A guide to reward cards –what are they and how do they work?

If you are looking at getting a new credit card right now then you may have already seen a lot of different options to choose from. Although all credit cards may seem to work in much the same way many nowadays will come with special deals or incentives to try and get you on board. In recent years, for example, reward cards have become a lot more popular. So, what do these cards do that other credit cards don’t?

Reward cards, as you might guess from their name, give you ‘rewards’ when you use your card to spend. In some cases they may be known as loyalty cards. The rewards that you are given may, for example, work on a rewards program that allows you to earn points every time you buy something with the credit card. There are various ways that this can work depending on the rewards scheme that you choose. So, for example, you might choose a card that:

• Gives you a cash reward — in this instance your reward might be a percentage cash payment based on how much you spend on your credit card.
• Gives you a general points reward — here you may be awarded ‘points’ as part of the program when you spend. What you earn here may be redeemed via a central company although you may be able to use your points to buy different things from different retailers through it. So, for example, you could go online to the points company to use your points to buy things from different companies via their site.
• Gives you a company specific reward — in this case rewards cards are specifically tied to the company that gives out the card. So, for example, your spending may earn you points towards spending in a supermarket, department store, hotel chain or on travel costs. In some cases these cards may also offer options with other companies/offers that they have set up a link to so you may be able to use these rewards to buy other things.

Reward cards may look like they give you a good deal on paper. After all, if you are spending money on a credit card anyway it seems a good option to get something back as a reward for your spending. In some cases, however, you may find that the interest rates charged on these cards are higher than those given on standard ones.

This may not, of course, be an issue for you. If, for example, you always pay off your balance in full every month then the interest charged on reward cards might not even apply to you in the first place. But, if you sometimes or even always carry a balance over from month to month then the interest you’ll be charged might be more of an issue especially if the rewards you are given work out to be worth less than your interest charges.

Instant access accounts explained

An instant access account is a savings account that does exactly as the name describes, it gives you instant access to the money in your savings account. It is a savings account that lets you add and withdraw money to the account whenever you want to, in most cases without charging you to do so. Most banks offer some form of savings account with instant access. The details and policies for accounts like these will vary from bank to bank however there are certain features of the account that you can expect to be the same if not similar in all situations.

Most banks place a few guidelines on how their instant access accounts can be used. An instant access account is usually an account that accumulates interest. There is often a minimum opening balance that you will pay to the bank when you first open the account. In some cases, there will be a minimum deposit amount and other times a minimum balance requirement as well.

For full details on the minimum conditions and requirements for the account that you are thinking of opening, you can speak to an advisor at the bank or read through the conditions on a web site or brochure. It also helps to know all of the proof of address and identification that will be required.

Common Features of Instant Access Accounts:

• Minimum opening balance
• Minimum withdrawal amount
• Minimum addition/deposit amounts
• Minimum required balance
• Interest bearing

As you shop around and compare various instant access type accounts you could compare account policies to ensure you get the best interest rates and minimal account-related fees. You will find that certain characteristics are common among accounts of this type. They provide you the account holder with unlimited access to your account. This would usually include free and unlimited withdrawals. The interest earned on these accounts is most often calculated daily and then paid out to customers on an annual basis. As always, the exact details of an instant access account will vary from bank to bank so be sure to read carefully through the materials that detail the account features.

The majority of high street banks offer some form of instant access account. Traditionally, you would be able to open new instant access accounts at any branch or even online (though proof of ID will often need to be sent to the account provider or taken to a local branch if they have an offline presence).

How to Get the Best Deal on your Utilities by Using a Comparison Site

No one likes to feel as though they’re paying more than they have to for their utilities, especially in times of financial strife, and as such it’s becoming more and more common to use an online price comparison site to check for better deals.

Why use a comparison website? Do they really work? Here are five reasons you might want to consider it:

1. They’re easy to find, and to use.
If you’ve ever wondered why every other advert on the TV these days seems to be for a price comparison website, you’re no doubt not alone – they really are everywhere on the internet, and as such you have a wide variety of options available to use. If you don’t like the layout or the rating systems or the provider coverage of one website, you can easily find another one that better suits your needs. Better yet, the comparison websites know that they’re competing with so many alternative sites, and as such have been forced to up their game – as a result, you can expect any of the major comparison sites to be easy to use, in order to prevent them losing the custom of less tech-savvy individuals. If that includes you, don’t be afraid to give them a shot, as you might be pleasantly surprised at how easy it is.

2. They’re fast.
People always say you should be willing to switch your utilities provider at a moment’s notice, but that can be very unfeasible, especially if you have to phone up each of the companies individually and ask for a quote. Comparison websites take a lot of the fuss out of that by letting you see exactly what’s available where, and how much it will cost you.

