How to Use Online Lending Services to Pay for Regular Bank Loans?

Banks and various other private lenders are constantly looking for new ways to make their products available to more people. This, along with the decreased requirements for certain types of financing such as personal loans, has determined many individuals to borrow considerable amounts of money. Although repaying the money would not be a problem under regular circumstances, the economic instability that the world is currently experiencing has left many without jobs or with reduced incomes. This has made it considerably more difficult for borrowers to repay their debt.

In these circumstances, most lenders offer clients the option to refinance their loans or to consolidate their debt. However, this is not always an option, especially for individuals who have also experienced a reduction of their credit score as a result of recent financial difficulties. This having been said, the money still needs to be repaid. While it may be difficult for most people to increase their earnings overnight, there are ways to find the money needed to keep making the monthly payments for your loans. Here is what you need to know:

Research the Online Platform Thoroughly

Using an online lending service to repay a bank loan is only a good idea if you are sure that the platform can be trusted. Before borrowing money through it, research the platform. Go to websites like TrustPilot and look at reviews from other users. If the reviews are mostly positive, go to the website of the service and read the terms and conditions, the privacy policy, and all other documentation that might apply to you as a borrower. You will have to look for information on any hidden charges that you might encounter over time. If there are none, then the platform is safe to use.

Make Sure That Using the Lending Service Won’t Lower Your Credit Score

Next, look for information on whether or not the platform reports its activity to any of the major credit reference agencies. If the service does report the loans, then repeatedly borrowing money from the platform may lower your credit rating. Ideally, you should find a website that does not report its activity or that does not report the types of loans that you need to get. This will ensure that you can use the platform without the transactions showing up as additional debt on your financial history.

Borrow Money Depending on Our Needs and Stick to a Single Type of Loan

Look at how much additional money you need each month and determine what type of loan you should get from the lending service. In some cases, you may only need a microloan that you can repay in 30 days. These do not usually require any sort of application form and can be accessed in a matter of minutes. However, if your current debt is more expensive, you may need to borrow more money. Most platforms also offer small personal loans (up to £1000), that can be repaid in 60 days and have a relatively low interest rate.

Regardless of which one you choose, try to stick to it. Getting the same type of loan every time will enable you to always know what to expect in terms of charges and it will keep your debt expenses consistent from one month to another.

Be Realistic in Your Expectations

It is important to keep in mind that you are unlikely to be able to get a loan that is large enough to cover your entire debt. Online lending services are designed around the concept of microloans, which means that they are great if you are £300-£500 short when having to make a monthly payment from your loans. However, there is a big probability that any larger loan that the platform offers will also come with a very large interest rate so it is best to avoid them altogether. Instead, try to budget your income to the best of your ability and supplement it with the financing from these platforms.

Online Lending

Are Online Lending Services Better to Use During the Covid-19 Pandemic?

The ongoing Covid-19 pandemic has had a considerable impact on banks and many traditional private lenders. Everything from the availability of new loans to interest rates was affected. This has made their services inaccessible to individuals with low credit ratings, however, it has also rendered them unappealing so many potential borrowers. The financial uncertainty that the whole world is experiencing has made many to avoid borrowing money from banks under the fear of not being able to repay the debt. However, while the pandemic has had a considerable impact on traditional lenders, it seems that online-based lending companies and services have been largely unaffected.

This having been said, many are currently looking to determine if online lending services are, at least for the time being, more stable than banks and other traditional lenders such as credit card companies. While it does appear that online-based lenders have more internal financial stability, the nature of their services does make it important to think twice before borrowing from them.

Banks Offer More Transparency than Online Lenders

Whether you need to get a secured loan, are looking to open a savings account, or simply need a payday loan, banks will always offer complete transparency. In other words, they will never include hidden or situational charges in their agreements. The costs of the financing will be established from the start and it will remain fixed, for the most part. The cost of variable interest rate loans may change over time, but no additional charges will be introduced other than the ones present in the agreement.

On the other hand, some online lending services do not offer the same amount of transparency and may try to hide various charges from the borrower. This makes it important to read the user agreement of the platform that you intend to use, the loan agreement, as well as any other client-related documentation that is present on the lenders’ website. Generally speaking, a quick Google search should show whether or not an online lender is to be trusted or not.

