April 21st, 2023 | Andrew Hagger | News

Whether you like it or not, everyone has a credit score. Although the phrase ‘credit score’ might fill you with dread, they aren’t as scary as some people make out.

If you’re wondering what a credit score is, whether you’ve got one and how yours might be impacting your life, you’ve come to the right place.

We break down all the information you need to know below.

What are credit scores?

A credit score is a three-digit number that indicates how likely a lender is to let you borrow money from them. Normally between 300-800, credit scores are calculated by looking at how much you’ve borrowed, how much you owe, and how reliable you are when it comes to your finances (i.e., whether you miss payments).

The higher your credit score, the more likely you’ll be approved for loans, credit cards, or even phone contracts.

What affects your credit score?

If you’re generally pretty good at managing your finances, then you’ll probably have a good credit score.

Some factors that can bring down your credit score include:

• Frequently setting up new accounts
• Maxing out your overdraft and/or credit card
• Applying for credit too frequently
• Borrowing more than you can afford
• Having no credit history

Why is a good credit score so important?

Even though it’s easy to overlook a credit score, a bad credit score can have a huge impact on your financial health. For example, a poor (or non-existent!) credit score can stop you from getting a mortgage or mobile phone contract.

How to improve your credit score

Luckily, it’s not all doom and gloom if your credit score isn’t looking so rosy. You can improve your credit score by:

• Paying your bills on time – Although this might be easier said than done with 8 million people struggling to keep up with high living costs, there are a few things you can do. Firstly, set up direct debits each month to reduce the chances of a payment slipping through the net.
• Don’t apply for credit too often – If you’ve been turned down for credit, it’s tempting to try again. But you shouldn’t. If you unsuccessfully apply for credit multiple times, this can cause your credit score to suffer.
• Update your address – An easy way to improve your credit score is to update your address and register to vote.
• Take out a credit-building card – These are designed to benefit people that have a low credit score. They can be a great way to build up your credit score if you can afford the monthly payments.

Final thoughts…

While building up your credit score might seem daunting, there are plenty of ways for you to get ahead. Even simple things like updating your address and automating bills can help you build a credit score to be proud of.

If you haven’t already, why not start today?

April 17th, 2023 | Andrew Hagger | News

Family is the main trigger to becoming an investor for young people with 39% saying a discussion with or recommendation from a family member led to them starting to invest, according to research¹ by the Association of Investment Companies (AIC) among investors aged between 20 and 40.

Other triggers include a build-up of savings (36%), low savings account rates (24%), and seeing something online that sparked people’s interest (24%).

Friends and colleagues are also important, with 23% of respondents saying they started investing after a conversation with or recommendation from a friend or colleague. Three-quarters of young investors know someone else who invests, with most of these naming friends.

Just over half (56%) of young investors have over £5,000 invested and this rises to 68% for those aged 30-39 years old. The majority (52%) usually use an online platform to invest, 17% use a bank or building society, 13% use a financial adviser and 11% an online investment service such as Nutmeg or Wealthify.

Stocks and shares followed by cryptocurrency are most popular investments

When considering different types of investments, investors are most aware of individual stocks and shares (89%) and nearly two-thirds (65%) of young investors hold these. Cryptocurrency comes second with more than three-quarters of young investors (77%) aware of it and half (50%) holding cryptocurrency. Interestingly, 59% of young male investors hold cryptocurrency, versus only 43% of female respondents. 

Nearly three-quarters (73%) of young investors are aware of bonds and 28% hold them. Premium bonds also score well on awareness (62%) and they are held by 24% of young investors. Investment funds have higher levels of awareness (47%) than exchange traded funds (ETFs) (43%) but slightly more young investors have ETFs (21%) than investment funds (19%).

Forex (foreign exchange) has a higher level of awareness amongst young investors (38%) than investments through crowdfunding platforms (34%) and investment trusts and index tracker funds (both 33%). However, the number of young investors holding these different investments is very similar with 11% opting for forex, 9% accessing investments through crowdfunding platforms, 11% holding investment trusts and 12% using index tracker funds.