3. They’re cheap.
Comparison sites are a business: they provide a service, and they have to make money somehow. Previously, it used to be the case that this would be as a result of a commission from the insurance policies they places. Of course, by doing this all that happened was the insurance companies hiked up their prices to match, and the customer ended up paying. Now, however, it’s becoming much more common for comparison sites to sell advertising space and get revenue that way, saving the customer money. Having said that, even if you were charged a commission, it’s entirely feasible that the money you save on insurance could more than negate this, and still leave you with more money in your pocket at the end of the day.

4. They’re updated regularly.
One of the wonders of the internet is how rapidly things can be changed. If you’re using a comparison site, you know that the information given has taken the latest fluctuations into account – what you see is what you get, so you can make decisions accordingly.

5. They often give good advice.
Comparison sites are branching out in their efforts to provide a better service. Now, it’s not only the case that you can expect to find a comparison chart on their site, but many include articles about utility switching and how to go about it – an often invaluable resource that’s worth a read.

Are you being overcharged for your pet medication?

Did you know that you may be paying more than you have to for your pet’s special diet foods, health supplements and medication? Take, for example, Mrs H, whose pet cat Kirby was prescribed a potassium supplement. The 4oz container from her vets cost £62.40. When the product had nearly been used up after a few months, there were problems getting it from her vet who had to ‘order it in’ as it was ‘special’. Desperate, Mrs H found the same product at the same weight for £29.99 online at one of the small number of pet prescription websites that have sprung up in recent years. Luckily for her, the product was a non-prescription item and she ordered it there and then.

You may also find that your usual preventative flea treatments work out cheaper if you look around online too. Companies who offer this sort of service include www.petdispensary.co.uk and www.petmeds.co.uk.
Similarly, when Mrs H asked her vet for some furball paste for Kirby, the cost was £18 for a 20g tube. Online a similar brand currently costs £7.50 for a 70g tube!

Prescription medications
However, even if your pet is on prescription drugs, you may still be able to make savings on the cost of your furry friend’s medications. All you need is a prescription from your vet – however, do bear in mind that he or she may not be happy about you buying the medications somewhere else, because they could well be losing out on making a profit on it.

Legally the vet can charge you to write a prescription and this may be anywhere from £5 up to £15. However, if you ask for a prescription for 6 months’ medications, you may still find it cheaper overall to buy the prescription from your vet and then get the medications online.

When ordering your pet’s medications online, you’ll be asked to supply a copy of the prescription before your order is despatched. It’s a simple process and one that can potentially save you a lot of money.

Special diet foods
It is also useful to note that even if your pet is insured, special diet food is often not covered under a pet insurance policy. Again, going online for special pet diet may work out cheaper than buying it from your vet.

An explanation of IVAs / debt management

IVA stands for Individual Voluntary Arrangement. An IVA is a legal process in the United Kingdom (for UK residents) whereby you can arrange to pay debtors back a reduced amount of the money that you owe them, due to personal debts that are perhaps overwhelming. IVAs / debt management is usually available on debts of £15,000 and more. If you have a debt below this amount, you will often have to look for an alternative to IVA.

IVAs / debt management is an excellent option in many cases however it can not be used for debts related to a mortgage, a secured loan, Hire Purchase (HP) or utility bills so there are specific restrictions. It is important to ask about and inform yourself of the specifics of an IVA before applying for one.

The important things to note about an IVA is that once you enter into this type of agreement, you will typically no longer be contacted or hear from your original creditor. If you are behind on your payments and have been receiving daily phone calls, this alone can give you a huge amount of relief. Another key characteristic of an IVA is that once you enter into the agreement, interest and charges will no longer be charged to the account. This removes another level of pressure because it means your balance is set and will no longer rise on its own due to interest and fees.

An IVA agreement usually requires you to faithfully and reliably make the agreed payments for up to 5 years (60 months). If you stick with this agreement, the balance of your debt will be written off by your creditor. This agreement will be honored by your creditor if you honor the payment arrangement made between you and them in the IVAs / debt management arrangement.

Depending on your circumstances, you may be offered an alternative debt management solution if you do not qualify for IVAs / debt management. The information that you will need to find out whether you qualify to apply for IVA or other forms of debt management can be found on certain government web sites, if you search carefully. They can also be found on the web sites of debt management companies that specialize in helping people in debt. These companies will review your debts for you. If you agree to work with them they can at times negotiate solutions for your debts. One solution could be debt management where a debt management company will contact all of your creditors and negotiate lower payments for you if possible. At times, they can also negotiate a freeze of interest and other charges so that paying off your debts is easier.

