Many people dream of being able to quit the day job, open a laptop (or typewriter, if you’re old-school), and write a best-selling novel. But, to be honest, that’s a really tough ask. So, instead many aspiring novelists start writing short stories.

A recent 2023 survey revealed the average salary of a fiction author in the UK is just £7,000. Most people who are authors – even names you might recognise on the bookshelf – will have another job to supplement their income, or have a partner who can cover their expenses. However, with the rise of BookTok, Bookfluencers, and Bookstagram (yes, those are actual online things), and the massive success of huge books like the Fourth Wing series, being a reader is popular again. In fact, the printed book market grew in 2023 despite the same number of books being published!

However, writing a novel is a MASSIVE undertaking, and many of us don’t have the time to do it. It takes years of work before you can even think about finding a publisher or self-publishing it, and that means the return on your time investment is low. Short stories, on the other hand, can reap big rewards for less work.

In fact, there are competitions that pay out thousands of pounds to the best story!

To give you some help, here is our guide to making money writing short stories.

• Where do I begin with writing short stories?
• Places to sell your stories…
• How do I write a story that will bring in loads of money?
• Find peers to support you
• Tips from the professionals
• How much money can I make from my story-writing?

Where Do I Begin with Writing Short Stories?

Your first stop is to find out what opportunities are available.

Magazines are by far your best chance of finding a willing publisher for your short story. Places like Writers Online, the website for the largest UK writing publication, Writing Magazine, list competitions regularly.

Frankly, getting a book published has always been competitive, but submitting a short story to a print or online magazine is still one of the best entry points. You can make a career out of being a short story writer, or use your wins and accolades to build a writing CV and attract a literary agent for your novel.

If you’re hoping to make money at all from your stories, then fighting against the odds is something you’ll have to get used to – it’s one of the most competitive industries out there.

It’s for this reason that we should point out that you probably shouldn’t be writing short stories for the cash. Really, there are much easier ways to make money (just check out our make money section!) and if your heart isn’t in it, then it’s going to show in your writing.

You need to be passionate enough about writing that payment would be a nice bonus (rather than a necessity) to stand a chance of getting anywhere.

Places to Sell Your Stories…

Thankfully for those who do love writing, there are numerous magazines that accept submissions and run competitions.

Check out the Booktrust’s breakdown of magazines and this site for regular short story competitions.

Women’s magazines have a lot of short story opportunities. Magazines such as My Weekly, The People’s Friend, Woman’s Weekly, Prima, and Mslexia all accept submissions. If you’re a regular reader, then you’ll probably have a good idea of what they expect. The Moth magazine runs one of the biggest short story prizes each year, with a top prize of £3,000. Writing Magazine runs small contests each issue – some are open to anyone while others are for subscribers only, and the average prize is £200 with a Grand Prize contest once a year for £1,000.

Don’t worry if you don’t think the audience of women’s magazines will appreciate your fiction, as there are lots of other magazines that cater for plenty of genres.

Many on the list cater for a range of stories and others also specialise:

• Crimewave focuses on crime (you may have guessed!)
• and Albedo One focuses on sci-fi and horror.

It’s not a magazine, but the Bridport Prize is one of the most renowned and respected fiction competitions and runs each year with a top prize of £5,000!

You could also consider PenPee. Penpee.com is a platform like Netflix/Airbnb for readers and storytellers to read, write, and get paid for short stories.

Writers get paid for every qualified page of their stories read. With Penpee’s recent introduction of “Read and Rate”, storytellers want readers’ opinions and readers get paid when they write a review and rate stories they read at Penpee.com

How Do I Write a Good Short Story?

If you want to earn money for your stories, then you’re going to need to be a competent writer with a good understanding of narrative structure and characterisation.

• It can be hard getting an honest opinion, if you’re not sure how good you are at writing. Family and friends will almost certainly tell you you’re the next JK Rowling, so try and get impartial advice. Sign up to a writers’ forum and get feedback on your work.
• There are many good writers’ forums out there, but start by checking out writingforums.org or The Writer’s Digest forum.
• If you’re not good enough yet there’s a lot of information online that can provide a good foundation for improving your writing such as writersdigest.com and Creative Writing Now. You might also have some luck on forums like Reddit but it can be hit or miss.

There are also lots of useful videos on YouTube that can teach you how to write. If you have a bit of spare cash, the BBC Maestro and the Masterclass courses are led by household-name authors and writers with really interesting insights. Wait until they run offers, usually a few times a year – their January sales are usually the best time of year to nab a bargain. Or, if you’re one of those people who can never think of what to ask for as a birthday present, ask for a subscription!

If you’re really serious then you could take a writing course

…although you’ll probably have to pay for a good one. Still, if it’s a hobby and you can afford it, then why not?

Before you look at paid courses, learn the foundation skills with free courses. Udemy has some great basic classes, while the Open University has a useful course that’s free for anyone.

• There are many writing courses around and finding the right one for you will simply be a matter of searching for one that takes your fancy.
• Remember to research thoroughly before handing any money over. The Writers’ Academy is a good place to start because you can do online courses with top editors, bestselling authors and established tutors – although you will be looking at paying a few hundred pounds.
• For something a bit special, you could check out the Arvon residential creative writing courses. You get to surround yourself with beautiful countryside and get lost in your writing for a few days. It is open to people of all ages and of all ability, regardless of experience. As this is residential, there is a cost. However, the courses are supported by the Arts Council of England, and other donors,  so you can apply for a grant if you can’t afford the course. In some cases, all the course costs are covered and nine out of ten people get some grant support.

Find Peers to Support You

One thing any professional writer will tell you is to surround yourself with other writers. You probably have a local writing group near you – apps like NextDoor and Eventbrite are useful for finding events in your area.

If you prefer working online instead, Writers HQ and Jericho Writers are examples of online forums that build a support network of fellow writers. If you subscribe to writing magazines like MsLexia and Writing Magazine, they usually have an online forum to access, too. When you’re working in groups like this, remember it is as much about what you can give as what you can get. You’ll benefit the most from groups if you engage with them, voice your opinions, and try to help others as they try to help you.

Tips From Professionals

If you’re fairly confident that you can write, then there are things you can do to increase your chances of getting published and earn some cash.

• Write in a genre you’re comfortable with. If you usually write fantasy then you may struggle to write a romance story. Choose magazines to submit to that play to your strengths.
• But do compromise. While you should write for familiar genres, if you want to make money then you’re going to need to be flexible to appeal to a specific readership. Then, you can apply for more than one really niche magazine. Plus, there’ll be a lot of guidelines you need to follow, speaking of which…
• Stick to the guidelines. Make sure you follow the instructions provided by the site to the letter. Nothing will blow your chances of getting published faster than submitting a 4,000 word story for a competition that allows a maximum of 2,000 words. Some guidelines will specify what shouldn’t be in the story (e.g. explicit sex scenes), while others will go so far as to specify who the main character should be (for example, a women’s magazine may want a female character who their readers can relate to). Make sure you format correctly too. It is usually 12 point font with double-spacing on the lines, but check the entry terms for details.
• Do your research. Decide which magazine you’re going to submit to and read it regularly. See what sort of stories they usually publish and if there’s something similar between them, whether it be genre, tone or style, then you’d be wise to do the same (I know this might sound crushing to your creative and original mind but, as said above, you’ll need to compromise to make money. Save your genre defying masterpiece for when you’re a bit more established!). Make sure you have a good sense of the readership from the articles and adverts in the magazine, as they’re the people you need to be writing for!
• Don’t simultaneously submit. Your writing muscles are going to stay flexible with this: most competitions won’t let you submit a story if you’ve already submitted it elsewhere. Check the terms of entry to see if they allow ‘simultaneous submissions’ which means they will let you submit to other contests. However, if you place in one with that story, you need to withdraw from any contests you’ve entered it into unless they specifically allow previously published stories to be entered. This means it is better to submit single stories instead of one story to lots of contests. However, there is nothing stopping you from entering last year’s stories into different contests this year if they didn’t place! So after a year you can start cycling through the stories in your files to submit.

If you follow those steps then you’re increasing your chances of getting published.

How Much Money Can I Make Writing Short Stories?

Each magazine offers different rates for contests.

• Usually £500 or so for a short story would be the top end, while a few will go into the thousands. The bigger the prize, the more competition you’ll face.

When it comes to payment for short stories in magazines that are not contest based, the fee can vary wildly. A 2000-word story might net you £500 or more, while other magazines don’t pay at all.

Some magazines pay per word

• For example, Fiction Desk Magazine pays £25 per 1,000 words (as well as a £100 bonus for the best story in each magazine). While this might not sound like a huge amount, if you’re getting paid anything to write fiction, then you’re doing something right. You also receive two copies of the paperback anthology. Many prizes and magazines offering anthologies will offer copies as part of your fee.

The Writers and Artists Yearbook is any writer’s go-to book for information about which magazines take short stories (and, if you’re feeling non-fiction inclined, other articles) and will list how much the fee is. The website also lists regular writing contests alongside tons of writing advice, so it’s a great one-stop shop.

Competitions tend to offer greater amounts

• For example, the Galley Beggar Press Short Story Prize offers £2,500 for their top prize.
• A runner up gets £200 and longlisted authors receive £50 book vouchers and a subscription.

We’ve mentioned the other big contests, like the Bridport Prize, in this article too. Writing contests change all the time, so make sure you Google ‘writing contest [YEAR]’ to make sure you’re not missing out.

A note on fees

There are some free entry writing contests and they are ALWAYS worth entering. However, most contests will need an entry fee which can be anything from a couple of quid to around £20. You need to weigh up your chances of winning, the confidence you have in your work, and whether you can write off that cash if you don’t place in the contest, before paying. Make sure the competition has an established track record, too: anyone can set up a writing competition, so make sure the judges are high quality, the prizes are decent (or if low that they have a low entry fee), and there are testimonials from previous years if it has run before.