Feeling interested and excited – checking investments regularly

Young investors are highly engaged. Over half (57%) had checked their investments during the last week and a further 29% had checked their investments during the last month. It’s therefore not surprising that these investors feel positive towards investing with 59% interested, 46% excited, 30% empowered, 27% confident and 21% calm. However, 30% of men felt calm in comparison to just 13% of women. Despite these upbeat feelings, 42% of investors felt cautious and 14% were worried about investing. 

Nearly three-quarters of young people want to retire early, with 76% looking to retire before the state pension age of 66.

An optimistic 14% are planning to retire before they are 51 years old and an additional 15% expect to retire before they are 56.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “Friends and family who invest have a key role to play in encouraging the under-40s to start investing. Friends, family and financial advisers are also the main sources of information for younger investors. It’s encouraging that these investors are engaged and interested, with two-thirds holding individual stocks and shares. But the popularity of cryptocurrency and forex trading suggests that some young investors are risking getting burned before they can build up much investment experience.

“It’s not surprising in these tough times that the cost of living crisis is the biggest barrier to investing for three-quarters of investors in their 20s and 30s. Worries about markets and poor economic conditions are also common. Women are particularly cautious, with a fifth of female respondents concerned about their lack of understanding of investments in comparison to 9% of men.

“The investment industry clearly needs to do more to help young investors learn about the different investment choices. One option for young investors to consider is investment trusts. These are a type of fund listed on the stock exchange which you invest in by buying and selling their shares. They offer strong long-term performance and access to a wide range of assets, from technology, renewable energy and private companies to global and UK shares.”

Where do young people go for investment information?

Young investors rely most on people for their investment information with 22% of all respondents relying on friends, 20% using a financial adviser, 14% turning to other family members and 13% asking their parents. Social media is the second most popular source of investment information with YouTube the most popular channel (used by 24% of all respondents) followed by Instagram (14%), Reddit (11%), Twitter (10%) and Facebook (9%).

Traditional media is used by 36% of young investors, with 22% of all respondents poring over the finance sections of newspapers and 20% using books for their information. A quarter of all respondents (25%) use online search engines such as Google.

Barriers to investing – the cost of living crisis

In the current difficult economic environment, the cost of living crisis is the main barrier to investing, affecting three-quarters (75%) of young investors. Being worried about markets and poor economic conditions is the second obstacle, influencing 41% of respondents. Just over a fifth (21%) are concerned about low returns and for 16% lack of understanding is a barrier. Over a fifth (21%) of women are concerned about their lack of understanding in comparison to just 9% of men.

Stocks and shares ISAs most popular

When it comes to investment products, stocks and shares ISAs come out on top with 61% of young investors having these, although more men (69%) have one than women (55%). Next most common was a workplace pension (46%) and then a cash ISA (30%). Self-invested personal pensions (SIPPs) are held by 17% of young investors and various types of ISAs are held: cash Lifetime ISAs (17%), stocks and shares Lifetime ISAs (16%) and Help to Buy ISAs (15%). Just over a sixth of respondents (16%) have a general investment account, 12% have an investment trust share plan, and Child Trust Funds and Junior ISAs are held by 13% and 11% respectively.

To find out more about investment trusts, also known as investment companies, see the AIC’s guide.

April 5th, 2023 | Andrew Hagger | News

Ahead of the Easter weekend which will see many Brits kick start their DIY projects for the year, new research from American Express shows that the average UK adult will spend an estimated £1,380 on DIY in 2023, equalling £38.7 billion as a nation.

With lighter and longer days, more and more of us are picking up our tools and beginning to spruce up our homes. Over half of UK adults (53%), or 28 million, have started spending or plan to spend on DIY this year. Furthermore, over a third of DIYers in the UK (37%) are planning to spend more on DIY this year compared to 2022.

Inspired design

Social media is playing an increasingly influential role in inspiring the UK with its DIY projects, particularly amongst the nation’s Gen Z and Millennial demographics. Seven in ten (71%) of Gen Z adults who will do DIY this year use social media as their go-to for DIY inspiration, along with 67% of Millennials.

This compares to just a third (33%) of Gen X and 15% of Boomers using social media for DIY inspiration. Nearly a quarter (22%) of Boomers are instead opting to use home and DIY websites to find home improvement inspiration.

