UK energy crisis - gas and electricity
22-02-16 14:55
It has been brought to everybody’s attention over the last couple of weeks that energy prices in the UK will rise an astronomical amount starting from 1st April 2022.
From 1st April 2022, it is estimated that the average increase of energy prices for people on standard tariffs will be as much as 54%. This is estimated to affect 22 million households in the UK that are still on standard tariffs.
Why are the prices rising so much?
The Wholesale gas prices are 4 times greater than they were this time last year which has caused Ofgem to increase the price cap.
Ofgem is responsible for the price cap on the energy industry which limits how much they can charge consumers. The price cap is reviewed by Ofgem every 6 months. However, this can sound quite misleading, as there isn’t a “cap” that can be placed on how much consumers pay for gas and electricity, it is more so a cap on how much can be charged per unit of gas and electricity. The more you use, the more you will pay.#
Although the UK seems to have been hit quite harshly with rising prices, it is actually a global issue. Worldwide demand for energy supplies has increased immensely over the last few years due to several factors.
A cold winter in Europe in 2020/2021 meant that more people turned on their heating and so stored gas supplies were low.
The Sumer of 2020/2021 was relatively windless which resulted in less wind energy being generated, however, this form of energy isn’t as big of a source as others.
There has been a huge demand for liquefied natural gas supplied from Asia - mainly China.
The reason that the UK has been affected so drastically is that around 85% of UK homes use gas central heating and 1/3 of electricity is generated by gas.
When the wholesale gas prices began to rise last year, it was responsible for 29 energy suppliers going bust which affected around 2 million homes in the UK. These households were then moved to new suppliers which has higher tariffs.
What can I do to lessen the sting of rising energy prices?
There is support being put in place by the government to help people affected by the rising costs. Chancellor, Rishi Sunak announced that consumers can receive a £200 discount on their bill this year, but this will be paid back over time. The £200 discount will be paid back at £40 a year for 5 years starting from April 2023. Sunak also confirmed that there will be a £150 council tax rebate in April for households in council tax bands A to D. The more expensive the home is that you currently live in, the higher the band you are in however, around 80% of households are in bands A to D.
There are further measures to be put in place to help more vulnerable households from being so greatly affected by the rise in energy bills.
There are of course some improvements that you could make in your home such as having your home insulated and making sure that any cracks and places that draughts could get in are covered which would reduce the need to use central heating. You could also switch to energy-saving lightbulbs and ensure that lights and electrical appliances are properly switched off when not being used.
Editorial Disclaimer: This article was updated on 16.02.2022
Opinions expressed here are the author's alone, and not those of any bank, credit card issuer or any other company. This article has not been reviewed, approved, or otherwise endorsed by any of these organisations. NB: The information on this page does not constitute financial advice, please do your own research to ensure that the product/service is right for your individual circumstances.
Short-term loans with Tangerine
20-01-06 15:27
What is a short-term loan?
As the name suggests, a short-term loan is a type of credit that is to be taken out and repaid within a short period of time. Short term is usually seen as anything that is less than 12 months, but the loan term is dependent on the lender. Predominantly, short-term loans are taken out for a period between 3-6 months. If you are looking to borrow credit for longer than 12 months, then you should seek a more suitable loan option such as a personal loan.
How does a short-term loan work?
When applying with Tangerine for a Short-Term loan, we try and make it as simple as possible for you in finding you the most appropriate lender. Firstly, you will need to fill in our application form online. The application form will ask you to fill in your details and provide us with information on how much you would like to borrow and how long for. We will then check through our panel of lenders and provide you with an instant on screen decision of a lender who has agreed in principal to offer you a loan. The loan amount that they offer you, will be based on your needs and circumstances.
What can I use a short-term loan for?
A short-term loan is usually a credit option that is used by people who have found themselves with an unavoidable expense that they can’t perhaps pay for right there and then. A short-term loan doesn’t have to be used for anything; the use depends entirely on the person who takes out the credit. This could be anything from unexpected bills, a broken-down car that needs to be fixed, home improvements and repairs, or even debt consolidation.
How do I repay my short-term loan?
When applying for a loan, you will have provided details in your application for how long you wish to borrow for. You will then have been forwarded onto a lender who has agreed in principal to offer you a loan. You and the lender will then agree on the time period in which you are to repay the loan back. Your loan repayment will be in smaller more manageable instalments every month, rather than one lump sum.
Can you get a Short-Term Loan with less than perfect credit?
If you have a poor credit rating, lenders may still be willing to lend to you, but at a higher rate than was originally advertised. It is recommended that you check through your credit report before applying for any type of credit. There may be elements to your report that could hinder you from being successfully accepted for loans or credit cards, such as late payments, insolvencies or judgements. Credit Knowledge is a FREE* tool which you can use to understand and monitor your credit report and score and learn how to build and maintain your score,whilst also providing you with access to Discounts & Vouchers to save money across the high street, and the social reporting tool Knowso! Find out more here.