One of the good things about submitting to magazines is you very rarely have to give up the copyright, so you’re usually free to resell any published stories to magazines in other countries. Imagine how good it would feel making money from the same story multiple times!

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The post Make money writing short stories appeared first on MoneyMagpie.

If you’re struggling to make ends meet, it’s only natural to turn to friends and family members for help by asking to borrow money. In fact, one TikTok user has gone viral as she revealed she now shares a bank account – with a friend.

But is it ever wise to lend or borrow money in this way? We explore the benefits and (very serious) pitfalls of unofficial lending, as well as provide some tips on how you can make sure both you and your friend or family member is protected if something goes wrong.

Read on to find out more, or click on the links below to go straight to that section.

• How much do people lend?
• The advantages of lending and borrowing among friends and family
• The cons – and the con artists
• What about shared bank accounts with friends?
• The legalities – and resources that can help
• Other assistance that is available

How Much Do People Lend?

Lending money to friends and family is more common than you might think. A third of people in the UK are currently owed money by friends and family, according to research by Starling Bank.

The amount being lent out by friends and family is not small change, either – 35% have lent more than £500 according to the survey of 2,000 UK adults.

Nearly one in four (23%) are owed more than £1,000, 10% have handed over £5,000 or more, and 6% have lent upwards of £10,000.

The Advantages 

Broaching the subject of gifting or loaning money to family may be embarrassing, but according to a recent survey of 3,000 people by Hodge Bank, many people actually get a kick out of helping their friends and family with money, with 58% of over-75s saying they liked to lend their loved ones money.

Of course, you don’t have to be a financial wizard to work out why people might want to borrow money from the ‘Bank of Grandma and Grandad’ (or the ‘Bank of Bob from Work’, for example).

Clearly, your friends and family are a lot more likely to give you some help towards bills than a bank ever is. Getting a loan is a bureaucratic nightmare, and unless a bank is confident that it will easily recoup its money, it’s not going to lend you a penny.

This preference for wealthier clients by the big banks is why those who are struggling often have to turn to ‘pay day’ loans, or even loan sharks.

Of course, if you aren’t considered a risk by the banks, they’ll happily give you a loan at a far more-reasonable rate than a rapacious pay day loan provider. But the terms are still unlikely to be anywhere near as generous as you’d get from friends and family.

Exorbitant rates

According to MoneyNerd, the average interest rate on a personal loan taken out in October 2022 with a two-year repayment was 10.16%, although many lenders charge much more, with rates as high as 36% or above.

The amount you are charged will depend on a number of factors, including your personal credit score, and your collateral (i.e. the amount of money/property the bank could theoretically seize if you fail to keep up with installments).

For help working out how much money you could realistically hope to borrow through official channels, see here.

The Cons – and the Con Artists

Needless to say, lending or borrowing money from friends and relatives isn’t without risks – for both parties.

Most ‘lenders’ are not particularly wealthy, according to Starling Bank, whose study found that a third of people who have lent money to friends and family are low-earners (i.e. on an annual salary of less than £20,000), while only 11% are higher earners, on £70,000 plus.

Embarrassment and anxiety

What’s more, two thirds of lenders told the bank that they felt either too “awkward and embarrassed” or too “anxious” to ask for money back that they’re rightfully owed, while a third of respondents (32%) said they had to ask two or more times for the money to repaid.

As Starling Bank’s chief banking officer, Helen Bieton, pointed out: “Talking about money with friends and family can be awkward, but letting debts rack up can take a toll on relationships and our own financial wellbeing.”

She added that “nearly one in five (17%) started to resent their debtors and 11% avoided making plans with them in the future”.

“When they weren’t paid back as swiftly as they would have liked, more than a quarter of people in the UK (27%) got annoyed, 8% got angry or had an argument with the person who owes them [money], and 3% ended up in a physical fight.”

Difficulties saying “no”

Of course, the easiest way to avoid such potential disputes is to just say no. However, this is easier said than done.

In July, a study from the short-term lending service Moneyboat revealed that the average Briton loses over £500 a year due to this inability to assert themselves with friends and family.

As Elizabeth Richie, a psychotherapeutic counsellor at St Andrews Healthcare, explained: “Expectations from friends and family can blur the lines when we want to say no! This may include fear of being judged, fear of being selfish.”

Richie, who helped Moneyboat with the study, said that it is crucial to set boundaries and be mindful of the fact that “we cannot control other people’s responses to us”.

“The ability or inability to say no often stems from our childhood. We will struggle to say no when we are constantly seeking approval, we will find it easier to say no when we have experienced healthy attachments in early life and have acquired a healthy identity from our early caregivers.

“Ultimately being able to say no at the right time reduces stress levels, and gives you time to prioritise what is important for you and to be more discerning about your own needs and self-care without feeling bad.”

Could your friend be a loan shark?

There are, however, far greater risks involved with casual borrowing than just hurt feelings, as Jackie Spencer, the senior policy manager at the Money and Pensions Service, explained: “Another thing to be cautious about is borrowing money from someone you know casually, such as a colleague or a friend.

“It might seem like a good solution, but you should consider how much you really know them, as they might be a loan shark who lends money illegally and the loan could cost you more than you think.

“They target people who need to borrow money and can’t access it from legal sources and may resort to intimidation and even violence if you can’t keep up with repayments.”

To help prevent this, she stressed that any informal loan should be put in writing, and recommended people read this guide on how to spot a potential loan shark.

Other issues to consider

While it can be tempting to ask friends or relatives to lend you money, you need to think about not only whether you can afford to repay the loan but what might happen if you can’t.

People thinking of borrowing from friends and family really ought to draw up a budget using a resource like this, just like someone would do before approaching a bank for a loan.

“This will help you see how much money you have left for repayments and if you can actually afford it,” said Spencer.

“You should also consider the risk that this could harm or even end the relationship if the money is not repaid. It’s stressful enough if you can’t afford to pay back what you owe, but it can be even worse when you’re leaving a loved one out of pocket.

“If you’re not sure whether you should borrow from a friend or family member, there are other credit options – even if you have a poor credit rating and if you’re struggling with debts, there is help available through our MoneyHelper service.”

What to do if you are approached for a loan you can’t afford

It can be hard to refuse when a friend, partner or family member asks for financial help, but you should consider whether you can cope with the impact of not having the loan repaid. Take the time to work out your own budget before lending to anyone.

If your money is currently in savings, you’ll need to bear in mind that removing a large chunk of this will affect the interest you make each month.

What About Shared Bank Accounts with Friends?

As the cost of living hits us all, more and more people are considering setting up shared bank accounts with friends. Much like in a couple, they pay in part of their salary each month and use it to pay bills if they live together, or to save towards a shared goal like a holiday. So, instead of lending each other money back and forth (we’ve all asked for an extra tenner here and there from our best mate), their spending comes from the shared account.

A new viral trend on TikTok, shared bank accounts are being touted as a way to find accountability in your spending, as someone else can see everything you spend.

While sharing a bank account for housemates to pay bills together might be useful, it comes with big pitfalls. The funds aren’t protected – so anyone named on the account can take the whole lot at any time. In the example of TikTokker Caitlin above, she and her friend don’t always pay in equal amounts either, as sometimes one earns more than the other. This is the highest level of trust, because anyone in this situation could run off with the money they haven’t earned!

More than that, if your friend has a terrible credit score, or they put your joint account into debt, your credit rating will be ruined, too.

Joint savings accounts can work better and some banks recognise this. Monzo has a shared saving account that helps friends save together into one pot for a specific event like a holiday or hen do. However, the funds are still there for anyone to spend and your credit rating is now linked to the people named on the account.

If you want an accountability buddy to help control your spending in tight times, you could always set a weekly date to meet with your friend and go through your bank statements together. This will make sure you know someone else is going to look at your spending, helping you to curb impulse and unnecessary expenditure, without risking your funds being withdrawn by someone else.

The Legalities – and Resources That Can Help

If you are able to help a friend or relative in need, it’s still wise to take some legal precautions to safeguard both you and your loved one in case of unforeseen circumstances.

As Spencer from the Money and Pensions Service pointed out, it’s a good idea to put your agreement in writing so both parties were aware of exactly how much will repaid and when. “It’s also important to keep records of when repayments are made, so you both know how much is still outstanding.

“Having an agreement in place can protect you in unforeseen circumstances as well, such as if the borrower died with the debt unpaid as you’d need proof to claim from their estate.”

Legal templates

You can find lots of free template agreements online that both parties can sign and keep.

LawDepot has a very easy-to-follow, one-page form that should leave both sides in no doubts as to what was lent, and to whom. You can download it here.

Things to consider in any agreement 

The team at Hodge Bank has some great advice on things to consider before lending to friends and family. For instance, they suggest you should include details such as “a time frame for when the sum is expected to be paid back by, any interest (if applicable) and any consequences for missed payments – you may choose to set a fixed penalty or an interest charge for example.”

The bank also tells would-be lenders to consider things like collateral, adding: “If your friend or family member has anything of worth, this can be a good way to ensure your money will be returned to you.

“If your money was in savings prior to the loan, it may be a good idea to charge at least as much interest as it’d earn in savings to make sure that you don’t lose out. This will also ensure that the loan is seen as a loan and not a gift.”

Tax implications

Another issue many people overlook is the tax implication. If there’s interest being added to the repayment amount, you really ought to inform HMRC and fill out a self-assessment form as, depending on your income, the interest on any repayments may be liable for tax. Obviously, if you’re not charging interest, you won’t need to tell HMRC and, instead, just need to keep a detail of the loan and repayment amounts, in case you’re challenged about where the money came from.

Of course, it’s worth pointing out that many relatives (especially older ones) loan out money on the understanding that they probably won’t need it to be repaid.

It’s worth pointing out, however, that if the lender dies within seven years of giving the money away, the recipient may have to pay inheritance tax on it. For more information about inheritance tax, read our guide on estate planning.