First time buyer mortgage for the first time home buyer

Buying your first home is going to perhaps be your most important purchase to date. A great many people may find the process of finding the right first time buyer mortgage a little daunting. Yet, it needn’t be as stressful or confusing as it might seem.

Getting your mortgage is all about knowing your product options. These range from the fixed mortgage to the tracker mortgage. The difference between the two is that one offers set interest rates while the other offers you a fluctuating interest rate.

Perhaps the capped mortgage option is best as it enables you to fix your interest rate so that it won’t rise above a certain level over a set period of time. Perhaps you want or are able to pay off more each month then you might go for the flexible mortgage option would suit you.

You may also need to have a healthy percentage to put down as part of your deposit. The higher the percentage you have to put down, the more likely you are to get approved for the first time buyer mortgage you desire.

It may be a worthwhile idea to think about all the extra costs you will incur on top of your monthly mortgage payment such as utilities and council tax, not to mention food and living expenses. So if you are not sure what you can afford to pay speak to your mortgage specialist who will be happy to sit down with you and advise you.

Remember that your satisfaction during the whole transaction process is the key to your enjoyment of your home. The first time buyer mortgage finding experience should make you feel glad that you took the plunge and put your money in something tangible such as a house.

It could also be a good idea to discuss repayment periods with them too. Generally you would take out a mortgage over a period of 20 or 25years, but this can vary. Keep in mind that the bulk of these years all you are doing is paying off the interest and even a little extra payment each month can affect and reduce the total repayment period quite noticeably, in your favour.

As a first time buyer applying for a first time buyer mortgage, you need to meet with a mortgage specialist together with the details of the property you intend buying, your personal identification, tax records as well as proof of income, bank statements and proof of any assets you may own.

Car Insurance Comparisons

If your car insurance is coming up for renewal, it’s very tempting to put it off and just let it roll over. After all, you did all of this last year, right? How much price fluctuation could there really be in just twelve months? If you had the best offer back then, surely it’s still the best offer now?

Well, no… far from it, in fact. Whenever you’re looking to renew your insurance, the first thing you should be doing is scouting around the various providers, trying to find the best deal for you. The financial climate is never what you’d call particularly stable, and many insurance companies rely on people being too lazy to examine the alternatives before they sign on the dotted line. Add this to the fact that any introductory offers you received in the first year of your insurance policy generally won’t last into your second and you might find yourself paying much more than you have to.

Help is at hand, though, and it’s all thanks to the internet. There are literally dozens of companies springing up online dedicated to helping you find the lowest possible quote for your car insurance. These comparison sites work by taking certain details from you (age, gender, make of car, location, etc.) and seeing what the various providers would charge you for your insurance. By doing this for every provider on its books – often an absolutely staggering number – it can find you the best possible policy for you, all with just a few clicks of the mouse and taps of the keyboard.

Additionally, you can be sure that if you’re comparing quotes online, the information you get is going to be absolutely up to the minute, ensuring that you don’t end up getting yourself settled on an offer that has expired, or rapidly increased in price. In the long run, this can make things a lot easier; you don’t have to deal with the extra frustration of having the rug pulled out from under you just when you think you’ve got everything sorted.

Price comparison sites are a good way to check out the shape of the current marketplace before you sign your name to anything. Although it may seem a bit intimidating to be assailed by such a great deal of data in such a short space of time, they’re designed to be as easy as possible to use – they have to be, as there are too many alternatives out there for you to choose from. If the first one you try is confusing, or you don’t think it offers you enough choice in insurers, don’t be afraid to look for a second opinion. As with anything, the point is to make the process work for you as easily and straightforwardly as possible; if it doesn’t, then getting your car insurance is going to become a needlessly complicated chore. If that happens, you may end up getting bored and settling for the first package that looks OK – precisely what you were trying to avoid by using the services of a comparison site in the first place.

Over 50’s life insurance

There are times when those above the age of 50 find it difficult to find insurance coverage that meets their needs. Over 50’s life insurance is an insurance policy type that is designed especially to cater to this problem. In fact, many insurance companies have developed life insurance policies that especially take the needs of people over fifty into consideration. Life insurance policies, although slightly different depending on the company that you sign up with, are something that could provide a lot of comfort and security to anyone over the age of 50 that has dependents. Often those looking for insurance will shop around and compare policies to find one that fits their needs the best.

There are all types of reasons that someone over the age of fifty might decide to take out a life insurance policy. Sometimes it is as simple as a change in circumstances. This often happens when people lose their job or retire. Ultimately an over 50’s life insurance policy could provide you with financial security for your family should you die suddenly. There are some policies that also payout if you fall sick and are incapacitated. For full information on your life insurance coverage, it is important to read through every section of your insurance policy before agreeing to sign up.

