Business

How Purchasing Tradelines May Improve Your Financial Situation

Author ByCFI.co Blogger
Credit Cards
Picture: Stevepb

It may shock you to learn just how much your past financial mistakes can impact your future purchasing decisions. Even a late or non-payment could end up costing you several thousand dollars due to lending institutions and banks seeing you as a high-risk borrower.

While you can’t turn back the clock, you may be able to improve your financial situation in a straightforward way – by purchasing seasoned tradelines. The following information may enlighten you as to how.

Wider Job Prospects

Surprisingly, authorized user tradelines might be able to make you a more desirable employee on paper for businesses looking to hire you. Many companies look at the payment history and credit reports of people they are considering hiring.

While your non-payment on a TV doesn’t make you a bad person, employers can see it as a reflection of how responsible you are. Improving your credit score with AU tradelines may make a difference to your job prospects in the future.

More Loan and Credit Card Options

Some people fear applying for loans and credit cards because they believe their poor credit history will have them turned down. If you do apply, your credit score may even mean you’re not eligible for some of the more competitive interest rates that may be available.

With a seasoned tradeline of a suitable age and credit limit, that may change. A tradeline may be able to boost your credit score and make you eligible for better interest rates that make everyday living more affordable.

Better Mortgage Options

Even if you’ve done everything in your power to reduce debt to improve your chances of mortgage approval, your credit score may still work against you. Many lenders see a low credit score and associate it with poor money management. You may then be seen as a high-risk borrower and have to pay higher interest rates as a result.

In many situations, purchasing a tradeline can assist with broadening your mortgage options. The higher your score, the more lenders may be lining up to offer you competitive mortgage lending rates.

Pay Less on Vehicle Insurance

Vehicle insurance companies have made an unusual discovery. People with lower credit scores may file more claims. As they are in the business of making money, they often charge those people higher rates. You may be able to save money on your monthly payments by improving your credit score.

Improved Rental Possibilities

Finding the perfect property to rent for your family can be challenging with the best credit score. However, it’s often even more so with a patchy financial history.

Many landlords and property managers screen tenants and view their credit scores to determine how safe or risky they are as a tenant. Even if you’ve only had one blemish on your record, it can be all it takes for a property investor to decide to choose someone else.

At least 90 days before you start your search for a new rental property, consider purchasing an authorized user tradeline. By the time prospective landlords start running checks on you, your credit score may already be improved.

There are plenty of ways to improve your financial situation, such as getting a higher-paying job and cutting your costs. However, in the long-term, purchasing tradelines may also be among the best. If you’re in any of these situations above, it may be worth looking at your options.

Finance

What You Need To Know About Letters Of Administration

Author ByCFI.co Blogger

Dying is not only the process of one person leaving this earth. What they leave behind has to be administered by the ones living, so the legacy of the deceased is safe after their death. The “Letters of Administration” are there for the same cause. Their presence ensures that if a person has died without leaving a will, their property is handed over to the right person. Any person is given the “Letters of Administration” will be allowed to manage the deceased person’s estate. Keep reading to find more about Letters of Administration.

Who Can Apply

A person’s spouse or their closest living relative can apply for the Letters of Administration. However, as the law is lenient regarding who can inherit and manage the deceased person’s “Estate,” almost anyone can apply for the Letters of Administration. But a court will always favor the spouse or living relative of the deceased person. Court also verifies that the person they entrust with the estate is a law-abiding citizen. However, as per the law, no foreigner can apply for the Letters of Administration. You can also find more about letters of administration at State Trustees.

Difference From Probate

Probate is only made when a deceased person named someone in their Will. Probate is an application that the executor files. However, the Letters of Administration are only requested by people when the deceased person has named no one in their Will. The Letters of Administration would give the complete authority to the receiver in the same way if they were named in the Will.