What to do if there’s a dispute 

When lending to family and friends, there’s always the chance that they might not pay you back. If this happens, the first step is to talk to them and find out why this is. It may be due to something simple like a change in personal circumstances or other reasons beyond their control.

If the issue is due to a lack of funds, you should try to come to an agreement to amend the payment schedule or increase the length of the loan-period. If your friend or family member is being difficult and there’s a signed agreement in place, you can always seek legal action, if necessary.

For sums below £5,000, you have the option of taking the issue to a small claims court. For larger amounts, you may need to seek legal advice on how best to proceed.

Other help out there

If you or your loved ones are struggling financially, you really should try to reduce any debts and do everything you can to consolidate your finances before complicating the situation with yet more IOUs.

Charities like Christians Against Poverty give free help and advice to people struggling to keep their head above water financially – irrespective of their religion.

Its advisers should be able to help you cut your budget and get lenders off your back.

They work very closely with local Council Tax and Business Rates’ enforcement departments to create more-manageable payment plans for people who’ve fallen behind and are racking up court fees and penalty notices.

They also help arrange Individual Voluntary Arrangements, Protected Trust Deeds and Debt Relief Orders to clear any money you owe private businesses.

The charity has helped more than 20,000 become debt-free since 2010 alone, so they know what they’re doing.

You could also try Citizens Advice or Turn2us, who can not only provide some advice on clearing debts and dealing with angry lenders, but could also point you in the direction of benefits or other assistance you may not know you are eligible for.

More information

If you are struggling during the current cost-of-living crisis, you may find the following articles of use:

• 9 quick ways to organise your finances
• Mental health and money: How to stop debt overwhelming you

MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of lending or borrowing money should conduct their own due diligence. 

The post Is it wise to lend or borrow money from friends and family? appeared first on MoneyMagpie.

The General Election will be held on Thursday 4th July 2024. Many people don’t realise that elections are more than a chance to cast your vote — they are an opportunity to make money!

When you vote in any election, you’ll have noticed the poll clerks overseeing everything.

However, have you ever considered making a bit of extra cash as a poll clerk yourself? Can you make yourself free for the whole day?

If so, you can earn around £250 for a day’s work in a polling station. It’s a quick and easy money-making idea and ideal if you are retired or a student.

• Who Can Become a Poll Clerk?
• What’s Involved?
• How Much Can I Make?
• How Do I Apply?

Who Can Become a Poll Clerk?

Anyone is eligible to act as a poll clerk, providing they are over 18, literate and numerate and not have worked for a candidate standing in the current election. You must also have the right to work in the UK. There are some things you need to declare on your application form too, including whether you are a member of a political party, you’re an active campaigner in the elections, and if you’re a close relative of a current candidate. This may not go against your application chances, but it must be declared.

The only other requirement is that applicants must be on the electoral roll – if you’re not, you really should be. Not being on the electoral roll can damage your credit rating!

If you’re not on the electoral roll you can register to vote on the Government’s official website. You can also find your local Electoral Registration Office by clicking here. Alternatively, give your local authority a call. 

What’s Involved?

As a poll clerk, you are there to set-up the polling station and make sure correct procedure is followed throughout the day, including after voting closes.

Your duties include checking people are eligible to vote, checking and marking electoral numbers, stamping and issuing ballot papers, and, crucially, making certain that votes are cast in secret and put into the ballot box. For the first time ever, all in-person voting requires photographic ID at all polling stations in the UK for Parliamentary elections – so you’ll need to have a good eye for faces, because you’ll be checking voters’ IDs to confirm their identity.

You answer to the  Presiding Officer, who is the official in charge of a polling station.

It’s a long day, usually from early morning (usually 6am) till at least 11pm when the voting finishes.

You can also apply to help count the ballot papers in the evening, but be aware that this is, as you can probably imagine, pretty frantic work. You’ll need to be able to work well under pressure and also focus in busy environments.

For more information on the duties of a poll clerk, and the requirements to become one, look at the Handbook for Polling Station Staff here.

How Much Can I Make?

The amount you earn varies from council to council so it depends on where you apply.

You should be getting at least £150 for the day and councils who pay the most will offer £250 or more.

To find out how much your local council pays, simply visit their website and search ‘poll clerk’. For a list of local authorities in England and Wales, click here.

It’s also worth bearing in mind that if you have worked at a polling station on at least two other occasions, you can apply to become a Presiding Officer, which means more money! (For example, a Presiding Officer in Herefordshire makes over £350 while in Merton, London, it is £430. 

There are other roles available which may not require you to be available for the full day. Bristol Council has some great videos and leaflets describing the different job roles and expectations.

How Do I Apply?

Usually, poll clerks have worked for their local council, but this experience is not a prerequisite. Most councils and local authorities have information on how to become a poll clerk on their website. Either visit their website and search ‘poll clerk’, or simply Google ‘become a poll clerk’ followed by your town, city, or council. For a list of council websites, click here. 

Alternatively, you can call your local authority and ask for the Elections and Registration Office, or send them an email telling them that you’re interested. They’ll send you a form if they need clerks. Don’t leave it until a week before an election to apply because the positions will probably already be filled – it’s better to apply sooner rather than later.

Some local authorities recruit all year round so you can keep applying and be put on a waiting list for the next election.

If you are selected as a poll clerk you will attend a training/briefing session and then be sworn in the day before the election.

On Election Day, a Presiding Officer oversees the whole station and will supervise and instruct you.

Have you ever made money as a polling clerk? Do you have any other good money making ideas? Let us know in the comments section below – we love to hear from you!

The post Make money from the General Election – be a poll clerk appeared first on MoneyMagpie.

Loans are hard to get if your credit score isn’t perfect. Many of the best credit card deals that we mention are also not available to you if you don’t have the best credit record. But fear not! Even if you have a credit record that makes you want to weep, there are ways of cleaning it up over time.

• What affects your credit file?
• 10 easy ways to improve your credit record
• Should you pay to access your credit file?

What Affects Your Credit File?

• If you have been rejected for a credit application in recent weeks.
• Several applications for credit and loans at the same time make you look like you’re in a desperate financial situation.
• County Court Judgments (CCJs) against you.
• You’ve regularly been delayed with mortgage or loan payments.
• If you miss a payment on your phone or broadband bill, this is considered a big black mark.
• Your age affects your points score. Too young can be as bad as being too old.
• If you’re single it can be a problem – being married gives the impression that you’re stable and have a potential second income to rely on.
• Moving address every year or two. Financial companies like at least three years at the same address.
• If you are not on the electoral roll you can be rejected.

15 easy ways to improve your credit record

1. Make sure you are on the electoral roll

There are two electorial registers: public and private. You can opt out of the public register (and we usually suggest you do to avoid spam). You cannot opt out of the private register – this is what local councils use for elections etc. You can only be contacted from the private register for things of public interest, like a General Election.

Contact your local authority to request to be put on the electoral roll. If you’re already registered, it won’t hurt to have your information updated anyway!

2. Pay bills on time

Every missed payment knocks off points on your credit file.

If you cannot pay on time, contact the supplier, credit card provider, or bank as soon as possible to discuss what options are available to you. You may be able to change your repayment schedule, or make a minimum repayment instead.

3. Check your credit record for CCJs

Check your credit record through the credit reference agencies like Experian. Make a note of any unusual activity that you don’t recognise and contact the credit agencies to investigate.

Most importantly, check for County Court Judgements (CCJs). These can be issued and missed if you’ve recently moved house, for example, and didn’t receive the summons. It’s really detrimental to your score, so resolve this as soon as you can.

4. Check any resolved bankruptcies

If you’ve paid off your debts or have been discharged from your bankruptcy, check your record with Experian, TransUnion (formerly Call Credit), and Equifax. Settled or discharged debts can take up to four months to show on your record – if they aren’t listed after that time, contact the credit agencies and the lender.

5. Look at closed accounts as well as open ones

Any line of credit – even a mobile phone bill – that you’ve paid off should show as closed and settled on your credit record. If it’s not showing as settled – or worse, as a default – contact the lender or organisation immediately to sort it.

6. Work on building your credit history

Companies such as *Creditspring offer affordable ways to borrow and increase your credit score. Whilst rebuilding your credit score can seem complicated, Creditspring offer a set repayment plan (much like a subscription), with each repayment made on time increasing your score.

7. Let your rent improve your credit

Tenants can use Credit Ladder to prove they’re responsible to lenders. It’s a free service for tenants to use, too. You pay your monthly rent via Credit Ladder. They report each month to credit reference agencies that your rent – a large sum – has been repaid in full, on time. Over time, this rebuilds your score as a responsible borrower.

8. Use a credit improver

Similar to using your rent – an everyday expense – to rebuild your credit, you can use small savings to help, too. A credit improver service like Loqbox gives you a small loan.

You don’t get the cash, though! It’s locked into an account for you. Every month, you make agreed ‘repayments’ to this loan. At the end of it, the money you paid is released into a new bank account for you. It’s a great two-fer: you get to rebuild your credit score AND finish up with savings!

9. Stop at the first rejection

If you’re rejected for any type of credit or bank account, STOP! Research your credit record with each of the three credit reference agencies. Don’t just keep applying, assuming you made a mistake on the form. Multiple rejections in a short space of time can take YEARS to knock off your credit record – so avoid it at all costs!

10. Seek help for debt ASAP

If you’re already spiralling into debt, don’t apply for credit. Especially avoid things like payday loans – they’re expensive and look really bad to lenders looking at your credit record. Instead, take a deep breath and seek help.

Contact the National Debtline or Stepchange to talk through your finances and set up a repayment plan. You can also look up your local Community Money Advice centre for help, too. Jasmine is a patron of this financial education charity: they’ll help you manage your debts and finances and help you get back on track.

