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Anyone who currently rents a home or flat, or lives with their parents, may need to search for alternative forms of credit if they wish to take out a new loan. Fairly or unfairly, anyone who is unable to display a good credit history to a potential lender will struggle greatly to successfully apply for a loan due to strict lending policies. Fortunately tenant loans and guarantor loans have filled this gap in the market and are ideal for any tenant who has adverse credit, arrears, filed for bankruptcy, County Court Judgements (CCJs), debt issues or anyone who is self employed and has no proof of income.

Many high street lenders simply refuse to issue loans to people with a bad credit rating, regardless of the reason, and therefore turning to specialist loans to help counter this problem is the only realistic option for many people.

What Exactly is a Tenant Loan?

Tenant Loans have been created specifically for council tenants, private tenants, housing association tenants and anyone who still lives with their parents/relatives and hasn’t had a chance to build up a suitable credit history.

Whatever your circumstances as a tenant, even if you have a bad credit history, CCJ’s, defaults or payment arrears, tenant loans may be a viable option for you.

Who are Tenant Loans designed for?

Tenant loans should be viewed as the primary option for any council tenants, housing association tenants, most private renters, and for people living with their parents or relatives. Because this type of loan is unsecured, it guarantees that you will not need to secure your property against the outstanding balance of the loan.

Can Anyone Apply For a Tenant Loan?

In short, anyone who doesn’t own their own property is eligible for a tenant loan.

What Are The Alternative Options?

Similar to a tenant loan, in the fact that they have been designed to offer a way to successfully apply for credit even if you would struggle with a High Street lender, guarantor loans are becoming increasingly popular. Although this type of loan has been in existence for many years, confusion still reigns regarding how they actually work and who they will benefit the most.

Guarantor loans are available to more people than loans offered by some banks and other high street institutions because they utilise the presence of a friend/family member who will act in the role of guarantor for the loan to provide an extra level of security for the lender. For this very reason, guarantor loan lenders are willing to lend to those will a poor credit history due to missed repayments in the past, never having credit before or not having lived in the UK for very long, amongst a wide variety of reasons.

Whilst there are a range of other ‘bad credit loans’ available, nearly all have a very high associated APR and are only available in fairly limited amounts. Payday loans, for example, are designed to be paid back on the borrower’s next pay day. Generally this will leave them short of money for the next month and another loan will be taken out. This can quickly become a vicious cycle which is difficult to extricate themselves from. However, as well as being spread out over a longer period of time, your ability to afford the guarantor loan repayments will be factored into the loan application process, significantly reducing the risk of this happening again.

The recent proposal by UAE Central Bank to introduce a mortgage loan-to-value (LTV) cap – 75% for expats and 80% for UAE nationals – is one of the many measures that the government is working on to deter excessive borrowing, check the proliferation of cash buyers in the market who make up the majority of property purchasers in Dubai. Cash purchases have long since dominated Dubai’s real estate market – with cash-rich buyers usually acquiring properties to lease them out or sell them at an immediate profit – in contrast with end users who buy homes to live in.

Today, with sale prices and rents accelerating, people looking to are looking for better value for money – not just lower interest rates, but terms and conditions and exit fees. Mortgage companies are also ensuring that clients are thoroughly vetted before lending to them. While further information regarding the mortgage cap is expected to be announced in the fourth quarter of this year, industry professionals have shown skepticism regarding the negative effects the decree may have on the real estate and mortgage industry. Hence, it is imperative that a balance is achieved between keeping mortgage opportunities attractive enough to encourage end users to buy Dubai property and at the same time act cautiously to keep speculators at bay.

In another turn of events, Dubai Islamic Bank (DIB) announced in August that it would offer UAE nationals mortgages worth 100% of their property’s value with regard to the Mohammad Bin Rashid Housing Establishment for a 25-year period. On a similar note, the government-owned Tourism Development and Investment Company partnered with Abu Dhabi Islamic Bank to offer investors 100% mortgages for luxury residences on Saadiyat Island.

This year also saw for the first time, home financing of select off-plan properties to non-residents who wish to buy a property in Dubai as a holiday home or simply invest in a second home. Mortgage providers have also been extra cautious, examining and checking all aspects of a customer’s credibility and that of the developer’s as well. However, with the number of off-plan property purchases on the decline as compared to figures before 2008, this doesn’t seem to be a cause for concern.

Throughout the course of his year, the government has made tenacious efforts to build checks and balances into the system and arm mortgage providers with the information they need to make sound lending decisions. A good example would be the recent proposal by the Dubai government to set up a judicial panel to oversee the liquidation of stalled property projects in the emirate. Such a move will offer investors a viable alternative to time consuming and expensive court procedures and enhance investor confidence.