Typical benefits of over 50’s life insurance:

• Will pay funeral expenses and related costs
• Covers unpaid debts in the event of your death (subject to the policy)
• Provides financial security to your partner or any dependents should you die suddenly

Generally speaking, a life insurance policy covers you in the event of your death by natural causes or by accidental causes. Beyond that, your individual policy will give you more details on what is covered and there are times when you can choose to pay for extras on the policy.

There are a variety of ways that an insurance company will issue life insurance payouts when you make a claim, each dependent upon the policy you have signed up for. Some insurance companies will pay lump sum that is fixed, others will pay annually, while some will do a little of both depending on the circumstances and the rules of the policy that you purchased.

Buying over 50’s life insurance can be done with an insurance agent and it can also be done online. The first thing you could check are the details of the policy you are considering. If you have questions, an agent would be able to answer them for you. In most cases, buying insurance online can be cheaper than in a high street shop, making it more affordable for those even on a tight budget.

If you travel then travel insurance is a must have

Travelling is fun and exciting but it can also be expensive and risky. Anyone who has had their luggage pinched or ‘misplaced’ by baggage handles can attest to that. Lost traveller cheques can simply ruin what has taken months to save up for and the loss of money can leave you stranded in a foreign country, especially if all your travel documents were taken too. Travel insurance is not a luxury; it is a necessity even if your company is picking up the bill.

What about medical emergencies? What do you do if you or someone in your group is taken ill? Do you have the funds to get them medical attention? Often medical facilities ask for hefty cash up front payments before they will treat foreign nationals. Medical attention can be so expensive that it is not uncommon for an insurance provider to offer as much as £2m in their travel insurance cover.

Under this area of cover it is worth mentioning some facts about what is not covered. Pre-existing medical conditions are generally excluded as they should be covered in your normal medical cover, but it is worth having a conversation with your insurance specialist about this anyway. Sports that carry high risk such as scuba diving or abseiling are also excluded. So are injuries sustained while visiting countries that are considered high risk for natural disasters or terrorism. War torn countries also fit into this category. However it is often possible to purchase separate insurance for any or all of these.

Pregnancy on the other hand is usually covered only if you travel within the first trimester, after that things may get a little tricky and cover varies from insurer to insurer so it is advisable to check all the facts before your journey. What is definitely excluded however is any injury or illness caused by either alcohol or drug use.

These are the most common risks most travellers include in their insurance. There are a host of other cover options available too such as delayed departure or even having to cancel your trip for various reason, funeral expenses, emergency evacuation, legal assistance, rental car damage excess and even personal liability cover. There is even an option available for adventure travellers or students who may travel for months at a time.

Surprisingly travel insurance can even provide you with extra bonuses and very helpful services such as concierge services and emergency travel assistance, twenty-four hours a day, seven days a week.

Your insurance should not cost you more a small percentage of the total cost of your trip. All you need to do is speak to your insurance provider and discuss which options suit up best. This way you will have peace of mind that everything your need to travel safely and confidently is covered in your travel insurance.

Save money on insurance

Insurance is a fact of life and very of us can do without it, whether it is for the car, the home or ourselves. Of course, we all want to save money on insurance and this article outlines a few tips that you can use to make it as cheap as possible. Combine as many of these as you can to get the best possible deal.

• Shop around. This is the number one way to save money on insurance and since all the price comparison websites appeared it has become extremely easy to do. You only have to give your details once, and you can get initial quotes from dozens of providers along with a summary of each policy.
• Haggle. When you have got a few quotes from different providers, call your current insurer and see if they will beat the cheapest one. If they can’t beat it or you don’t already have insurance, just call one of the others on the list and ask them. You’ll be surprised how many providers actually ask you for the best quote you’ve got, and then offer to beat it.
• Check the cover. Make sure that the policy gives you the correct cover for your circumstances. For home insurance, your mortgage provider might require a certain level of buildings cover and for motoring insurance you need a minimum of third party insurance to legally drive your car on the road. Even if the cover isn’t required by law, for example home contents insurance, make sure that expensive or sentimental items are named individually and that the policy limit is enough to replace all your belongings if you need to.
• Watch out for unwanted extras. Make sure that you aren’t paying extra for things you don’t need. Why buy holiday insurance that covers you for extreme sports when you only want to lie on the beach, and why buy home insurance that automatically includes cover for bicycles when you don’t have any?
• Watch out for bundled insurance. If you have a mortgage or a loan, the provider will often try to sell you their own insurance policy. This is often more expensive than similar products offered by other providers, and it can pay to take out insurance separately. If you have any credit cards, check that you aren’t paying for payment protection cover if you don’t need it, especially if you pay the balance off every month. This cover is often added without you noticing, and even if you do need it there are specialist companies who can be get you a much cheaper deal.

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