A work in progress

Our homes are often a labour of love and an ongoing process with just 6% of DIYers believing their home is the finished article. Just under half (46%) of UK adults spending on DIY this year think their home needs small touches, whereas 36% believe their home is a work in progress.

Outside space is at the top of the UK’s DIY to-do list, with 42% planning to improve their garden in 2023, followed by bedrooms (38%), living room/lounges (34%) and kitchens (34%).

Areas of the home Brits are looking to improve in 2023:

1.    Garden – 42%

2.    Bedroom – 38%

3.    Living room/lounge – 34%

4.    Kitchen – 34%

5.    Bathroom – 30%

6.    Dining Room – 17%

7.    Study/office – 13%

Tackling DIY head on

With social media both inspiring the nation and providing countless video guides on DIY, 50% of DIYers revealed they are confident in their DIY skills with even more (53%) stating that they enjoyed DIY. That said, almost 1 in 3 (32%) said that DIY makes them moody. That might explain why 63% of the UK stated that if they could afford to, they would pay for someone else to do their DIY, with only 19% of the nation claiming they wouldn’t.

For DIY projects that provide the biggest headache, almost half of UK DIYers (43%) find plumbing to be the most challenging task to do themselves followed by fitting a carpet (35%), hanging a door (32%) and putting up wallpaper (27%).

Building up the points

When it comes to paying for home improvements, 56% will use a credit card with 33% planning to collect loyalty or rewards points, and more than a quarter (28%) plan to collect cashback.

Maggie Boyle, Vice President at American Express commented: “Spring is always a popular time for Brits to start improving their homes and gardens for the rest of the year. This new research shows the value Brits place on their homes and the pride we take in doing the job ourselves. With over a third of the UK set to spend more on DIY in 2023 compared to 2022, American Express Cardmembers can make their spending go further by earning valuable points and cashback.”

American Express offers a range of Cards that earn Membership Rewards points or cashback. For example, the Platinum Cashback Everyday Credit Card offers a range of benefits for new and existing Cardmembers. During the first three months of Cardmembership, new Cardmembers get 5% cashback on all purchases, up to £100, and up to 1% cashback after that. Representative 28.8% APR variable. 18+, Terms Apply, Subject to Status.

April 5th, 2023 | Andrew Hagger | News

More than a quarter of Brits (28 per cent) don’t book their travel insurance until the day they’re due to depart, according to new data from Go.Compare Travel Insurance.

The comparison site reviewed travel insurance policies purchased during January 2023 and found that, of those who were buying a policy for a forthcoming trip 28% bought it on the day of travel.  A further 19 per cent had taken out a policy during the week leading up to their trip while another 24 per cent booked it within the month of departure. Just a quarter (24 per cent) of people had took out their policy within six months of travel.

Despite a significant number of holidaymakers being last-minute policy shoppers, families proved to be the most organised, buying their policy, on average, 64 days before jetting off. Couples were also fairly well organised, typically buying their policies 52 days in advance, while lone travellers tended to leave just 31 days between purchasing their policy and going away.

Ceri McMillan, travel insurance spokesperson for Go.Compare, said on the data: “While some trips are unavoidably short notice, it is concerning that so many Brits are procrastinating before purchasing their policy.

“You can buy travel insurance right up until the point you leave home for your trip, and there’s no shame in doing that, but getting a policy in place early doors can be a game-changer – whether you’re going overseas or staying in the UK.

“Too many people think of travel insurance as something that covers problems while you’re away, but accidents and illness can strike anyone at any time. Cancellation is one of the main reasons people claim on a travel insurance policy. In those instances, having booked insurance right after you started paying for your trip could save you considerable money and stress.”

“As well as cover for cancellations, travel disruption, personal liability and lost or stolen baggage, travel insurance can cover medical expenses in the case of illness or accident, plus pay

for the cost of repatriation if needed. And while it is possible to buy a policy on the day of departure, travellers should be mindful of the waiting periods on some last-minute policies,” warned Ceri.

