The function of credit scores are to assign a level of risk to you as a debtor or potential debtor, so that any potential creditor can have a certain level of confidence about any application for credit that you make. The creditor then use that credit score to determine what they are prepared to loan to you, what the interest rate will be on that loan and what payment plan they are prepared to accept.
If you’re somebody who has never had any debt before, any creditor who looks for your credit score will view you as a bit of a non-entity, and will likely refuse you any credit, particularly for big amounts of money like with a mortgage. To build your credit score in this situation is usually done by getting a small line of credit through a bank overdraft and/or a credit card, although this can take a few years so it is good to start as early as possible.
A credit rating is all important because you need a good credit score to get any help financing something, whether that be a new business, a new home, a new car or anything else. Some employers will even look at a potential employee’s credit score in order to get an idea of how trust worthy an individual is.
Because credit scores are very important, a lot of people like to have the opportunity to monitor their credit rating. In order to find out your credit score, you’ll need to sign up for a subscription with a company like experian, who use the same equation as creditors to figure out your score. Knowing this can allow you to systematically go about improving your stature with creditors, which is going to make building trust significantly easier.
A lot of companies make mistakes when it comes to charging their customers, and for anyone who has been in that situation can attest to, it isn’t always easy to set the record straight. A lot of people will end up just paying the extra amount because they can’t be bothered to go through the standard rigmarole which companies put people through when they protest at a charge.
The first step with any contested payment is to collect all of the contract details and any other information regarding your situation (delivery information or whatever else). You can then use that information to argue your case with the company, or if that doesn’t work, you can provide a governing body/watchdog with that information so that they can help you to sort the situation out. Often you’ll find that the introduction of a watchdog is enough to convince the company in question to decide in your favour, but if it isn’t then the watchdog will continue to help you sort it out.
The principal of crowd funding is that you get those who are interested in the project to help fund it, as an investment, so that it can come to fruition. It has a number of advantages when compared to a more typical type of investing for those seeking investment, as it leaves them with considerably more control, and because everybody has only contributed a small amount people are less invested in the result.
Crowd funding projects aren’t new, but thanks to the internet we have seen their occurences increase massively, particularly in certain areas.Some of the areas of industry and society in general where crowd funding is more common are areas where there is great public interest in it, such as crowd funded charity efforts, video game sequels, movie sequels and more. Some people even attempt to get crowd funding for holidays, although they rarely meet with success.
HSBC announced recently that they will be cutting back even further, after their recent history of cutbacks, with 800 job cuts to be made, a restructuring of their branches, and also a rebranding exercise as well. Although this one sixth reduction of their UK workforce is concerning for many, for HSBC it is all just a part of their larger plan to refocus towards the east and China. The restructuring hasn’t just occurred here either, as Europe will likely see similar cutbacks.
Their plan to move the main operations of their corporation to China is mainly due to the typically stagnant growth seen in Europe, which is its current base of operations. China has seen regular growth, and while it has fluctuated over recent years and failed to meet their own targets, it does appear to be a better place for them to grow their business, hence the move.
Developed countries throughout the world express varying levels of concern about the affects of globalisation on their economies, and while these concerns aren’t necessarily grounded in fact, it is clear that the effects are sometimes positive and sometimes negative – and the same can of course be said for developing countries too.
First, globalisation is a result of two elements; increased movement (freedom of movement), and free trade (internationalisation of industries and corporations). They both have their own impacts:
Freedom of Movement
Freedom of movement allows workers from many different countries to come together to fill a demand for labour in a marketplace. This freedom of movement means that economies are less limited now in their ability to compete in a wider range of industries, but on the flip side it can also a depreciative affect on wages and therefore productivity.
Free trade allows businesses more leeway to compete on an international level, with countries reaching agreements on providing companies from different nations with access to certain industries. This can create greater competition in a marketplace and help with bringing in much needed investment, but it has also seen the widespread exploitation of groups of people who have little bargaining power in the face of multi-national corporations.
Globalisation has an affect on developed economies, such as increased investment, introductions to new markets and cheaper goods in stores, but it has also resulted in worker’s pay getting undercut by areas with cheaper labour. Although this is unfortunate, it is also unavoidable, and discussions on the matter are merely a discussion on what degree they embrace the change. It is inevitable that when the pie is divided amongst all the recipients (countries), the size of the portions will begin to be more equitable in nature.
Business disaster recovery is a service that many business advisor’s and business financing organisations offer, and is usually primarily an issue of company financing, but it can require a wide range of services to resolve a disaster.
This could be having an advisor come into the company that’s in trouble and providing their own expertise and a fresh pair of eyes to help resolve the issue. They will typically start with a review of your current situation, and while if your issue is around a short term financing concern it can usually be resolved, sometimes they have to help businesses dissolve in as responsible a manner as possible.
There are a number of other issues besides financing which can cause a serious problem from businesses, such as labour and the workforce. Any number of things could result in a shortfall of labour, which is definitely a potential disaster. A business advisor will have a wide range of skills to help in a number of situations, including recruitment.
An ISA is something that everybody who has any savings should have. There are a number of reasons for this but by far the most important is that as a part of a government scheme to promote saving money, an ISA has an allowance, an amount you can put into every year, and that amount will accrue interest which goes completely untaxed. Although this makes it more limited than other investment opportunities, it is still a very profitable option and worthwhile for everybody to participate in.
ISAs are also a great introduction to making and managing your investments in savings for those who currently have little to no understanding of how to go about it. For instance you can choose whether or not you want your funds to be used for cash or investing, or a mix of the two options.
Payday loans have a number of pitfalls and should be avoided at all costs by people who aren’t confident about being able to repay it as soon as possible. Payday loans are by necessity a short term loan agreement and paying it back as soon as possible is going to make it a reasonable option for somebody with a short term need for funds not fully covered by their credit card or overdraft.
Failing to repay a payday loan quickly is when you really start getting hit by the enormous interest rates and begin to build up a mass of debt. These agreements are essentially predatory in nature, as one of the reasons why somebody is going to agree to such a loan is because of a reduction in cash-flow, and this is unlikely to help with that in the long term. It is worth baring in mind that the average consumer can end up paying as much as 400% interest on their loan, which of course means that some people can end up spending considerably more than that.
Waiting for checks to pass through to your account is tiresome for a lot of people, particularly when you’re still getting paid your monthly wage through them. Most people are unaware of the reason for this waiting period, and are frustrated by how, for instance, if the person being paid uses the same bank as the one paying gets the money a lot more quickly.
There are two things which create this waiting period, with the first one being that they need to be manually processed. This process takes some time, and accounts for anywhere from 12-36 hours of the waiting period. The payer will notice that the funds leave their account after this, while the remaining time, which can stretch anywhere from 3-7days depending upon the who you bank with, is due to how they make money from the system. Banks will keep a hold of the funds for that period in order to collect the interest from those additional funds, which is what allows for the whole chequeing system to be free for users.
The IMF has just come out with a forecast of UK growth which is at odds with what the OBR forecast for the plans by the conservatives. They have forecast a slower rate of growth for the UK economy which may well interfere with the plan to reach budget surplus by 2019, and that the UK government and people should expect to see a £7 billion deficit rather than a £ billion surplus.
The IMF points towards uncertainty created by election results as a significant cause for concern, potentially reducing UK growth from 2.9% this year to 2.3% in 2016. It is worth keeping in mind however, that the IMF has consistently underestimated the UK growth in their forecasts throughout the last few years, and we may well surprise them yet again.
While 2.3% growth is not as good as what the OBR predicted, it is still far better than what we’ve gone through over the majority of the last 7 years, so businesses shouldn’t become too concerned by it.