Smarter Ideas For Current Accounts

Smarter Ideas For Current Accounts
When we meet new clients and agree to work together, the
number one aim we have for them is that they achieve their
monetary and non-monetary goals in life.

You have probably heard us discuss some of the component
parts to this, such as cash flow forecasting and smarter
investing etc. However, one of the areas we cover is being
smarter with the everyday issues, such as where do you keep
your cash that is needed to cover everyday spending and
direct debits etc.

Most clients tend to have ordinary bank accounts that pay
very little if any interest, and yet the level of cash kept
in these accounts can be many thousands or even tens of
thousands of pounds.

So, what options do you have, and is this important anyway?

Well, first of all, we understand that some clients have an
emotional attachment to their bank. After all, they may
have been with them since they were a student, and the
local branch is fine for them.

However, it could damage your wealth over time!

You have two main options.

Option 1 - Offset Flexible Mortgage With Current Account

Many of our clients have this type of mortgage. In recent
years, the interest rates on these have reduced, meaning
that the rates are almost as competitive as the cheapest
deals.

If you are self-employed or have private practice income,
this option is even more useful, since you can park your
tax monies here.

For higher rate tax payers, this means that you are
obtaining as an interest rate the actual mortgage rate of,
say, 5.5%. But of course this is tax free, compared to a
normal account being taxed at your highest rate.

However, just looking at a balance level on average of say
£7,500 in a given month, the savings could come to
over £400 a year. If you take this over 10 years,
then we don't think £4,000 is to be sniffed at.

Option 2 - Current Accounts That Pay Interest

If the mortgage option is not relevant, it makes sense to
ensure that on any balances in your account, you get a
decent rate of interest.

There are many more banks and building societies now
offering competitive rates. Taking one offering from the
Halifax, it gives 6.17% gross providing you pay in at least
£1,000 per month. So instead of recieving little or
nothing on your account, you could earn £462 a year.

This is taxable of course, which would mean net interest of
£370 for basic payers, and £277 for higher rate
payers. On a joint account it would be circa £323.
Still, over time this adds up, and we would much rather you
had this than adding to the bank's profits!

The Financial Tips Bottom Line

Make sure you get the best value you can on each and every
part of your financial planning, as it can soon add up to
substantial amounts over time.

ACTION POINT

If you have a mortgage, investigate whether an offset loan
would prove your best option. If not, and you are not being
offered a decent rate on your current account, switch to a
bank who will offer you this.

After all...it's YOUR money!

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Ray Prince is an Independent Financial Planner with
Rutherford Wilkinson plc, and helps UK Resident Doctors and
Dentists get the best deals on mortgages, protection and
investments, as well as helping them achieve their
financial objectives. Just visit
http://www.medicaldentalfs.com to get your free retirement
planning guide. Rutherford Wilkinson plc is authorised and
regulated by the Financial Services Authority.

Lending institutions tightening up on Credit Score Requirements

Lending institutions tightening up on Credit Score Requirements
Your credit score could make or break you in 2008. With all
the foreclosures and defaults on credit cards, banking
guidelines are getting tough. During the "Real Estate Boom"
just about anybody could get a loan. Mortgage companies
were just giving money to anyone that came along. Someone
pulled the wool over the eyes of Wall Street. I personally
was doing loans that I knew would default, but if I had
denied the loan, they would have went somewhere else. The
guidelines where so liberal that anyone with a job could
have got a mortgage. Even credit card banks were extending
credit to high risk borrowers. Now our banking and lending
institutions are in a major clean up transition. I have
noticed that some of the new guidelines for lending this
year are getting to the point where good credit will only
be allowed to get loans. It's amazing how Bankers swing
from the left to the far right to make an adjustment when
it comes to Credit Risk. Freddie Mac and Fannie Mae of
course are in business to make money, so it's really like a
cycle. Underwriting guidelines will tighten up, and then
they will loosen back up.

So the question is, how long will it take for Creditors to
loosen up on credit risk guidelines? Believe it or not, the
U.S. had the same foreclosure crisis in 1998. The only
difference was there was less publicity because there were
less public traded companies involved that went out of
business. So Wall Street was not affected like it has been
recently. During this time of banking institutions going
out of business, the Feds have lowered rates dramatically.
It's a great time to buy a house if you have decent credit.
So what if you don't? Maybe you are unsure where you stand
with your Credit. There has never been a better time to get
on top of your Credit Report than now. It really stinks to
rent, drive a junk car or get denied for credit when you
really need it because of your Credit Score. I personally
think 2008 is a time to step back look at your personal
finance and please don't try to keep up with the Jones,
cause you are not going to take it with you. Just remember,
good credit, good health and low debt is the path to
prosperity in 2008. It really looks like Banking will
tighten up over the next 3 years and the lending will never
be the same again.

So if you want a piece of the American dream, please stay
on top of your personal credit. Remember "Your Credit is
your Life."

----------------------------------------------------
About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.

