UK climbs out of deflation as air fares rise

Solid story from http://www.telegraph.co.uk/finance/economics/11677538/UK-climbs-out-of-deflation-as-air-fares-rise.html

The UK has climbed back into inflation after its first encounter with deflation in 55 years.

Prices rose by 0.1pc on average in the year to May, according to the Office for National Statistics (ONS).

Statisticians said that the largest boost to inflation came from the transport sector, in part owing to a large rise in air fares.

A relatively early Easter this year meant dragged down inflation in April, taking the measure into negative territory for the first time since 1960.

This effect was reversed in May, leading inflation back above zero, after a decline of 0.1pc in the previous month.

Philip Gooding, of the ONS, said: “The falls in food and fuel costs over the last year have eased this month, helping to push inflation up.”

The timing of Easter was a key factor in the inflation data this year, and without its irregular position, the UK may never have experienced technical deflation at all.

George Osborne, the Chancellor, said that the off target figures supplied “further evidence of an economic plan that is working, with a powerful mix of low prices and rising wages, which are continuing to grow well above inflation”.

Elizabeth Martins, an economist at HSBC, noted that May marked the second consecutive month of UK inflation below the eurozone level.

“Unlike in the eurozone, we don’t think inflation has quite bottomed in the UK,” she said.

A number of analysts believe that the consumer price index (CPI measure of inflation could come back down in June.

Capital Economics calculated that just a 10pc fall in the oil price could push the economy back into deflation within the next sixth months.

Even without such a shock, inflation is expected to stay low. Michael Saunders, an economist at Citi, said that “a fairly lengthy period of lowflation is likely, reflecting the subdued pace of pay growth” and the pound’s recent appreciation.

Inflation was held down in May by a 2.6pc fall in the price of consumer durables, the largest slide since 2009, as a result of sterling’s strength.

While Britain may have escaped a harmful deflationary spiral, Philip Shaw, of Investec, said that “the real question is whether Britain is beginning to depart a phase of lowflation”.

“This will take some time to assess which will not only involve appraising the next few months of CPI figures, but also supporting evidence such as trends in pay growth as well,” he said.

As oil prices have stabilised and the supermarket price war draws to an end, inflation is later expected to move on an upward path. “CPI will pick up fairly rapidly towards the end of the year,” Ms Martins said.

Inflation is still well below the Bank of England’s 2pc target, but the central bank anticipates that inflation will hit 1.7pc by the end of next year.

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Are personal loans just for the working class?

The term installment loan is a common term in Australia and it is a lucrative business in the whole of the United Kingdom. This term refers to a particular loan that is being granted to individuals who are working class people. Personal loans will help them meet some financial strains that they may be going through for a particular period of time.

This normally happens when these people are in need of money at one particular time and they don’t have it. This situation is common to anyone who is working especially those who are not financial stable. Sometimes you may encounter an emergency in terms of meeting some of your financial obligations and you are at a loss at what to do.

When you have obligations

Secure MoneyPersonal loans from the Lots a Lolly website are granted to a particular group of people mostly those that are working class and in addition to that, there are some conditions that those people who are willing to take a personal loan must meet in order to be given the loan. These loans are granted by personal finance companies whose main business is to provide financial support to this part of society.

There are many places where one can find these companies that are offering this kind of small loans. Through the Internet, there are so many companies that are offering these services. You can search through search engines like Google or Yahoo where you will be able to find these companies. You can then visit their websites and fill out an online application.

Limitations with these loans

  • The one big factor is that one has to be a UK resident in order to be able to apply for these loans and also that you must have a UK bank account.
  • The amount of money that you are earning will also come into the equation. There is a standard limit of the amount of money that you are required to be earning for you to meet.
  • The loans are instant; it means they should be paid within a very small period of time usually a few months.
  • If you qualify for this type of unsecured loan and you decide to apply, you could get the loan on the same day that you apply.

6 Tips For Getting Your Personal Loan Approved

paydaylender1If you need money to meet basic expenses, fund your wedding or take a vacation, you’ve probably considered getting a personal loan. A personal loan is a loan where you don’t put up any collateral, such as your house or your car, that the lender can repossess if you default. Because the lender has no guarantee for the loan other than your own reputation, you’ll have a higher interest rate than you would with a collateralized loan.

When used correctly, personal loans can save a significant amount compared to payday loans, overdrafts and pawnshops. But they also have their pitfalls. Unfortunately, there are many unscrupulous lenders who may try to bleed you with fees and high interest rates.

These six tips will improve your chances of getting approved and help you qualify for better terms.

Determine What Type of Personal Loan You Need

When people talk about personal loans, they are usually referring to unsecured, closed-end installment loans. Technically though, auto loans, mortgages, payday loans and credit cards are also personal, as opposed to business loans. Make sure you understand what type of loan you are applying for.

If a lender realizes that your credit is not high enough to get prime interest rates or perhaps qualify for a loan altogether, they may offer a secured loan option instead. If you are willing to put your vehicle or home up as collateral, you may be able to qualify for better rates with a title loan, mortgage or home equity loan. However, these are secured personal loans, which means you could lose your property, if for some reason you are unable to make the payments.