Choosing the right short-term loan for you?
There are many different lenders offering short term loans at a range of different rates, but it is important that you choose the right option for you. Here at Tangerine, we can help you find the most suitable lender that is willing to lend to you today.If you are still unsure, comparison site SupaCompare has a wide range of short-term loans for you to compare!
If you’re need a short-term loan, we could help! Click here to find the right loan for you.
Personal Loans
19-12-11 10:41
Life can throw unexpected things our way, and this could involve making a purchase that we are not prepared for. A personal loan can help with covering the cost of anything from a new washing machine to an unforeseen bill. A personal loan can aid you by covering this unexpected cost up front, leaving you able to pay it off monthly in more simple and manageable payments that you otherwise would have.
What Is A Personal Loan?
A personal loan is a type of credit that you can apply for that is for personal use, rather than business or commercial use. A personal loan can be either secured or unsecured. A secured personal loan is one which is secured against an asset of yours that is of value, for example your car or house. Furthermore, an unsecured personal loan is not secured against any assets, but the loan amount you are offered will be dependent on your income and personal circumstances. Generally, personal loans are unsecured, but you may be offered a secured personal loan if you have a poor credit score and credit history. This just provides the lender with some security and reassurance if you were to ever be unable to repay the loan but your asset, (e.g. car or home), may be repossessed if you don’t keep up your repayments.
If accepted, you will receive your personal loan in full, and then you will have arranged to pay it back with interest in instalments over an agreed period of time.
What Is A Personal Loan Used For?
A personal loan can be used for a multitude of reasons; whether this be a loan to purchase a new car, to pay some unexpected bills, to carry out some home improvements, or to pay for a wedding. The reasons for use of a personal loan are endless!
How Much can I Borrow With A Personal Loan?
As we mentioned before, a personal loan can be either secured or unsecured. Unsecured personal loans are usually for a smaller amount, generally under £25,000. A personal loan will generally need to be secured against your assets when the loan amount required exceeds £25,000.
What Are The Benefits Of Getting A Personal Loan?
Firstly, you will agree with your lender how much you are able to pay over a set period of time. This enables you to make smaller, more manageable repayments each month, and allows you to budget the rest of your finances. With a personal loan, you may be able to borrow more than you would with a credit card. If your credit card only has a small credit limit and you are looking to borrow more, a personal loan may be an option for you. Also, if you have multiple debts that you are paying off individually, a personal loan is an opportunity to group all of these repayments together into one lump sum. This enables you to pay one amount every month rather than several separate payments. If your loan agreement specified a fixed rate, then you can rest assured that you will be paying the same sum every month and the interest won’t vary.
Things To Consider Before Applying For A Personal Loan?
Firstly, you need to consider whether a personal loan is the right option for you and if the repayments are something that you can comfortably afford to pay each month. Also, you may be paying a higher interest rate than what is advertised. If you have a less than perfect credit score, lenders may still offer you a loan, but at a higher rate of interest than what their example originally stated. If you would like to check your credit score before you apply for a Personal Loan, Credit Knowledge offers a FREE trial in which you can see a thorough breakdown of your report. Find out more here.
Getting A Personal Loan With Tangerine
Here at Tangerine Loans, we can help you apply for a personal loan by using the information you have given to us, to provide you with an instant decision on which of the lenders on our panel has agreed in principal to offer you a loan.
For more information or if you wish to apply for a loan, please visit https://tangerineloans.com/
How to build your credit score
19-12-11 09:39
Why is your credit score important?
It is important for a number of reasons, but overall lenders combine your credit score with the information in your credit report to assess your risk as a borrower. Having a high score will boost your chances of receiving credit, but having a less than perfect score means lenders may question your ability to repay, or you could be denied credit altogether.
How can I improve my credit score?
Use a credit card little and often.
Using a credit card responsibly and keeping it active will help build your score. Spending small amounts and paying your bills on time each month, instantly makes you look more trustworthy to lenders.
Check for mistakes on your report and fix them.
Your score is tied to the information on your report. You may find that sometimes the information on your report might not be accurate. For example an account may appear as ‘open’ when it is ‘closed’, this will make your credit score lower. Please be advised to check your report regularly, to spot and fix any mistakes as they contribute to your score.
Pay your bills on time.
Struggling to pay your bills on time suggests to lenders that you have trouble managing your finances. To avoid this, set up direct debits so that the money exits your account on time.
Make sure you are not linked to another person on your report.
You may have a spouse, friend, family member who is linked to your credit report that could affect your own personal score.
Eliminate any outstanding debt you may have.
Before applying for credit, ideally you should try and pay off any high level existing debt. Lenders may be hesitant when borrowing you money if you are already in a lot of debt.
Check for any fraudulent activity on your report.