The Meaning Of Intestate

Intestate is the word used to indicate the person who died without writing a Will. This word is also used for those who had written a Will before leaving this world, but their Will doesn’t dictate who will inherit their property. Another use of this word is for a person who died after signing a Will, but their Will doesn’t declare the authority for a specific piece of their property.

If A Will Is Discovered Later

There are various circumstances a Will doesn’t show in front of the court at first. The court decides on granting the estate to a person with the Letters of Administration. But a Will may be found out later, and the court may be notified of it. In such a case, the court will be entitled to revoke its decision to grant the Letters of Administration. They will reallocate the property to the person who the deceased person named in their Will. The person who was given the Letters of Administration will be revoked from access to the property.

The Application Process

Applying for the Letters of Administration is difficult, but conditions can differ from person to person. The first step is thoroughly checking for a Will left by the deceased person. The court can verify that a no Will was found during the search. The next step is publishing a Notice of Intention on the website of the Supreme Court. You can then complete your application and file it to the court after 14 days have passed since you published the Notice of Intention. 

Economics

Middle-Income Trap

Author ByCFI.co Blogger

Otaviano Canuto, Senior fellow, Policy Center for the New South

The “middle-income trap” has become a broad designation trying to capture the many cases of developing countries that succeeded in evolving from low- to middle-levels of per capita income, but then appeared to stall, losing momentum along the route toward the higher income levels of advanced economies. We need to approach middle-income countries as being in a complex transition phase between accumulation and innovation-based economies. Individual middle-income country experiences of falling into a “trap” may be approached as cases of lack of or failing performance in footing the bill in terms of appropriate policies and institutions.

Economics

Otaviano Canuto on Commodity Price Cycles

Author ByCFI.co Blogger

Otaviano Canuto, Policy Center for the New South

Commodity prices go through extended periods during which prices are well above or below their long-term price trend. The upswing phase in super cycles results from a lag between unexpected, persistent, and upward trends in commodity demand, matched with a typically slow-moving supply. Eventually, as adequate supply becomes available and demand growth slows, the cycle enters a downswing phase.

The latest super-cycle of commodity prices, starting in the mid-90s, reaching a peak by the time of the global financial crisis, and getting to the bottom by 2015, can be seen as associated to the developments of globalization that we have already dealt with in this series. More recently, some analysts have spoken that we might be on the verge of a new cycle, super-cycle or not.

Banking

Central Banks and Climate Change

Author ByCFI.co Blogger

Otaviano Canuto, Policy Center for the New South

There are three major reasons for central banks to engage on climate change issues. The first is the set of – physical and transition – risks to financial stability potentially brought about by natural disasters and trends derived from climate change. Second, the potential impact of climate change shocks and trends on economic growth and inflation and, therefore, on their monetary policy decisions. Finally, the possibility of using their balance sheets and their macroprudential toolkit to favor climate mitigation.

Economics

Global Current Account Impalances

Author ByCFI.co Blogger

Otaviano Canuto, Policy Center for the New South

After peaking in 2007 at around 6% of world GDP, global current-account imbalances declined to 3% of world GDP in the last few years. But they have never left entirely the spotlight, albeit acquiring a different configuration from that which marked the trajectory prior to the global financial crisis (GFC).

This is not because they threaten global financial stability, but mainly because they reveal asymmetries in adjustment and post-GFC recovery between surplus and deficit economies, and because of the risk of sparking waves of trade protectionism. They also reveal the sub-par performance of the global economy in terms of foregone product and employment, i.e. a post-crisis global economic recovery below its potential.

Budgeting

The Benefits to Renting Commercial Real Estate

Author ByCFI.co Blogger

It’s not a big surprise that the real estate market is hot right now, especially in key business areas like California. This applies to both residential and commercial real estate. As we’ve seen, rental trades adjust with the times, but until the bubble bursts, you should consider your options for commercial real estate in your area available for rent.

The Benefits to Renting Commercial Real Estate

There are many shared working spaces that can be home to your business for a while until you grow enough to be able to purchase your own commercial real estate property. Here are a few reasons as to why it could be the best option for you and your business until that time comes.