“In some cases, you may have to wait for a period of 24, 48, or even 72 hours for the policy to begin,”Ceri said. “These waiting periods are there to prevent you from booking insurance to cover incidents that have already happened, like a flight being cancelled or you falling ill, so  you won’t be covered until that period ends.

“And it’s also worth pointing out that if you have a pre-existing condition that could flare up and cause complications, a last-minute travel insurance policy may not cover it.

“All of this said, there are lots of providers offering good policies up to the moment you set off. The most important thing is that you’re insured, so if the worst happens you have support and protection.”

For more information about purchasing travel insurance, or to find out about last minute travel cover, please visit: https://www.gocompare.com/travel-insurance/guide/last-minute/.

April 3rd, 2023 | Andrew Hagger | Uncategorized

American Express has launched an enticing offer for Cardmembers to help them save money when eating out this Bank Holiday weekend and beyond.

Cardmembers could get 10% back in statement credits anytime they spend at any of nearly 100 eligible restaurant brands. The extensive list – which includes hundreds of outlets across the UK – spans eateries such as Tortilla, Yo! Sushi, Carluccio’s, Stable Pizza, Gaucho, Honest Burgers and more. The special offer is running until at least 3 July.

Cardmembers simply need to save the offer to their Card via the Amex App or online at americanexpress.com and the offer will be applied when they spend at eligible restaurants using their Card. They will know they are eligible if they see the offer displayed. They can also browse dozens of other offers that are available to them across popular dining, shopping, travel and entertainment brands.

March 29th, 2023 | Andrew Hagger | News

Are you hoping to start saving some money? Whether you have a big purchase in mind, or you’d just like to gain more control over your finances, the following tips will talk you through how to get started with saving. 

Set a smart goal

Saving without an end goal in mind can sometimes feel like a pointless task and often leads to spending the savings instead.

In order to avoid this, take some time to set yourself a smart goal. This is a goal that is specific, measurable, achievable, relevant and time-bound. For example, ‘save £1000 by the end of 2023’ or ‘save £250 a month for a year’. Having a specific goal makes it far easier to work towards. Ensuring that the goal you set is achievable is crucial here, the next step will help you to determine what is attainable for you.

Assess your current spending

Determining how much you can realistically save is much easier once you have assessed your current spending habits. 

You could do this by reviewing your bank statements for the past couple of months, or by keeping a close track of your spending for the next few months. This will give you an accurate idea of how much you’re currently spending.

Once you have an idea of how much you’re spending, it is now time to categorise. This will be personal to you, but some categories could include bills, food and socialising. You can look at whether you think you are spending too much in certain areas and whether savings could be made. For example, do you have unused subscriptions or memberships that could be cancelled? Or maybe you could switch phone tariffs to get a better rate.

Open a dedicated savings account

Now that you know how much you are wanting to save and you have your goal in mind, it is time to open a dedicated savings account. Doing this rather than keeping all your money together in a current account will help provide better clarity on how much you’re saving and makes it less tempting to spend the money.

Have a look into different saving account options to assess which one is going to work best for you and how you intend to save.

If you aren’t used to saving, it could be handy to set up a direct debit from your current account to your savings to automate the process and ensure you don’t forget. 

Reassess regularly

Once you have been saving for several months, you should review your budget and savings goal to see if you are on track and if anything needs to change. For example, if your goal was to save £300 every month but each month you are falling £50 short, change your goal accordingly. 

Doing this will help keep you motivated and means your goal aligns with your current financial situation.

March 27th, 2023 | Andrew Hagger | News

Claiming compensation after an injury or accident can be a daunting prospect. But it can also mean you get the recompense you deserve and might also help you speed up your road to recovery.

This blog takes a look at what a personal injury claim is and how, if your claim is successful, it can give your finances a boost and relieve some of those money worries you’ve had to endure.

What is a personal injury claim?

A personal injury claim can sometimes be made after an accident in the workplace or in a public place. If the injury was a result of someone else’s neglect or actions, then compensation might be awarded.

Accidents can take many forms including, but not limited to, slips, trips and falls, road traffic accidents and injuries caused by machinery.

Workplaces must have proper risk management tools and health and safety protocols in place to help mitigate hazards and a failure to do so can result in liability.

How can you begin to make a claim?