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The post 15 Easy Ways to Improve Your Credit Score appeared first on MoneyMagpie.

What is the Fund?

You Pay: We Pay Scheme

Money Advice Services

Energy Grants

The British Gas Energy Trust – For Anyone

What is the British Gas Fund?

British Gas allocated £140m to support households and small businesses with education about energy saving tactics, grants to help with energy debt, and their unique You Pay: We Pay scheme to help people avoid financial difficulty with energy bills.

Since 2021, the fund has already helped 21,000 customers with average grants of £2,000 to write off energy debts. It has also set up additional regional advice services, invested in more customer service representatives to reduce call times and improve communication with customers struggling to pay their energy bill, and set aside £15m to help small businesses like pubs and shops with rising costs.

You Pay: We Pay Scheme

This is a unique scheme as part of the £140m British Gas fund, not offered by any other energy supplier. It is designed to help you get out of or avoid energy debt if you’re struggling with your bills, by incentivising you to pay something towards your bills each month.

British Gas will then match what you pay towards your bills – so if you pay £100, so will they, meaning you’ll get a total of £200 paid towards your energy bill. This is a six-month scheme starting from June 2024, so that would mean £100 a month paid by customer over six months (£600 total) plus a further £600 matched by British Gas. This is a brilliant scheme designed particularly for households who have built up some debt on their account and are struggling to pay it off.

Eligible customers will be identified and contacted by British Gas, so you don’t need to do anything to apply.

Money Advice Services

As part of its commitment to improving financial outcomes for households of their customers, British Gas has also used some of the large fund to invest in financial education and money advice services across the UK.

These hubs are designed to give people control over their finances by providing free education about money management and energy saving tips to save on their fuel bill even if costs rise again. Some hubs are specifically run by British Gas, while others are within local Post Offices with advisors fully trained by the fund.

Energy Grants

Some customers struggling with energy debt will be able to access up to £250 credit grants towards their bills – which means they won’t need to pay it back. British Gas is identifying the customers suitable for this scheme, which uses £10million of the total fund money, so you don’t need to apply.

If you think you might need their help and haven’t had information from them, however, get in touch with them. The first step to preventing or sorting out energy debt is to talk to your energy supplier – and this will help them to know that you’re struggling to pay your bills. Many people will prioritise their energy bill over other costs, so it appears to their supplier that they aren’t in financial difficulty. Highlighting your difficulty with your energy supplier is the first step to finding out what schemes and grants you could be eligible to claim.

The British Gas Energy Trust – For Anyone

Even if you’re not a British Gas customer, you could get help from their independent charity, the British Gas Energy Trust. Families and individuals facing fuel poverty can apply to the Trust for financial support in the form of grant to money management tips and energy saving advice.

The Trust has been around a long time – in fact, this year is its 20th birthday. To celebrate twenty years of the charity, British Gas have donated an extra £20million to the charity – taking their total contribution to helping fight fuel poverty to over £200million in twenty years.

The post Could British Gas’ £140m Fund Help You? appeared first on MoneyMagpie.

Online freelance writing is a great way to earn additional or full-time income, and you don’t even need to leave your home to do it.

There are countless opportunities out there, you can work as little or as much as you want and you can make in excess of £100,000 a year if you develop a good marketing strategy and work hard. The first few years will be tough as you find your feet, but the flexibility of online freelance writing and the higher fees you can charge when you’re established make the work worthwhile.

Here’s everything you need to know to make money online freelance writing.

• What is Freelance Writing?
• What Are Freelancing Platforms?
• What Do You Need to Get Started?
• What Will It Cost Me?
• What Can I Earn?
• Portfolio
• Finding Jobs
• Staying Employed
• Long-Term Clients and Long Term Success
• Alternative Income Streams

What is Freelance Writing?

Simply put, a freelance writer is someone who writes for money but isn’t tied to a single organisation. A freelance writer offers their services to anyone who needs some writing done, and will often work for several companies at a time.

It’s often said that freelancers are their own boss and that no one dictates what they do. This is true, to an extent. But freelancers actually have many different bosses. And they need to meet deadlines and to work to specifications just like any other employee.

Online freelance writing jobs come in a variety of forms. The most common job is content writing. There are are over a billion websites out there and they all need content. A freelance writer is often the one tasked with creating that content.

Other jobs include:

• Novel Writing: Ghost-writing personal memoirs, fiction/non-fiction for publishers.
• Script Writing: Everything from TV pilots and film scripts, to commercials and animations.
• Marketing (also called copywriting): Press releases, brand stories, slogans.
• Academic Writing: Academic non-fiction, peer reviewed study write-ups, essays.
• Technical Writing: Instruction manuals, how-to guides.
• Legal Writing: Terms and Conditions, privacy policies, long-form contract writing.
• Editing/Proofreading: Correcting all of the above.
• Critiquing: Providing advice on personal projects (novels, short stories).
• Consulting: Providing guidance on publishing, writing, SEO and more.

What Are Freelancing Platforms?

When it comes to the concept of online freelance writing, it usually revolves around something known as a “freelancing platform”. This is a service that acts as a bridge between the client and the freelancer. These sites include those like Upwork, Guru and Freelancer, but not all should be judged equally as many are hard work for little reward (and some are downright scams).

You can use a freelancing platform to showcase your abilities like you would on a CV, and you can also use them to find jobs.

Clients post job availabilities, writers apply to these, and the clients interview them. All of this is done through the platform, including the interview itself. And when the writer is hired, the platform continues to act as an intermediary.

If the freelancer and client agree a fee of $100, then the client must pay that $100 upfront. The platform will then hold that money in an escrow account, sitting on it until the job is finished. Upon release, the platform takes a small percentage as their fee and the writer gets the rest.

Watch out for red flags, which include: sites that ask you to write articles in the hope of selling them (ie they only pay you if it sells); sites that require a monthly fee; platforms which have negative reviews on sites such as Glassdoor; very low fees for writers (such as those offering just a couple of dollars for a hundred words).

What Do You Need to Get Started?

There is very little you need to get started as an online writer (apart from talent!). Basically you need:

• Computer: You don’t need anything flash. If it connects to the internet, it’s good enough.
• Word Processor: Clients will usually expect to receive work in .doc or .docx form. However, most word processors can convert, so you don’t need MS Word. There are free alternatives out there, like Google Docs. If you’re sharing a Google Doc with a client, always paste your work into a new document when you send it – that way, the client can’t see your edits and writing process while you work.
• Planner: When the jobs roll in, it’s easy to lose track. So, make sure you stay organised. A wall planner and a paper planner are both useful – carry one with you and keep the wall planner above your workspace at home to quickly refer to for deadlines.
• Bank Account/PayPal: You will need a bank account for clients to pay you, or sometimes a PayPal account to receive payments. Stripe is a useful payment platform if you want to write for international clients, as it gives you an IBAN number to take (for example) US payments as if it’s a US bank, which helps keep transfer and conversion fees down.
• Zoom: Many clients will want to connect with you via Zoom to talk through projects.

You’re also going to need to sign up to online freelance writing job platforms like UpWork. This will take a bit of time, especially as you create your sample articles or upload previous work to show clients your portfolio, so make sure you leave plenty of time for this as it will be what makes a client choose you over someone else.

What Will It Cost Me?

Online freelance writing job platforms like UpWork will take a percentage fee. This might be the same percentage for whatever you’re paid (5% whether you’re paid £5 or £5000) or it can vary by price brackets so the more you earn, the less you give the platform overall.

These platforms aren’t the only way to find work, either. You could invest some money in placing strategic advertisements in trade magazines if you specialise in copywriting for a particular industry, for example. You could also benefit from attending local Chamber of Commerce business networking meetings (or similar – most towns and cities have several business-to-business events you can attend to meet business owners) so set aside some money for these, too.

What Can I Earn?

When you’re starting out, you will find your rates start around £25-30 an hour. With even six months’ experience, you can rapidly increase your rates. The most senior freelance copywriters earn up to £2,000 a day. It is easier to get to these kinds of rates if you already have specialist knowledge in a particular industry, and you target specific niche clients in this area. Specialising is the quickest way to earn more, as people will value your experience and knowledge in the field.

Despite online freelance writing being remote and worked from anywhere in the world, you will have an advantage to increasing your daily rates if you can sometimes travel to meet a client. People who live in London, for example, can charge a higher rate (because London) and visit offices for in-person meetings, which helps clients feel like they’re getting more value from you. If you don’t usually travel to meet a client but one requires you to, make sure you have a stipulation in your contract that they will pay for travel and accommodation expenses on top of your daily rate.

When setting your rates, it’s really important to build in time around your quote. If you think writing a 500-word blog will take you three hours, assume it will take four. This is because, sometimes, you might only take a couple of hours and sometimes it will take you six – so it needs to average out to include the time it takes you over a number of projects rather than a specific one. Building in spare time into a rate quote also covers time you’re not writing – such as back and forths with the client about the project brief, which is easy to forget also counts as work.

Creating Your Freelance Writing Portfolio

Your online portfolio is your CV – it is what will make clients choose you over others, particularly if you’re using an online freelance writing job platform. Use articles, pamphlets, instruction guides or whatever else you’ve written for businesses to date (without including any confidential business information). If you have never written for businesses before, you can write sample articles ‘in the style of’ as examples of how you can change your tone and writing type for each different client.

However, strangely, you will also need to make sure your online portfolio is visual. Photos that represent your work (such as screenshots) can sometimes be required to create a visual portfolio that then leads a client to request your samples to read.

Your portfolio needs to be visual. You’ll be prompted to upload documents and writing samples, but no one pays attention to these. In fact, if a client wants to read a sample they will expect you to send them one during the interview.

Also, see our article on how to make money writing short stories here

Staying Employed

Freelancing will open a lot of doors. It will introduce you to publishers, publicists, web-masters and business owners. If you stay connected to all of these, using social media to keep them close, then a simple job could lead to something massive.