At the end of the day, people like to invest in a market where they know their rights are protected. While there is no doubt that Dubai’s property market is maturing and the double-digit growth a reason to cheer, the 2008 downturn has surely taught us that slower and steadier progress is far better than faster, unsustainable growth.

Whether you are importing goods from China or buying an overseas property, you will want to know that you got the cheapest money transfer deal. You may have already planned popping into your own bank to arrange the necessary transfers, but did you know that they won’t offer you the best deal?

The truth is that high street banks are one of the most expensive ways to arrange a money transfer. It’s a much better idea to use a specialist foreign exchange company. They will have access to a higher rate than your bank and can also give you advice on the best way to transfer your money. Let’s take a look at those facts in more detail.

1. Expensive Bank Rates

By using a foreign money transfer service you could make typical savings of 5% compared to transferring the same amount with your own bank. That’s because a specialist money service has access to exchange rates that are very close to the Interbank rate – this is the rate that the banks use to lend money to each other. When you use a foreign money transfer service you get access to live rates and not the static rates that the banks set each morning. As a first step, compare exchange rates online so you can be sure of getting the best deal when you transfer your money overseas, especially when moving around large sums of money.

2. Benefits Of Using a Foreign Exchange Specialist

Not only will you get access to the best rates when you call a non-bank foreign exchange company. You will also get access to the best service and advice. Because exchange services focus on one specific aspect of finance, they have an excellent grasp of what is happening in the currency market and will aim to get you the most beneficial deal on your transfer.

3. Smart Forward Thinking With a Forward Contract

If you know you are going to be transferring regular sums of money overseas, it makes sense to consider a forward contract. Worrying about fluctuating exchange rates can keep you up at night when you are transferring large sums, but with a forward contract, your rate is set in stone for a set period of time – that period is usually 12 months. During this time you can enjoy that exchange rate and the extra money it can give you compared with the current exchange rate if there are adverse currency fluctuations.

4. Shop Around Online For The Best Transfer Deals

It really does pay to shop around for most things online and money transfer deals are no exception. The good news is that you could find the best deal for your situation and currency in moments when you use an online comparison site. Don’t always assume that the first deal you find is the best deal even if it is listed at the top of your Google search results. When you are transferring hefty sums of money around it pays to spend a few minutes, or indeed hours, researching the most beneficial rate.

5. Make Sure Your Currency Company Is FCA Accredited and Regulated

Of course, you need to be sure that any money transfer company you use is legitimate and authorised to be carrying out such transactions. Any UK payment services company that is transferring money and which is not regulated by the FCA is breaking the law. These regulations provide customers with a high level of protection and therefore it pays to look for an authorised company.

In the UK the Archbishop of the Church of England has struck out at pay day lenders calling them “morally wrong”. Unfortunately after bashing the pay day loan industry it transpired that the Church had invested over $7 billion of its pension funds in a company which had then supported a pay day lender. Indirectly therefore the Church had invested in a pay day lender! The very industry it regarded as sinful. It seems they were suitably embarrassed.

In response to the Archbishop’s attack the pay day lender in question, Wonga, who is also a pay day loan provider in Canada (see www.Wonga.ca), created and released a very clever, tongue in cheek, advertisement based on the 10 commandments – the Wonga version is the 10 commitments. The aim of the advert is to better educate people when interpreting the Church’s comments about pay day lenders. It sets out the promises the company makes to its borrowers and highlights the fact Wonga is a responsible lender. Probably the Church is a little unhappy that the debate and the new advertising campaign has certainly given the lender even more publicity – the adverts have of course been reported upon by the media thus resulting in free advertising and increased publicity for the company.

Further, far from sounding like the loan shark the Church has tried to portray pay day lenders as, the Wonga advert pretty much agrees with what the Church has had to say on the issue of pay day lending. The lender stated it was transparent about the price of its loans, carried out thorough credit checks and froze interest after two months to protect defaulting customers. It also said that it welcomed competition.

The pay day loan industry in the UK is not regulated like it is in Canada. Many politicians, charities and other organisations are calling for regulation but do not have the solution – the Archbishop is at least trying to push forward an idea. He is proposing that Credit Unions work from church premises to offer similar loans at lower interest rates – his idea is to push pay day lenders out of the market. This certainly sounds like a challenge. For a start he wants to find church members to volunteer as staff at the branches. This may be a big hurdle in terms of attracting customers. The average church goer probably does not reflect the average pay day loan customer. No one wants to be judged when taking out a loan.

A recent study indicated that the average age of a church goer was 61. Anglican leaders have warned that the Church of England will cease to exist in 20 years because elderly worshippers will die. As a result of this the Church presently has an urgent national recruitment drive to attract more members.