To make a personal injury claim, the accident needs to have occurred within the last three years. It’s recommended to speak to a personal injury claim solicitor to begin processing a claim.

The length of time it takes to be awarded compensation depends on the nature of your accident and injuries, as well as a combination of other factors such as the other party’s involvement and any disputes.

Why claim for personal injury?

Research by National Accident Helpline showed that 32% of people saw their finances take a serious hit after their accident. And 42% of those who suffered an accident at work struggled financially.

You might be able to make a claim to help recoup some of the income you’ve lost and to compensate for the hardship and stress you’ve had to deal with as a result of the accident. These can include:

• Loss of earnings: an inability to work can dramatically affect income and any statutory sick pay might not be sufficient to fully cover your outgoings.
• Medical fees: you might have had to shell out for medical expenses or costs to adapt your home if you’re suffering from mobility issues.
• Travel costs: journeys to hospital, physio or doctor appointments can add up and leave you struggling to find the cash.
• Missed holidays: cancelled trips might have left you out of pocket or you might have had to pay an excess to claim on your holiday insurance.
• Specialist care and assistance: If you’ve suffered a serious accident, you might need professional help in the form of physical care or even counselling.

Compensation pay outs can vary greatly, depending on the accident you’ve suffered and how it’s affected each aspect of your life and ability to earn. Many claims can be made on a no win no fee basis, meaning there’s little risk to your finances should you not be successful.

However, it’s a good idea to speak to a professional before deciding to go ahead with any claim and make sure you’re aware of the process and the potential outcomes.

March 19th, 2023 | Andrew Hagger | News

Investing in property can prove to be very lucrative – but it can also be complicated.

If you’re considering starting out in the world of property investment, it’s worth considering a few of the factors that might influence your chances of success.

There are a range different property investment options, as well as a number of property types you can put your money into. It’s about picking what’s right for you level of experience and expertise, as well as what property is available within your budget.

Generally speaking, there are two ways of making money from investment in property. You might decide to buy something with a view to selling it later for a profit (perhaps improving it along the way). On the other hand, you might seek a regular return on the investment, in the form of rent.

Flipping

A ‘flipped’ property is one that’s bought and then sold, usually within a short space of time. It’s popular when the property market is buoyant, and prices are on the rise.

If you’re only going to be living in a given area for a short time, then it might be that flipping suits your lifestyle – you can invest some money into the property, and a little more into renovations, before selling, hopefully for a profit if you’ve done your homework and your sums thoroughly.

Admittedly, the current downturn in the housing market might have made this a less attractive proposition – but there’s still money to be made by renovating and selling for a profit, as long as you know what you are doing.

Many homebuyers will pay a premium for a house that’s freshly decorated and ready to move into. If you can deliver that, then you’ll have a better chance of achieving a quick sale close to the price you’re asking.

Make sure you fully understand the tax implications before getting your hands dirty in this market – doing your sums upfront and taking professional advice could save you a great deal of financial grief further down the line.

Buy-to-let (BTL)

If you’re going to be buying with a view to letting, then there are a number of things to bear in mind.

First, you’ll need a larger deposit than you would if you were shopping for a standard residential mortgage. You’ll also need to be making more. The interest rates are higher, and commercial BTL mortgages aren’t regulated by the FCA.

There are also additional tax considerations to bear in mind – although you can mitigate some of these, to an extent, by making the purchase through a limited company.

The rental sector remains vibrant, even at a time when living costs are being squeezed. If you’re creative and willing to work for it, there is still a respectable level of income through buy-to-let. However always seek professional advice before jumping straight in and make sure you understand the demand for different property types in your area.

Using Letting agents

If you’re short on spare time or live away from your renal property, then you can entrust much of the legwork to a specialist letting agency. This organisation will take care of things like collecting rent and conducting regular inspections of the property on your behalf.. Reputable letting agencies will of course charge for their services, however in return they can make the process of renting out your property much simpler.

If you are relatively new to the lettings market, then an agency may be a sensible option unless you have the time to regularly deal directly with your tenant(s) on a one to one basis.

