High street banks are refusing to offer best practice quotation searches, this means that people wishing to shop around to borrow money are being penalised.
Many banks and other lenders are not offering quotation searches that allow people to shop around for the best deal. They are processing an application which means that this shows up on credit reports.
Quotation Search
A quotation search for homeowner loans personal loans or credit cards, was launched 5 years ago. This enables the lender to ask for the actual rate you’d expect to be given should you be accepted for the loan. It also leaves no footprint on your credit file.
Many of the UK high street banks are not offering this free quotation service. This is denying customers the opportunity to shop around to secure the cheapest available loan or card.
These banks refuse to explain why they refuse to do free quotations, however insiders suggest it could be down to the costs, it costs approximately £1.40 per search.
Several Credit Application Searches
If you have several credit application searches on your file this can make your credit score worse. Lenders misinterpret this to mean that you have been turned down elsewhere and are desperate for a loan and mark you down accordingly, making it less likely that you will be accepted.
The Future
Borrowers are in a very difficult position, but progress may be happening in the near future. Talks are said to be being held between credit reference agencies and price comparison sites, to look at ways of using quotation searches, to make it easier for potential borrowers to apply online.
The recession means that we are living in cash strapped times. Basic commodities like gas, electric and food, which we used to take for granted, are now being rationed to last longer, in order to save money. Payday loans are becoming very popular. People are borrowing instant cash to buy essentials like food and utility bills.
Write a shopping list
It is important not to waste food as you are already cash strapped. If you buy food that you didn’t need then the chances are you will not consume them, they will go out of date, and you will throw them away.
You do not obviously want to waste your payday loan on items you do not need, therefore a shopping list is very wise.
Plan your meals in advance
Before going shopping you should plan your meals in advance and also check what you already have in the cupboards and fridge. This will ensure that you spend your payday loan wisely.
Shop on a full stomach
Never go shopping on an empty stomach. If you do then the chances are you will buy the first thing you see to satisfy your hunger. You will also buy things you do not need and that are likely to be expensive. Junk food is not only unhealthy but it is also the most expensive food. Your payday loan will be wasted and won’t last long.
Buy in Bulk Where Possible
Many supermarkets have buy one get one free offers. When on a budget these can save lots of money and be very worthwhile. Sometimes you can also buy 2 for the price of 3. Be careful what you buy in bulk though, make sure it is something that you know you like and will not go off. If you buy something in bulk and the family goes off it before it is finished then you will end up throwing it away and you will have lost money instead of saving it.