Work will dry up on occasion, but the good thing is that this rarely happens once you have an established profile. Until you get to that point, here’s what you can do to keep the work coming:

• Ask: If a client promised more work that they didn’t deliver on, ask them about it. If a client who gave you a lot of work in the past suddenly stops messaging you, email them. It’s best to give them a friendly nudge in the form of a catch-up message, following it up with a simple, “If you need anything done, you know where to find me”. You’d be surprised at how often this works.
• Focus on one site: It seems counterintuitive, but if you focus on one online freelance writing platform you’ll have more work. The effort you put into a single platform shows, and this is what prospective clients want to see.
• Keep applying: It doesn’t matter how many projects you have right now, you should always find time to send more proposals, apply for more jobs and sit through more interviews. You might be busy now, but soon you’ll meet those deadlines and collect your money, and then you’ll realise you have nothing else to do. Build time into your weekly schedule to do marketing outreach, both keeping in touch with previous clients and also finding new ones.
• Lower Your Rates: If you’re struggling to find work, reduce your rates slightly to get the ball rolling again. It’s better for work at a reduced rate than not to work at all. You can always kick that project to the curb when a better one comes along (just make sure you finish it first).

Long-Term Clients and Long-Term Success

Not only will a good client continue to provide, but they’ll introduce you to other clients and open many doors.

Whether you work on an online freelance writing platform like Upwork, or you do all of the legwork yourself, keep the following in mind:

1. Always go out of your way for a client you respect. Never take liberties and apologise profusely if you make a mistake.
2. Always be prepared to strike a deal. Offer cheaper rates for bulk jobs in the hope they will increase your workload.
3. If you haven’t heard anything for a few weeks, send a message to enquire if they have anything available. In a competitive marketplace, freelancers can be forgotten.
4. Give them advice. You’re the expert here, so if you notice an area of their site that could be improved or added to, tell them. They’ll appreciate it and you’ll get more work.

Alternative Income Streams

The work isn’t always going to be there. It’s important to keep trying, because it’ll get easier. But there are also other ways you can make money.

So, if you have the time but you don’t have the jobs, and if you’ve done all you can in terms of applying and being interviewed, you can try some of the following:

• Search “write for us”: More and more web-masters are turning to online freelance writing platforms to source content, but there are still sites that wait for the content to come to them. These sites typically pay well, and if you Google the phrase “Write for us”, you shouldn’t have an issue finding them.
• Websites/Blogs: If you don’t know anything about SEO now, take your downtime to learn all about it. It will add an extra string to your online writing bow, and help you produce content that delivers trackable results for clients when you get them.
• Flipping Sites: Flippa is basically eBay for websites. You can buy and sell all kinds of blogs, high-profile domains and established online businesses. You can buy poor-quality sites, rewrite the content, do some more and sell them on. It’s just like Homes Under The Hammer—if you have the capital and you can cut costs by doing the work yourself, you’ll turn a profit.
• Contribute: Contributors to sites like Huff Post do not get paid. However, they are allowed to write what they want (within reason) which gives them an opportunity to embed links in their articles. There are countless clients on online freelance writing platforms seeking freelancers who can get a single link on Huff Post. If you’re a contributor to this site, you can get anywhere from $200 to $500 for that link, and you only need to write a short article in order to post it. Forbes pays even more and works in much the same way.

The post Online Freelance Writing: Make £100+ An Hour Writing for a Living appeared first on MoneyMagpie.

In the past few years there have been substantial changes to disability benefits and support available. Below is a helpful bank of information, where you can find out what you may be entitled to claim, the amounts you can receive and how to apply for each.

• • Working age – 18+
    • Employment and Support Allowance (ESA)
    • Personal Independence Payment (PIP)
    • Television Licence Discount
    • University Student
  • Retirement age – 65+
    • Attendance Allowance (AA)
    • Television Licence
  • Benefits for carers
  • Carer’s Allowance (CA)
  • Carer’s Assessment
    
  • Other sources of financial help
  • Council tax discount
  • Housing benefit
  • Disabled facilities grant
  • Blue badges
  • Motability
  • Water Sure
  • Warm Home Discount Scheme

Working Age 18+

Universal Credit Disability Allowances

Previously, Employment and Support Allowance was a separate benefit you could claim for short-term or long-term disability. With the national rollout of Universal Credit, most ESA claims now form part of a UC claim instead.

ESA is paid every two weeks instead of every four weeks for Universal Credit, and is not means-tested (which means it is not linked to your income). If you apply for ESA and Universal Credit, your ESA counts as income so your ESA payment will reduce your Universal Credit payment.

ESA counts towards your Class 1 National Insurance payments, which entitles you to other benefits. Universal Credit only counts as Class 3 NI, which means it only contributes credits towards your State Pension.

You might also be better suited to not claiming ESA and instead applying to be in the Low Capability for Work and Work Related Activity group on Universal Credit, if you have a long-term health condition that prevents you from working. This entitles you to more Universal Credit.

New applicants of UC can apply here: visit the government web page.

During your application you’ll need to provide the following information:

1. National Insurance number.
2. Medical certificate from your GP or doctor.
3. Your GP’s office address and telephone number.
4. A contact telephone number.
5. Up to date mortgage or landlord details if applicable.
6. A recent council tax bill.
7. Your last employer’s address and telephone number, with your start and end dates of employment.
8. Bank or building society account number and sort code.
9. Details of any other income you currently receive.
10. Details of your savings.

Once you have officially registered your claim, you’ll then be asked to complete a short claim form so that it can be properly assessed. You may also be invited to a face-to-face Work Capability Assessment.

The decision maker will then write to you to confirm if application is successful and, if so, whether you have been placed in the Work-Related Activity or Support Group. There is also an appeal process in place. This is if your application is rejected and you’d like to challenge that decision.

How much?

How much you receive will depend on your personal circumstances, such as your other income and how much you have in your savings.

There are different standard amounts depending on your age and whether you live with your partner. If you live with your partner, their income is considered in your claim and you must make a joint claim (even if your partner is not seeking benefits).

ESA Payments

For the first 13 weeks (the assessment period), you will receive either £70.70 a week if you are under 25 years old, or £90.50 if you’re over 25. This increases to £90.50 if you’re in a work-related activity group (which means you should be looking for suitable work), or £138.20 if you are in the support group (which means you don’t have to look for work). You can only take on permitted work for a limited number of hours each week.

Universal Credit Payments

Paid monthly, Universal Credit has different age and circumstance brackets.

Under 25 and single: £311.68 per month

Under 25 living with your partner: £489.23 for you both (if they are not low income, your amount may be reduced or you might be ineligible to claim)

Over 25 and single: £393.45 a month

Over 25 and living with your partner: £617.70

You might get additional housing allowances to help with rent, and extra allowances for having children.

Your disability element is on top of the figures above. If your Work Capability Assessment puts you in a group with Limited Work Related Activity, your amount is an extra £416.19 a month. So, let’s say you’re single, over 25, and it’s decided you don’t need to look for work due to your disability, the minimum you would receive each month is £809.64 before any housing or child allowances.

You are not limited for working while claiming Universal Credit and the disability allowance, but when you earn over a certain limit, you lose 45p for every £1 you receive from work.

Personal Independence Payment (PIP)

Personal Independent Payment replaces Disability Living Allowance (DLA) for all new applicants aged 16 to 64. PIP recognises that disabled people incur extra costs in their daily lives. This can influence how much you may recieve.

To make a new claim telephone 0800 917 2222.

You’ll need to provide the following details in order to make your claim:

1. Contact telephone number
2. Date of birth
3. National Insurance number
4. Bank or building society account number and sort code
5. Your GP’s name and contact details, plus those of any other doctor or health worker whose care you are under
6. If applicable, dates and addresses of any time you’ve spent in hospital, in a care home or abroad.

The DWP will then post a long ‘How your disability affects you’ form to fill in. The questions take the following into account: your mental health, learning disabilities and physical impairments. If you need help filling out the form, ask your carer, friend, or contact the Citizen’s Advice Bureau.

Once the DWP has received your form, an independent health professional may invite you to a face-to-face meeting, either at an assessment centre or your home. You’ll be asked about your ability to carry out daily activities and how your condition affects your life in general.

The representative will then write to you to inform you if you have been successful or not. They will also confirm the level of benefit you are entitled to receive. However, if you are rejected do not agree with the decision: you can enter the appeal process.

How much?

There are two parts to PIP: mobility rate and daily living. Qualifying for one does not automatically qualify you for the other. Both parts have a higher and lower rate, and which one you receive depends on your assessment outcome.

Mobility lower rate is £72.65 a week and higher rate is £108.55 a week.

Daily Living lower rate is £28.70 a week and higher rate is £75.75 a week.

Television Licence Discount

People in the UK who suffer from a visual impairment or blindness can apply for a 50% discount on their television licence. This usually costs £169.50 but with the discount it is £84.75.

Remember, this is for the whole household to benefit from. So if you live with someone who is blind and they are not aware of this, then they should consider applying.

If the licence holder is over 75 years old, regardless of whether they have a disability, and they receive Pension Credit, a TV Licence is free.

Full details are here.

This podcast explains the process in audio.

University Students

Disabled Students Allowance (DSA) is available for full and part-time students at undergraduate and postgraduate level. It’s designed to cover some of the additional costs that students who have mental health problems, long term illnesses and other disabilities may incur.

Examples include covering the cost of specialist equipment, and non-specialist equipment, non-medical helpers and travel costs. What it doesn’t cover is day-to-day costs every student has, such as groceries and rent.

The rate you receive will depend upon an assessment of your needs. Your university will have their own way of doing things, however it never hurts to inquire and find out for certain.

To apply:

• England apply via  Student Finance England
• Scotland apply via Student Awards Agency Scotland
• Wales apply via Student Finance Wales
• Northern Ireland apply via Student Finance Northern Ireland

If you are training for a medical degree such as nursing or as a GP, you can apply for NHS Disabled Student Allowance as an additional payment with your bursary.