Just recently the Rt Rev Paul Butler, Bishop of Southwell and Nottingham stated that teachers should not illustrate math lessons with examples of “profit and loss”, or encourage children to save in order to buy bikes or toys Instead, lessons should focus on the math involved in giving donations to charity, saving for an overseas project, or even “tithing” – giving 10 per cent of one’s income to the Church.

When the Church is making statements like this you have to wonder whether it is the Credit Union/pay day loan “solution” is one part of its necessary recruitment drive. Pay day loan providers want profit, the Church wants people in seats: both have their own agenda.

Although the Rt Rev Paul Butler might not think it important, educating children about profit and loss and savings is all part of money management. This is vital in today’s society – Surely it is better money management which will reduce the need and desire for pay day loans.

It will happen at a stoplight on your way to your first real job. The Plymouth Acclaim that you earned merely because you were the 16-year-old child of middle class suburbanites will not go, no matter how hard you hit the gas. The serpentine belt will blow, again, and it will seem silly to put more money into a car that is old enough to drink.

Still, what car seems affordable on an entry-level salary? Even the most economical of economy cars is likely too expensive to be paid for out-of-pocket. More often than not, securing an auto loan is a necessary step in purchasing your first car, and there are a few things that are helpful to know before you trust the offer made by your dealer.

New or Used?

Even before thinking about a loan, it is wise to decide whether you will purchase a new or used car, and from who? There are many pros and cons to both used and new cars, so it’s best to keep your budget in mind as you make your decision. Used cars, whether purchased as a “pre-owned” vehicle from a dealership or from your neighbor on Craigslist, will more often than not be significantly cheaper than a new version, and may not even be that, well, used. Notoriously, the value of a car depreciates as soon as it drives off the lot. If you buy a used car, make sure you have access to its entire history. Know who owned it before you. Know what accidents it has been involved in. That way, if you’re on the brink of having a used car horror story, you have the information to navigate your new-to-you car in another direction. On that note, never sign an As-Is statement. You are entitled to 30 days to find out whether the car is in working order.

As for new cars, they can be more expensive. And if few people are already driving that year or model, you can’t be absolutely sure that you haven’t landed yourself a lemon. Research is just as important with new cars as it is with used ones—you want to know the MSRP (Manufacturer Suggested Retail Price) and what deals other dealerships are offering on your chosen model. The Internet is a great place to research car prices, warranties, and safety features. Finance options for your new or used car can also be found online.

The Loan

Before you apply for a loan, it is wise to know your credit score first. There are many places that will give you access to your credit score for free online, such as Credit Karma. This will help you know what kind of interest rate for which you are eligible. Generally, the higher your credit score, the lower your rate. As you are young, it’s likely that your credit score will be low due to your brief credit history.

“The newer the car, the lower the rate” is also a piece of car finance advice that has been bandied about since the beginning of auto loans. While this may seem like a tick in the “pro” column for new vehicles, remember that the cost of the vehicle itself will likely be more than enough to make the savings in interest a moot point.

There are many ways for you to finance your car, and it’s smart to both diversify your application process and go to the dealer with a pre-approval already in place. Apply for loans at banks and credit unions, online financial institutions, and even the dealership (though these loans usually aren’t as competitive). Be honest on your applications, and take your time when considering all of your offers. Know the total cost of the loan. Pay attention to the loan term—a shorter term will involve higher monthly payments, but less interest. Don’t go for an offer that comes equipped with a laundry list of fees—you can be certain you won’t make up for the difference in savings on interest. No matter the case, do the math. Which offer works best with your current income? Which offer will allow you to save the most money in the long run?

If you go to the dealership pre-approved for a loan with a nice low rate, you will have the upper hand in negotiating what could be an even lower rate with you dealership.Be wary of the dealer offering you a lower price on the car with a higher interest rate. Remember, do the math. Rely on your own research. If you display clear confidence in your knowledge, it is less likely that the dealer financial manager will try to pull the wool over your eyes.

Driving Away in Your New…

While attempting to seduce you into their loan, the car dealership may offer you a number of “services” that also may not be in your best interest. Any “extended warranty” is more than likely not worth the extra cost—most warranties are extensive enough to cover any damages, and at the point the extension kicks in you will have spent more than you would out-of-pocket for repairs. Many dealerships offer expensive security systems that you could easily install yourself for less. Be careful about deciding to purchase life or disability insurance from your dealership. Like with loans, you may be better off getting a better deal elsewhere, if you need these types of insurance at all.

Of course, remember to have fun as you shop, and to buy a car that you can see yourself driving. A car may ultimately be a practical tool for transportation, but the right car can also provide a pleasurable experience.

Levi Hyatt is a part time blogger and a full time wannabe stunt driver. He’s carried his passion for cars over to writing about car financing. When he’s not going full throttle, Levi enjoys playing guitar for his cats George, Ringo and Paul.