March 15th, 2023 | Andrew Hagger | News

Investment is a powerful way to grow your savings – in many cases, more powerful than the standard routes by which savings might accrue value. But as a beginner to investing and investment principles, it can be easy to feel confused by the various options available to you, let alone the language used to describe the more complex elements of stock markets and financial systems.

Here, some of the more beginner-friendly routes to investment are explained in simple terms, to help you make an informed decision about how you would like to start being more active with your money.

What is Investing?

First, though, it is important to define what ‘investing’ means. Many people will associate investing with the hectic scenes from the floors of the London or New York Stock Exchange, as brokers urgently close deals over the phone in the face of endless graphs and figures. While there are ways for the average individual investor to engage with stock markets this way, this isn’t investing as you should understand it; this is trading.

Trading involves the buying and selling of stocks, shares and assets during a given day to ride movements in their value, with the aim of profiting from price movements – buying low, and selling high. This involves an extremely high level of risk, though, even for traders with decades of market experience.

Investing seeks to achieve the same ends, but with lower risk; you are purchasing something of value in the hopes that it will grow in value over time, ideally at a rate that beats bank interest rates or even inflation rates. There are numerous ways to think about doing this, and numerous resources to help you along.

Investment and Advice

Given the complex nature of many financial and investment instruments, it can be a shrewd move to speak to a financial advisor – or even to entrust money for a third-party broker to manage on your behalf. But this can introduce an additional level of risk, particularly through negligent advice or handling of your money. Financial negligence is not common, but can have an impact on your short-term finances (at least, before compensation is awarded); quite simply, it pays to be vigilant with your money.

Routes to Investing

Stocks and Shares

While day traders might flit around the stock market on a moment-by-moment basis, you as an investor might ‘go long’ by buying a set amount of shares and holding onto them. If there was an individual business in which you had faith, you might choose this business to place your investment. This is how early investors in businesses like Apple grew their fortune. But success stories like Apple are rare and unpredictable.

Index Funds

Index funds are a way to engage with the stock market without assuming the high risk of putting all your eggs in one basket. These funds pool businesses together, and automatically split your investment between them – the result being a spread of risk, and a more consistent pattern of growth and returns.

Property

Investment doesn’t require you to engage with these institutions, though. Owning property is an investment, and in many ways a shrewder one than any investment you make in the stock market. This investment requires more capital, though, and is more difficult for those with less money to achieve.

March 6th, 2023 | Andrew Hagger | News

A new survey from Go.Compare car insurance has discovered that around 6% of Brits with car insurance, which equates to more than 2.1million people, have not switched car insurance in the past decade or more.

The findings, which asked drivers how often they have switched insurers, also discovered that the older generation are less likely to switch, with 12% of those aged 65 or more admitting that they have been with the same car insurer for more than 10 years.

The survey also asked why those who auto renewed without shopping around chose to stick with their current insurer – and found that a quarter (26%) claimed that it was due to loyalty – and that their insurer has always looked after them. For those aged 65 and over, nearly half (47%) said loyalty was the reason they stuck with their insurer.

Nearly one in five drivers auto renewed their car insurance (19%) said that switching was a hassle or difficult to do and so they stuck with the same provider, with those aged 35 to 44 the age group most likely (27%) to say this was their reason for renewing.

Ryan Fulthorpe, car insurance expert at Go.Compare said: “It is startling to think that despite insurance comparison website being around for more than 20 years, people still aren’t using these websites to compare both cover and price on their car insurance policies.

“Those 2.8million people could be losing out not only on financial savings, but also on improvements to their insurance cover.”

Ryan added: “It only takes a few minutes to fill in an online form and compare over 100 insurance policies, all of which will offer varying cover levels allowing you to pick and choose what you want and need, and at a price you can afford.

“Although the General Insurance Pricing Practices (GIPP) brought in by the Financial Conduct Authority last year are now in place, they only protect the price that a driver would have from the same provider, by ensuring that a renewal price is the same price that a new customer with the same risks would receive.

“By not shopping around drivers aren’t allowing other insurers to assess their risks and offer an insurance policy.”

For further tips and advice on how to get cheaper car insurance, visit: https://www.gocompare.com/car-insurance/guide/top-tips-for-cheaper-car-insurance/