is the most obvious question that comes to most people’s mind while trying to save money.

  • It would depend upon the total price of the property you are planning to buy.
  • In most cases, you will need at least a 5% of the total value of the property to get a mortgage. That will ensure lenders can lend you the remaining 95% of the amount. For example, if you are planning to buy a property worth £100,000, you must at least have £5,000 saved.
  • Many customers prefer to save 10% or more of the total property value. A recent survey conducted in the UK shared some facts. Most first time buyers deposited more than 10% towards their mortgage. The average deposit was 17% of the total value. In some cases, it could also go as high as 20% of the property value.
  • Bigger the mortgage deposit you can save, the better.


How much deposit do I need for a mortgage

What are the benefits of making a bigger mortgage deposit? 

1. Smaller monthly repayments. The more significant the deposit you make, the smaller your total loan amount will be. It will lead to small monthly repayments.

2. You must ask yourself “how much deposit do I need for a mortgage” and then try to save as much as you can.

3. You get cost effective or much cheaper mortgage deals. The more amount you have to deposit towards the house mortgage, the less risk you will pose to a lender. It will enable a lender to give you the lowest possible interest rate.

4. Reduced chances of going into negative equity. What is the negative equity? It is the falling of the property value well below the outstanding amount of the mortgage. It can lead to difficulties in switching mortgages. The more of your house you own outright, the better.

5. Better chances of passing the affordability tests. Most lenders conduct checks to find out if you will be able to pay your mortgage payments on time. These checks take your income and expenses into account. If you deposit a smaller amount, your chances of clearing these checks will reduce.

How much deposit do I need for a mortgage? If you are not able to figure out the right amount, please contact your mortgage adviser at the earliest


What Is a Credit Report?


Credit Report

What Is a Credit Report?

A credit report is a report of one’s financial transaction which calculates the risk for any debt. In the UK, it shows the credit history for all the taxpayers. In fact, there are agencies which pull reports for all the individuals. These companies are known as CRAs i.e. Credit Reference Agencies. This report has all the details about all your debts and credits from your financials. In fact, the details of saving accounts, credit cards, dues, pending include in this. This report keeps changing as per your every financial transaction. Most of the lending institutions, banks, and lenders check your report before lending.

If you have a good credit score on credit report you can borrow GUARANTEED LOANS from any UK lenders


How Can You Improve Your Credit Rating in Credit Reports?

As we know, there are three credit reference agencies EXPERIAN, EQUIFAX and CALLCREDIT. Hence, these agencies keep tracking the credit histories. Most noteworthy, if there is a bankruptcy or insolvency in any profile, it shows for 6 years there. These credit agencies are bound to share reports and they charge £2. Also, we can pull a written copy of this credit report. Similarly, we can pull it online too. As discussed, if we keep paying our dues on time, we can improve our credit rating. Every lender performs a credit check before lending money. You should avoid getting your credit checks every now and then because it pulls down your scores which can ruin your credit rating.


How Does a Credit Report Help You?

A credit report is a tool which helps a lender to decide a risk about the borrower. Also, it decides the limit of a loan amount a borrower can borrow. In fact, it decides the credibility that how an individual has been in his transactions during his life. There are changes which occur with every debt, due and financial transaction. Credit scores are the deciding factors for borrowings and loan limits. As per the UK government, credit reference agencies are entitled to check credits.


Benefits of Credit Reports:

  • Generally, this report is a document of transactions of an individual. that has many advantages. Like
  • A lender gets to know the exact state of the borrower. While he uses this report to lend money further.
  • It gives an idea to the applicant that where he stands with his credibility.
  • A report helps to understand the financial health of a business, company and an entity.

Therefore, if you want to get to know about your report now, you may take the help of any of the three agencies.


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