Although rare, it is important to always be aware if something is incorrect on your report; someone may have taken out credit in your name without your knowledge. In the unfortunate case that this happens, be sure to contact the credit reference agency immediately so they can update your file.
If you want to see your own detailed report, or would like to receive further information on how to improve it visit https://www.creditknowledge.co.uk.
#SupaTips -Credit Report
19-12-10 11:32
What is a credit report?
In simple terms, your credit report is a tool used by lenders to determine if you qualify for credit such as loans,mortgages or similar services. It helps to indicate what kind of borrower you are; if you would be a risk or if you’re likely to manage your repayments. Your credit report contains information such as your personal details, credit account history and public records. When applying for credit, you are giving lenders access to your credit report – this is a part of the application process they use to determine your eligibility. All lenders have different requirements and so they assess your score based on their own criteria. They will set a minimum that you need to reach in order to qualify for your desired amount of credit.
What is a credit score?
All the data on your report contributes to the calculation of your credit score, which is just a number that shows lenders your creditworthiness. Typically, credit scores range from 300 to 850 and the higher your score, the more likely you are to receive credit from lenders. Behind the number itself, there are some main factors that are considered during the decision-making process and therefore it’s important to know what affects your score so that you can stay in control of yours and even make improvements over time.
What is considered a good or average score?
There is no specific number that will guarantee you approval. Also, due to different lenders having different requirements – you could be refused by one company and accepted by another with exactly the same credit score. Also, different credit rating agencies calculate scores in different ways, giving different results.However, most companies view a ‘good’ score as being somewhere between 881 and 960. A ‘fair’ score could be 720 to 880.
How does my credit score affect my ability to receive credit?
Your score, along with the information in your credit report are key ingredients in determining if you are eligible for credit such as loans, credit cards and mortgages. Overall, higher scores reflect a better credit history, making you suitable to receive loans with lower interest rates.
Please note diagram is not an exact representation of the relative percentages of each factor and is not to be relied upon for decision-making.
So, what are the main factors affecting your credit score?
1. Hard Searches: Each time you apply for any form of credit, a hard search is carried out on your report. Although the occasional application won’t have much affect on your score, a large amount of applications in a short amount of time will most likely have a negative impact.
2. Soft Searches: These will give you an indication on which products are worth applying for and won’t affect your credit score,limiting your chances of disapproval.
3. Stability: It is important for lenders to see you as a stable and trustworthy borrower. The three main ways they check your reliability are how long you’ve lived at your address, the average age of your credit accounts and if you’re registered to vote.
4. Missing payments: Missing a payment is likely to leave a negative mark on your credit report. Most companies are aware that this sometimes happens, so it isn’t the end of the world. If, however, you miss enough payments to default on a debt, the penalties are a lot more serious and this information can remain on your report for up to six years.
5. Credit limit: Your credit utilisation has an affect on your score. For example,if you use too much of your total credit limit, it could damage your score. Lenders may also consider this when assessing your credit worthiness, it’s a good idea to keep it below 30%.
6. Public records (CCJs, IVAs and Bankruptcy): Having any court judgements/voluntary arrangements against you or having a bankruptcy in your past will cause this to appear on your report for around six years and lenders will automatically mark you as less creditworthy. If you are in this kind of situation, you should try to act in accordance with any restrictions you may be given, to avoid your circumstances getting any worse.
7. Mistakes on your report: Even the most minor mistake on your report can have a huge impact on whether you will be accepted for credit or not. Therefore, it is always good to double check for any typos or spelling mistakes. Also, check for any leftover details of previous addresses or accounts, especially those where you were linked to other people –your credit file may still have connections to them.
8. Increase your score with use of credit: It can be difficult starting if you aren’t currently using credit or if you have no credit history; lenders have limited information to assess you on. In this case, you should consider applying for a credit builder card, which will help you up your score over time.
How can I improve my credit score?
You can improve it in many ways over time and an most obvious way would be to build your credit history. If you have little or no credit, it’s much more difficult for lenders to assess you during the review process as they don’t have much to go off. This is most common in young people or people who are new to the country. For those people,using a credit builder card is always a good idea but only if they make the necessary repayments to the card issuer or else they will damage their credit score.
Another way you can better your score is by proving where you live, make sure you’re on the electoral roll -you can still do this if you live with your parents or in shared accommodation.
A great way to improve your credit score is to make payments reliably. Bills such as phone contracts, rent or any regular monthly payments should all be paid in full and on time, this will gradually up your score. Direct debits are a way many people ensure that they do this.
Lastly, keep your credit utilisation low. This is the percentage of credit you use, out of your total credit limit. For example, if you have £4,000 credit limit on a card and you have used £2,000 of that, your percentage is 50%. A lower percentage is usually seen positively by companies and as a result, will increase your score.
For further information on your credit report or for access to your own detailed report, please visit https://www.creditknowledge.co.uk/.