Flexibility

The world is uncertain, so it’s really important to be flexible, which is one of the major pros of leasing a commercial property. Renting office space allows you to be flexible without having to make any major commitments. If you need more space, you can seek it out, but if you need to scale back it’s easy to do that as well. If most of your staff is now working remotely, you can still have a space for them to go if they want to have a quiet place to work. Renting commercial office space can be flexible in a financial capacity as well, allowing you to pay based on space and duration.

Financially friendly

Buying office real estate can be quite expensive these days, so in real estate, “boring” is good, as is stability. The option to rent office space allows you to still have a location in a prime spot without footing a major bill for it. Renting also minimizes your financial burden, since you don’t have to pay for the other costs associated with running an office. You can then use the money you’ve saved from these costs to invest in growing other parts of your business, or creating a savings goal for eventually purchasing an office space.

Professionalism

Having a physical location for your business is huge in terms of your reliability and professional appearance. At first, you might think renting will reflect poorly on your business, but it’s a strategic plan that can help ensure a brighter future. No matter the arrangement, having office space looks more professional than meeting clients or employees in loud public places for meetings. Having a fully functioning office is the best way for your employees to focus and to show your clients and customers that you are serious about what you do, both now and in the future.

The world of real estate is difficult to navigate, and while it can be an extremely difficult task to find space that fits your exact needs, there are companies like Jeff Tabor Group that make it simple to find the right place for you and your employees. With prime, spacious locations and affordable options, there are many different opportunities for you to build your business for a successful future.

Finance

Top 8 Factors to Consider When Selecting Financial Advisors

Author ByCFI.co

Need a hand with setting financial goals? If so, if you’re really not alone, especially since there are almost $90 trillion of international assets under management right now. Not sure how to find an expert with financial advising experience? To tell you the truth, finding the right professional to help you handle your finances requires knowing your options. Take a look at a few factors to consider when selecting financial advisors below!

1. The Suitability Standard 

If you’re looking for a financial advisor who will put your needs first, consider this. Financial advisory firms that meet the suitability standard address and disclose any “conflict of interest” they may have when representing you. On the bright side, most financial advisory firms will put this down in writing for future reference.

Besides this, it’s also essential to think about whether or not your firm is an RIA, or Registered Investment Advisor. That’s because they are held to a higher standard as well!

2. Upfront and Clear Fees

Let’s be honest. No one wants to work with a financial advisor who isn’t clear about their fees. That being said, figuring out the total cost of getting your portfolio together can be a difficult and confusing task.

On the other hand, finding a financial advisor you can trust means that they will be more than happy to break down all of their fees for you.

This can include everything from:

  • Hourly financial planning fees
  • Fees for managing your portfolio
  • Other hidden fees

Once you’ve made sure that all of your financial fees are as transparent as possible, you should be good to go.

3. Accurate Performance Reports 

Now that we’ve got that covered, it’s also essential that your financial advisor of choice provides accurate performance reports. That’s because user-friendly transaction and holdings reports are the keys to managing your portfolio successfully.

To get started, you must decide whether you like to receive your reports on a:

  • Monthly basis
  • Quarterly basis
  • Semi-annual basis

We highly recommend that the more you review your financial portfolio, the better!

4. A Simple Investment Process

When you’ve found the right financial advisor for you, the next step is to ask them what their process for investments is. For instance, they may let you know which investment vehicles are products that will work in your favour.

In addition to this, your financial advisor should also let you know whether not you need to make any changes to your existing investment portfolio. Besides this, they may also ask you about your primary contact information.

In exchange, we encourage you to ask your financial advisor about their professional credentials and experience as well.

5. An Independent Custodian 

Additionally, you should ask your financial advisor if they use independent custodians like:

  • Charles Schwab
  • Fidelity
  • TD Ameritrade

In case you didn’t know, independent custodians are great for providing additional asset reviews and records aside from your financial advisor. They’re also helpful in protecting your account from any fraudulent activity! 