Online Lending Services Move Faster than Traditional Lenders

Banks tend to move slowly when it comes to evaluating loan requests, especially during times of economic instability. This is because they need to perform credit rating checks, evaluate short-term and long-term risks, and also look at the borrower’s entire financial file. Overall, this can take up to a month which may be problematic for individuals who urgently need money. Online lending services, on the other hand, can take as little as 24 hours to evaluate a loan request and also transfer the money to the client. Furthermore, most of them do not perform credit rating checks, which mean that more individuals will have access to loans.

Please keep in mind that there is a chance that taking out a loan from an online company and repaying it on time may not contribute to your credit rating as some lenders do not report their transactions to any of the main credit reference agencies in the country.

Not Everyone Needs to Borrow Large Amounts of Money

Banks are often focused on large loans that have values of at least £4000-£5000.However, online lending platforms are designed to help individuals access microloans. They cater to borrowers who need small amounts of money as quickly as possible. In many ways, it is possible to use these services as substitutes to credit cards, with the added advantage that borrowing money from them weekly will not harm an individual’s credit rating.

Deciding between borrowing from a bank or an online service during the pandemic is mostly a matter of determining how much money you need. Online lending companies are great when it comes to small loans (usually up to £2000), however, if you need a large personal loan you will probably be better off going to a bank. Even with the added economic instability caused by the pandemic, banks may offer borrowers government-secured loans or other deals that are unavailable through online platforms.


What Are Private Pensions and Are They Better than Government Ones?


State pensions are, for many individuals, the best insurance for the later years of their lives. However, these deposits are often subjected to how the economy of the country changes and can be affected by economic depressions or other major events. The recent Covid-19 pandemic is such an event. As a result, much of the country’s financial resources were diverted to resolving the crisis, leaving many unsure of how their pensions will be paid.

This having been said, the state is not the only one that enables individuals to contribute to their pensions. There are currently several trusted lenders and companies that offer private pensions. These have been around for many years, they operate in several countries around the globe and it is unlikely that a financial depression will ever render them unable to pay the pensions. However, the agreements that these companies offer are slightly different than the ones from the government, which can make it difficult to determine which one is better.

Two Types of Private Pensions to Consider

There are two types of private pensions that individuals can access. These are:

  • Defined Contribution Pension Schemes

These are defined by how much money an individual contributes to the pension fund. They can be arranged by the employer (and are a part of the employment agreement), or by yourself. With this scheme, the money contributed to the fund is invested by the private pension provider. Depending on how the investments perform, the total value of the pension can increase or decrease. When it comes to this type of private pension, it is important to keep in mind that some providers put the money in high-risk/high-reward investments during the first half you’re your contribution period and then shift their focus to low-risk investments as you approach retirement.

With this scheme, you can take the money however you want, making it great for individuals who want a lot of financial flexibility during their retirement years.

  • Defined Benefit Pension Schemes

As the name implies, these have a fixed contribution (that is usually based on an individual’s salary) and is paid by the employer. The amount of money that is contributed is also affected by how long you’ve worked for the employer. These are also known as career average schemes and tend to be more restrictive than defined contribution ones. This is because individuals only receive a fixed amount of money each month. This amount is usually based on salary as well as for how long an individual has worked for his employers.

Private Pensions Bundled Up with Health Insurance

Defined contribution pension schemes may also come with private health insurance attached to them. This applies to both the years of contribution as well as those of retirements. Keep in mind that his option is only offered by some companies and is usually reserved for individuals who contribute a certain amount of money each year.

Private Companies Can Offer More Stability

Private pensions are very similar to savings accounts, with the exception that you cannot tap into the funds until you retire. They can be extremely useful for individuals who want to make sure that they will have financial stability and independence during the later part of their life. However, the biggest advantage is the fact that the companies that offer these pensions invest the money across multiple countries, which makes the pension largely independent of the national economic situation. While an economic depression would have an impact on your pension pot, it would be relatively easy for the providing company to recover.

Generally speaking, private pensions do tend to be better than government ones, but they are not fail proof. Still, they do offer more flexibility and stability than regular ones, especially for individuals who rarely change workplaces.

Cash Cards

What Are Cash Cards for Kids and How They Could Be Useful?


It is often difficult for parents to trust their children with regular debit or credit cards. This can be due to the fear of them losing the cards or using them all the time and spending too much money. However, there is another serious consequence that needs to be taken into consideration, namely the fact that children may cause the cardholder’s credit rating to drop. While some parents have found ways to limit how much their children can spend off of their credit cards, this is not an ideal solution.