Five Things You Can Do With a Gas Credit Card

Five Things You Can Do With a Gas Credit Card
Think you don't need a gas credit card? Think that Visa and
MasterCard are enough? Well my friends, a gas credit card
may be more convenient than you think. Here are five
reasons why you might want to consider one.

1. Pay Less for Gas

With the way gas prices have been lately, who wouldn't love
constant discounts? Many gas cards offer just that with
generous rebate programs. Some cards offer up to
five-percent back in the form of rebates. If gas is $3.00 a
gallon, that's a discount of 15 cents. If you drive an SUV
like me, that's a savings of $6 a tank! That can really add
up over the course of a year.

2. Shaky Credit?

If you've got a tarnished credit history but want the
convenience of charging your gas purchases, then a gas
credit card may be just what you need. Many of these cards
have more lenient credit requirements, which means that you
may qualify for one even if you don't have the best credit
standing and have been turned down for other cards in the
past.

3. The Fleet Deal

Have a business with multiple vehicles? A fleet card may be
a valuable tool. With fleet cards you can manage your
business's fuel expenses and some cards even offer volume
discounts on the gas you purchase. When it comes to your
business's bottom line, every penny counts and fleet cards
can be priceless.

4. Easy Budget Management

If you manage your gas credit card properly, it can be a
very valuable analysis tool. If you use your card to
purchase gas only, you can see exactly how much you're
spending on fuel each and every month.

If you notice a drastic increase in fuel consumption and
you know the increased spending isn't due to price hikes,
you'll know something is awry with your vehicle. If you try
to change your driving habits to reduce the amount of fuel
you use, you'll be able to see if the changes are really
working.

5. No Temptation

For those who just can't resist the temptation to spend
when they have a major credit card in their wallet, gas
credit cards can be a problem-solving solution.

You can use the card to build up your credit history and
pay for gas purchases without having to fight the
temptation of "impulse" shopping at the local department
store.

It's true that the gas credit cards of yesteryear had their
problems. Ridiculous interest rates and unfavorable terms
abounded. Nowadays, however, this segment of the financial
industry has changed and these cards have much more to
offer. If you've avoided applying for a gas credit card in
the past, you might want to rethink that decision.

----------------------------------------------------
For more tips on gas credit cards, saving money and
avoiding getting taken, check out CreditCardTipsEtc.com, a
website that specializes in providing credit card tips,
advice and resources.
http://www.creditcardtipsetc.com/gas_credit_cards/

Business Financing - The Best and Worst Finance Trends of 2007

Business Financing - The Best and Worst Finance Trends of 2007
It was truly a good news mixed with bad news situation when
reviewing business finance developments that occurred
during 2007. Many of the commercial loan trends that
emerged last year have significant implications for
commercial borrowers seeking either new financing or
refinancing in the coming months.

For business cash advance and credit card processing
services, the past 12 months have been characterized by
significant changes. There were many providers both
entering and exiting these business activities. It is of
course good news that some ineffective providers were
forced to leave this specialized working capital management
service area. But the bad news is that there are still many
new and inexperienced companies attempting to operate in
this complex field.

A similar trend involving inexperience can be seen in
viewing the large number of residential financing brokers
now attempting to transition into business financing. Since
by some estimates approximately 100,000 residential
financing employees lost their jobs during 2007, there is a
real possibility that thousands of unqualified brokers will
be entering the business finance field during 2008 or have
already started the process.

During 2007 there was also noticeable attrition in SBA loan
providers. This is primarily a positive development, since
the field has long been overpopulated with inadequate
business lenders.

Likewise many local and regional banks visibly reduced or
eliminated their business financing activities during the
past 12 months. The bad news about this trend is that very
few former commercial lenders provided their borrowers with
adequate notification of their intent to exit the business.
If there is a positive aspect to this development it is
probably that many borrowers confronted with the need to
suddenly find alternative commercial financing sources have
often ended up with much better terms by dealing with a new
lender that specializes in commercial real estate financing
and working capital management.

A general business loan trend impacting refinancing is the
reduction in loan-to-value ratios, especially when
borrowers are attempting to get some of their equity out of
the business in cash. For purchase situations including
special purpose properties such as church financing,
slightly larger down payment requirements are increasingly
more common.

Although the general decrease in interest rates during the
past year is a positive development, there will probably be
some confusion among commercial borrowers who have
adjustable rate terms when they do not see their rates
reduced. In all likelihood, this will be due to a common
clause applied to most commercial loan contracts that
stipulate that the minimum rate for such agreements will
never be less than the initial rate. With such a floor rate
provision, this means that if a borrower starts with an
adjustable rate set at 10% and then rates fall, the
effective loan rate will remain at the initial rate.

A major commercial property investment trend has been some
increasing activity due to the current decline in viable
residential investing options. This seems to be
particularly true for business opportunity situations which
do not have a real estate component, an aspect of
increasing importance to investors who want avoid property
ownership at this time.

----------------------------------------------------
Steve Bush is a commercial real estate investment loan
expert - learn how to avoid business finance mistakes and
find out about business opportunity loan strategies at AEX
Commercial Financing Group =>
http://aexcommercialfinancing.com