6. Honest Offerings and Services

You should also clearly understand the level of service that your financial advisor will offer. For instance, email and ask them if financial planning is included in their initial package. Also, find out what kind of financial planning software they use and whether or not you will have access to it. Believe it or not, this can potentially make or break your deal as well.

To get the ball rolling, here are a few more questions that you should ask your financial advisor:

  • Do they schedule weekly, monthly, quarterly meetings?
  • How long will it take to hear back from them?
  • Do they provide investment offerings for beginners?

Once you learn more about the financial services that you are looking for, picking the best financial advisor for you should be a piece of cake.

7. Events and Education 

Another important thing to consider is whether your financial advisor provides any educational events. This is particularly helpful if you’re interested in learning and understanding your overall financial portfolio.

To get started, be sure to ask your financial advisory firm if they will take the time to answer any questions you may have during your regularly scheduled meetings. Also, you can ask them if they will continue to educate you on your financial portfolio as time goes on. Finally, covering complex topics such as asset management is vital to your success as well.

8. Life Transitions

Last but not least, do your best to choose a financial advisor who puts your life transitions as their top priority. This can include common event such as:

  • Getting married
  • Having children
  • Getting divorced
  • Losing loved ones

Ask your financial advisor if they have any experience dealing with customers who are going through difficult life changes. 

If so, what did they do to help them? As long as you feel comfortable opening up to your advisor, you should be in a good position to put your finances in their hands!

Why Hire a Financial Advisor?

Sometimes, going through a major life event is enough to make you want to rethink your personal finances. Typically, this type of event will include some sort of major gain or loss of money.

So that’s why it’s important to seek a financial advisor if you are:

  • Close to retirement age
  • Receiving an inheritance
  • Getting married soon
  • Going through a divorce
  • Lost a partner
  • Helping your parents with their finances
  • Unsure of how investing works
  • Looking for a “second opinion”

Now that we’ve got that covered, choose your advisor wisely!

Selecting Financial Advisors Is Simple 

Having a hard time finding the perfect financial advisor for you?

Here’s the thing: When it comes to selecting financial advisors, the process shouldn’t be complicated. Fortunately for you, we are here to help.

From comparing advisor fees to reading references and reviews, we’ve got everything you need to succeed. If you’re finally ready to talk to your advisor, don’t forget to read our handy guide first!

Looking for my financial and banking help?

If yes, don’t hesitate to read more of our blog right away.

Wealth Management

Make Smart Investing Choices With These UK Stock Market Tips

Author ByCFI.co

It’s been a tumultuous year for the UK stock market to say the least. Between Brexit and the Covid-19 pandemic, March led to some record-breaking highs and lows in the FTSE 100 due to global uncertainty. While some stock exchanges have recovered significantly, the UK stock exchange remains burdened. But it’s not all doom and gloom. There are still many ways to make smart and safe investments on the London stock exchange in 2021. We’ve put together our best stock market tips to help you know how to invest with confidence.

Knowledge is Power

We’ll start with a note for newcomers, although it could also serve as a reminder for the veterans of the exchange. Due to all the hype and chaos around the potential GME short squeeze, many new investors entered the market this year. 

This is great news that more people feel empowered to invest, but it’s so important that investors have the knowledge they need to invest well.

By this, we don’t mean knowing everything there is to know about each stock and where it will go. Nobody knows this and anyone who says they do is kidding themselves. What we mean is you need to understand the terminology and mechanics of the UK stock market. 

Know your terminology and particularly synonyms for all the different buzzwords. Know which companies pay dividends. Know your different market indices.

One of the most important things to understand and accept is that past performance does not guide future returns. While analysing previous share performance and market performance can give us great insight, that’s all. They don’t guarantee the future of the market or a certain stock.