This having been said, Starling has just released a new type of card that is designed specifically for children. Starling Kite, as it has been named, has been developed as a way to give children and teenagers financial freedom and to teach them how to responsibly handle their finances without allowing them to overspend. The debit card is easy to apply and set up and has an affordable monthly fee. 

Following the release of the Starling Kite, more and more lenders have started offering similar products. However, children’s cards are still a very new concept and most parents are unsure whether or not they should get one for their children.

Why Are Children’s Cards Better than Other Solutions?

When you give children access to your credit or debit cards, it is difficult to keep an eye on how they are spending the money. It is possible, but usually not in real-time. Furthermore, when children have access to large amounts of money they tend to spend as much as they want without worrying that it will run out. Children’s cards solve this issue and offer parents complete access to the account that they are attached to.

All products in this category come with apps that parents can use to track their children’s expenses; set spending limits for them and easily deposits more money if needed. This is done through smartphone apps that work for Android and Apple devices. However, one of the biggest advantages of children’s cards is the fact that parents can see where their children are spending money. Whether they are paying for digital products such as games, micro transactions, and subscriptions or are buying physical products from a store, parents will be notified of the expenses in real-time.

Building up Your Children’s Credit Rating

When a parent gets cards for his children, he also allows them to start building up their financial history. This will benefit them in the long run and make it easier to apply for student loans or to access various banking services once grow up. It is also important to mention the fact that these are debit cards, which means that it would be very difficult for children to damage their credit ratings while using them.

An Easy Way for Kids to Save Money for the Holidays

Children’s cards are powerful teaching tools. They give children the ability to keep an eye on how much money they save up and teach them to spend it responsibly. This is especially useful during the winter holidays when stores fill their shelves with toys. Having a debit card, your children will be able to make calculated purchases and also make it easier for you to budget your expenses. By depositing money in their accounts, over the year, it will be easier for parents to manage their expenses during the winter holidays.

Generally speaking, children’s cards are great products for parents and children alike. The ones that are currently available are extremely affordable; however, lenders are bound to come up with new features in the near future.

Payday Loans

What to Do If You Cannot Repay Your Debt during the Covid-19 Pandemic?

Lenders are constantly looking for new ways to make their products and services as attractive as possible. This has led a large number of individuals to borrow money that they used for anything from medical emergencies to home renovation projects and the purchase of electronics and vehicles. It is safe to say that most individuals have taken out loans and used credit cards quite often. This, however, may have left some with relatively large debts that need to be repaid. While this would not have been an issue under normal circumstances, the current Covid-19 pandemic has reduced the income of families from all over the world, making it considerably more difficult to manage the debt while also taking care of regular monthly expenses.

This situation may seem daunting, but it does not have to be so. Managing a lot of debt during the pandemic is more difficult than it would normally be, but it is not impossible. Here is what you should do:

Look for Help from the Government

All governments from around the world, including that of the UK, are offering financial help to individuals who have had their income reduced as a result of the pandemic. Most of this help can be accessed directly from the lender. However, if you have borrowed money from a private lender, you may have to go to gov.UK and look for what help program fits you best. Keep in mind that, in most cases, these programs will not effectively help you repay the money, but put the monthly repayments on hold or reduce the interest rate attached to your loans.

It is also worth mentioning that additional help may be available to individuals who are currently claiming income-related benefits and pension (with the exception of unemployment benefits).

Refinance Your Loans

All banks and a large number of private lenders offer borrowers the option to refinance their loans. This is great if you are having difficulties repaying your debt and would like to spread the payments over several more months. This having been said, please keep in mind that some banks may not allow you to refinance more than one loan at a time, making it important to first look at your debt and choose the most expensive one. Most borrowers will be able to have their loans refinanced in under one week, which makes it a great quick fix for those who cannot keep up with their expenses. However, make sure that the refinancing does not turn your fixed rate loan into a variable rate one or you could end up having to pay more than you bargained for.

Get a Debt Consolidation Loan

Debt consolidation loans can be extremely useful for individuals who are finding it difficult to manage multiple types of debt. These loans are offered by most banks and are usually large enough to repay at least one form of debt in full. If you have taken out one or more loans, have credit cards that need to be paid off, a mortgage, along with other forms of debt, getting a debt consolidation loan is the best course of action.

One of these loans should be enough to help you repay several types of debt, from personal loans to credit cards. However, take into consideration that a personal consolidation loan needs to be secured against the borrower’s property, usually his home. This means that that will be more paperwork involved in the loan application process as well as additional expenses. Generally speaking, a request for debt consolidation takes up to a month.