Check Your Credit Score

Avoid applying for loans you know you don’t qualify for, just to “try your luck.” Every time you apply for credit, it gets reported on your credit report and your credit score takes a small hit. If an application is rejected, the damage is even greater because you may have to report that rejected application in future attempts to obtain credit, which could set off all kinds of alarm bells the next time a loan officer looks at your credit application.

Request your credit report for free at least once a year and make sure there are no false or inaccurate statements on it. You should also request your free credit score from a reputable online credit reporting company. Once you have armed yourself with this information, ask your lender what guidelines they follow when assessing loan applications before you apply.

Improve Your Credit Score

Your credit score is not set in stone. Take steps to improve your credit score before you apply for a personal loan. This is particularly important if your credit score is close to the next classification bracket.

Excellent Credit 760+

Good Credit 700+

Fair Credit 640+

If your credit score is 770, your score is already excellent and increasing it to 780 will not help much. On the other hand, if your credit score is at 680, pushing it over the 700 mark could increase your chances of getting approved and save you a lot of money when you qualify for lower interest rates.

You can improve your credit score by always making sure you pay your bills on time and reducing your debt-to available credit ratio. If you have a late payment or some other negative item on your credit history, waiting for six months and making sure you’re not late on any other payments will help. If you have an ongoing relationship with the lender that reported the negative item, try writing them a nice letter requesting that they remove the negative item.

Find The Right Lender For Your Credit Score

If your credit score is below 700, expect to be turned down by most major banks. Those that don’t turn you away will surely demand higher interest rates. If your credit score is below 640, your chances of getting approved for a personal loan will be slim to none with conventional lenders.

Even if your credit score limits your options to the types of lenders that specialize in high-risk borrowers, you should still be selective about who you do business with. Avoid short term payday lenders at all cost. The loans they offer have ridiculously high fees and are designed to push you into a cycle of repeatedly renewing loans, which will usually push your APR to over 400%, and sometimes even higher.

Look for an online lender that specializes in low-credit borrowers. Many lenders are not legally required to report payments to the credit agencies, but if you find one that will, this is an excellent way to improve your credit score.

Only Consider Reputable Online Lenders

Shopping for a personal loan online is smart. You save time and money otherwise wasted running around between brick-and-mortar lending institutions. Additionally, since online lenders have lower operating costs, you may also benefit from the lower rates they are able to offer.

However, there are plenty of shady online lenders who guarantee loan approval but are nothing more than advance fee loan scams. Make sure your online lender is a state-licensed financial institution that has no past or pending lawsuits, and check with the Better Business Bureau to view their profile and see how they are rated.

Pay Attention to Your Debt-to-Income Ratio

Apply for as little money as possible, and be sure not to under or over-report your income. Loan officers may overlook a borderline credit score or a couple of credit indiscretions, if your income is high when compared to the amount you wish to borrow. Unless otherwise specified, provide your pre-tax earnings and make sure you include all sources of income. When the lender’s guidelines allow it, include your spouse’s income as well.

Having said that, it is important not to fall into the habit of inflating your income or lying on a loan application. If a lender does not require documents to prove your income level, it can be tempting to get a little too creative. Make sure you can justify and provide evidence of any claim you make about your income. If you lie about your income you could face criminal charges, particularly if you are unable to make payments on the loan that you obtained while being less than honest..

Best Student Loans

Sadly, you are already knee deep in the ocean called by many as the ocean of college debt. Since you are already drowning in the ocean of your debts, your great fear is that not even the best student loans can help you. Actually, you have the right to fear this but you may also find out that you are just worrying over nothing since if you look at the right places, you may still be saved. You see, there are a lot of ways which are specifically designed to help you get the best loan.

The best student loans will not come knocking on your door because they heard that you are having sleepless nights because of your debts. Though it may be frightening, the first way which can get you nearer towards the best loan is to take action. The goal of most lenders is to entice you to work with them. Since they are hoping that you will work with them, they will be very accommodating so they will provide you with the list of possible loans.

student financeAside from that, they will also convince you by giving you an idea about the advantages which you can gain if you work with them. If you have already chosen a lender, you have to contact him or her. In case you are facing a family emergency, there are lenders who will lower the amount so you can manage to pay it. There are even some instances when the lender will extend your payment period. How can you make your lenders lower the amount or extend your payment period? The keys to that are the virtues of honesty and politeness.

Do not lie about your situation. Be straightforward to them and admit why you cannot possibly pay the amount. Though being honest about your current situation may be a very embarrassing experience for you, you have to do it if that student loan is badly needed. You also have to examine your options. You may consider enrolling in programs which are intended to lend a helping hand so that you will be able to support your studies.

Sometimes all that it takes is a positive attitude or outlook so that one can get the best student loans. Aside from being optimistic, you also have to be equipped with the necessary information. Be wary of the loans which are offered to you. Some of the lenders promise to grant you this kind of loan and because you did not really research about the loan, you ended up with the realization that the said loan is not actually what you will call as the best.

When you search online, you will probably stumble upon the scam sites and loan agencies which charge very expensive rates. Another way to ensure that you are getting the best loan is to research about the agency. Make a list of the other alternatives which you may try. Also, one way to get the best loan is by telling and convincing yourself that you are doing this, searching for the best loan because you really want to study and you want to see a better you in the future.