Retirement Age 65 +

Attendance Allowance (AA)

Attendance Allowance is a benefit for people over the age of 65 which is intended for those who have from severe health problems. They may require someone to stop by regularly and help them with their daily tasks, helping to look after them in any way that may be beneficial. However, you do not need to be using or employing a carer to apply.

There are two rates, lower and higher, depending on the level of help needed. AA is not means tested.

To claim telephone 0800 731 0122.

How much?

For the 2024/25 tax year the weekly rates are:

• Lower rate: £72.65
• Higher rate: £108.55

And you may also be able to receive other benefits such as Pension Credit and Housing Benefit to help further.

Benefits for Carers

Carer’s Allowance (CA)

People over 16 living in England, Wales or Scotland who care for someone for at least 35 hours a week may be eligible for Carer’s Allowance. This is if the person they care for also receives:

• A daily living component of PIP
• The middle or highest care rate of DLA
• Attendance Allowance.

To claim, fill in the online form. You’ll need the date of birth, name and address, national insurance number (if they’re over 16) and DLA reference number (if they’re under 16) of the person you’re caring for.

You’ll also need your own NI number, bank or building society account number and sort code, P45 or current employment details.

In Northern Ireland the rules are slightly different.

If you are not eligible for CA, then you may be entitled to Carer’s Credit instead. This is a national insurance credit for those caring for someone for at least 20 hours per week. For information, read here.

How much?

For the 2024/25 tax year the weekly rate for Carer’s Allowance is £81.90.

Carer’s Assessment

It’s important that the needs of the carer are not overlooked. After all, they need to be fit and healthy in order to function effectively as a carer. Carers are entitled to a free Carer’s Assessment from their local authority.

This assessment will review your situation and ascertain what practical support you may be entitled to. It’s important that you are honest about the impact that your role as a carer has on your life, health and ability to work.

To arrange a carer’s assessment, contact your local council’s adult social services department. Carer’s UK has useful factsheet on how the process differs in England, Scotland, Wales and Northern Ireland.

Other Sources of Financial Help

Council Tax Discount

If you have a disability, your local council will tell you if you are eligible for a council tax discount. People who are severely mentally impaired; who have a live-in carer who isn’t their partner, spouse or child, aren’t included when working out a council tax payment.

Those who live in a larger property because to their disability needs, and require the extra space for use of a wheelchair or an extra bathroom/kitchen, may also be eligible for a discount.

You are responsible for applying to your council for the discount. To find your local council’s website type in your postcode on this Government web page.

Housing Benefit

People who are on a low income can apply for Housing Benefit to help with their housing costs. Couples of working age living in social housing who cannot share a bedroom for health reasons, and disabled people who require an extra bedroom for overnight care, may not have to pay the spare room subsidy. This is commonly known as the bedroom tax.

To see if you’re eligible and to apply go here.

Disabled Facilities Grants

Local councils can grant money for disabled people who need make changes in their home. This can help to make their living arrangements easier for them. Services such as widening doors for wheelchair access, installing a stair lift and ramps are all things that are included.

Contact your local council for eligibility information and how to apply.

Blue Badges

Blue parking badges are available for qualifying disabled people. They allow holders to park in marked disabled spaces without charge (or at a reduced fee) in most pay-and-display car parks. They also allow holders to park on single and double yellow lines for up to three hours, so you can park closer to a venue (but you can’t block traffic or cause a danger with your choice of parking position). The badge is for you and the car you’re travelling in – so it can be used for any car instead of being registered to a single one. You can’t give your badge to anybody else, the exception being if they are coming to pick you up or drop you off at the location.

Historically, only people with difficulty walking have been eligible for a blue badges. However, the government recently extended this to people with mental health conditions too. Conditions such as dementia and autism may also be covered.

England, Wales, Scotland, and Northern Ireland have different ways to apply. See here.

Motability

Disabled people who receive the highest level of PIP’s mobility component are automatically entitled to apply to Motability. This is a scheme which enables customers to lease cars, scooters, powered wheelchairs and wheelchair accessible vehicles at a lower cost.

For further information and how to apply visit their site.

Water Sure

If you have a condition that requires a heavy use of water, such as a serious skin condition or extra laundry due to incontinence, you could apply to your water supplier through the Water Sure scheme for a discount. If you live with a large number of school age children, you could also be eligible even if your medical conditions don’t use extra water.

Find out more here.

Warm Home Discount

People on a low income or certain disability benefits qualify for the Warm Home Discount. This is an extra payment on your energy bill of £150 during winter, to make sure you can afford your heating and energy bills.

Each supplier has their own criteria; however all suppliers must accept certain people onto their scheme. Find out more about how to get the warm home discount here.

Sign Up – Newsletter

The post Disability Benefits: What You’re Entitled To appeared first on MoneyMagpie.

The Carer’s Leave Act

Who is Eligible for Carer’s Leave?

How Does Carer’s Leave Work?

Working Out Carer’s Leave Entitlement

How is Carer’s Leave Different to Emergency Leave?

Is Parental Leave Part of Carer’s Leave?

Other Benefits for Carers

The Carer’s Leave Act

Passed in 2023 but officially in force from 6th April 2024, the Carers Leave Act entitles anyone with a caring responsibility for a dependant to take unpaid leave for care duties. This might include taking them to hospital appointments or providing care cover for short care staffing, or visiting residential care to find somewhere for them to live longer term.

Some companies already have carers leave as part of their policies, which means you might be able to be paid for care-related duties. But, if your employer does not allow time off for care activities unless you use up your annual leave allowance, you’re now legally entitled to unpaid care leave that doesn’t take away from your paid holiday allowance.

Who is Eligible for Carer’s Leave?

The definition of eligibility is quite broad. The person you care for can be a partner, spouse, sibling, child, other relative, or unrelated to you. You might care for them many hours regularly each week or on an ad-hoc basis when you’re needed.

Carers leave is for any salaried employee – unfortunately, like other holiday allowances, self-employed and freelance workers don’t get the benefit (although, of course, if they take a day unpaid off work for care duties it’s just the same!).

It is important to note that, when applying for carer’s leave, you do not have to reveal the illness or disability of the dependent you care for to your employer – nor do you need to be a blood relative or spouse to be considered a carer (so it could be for a friend, too).

How Does Carer’s Leave Work?

You’re allowed to apply for Carers leave from the day you start a job – there is no minimum time you have to work before applying.

It is an unpaid leave, so before you apply for it check your contract and company handbook in case your employer offers paid leave for carers outside of their holiday entitlement. You must apply for the leave – it’s not an emergency leave.

If you are asking for a half day or single full day, you need to apply at least three days before you need to take it. For anything above a single day, you must request the leave at least double the length of time for the leave. For example, if you need two days you need to apply four days before, if you need three days it would be six days before.

Working Out Your Carer’s Leave Entitlement

Carer’s leave entitlement is based upon how many days you work in the week. You can take up to one week of leave per calendar year, from the date of the first request. You don’t have to take all of the days at once, so it could be up to ten half days across the year if you work full-time.

If you work five days a week, you will be entitled to the full working week’s allowance. If you work part-time, say three days a week, it would be three days a year entitlement. For people who work irregular hours, they can work out their leave by adding up the total hours worked in the last 12 months and dividing by 52 to get the equivalent week’s allowance. If you started your job less than twelve months ago, divide your total hours by the total number of weeks worked to date.

An employer cannot legally refuse carer’s leave – but they may delay it, if they have reason to believe your absence could cause significant business disruption. If this happens, they must give you a date within one month of the leave date requested, and they have to write to you at least seven days of the original request.

Your employer also can’t change their mind after granting carer’s leave after seven days from the date you requested it. So, if they say yes to it on Monday and change their mind on Thursday, they’re within their rights to do so as it is less than seven days. But if you requested it on the 1st of the month and they decide to refuse on the 10th, that’s not permitted as it is over seven days from the request.

How is Carer’s Leave Different to Emergency Leave?

Carer’s leave is for planned events, such as hospital appointments or if the dependant’s usual care staff are taking their own annual holiday and need cover.

Other types of leave you can apply for might be emergency leave. This is unplanned and often unpaid leave, given at your employer’s discretion (but cannot be reasonably refused). It might be, for example, if your child is unwell and cannot go to school that day. Or, compassionate leave is a type of emergency leave, so if someone close to you dies you can request time off that isn’t taken from your annual holiday allowance.

Check your employer’s policies regarding emergency leave before taking it unpaid, as some companies may offer paid emergency leave. There may also be alternatives to unpaid leave for carers if, for example, they will only need to leave work a couple of hours early to take their dependant to an appointment (such as working from home or making up the hours another day).

Is Parental Leave Part of Carer’s Leave?

Parental leave is another kind of unpaid leave that is not emergency leave or carer’s leave. Parents are entitled to a total of 18 weeks’ unpaid leave per child up to their 18th birthday, with a maximum of four weeks per year. This leave allowance rolls between jobs too, so if you take five weeks in one job and then change jobs, you would still have thirteen weeks left in your allowance.

Parental leave is for spending time with your child for their wellbeing. It might be to visit new schools or a new area if you are moving, spend time with visiting family who usually live far away.

Other Benefits for Carers

Taking unpaid leave for care isn’t ideal – but it does mean you still have your full annual holiday entitlement for paid leave, which you can use for more care duties or for your own self-care.

You might be able to top up your income as a carer with benefits. Carers Allowance is for those who care for someone for more than 35 hours per week. It is £81.90 per week and includes National Insurance credits – but be aware that it can affect entitlement to other benefits that you AND the person you care for get. You’ll pay tax on it too, if your income including the allowance is over the personal annual allowance (which is currently £12,750).

Carer’s Credit is for those who care for a dependant for 20 hours a week or more and tops up National Insurance credits for them.