The LSE Is Unique

The London Stock Exchange (LSE) is one of the largest stock exchanges in the world, with a market value of more than £2 trillion. It’s one of the oldest exchanges in the world and comes with unique benefits and risks.

We’ll start with the good news. Because of its age and stature, the LSE is a financial hub. It’s an advanced financial market.

This makes the securities market both very liquid and stable for investors. For those looking to exchange outside the New York Stock Exchange, the LSE is one of the best options.

It’s also home to some of the largest blue chip companies such as GlaxoSmithKline, Unilever and AstraZeneca. This comes with security, so investing in the LSE comes with less risk than other financial markets worldwide. 

It’s not all good news though. The political risks of Britain are unique. While the entire world has been affected by the Covid-19 pandemic, only the UK has the additional risk of Brexit.

Though we’ve left and absorbed the initial hit and consequences, economic uncertainty remains. Not least, as Scotland and N.I polls both continue to show voters wish to leave the UK and rejoin the EU. 

Politics aside, the UK economy is a service economy. This is common for developed countries and in good times can mean more stability. But in more volatile times, commodity prices and consumer credit changes can cause problems fast. 

Much like our first point, understanding the unique risks and benefits of the LSE allows you to make safer and smarter investments long-term. 

UK Stock Market Tips

This uncertainty sounds like bad news, but it isn’t that simple. For those who already invested and faced the market crash of 2020, it seems that for now, the storm is over. For those looking to invest, it’s a bargain.

Though the market has recovered a lot throughout 2020 and into the first quarter of 2021, share prices are low. Barring another global catastrophe, they’re unlikely to be this low again for a while. It’s an excellent opportunity to invest.

This is particularly true for industries worst hit by the pandemic. Share prices in the hospitality sector remain low despite government support. With the end in sight thanks to the vaccine rollout, as well as substantial support to get to the finish line, this could be a great investment as normality returns to the UK.

Stocks that have risen throughout the pandemic may also remain a good long-term investment as consumer habits change. Online businesses such as Ocado have enjoyed strong growth for obvious reasons throughout 2020.

But research suggests the new norm will remain in some aspects. 40% of UK consumers surveyed said they would continue to spend online post-pandemic.

While this is good news for online businesses, it adds additional uncertainty to an already suffering high street. This means staple stocks that were once a safe investment remain troubled into 2021.

The best investing tips we can offer are the ones that could apply to investing on any stock exchange: plan, diversify and remain calm.

Plan

Planning for the unknown can seem impossible because it is. By plan, we mean understand the risks and rewards and plan for uncertainty. 

You cannot control how your investments perform, it’s the nature of the game. But you can control how you prepare your investment portfolio to prepare for market changes.

Planning can help you understand how long you’re prepared to invest for, what your objectives are and how your assets are spread. In a volatile market, this can help keep you sane and know when to sell.

Diversify Your Portfolio

In other words, don’t put all your eggs in one basket.

It can be tempting when you read analysis after analysis about some definite market changes. But it’s never definite and as Reddit has proven, experts come in all shapes and sizes.

This isn’t to say don’t invest when the opportunity arises but spread your investments. Over the long-term, variety and patience almost always pays far more than short-term gains. 

Diversifying your portfolio should be part of your planning. Researching company operations, competition and the wider industry will help you create a smart portfolio that will perform well throughout market changes. 

Keep Calm and Carry On

If the last year has taught investors anything, it’s that nobody can predict the market. So remain calm.

The best investors know not to react rashly to emotion. If you spend your day keeping an eye on scoreboards it will lead to overreactions to short-term changes.

The ups and downs are all normal, so ride them out and focus on your own plans. Planning and diversification can help you avoid panic selling as you know your strategies and long-term goals.

More Financial Information

The best UK stock market tips are the age-old advice applicable for any stock market. Understand your market, plan well and diversify your portfolio. For further research, our blog offers great insight into the UK stock exchange, as well as global exchanges, so make sure to check it out.