If you’re on a low income because you can only work part-time due to your caring duties, you could be eligible for other benefits like Universal Credit and Council Tax benefit.

Knowing which benefits you could be entitled to is always confusing, as getting some might mean you’re not eligible for others. Check an online calculator like EntitledTo to make sure you’re not missing out on benefits you can claim.

The post Carers: What Leave and Benefits Can You Get? appeared first on MoneyMagpie.

Saving when you’re on a low income seems impossible – but with the Government’s Help to Save account, it’s not only possible but lands you with a whopping 50% bonus.

Designed for those in receipt of Universal Credit, this little-known savings account is available for many people on a low income. Over the course of 4 years, you could earn a massive £1200 FREE BONUS from the Government.

Here’s everything you need to know about this well-kept secret!

1. What is Help to Save?
2. How it Works
3. Who is Eligible for Help to Save?
4. When Do I Get My Bonus?
5. What Are the Advantages of Help to Save?
6. What Are the Disadvantages?
7. Will it Affect My Benefits?
8. How to Open a Help to Save Account
9. More Ways to Save Money on a Low Income
10. Extra Ways to Earn More Money

What is Help to Save?

The Government wants to encourage those on low incomes to save money. But, is saving really worth it when interest rates are so low and you need all the cash you’ve got?

Help to Save is the answer. It’s an easy-access savings account that comes with an added Government bonus in the second and fourth year you hold the account. The bonus isn’t interest – so it doesn’t count towards the annual £1000 tax-free allowance for interest earnings.

For the self-employed, it’s also worth noting that these bonuses don’t count as generated income – so no need to add them on your tax return.

The key things to know about Help to Save are:

1. You can save up to £50 a month (and there’s no penalty for months you don’t pay in)
2. If you’re in a couple, you can each have a Help to Save account
3. You’re eligible if you’re on Universal Credit and earn a household income of £793.17 in one month
4. You only need to hit that earning amount once to qualify
5. In years two and four you get a bonus worth 50% your total savings of the highest amount saved in that year
6. You can withdraw your money at any time
7. It’s a Government scheme, so your money is safe (unlike, for example, a savings app that’s not covered by the FSCS rules).

How does Help to Save work?

You can pay between £1 to £50 a month into the account for a maximum of four years. You don’t have to pay in every month, either.

Withdrawals are easy and penalty-free at any time you have the account – but taking money out will reduce the amount of bonus you’ll get.

At the end of the second year and fourth year of holding the account, you’ll get paid your bonus.

This bonus is a whopping 50% of the highest amount you’ve saved to date in the account. That’s not 50% on the account balance at the time of payment: it’s the highest balance you’ve achieved ever on the account in the bonus period (which is years 1 and 2, then years 3 and 4).

That’s an important distinction: it means that, if you REALLY need to dip into your savings, you can still get the bonus on them. You just won’t be able to get the biggest bonus (as you can only pay £50 in each month).

For example, let’s say you’ve saved £400 in your account by the end of the second year. You actually managed to save £500, but had to withdraw £100 for an emergency bill payment.

Your bonus would be £250 – 50% of £500 – as that’s the highest amount you’ve held in the account so far.

Of course, if you pay in £50 a month for the full four years, that means you’ve saved £2,400 of your own money – leading to a huge £1,200 bonus total from the Government. This is paid in two instalments: at the end of year two, the maximum bonus is £600 (if you’ve saved your full allowance of £1,200). At the end of year four, when the account closes, you’ll receive a further £600 if you’ve saved another £1,200.

There are no savings accounts AT ALL that offer such a generous and GUARANTEED return! If you can get this account, do it!

Who is Eligible for Help to Save?

You need to show that you’re earning enough money through some paid work before you become eligible for the account. Don’t worry: it’s not a large amount and can be earned by your household so if you and your partner both have some work, both incomes count towards the amount (as Universal Credit is shared for couples, too).

You can’t use your Universal Credit payment to qualify for the account. This is where the account encourages people to work and save: if you’re earning through a job, but have a low income, you can still receive some Universal Credit – and it’s these people that the account is aimed at.

If earning the minimum amount to qualify means you won’t get Universal Credit that month, don’t panic! Your Universal Credit doesn’t automatically stop the minute you earn more than your UC entitlement. That’s why monthly assessments exist: it monitors your AVERAGE income over a period of time (making it ideal for the self-employed or those working irregular hours).

To qualify, you must:

• Receive any amount of Universal Credit
• OR receive Working Tax Credit OR Child Tax Credit
• Earn at least £793.17 from paid work in your last monthly assessment period
• Be resident in the UK

If you stop receiving benefits after opening a Help to Save account, you can keep the account for the full four years and still receive the bonuses.

When Do I Get My Bonus?

You receive your bonus directly into your bank account. It happens twice: once at the two-year anniversary and again at the four-year mark when the account closes.

It’s not paid into your Help to Save account – it’s paid into your dedicated bank account. That means if you want it to go straight into another savings account, you can put that as the account you’d like it to be paid into. Otherwise, it’ll go to your current account.

At the fourth-year anniversary, you’ll get your bonus payment and have to withdraw your full amount saved as the account closes.

What Are the Advantages of Help to Save?

The most obvious advantage here is FREE MONEY! You have to wait a couple of years to get it – but for a relatively small monthly investment, it’s a fantastic and guaranteed return of 50% on your savings. NO other savings product offers such surety or high returns. 

Other advantages of Help to Save include:

• The bonus is tax-free
• Couples can each hold an account
• You can save as little as £1 a month
• You can withdraw money if you need it
• Bonuses paid every two years (so you can anticipate the payment)
• The account doesn’t cost anything to have
• It encourages regular saving habits
• It’s easy to build an emergency savings fund

It’s also worth noting that the account is operated by NS&I, the state-backed platform – so your savings are safer here than any other bank account.

If you have a joint Universal Credit claim with a spouse or partner, and you’re both eligible, you can BOTH have a Help to Save account. That means, between you, if you save £50 each a month across the four years, you’ll have saved £4,800 PLUS get bonuses totalling £2,400 between you – that’s enough for a house deposit.

If you’re saving for a house deposit, you could maximise the Government returns by putting your bonus payments into a Lifetime ISA, and when the Help to Save account matures move across your savings into the LISA, to get an EXTRA £1,000 tax-free. There are lots of restrictions with this type of account, so make sure you research first.

Are There Any Disadvantages?

There are few disadvantages to having a Help to Save account.

You do have to meet the eligibility requirements to open an account. However, these are quite easy to meet and you only need to have met the earnings requirement of £793.17 in ONE assessment period before you open a Help to Save account. That is also a joint amount if you live with a partner or spouse – so if one of you earns £300 in a month and the other earns £500 in a month, that’s £800 total so would qualify.

That means people on irregular hour contracts, or the self-employed, may have an overall low income – but find one month makes them eligible to apply for the account.

If you have lots of debt you may be better off paying off high-interest debts than saving your money.

You can’t open another Help to Save account once your four years is over. Similarly, if you close it before your four-year term is up, you cannot open a new one.

Your savings could impact your benefit entitlement – read on for more detail.

Will Help to Save Affect My Benefits?

If you’re only saving into this account, and have no other savings, then your benefits won’t be affected.

If you already have some savings, however, it could affect your entitlement to some benefits.

For example, any savings over £6,000 could impact your Council Tax benefit, while savings above £16,000 disqualify you from receiving any benefits at all.

The bonus, however, is not a taxable income. This means it won’t affect your Working Tax Credit or Child Tax Credit eligibility.

How to Open a Help to Save Account

The Help to Save account links to your Universal Credit online account. This means it’s easy to find out if you’re eligible to apply: it’ll tell you during the application process if you’ve earned enough in your last assessment period.

Bear in mind that it can take up to a week for your assessment period to update, so wait at least 7 days after your most recent monthly assessment to apply for a Help to Save account.

Go to the Help to Save Application link to start your application. You’ll need a Government Gateway ID and password – if you don’t have one, you can set one up during this process.

Follow the steps on the screen to apply. You’ll need to add your mobile phone number so that when you log in, the system can send a security code each time for a secure login process.

When your account has been accepted and set up, you can amend your bank details. If possible, set up a direct debit to transfer a regular amount each month. This helps you remember to save every month to make the most of your saving potential!

More Ways to Save on a Low Income

The biggest challenge with having a Help to Save account is finding the £50 a month to save. You don’t have to save that much, of course – but if you can, that bags you the biggest bonus.

Here are just a few ways to boost your income – even without much time on your hands.

Take surveys

Online survey sites like Swagbucks and Toluna offer an easy way to make small bits of cash here and there in your spare time.

Answer surveys about your spending habits, opinions, or lifestyle for just a few minutes each day and you’ll quickly see the fund build!

Become a mystery shopper

Get paid to go shopping, visit the cinema, and even travel! Mystery shoppers review all sorts of places from retail outlets to restaurants and even airlines.

You’re sent on a mission to try a product or service. You have to then provide feedback about your shopping experience – both positive and negative – to help companies improve their service.

You’ll be paid for your time and reimbursed for your purchases – so it’s a great way to dine out for free, too!

Sell your crafts

If you’re a crafty person with a hobby that’s a passion, use it! Whether you’re a keen knitter or avid woodturner, there’s a market for your items out there.

Online shops like Etsy make it easy to sell your creations to a wide audience across the world. Just be sure to declare all income as you would a normal self-employed business – and make sure you’re not being stung by platform or shipping fees, too.

Sell your skills

You don’t have to make things to make money! Offer your skills as a tutor if you’ve got a knack for teaching, or take on the tasks everyone hates but you secretly love – like ironing.

The digital age means we’re all consuming more content than ever – and that means writers and graphic designers have come into their own as a freelance force. Use these skills to side hustle until you’ve built a solid customer base – then you can always launch as a full-time business!

You can earn up to £1,000 a year before declaring income from ‘ad-hoc’ jobs, too.

Register as a childminder

Many people on Universal Credit are either part-time workers or stay-at-home parents with children. If you’re already looking after your own children, consider registering as a childminder to watch other kids, too.

This is a hugely responsible role, but is ideal for parents who need to work around their young family.

Again, like any of these income-generating ideas: make sure you declare all payments (even cash ones) in your tax return and any Universal Credit assessments.

Use cashback websites

We don’t advocate shopping for the sake of ‘a good deal’ if you wouldn’t have bought something without that incredible discount!

However, websites like Quidco and Topcashback offer a great way to boost your income on things you’re planning to buy anyway. You earn a small percentage of each purchase back – which quickly adds up to hundreds of pounds each year.

Cashback is seen as a refund of your money and not income – so it’s not taxable for basic-rate taxpayers (so you don’t need to declare it as income, like you do for the above suggestions).

The post Help to Save: £1200 TAX-FREE Cash From the Government! appeared first on MoneyMagpie.

Updated 5th April 2024

Your credit record could be affecting your ability to get a loan, credit card, mortgage, or even bank account. If you’ve been struggling to get mobile phone contracts, loans, credit cards or any other kind of borrowing, you might need to clean up your credit record.

Here’s how to find out if your rejections for credit applications are caused by a marked credit report – and how to rectify the issue.

• Find out what’s on your credit record for free 
• Why you should be checking your credit report
• Understanding your credit score
• How to clean up your credit record
• Go for a credit card for people who want to strengthen their credit rating
• Not eligible for a credit card? Try these tips
• Keep checking your credit score

1. Missed repayments on a credit card or loan (also called a default)
2. Fraud – someone has taken out credit and run up debt in your name
3. Inaccurate income records
4. A recent house move – it takes a while for the electoral register to update
5. No credit history (frustratingly, it’s easier to get credit once you’ve already got some!)
6. Too many credit applications in a short space of time (this makes you look like a risky customer)
7. You have recently opened several lines of credit or applied for several bank accounts (especially those with overdrafts)
8. Using a high percentage of your total available credit (it is best to keep under 70%)
9. Your credit card limit has been decreased
10. Conversely, being too good at paying off your loans and keeping a credit card ‘for emergencies’ only!
11. You have recently closed a credit card or paid off a loan in full

Why You Should Check Your Credit Report

Checking your credit record lets you correct any mistakes or anything you think isn’t an accurate reflection of your overall financial situation.

What You Can Do With Your Credit Record

1. If you see ‘bad marks’ from certain companies, you can contact them directly and make your case for wiping the fault from your file.
2. If you don’t find them very receptive and you’ve got a good case, you can complain to the Financial Ombudsman (which acts as an independent referee of the financial sector).
3. Alternatively, you can add a Notice of Correction – a 200-word statement you can add to any entry on your credit record, explaining the situation. For example, if you missed a few payments on your credit card a couple of months back due to illness, ordinarily the bigger story doesn’t appear – just the cold, hard facts that contribute to your bad record. So, an explanation of why payments were missed may influence a lender’s decision to offer you money.
4. With fraud and identity theft on the rise, it’s possible that someone else created a credit problem for you somewhere along the line. Checking your file could alert you to someone having stolen your identity without you knowing. If that’s the case, get the situation sorted and add a note to your file.

Understanding Your Credit Score

The higher your credit score, the better are your chances of being lent money.

The trouble is, that means you have to already have credit and be good at using it (by using a reasonable amount of your available credit and repaying bills in full) to get more.

To remove some of the mystery surrounding credit scoring, Experian have revealed to us their ‘credit scoring test’ system.

It’s worth having a look at it even if you’re looking at your report through another company – theirs will be similar.

What Do The Credit Score Numbers Mean?

Different credit agencies have different levels of ‘good’ and ‘bad’ scores. That’s why it’s important to check all three agencies.

The Experian Credit Score runs from 0 to 999 and is an indication of how a lender may see you based on the information in your Credit Report. The higher your score, the greater chance you have of getting the best credit deals.

• Very Poor = 0 to 560
• Poor = 561 to 720
• Fair = 721 to 880
• Good = 881 to 960
• Excellent = 961 to 999

The Equifax credit score goes up to 850.

Poor = 300 – 579
Fair = 580 – 669
Good = 670 – 739
Very good = 740 – 799
Excellent = 800 – 50

And finally, the Transunion credit score thresholds:

Very Poor = 300 – 600
Poor = 601 – 660
Fair = 661 – 720
Good = 721 – 780
Excellent = 781 – 850

So, if you have a credit score of 700, you might be deemed to have a ‘poor’ score through Experian, ‘good’ for Equifax, or ‘fair’ for Transunion. They each score factors differently, so bear in mind that a 700 score for one may not be 700 on another. However, this comparison should demonstrate why you need to check all three reference agencies when you’re trying to clean up your credit record.

You can also see how much the amount varies between bands, too. For example, for the Transunion boundaries, there are 300 points in the Very Poor range, and only 59 points in the Good range – so as your credit score starts to increase, it will seem like it increases faster the better it gets, as it takes less time to cross the boundary threshold.

How to Clean Up Your Credit Record

Rebuilding your credit score doesn’t happen overnight. In fact, it takes at least six months – probably more like a year – to get a better credit score. If you’ve had a serious blow to your finances, such as a lot of defaults, CCJs, or bankruptcy, it can take years to fully recoup the damage to your credit score. Starting today is the best way to improve your score as quickly as possible!

Here’s what you do:

1. The first thing to do is correct any mistakes on your report, as we mention above.
2. Also, make sure you’re on the electoral roll. Weirdly, not being on that can count against you for your credit rating. Just ring up your local council to get yourself put on it. See here why it’s so important to be on the electoral roll.
3. If you think you might have a low credit score, but you want to know how much a company would charge for a loan, ask them to do a ‘quotation search’ not a ‘credit search’. This means they will give you an idea of the interest rate they would charge but they won’t do a full credit check (and then potentially refuse you). Every time a company does a credit check on you it is recorded – particularly if they refuse you credit. This harms your credit rating.
4. That done, the main way to improve a credit record is by borrowing money and paying it back religiously, on time, every month.

Lenders look for proof that you’re capable of repaying borrowed money. “But how can I borrow if no one will lend to me?!” you wail. You do it by using one of the credit cards with very high interest rates. These exist especially for people with poor credit ratings. Then you pay the debt before the interest period kicks in. In other words, take out a credit card with a very high APR (Annual Percentage Rate), use it a small amount every month and then pay the bill every month during the interest-free period. There are a few companies that offer credit cards to people with poor credit records.

Clean Up Your Credit Record with a Rebuilder Credit Card

There are a few cards on the market now that are specifically for people who have no credit history or a bad credit history.

Remember, only use these if you know you can pay them off.

These rebuilder cards are useful for people who want to start repairing their credit score, but as that makes them risky customers in the eyes of lenders, the interest fees can be astronomical. You’ll be fine if you can pay off your usage every month in full – interest only starts to apply if you don’t pay it off each statement month.

You can use online eligibility checkers on each provider’s website to see if you might be accepted. Be careful – make sure you’re using a ‘soft search’ tool and NOT a credit check or application! A ‘soft search’ won’t affect your credit rating if you’re not eligible.

You can also call the providers to ask them to do the same. Some people, such as those with previous IVAs or bankruptcy, may not be eligible for these poor credit cards.

Vanquis (part of Provident Financial which specialises in the ‘sub-prime’ market) does a Vanquis Rebuilder Card with a typical 29.5% interest. It’s specifically aimed at people with a bad credit history (or no credit history) who can’t get other cards. Your credit limit will be between £500 – £1500 to start with, and this can grow to a maximum of £4,000 over time.

The Aqua Reward Card has an average APR of 39.4% and a starting credit limit of £250 – £1500. Aqua have been known to suddenly decrease customer credit limits without notice, which can seriously impact your credit score that you’ve worked hard to recover, so it may be worth looking at other options first. They do, however, have a strong acceptance rate for those with no credit history or a really bad history (such as bankruptcy).

Marbles is run by NewDay, which also does the Aqua card. It offers a simple credit rebuilder card with a typical APR of 34.9% and a credit limit between £250 – £1,500. You can pay online or through the app to help keep track of your spending, too.

Not Eligible for Any Credit Cards? Try This

If you’ve recently been rejected for a lot of credit cards or bank accounts, it could be that your score is too low for any provider to take a risk on you.

Don’t panic! There are some simple things you can do to start rebuilding trust in your credit score.

Sign up for a basic bank account

Most banks now offer a basic bank account. These have no overdraft facility or monthly account fees. If you’ve been made bankrupt or can’t get another type of bank account, this will start you on the journey to rebuilding your credit score. Make sure you never go overdrawn though – you’ll face hefty fees and damage your credit.

The Money Advice Service has great information about basic bank accounts to get you started.

Try LoqBox

LoqBox is essentially a loan to help you rebuild your credit. You choose an amount you KNOW you can repay each month – say £20 – and you’ll get a ‘loan’ of 12 months’ worth of that much.

This gets ‘locked’ into an account – you can’t spend the loan – and you pay off your £20 each month as promised. At the end of it, you get your money (which is essentially your savings) ‘unlocked’ – and LoqBox confirms to credit agencies that you have successfully paid back a loan.

It’s a totally free service, too – unlike some other similar ‘credit repayment’ cards. You also won’t need a credit check to apply. Your money is safe: it’s paid into a partner bank that’s covered by the Financial Services Compensation Scheme.

Loqbox is also one of the few services that let you rebuild your credit score with your rent. When you connect your bank account and let them know the date and amount of your rent payment, it keeps track and reports your rental repayments to credit agencies like Experian.

Get a Help to Save Account

If you’re on Universal Credit, you could be eligible for a Help to Save account. While this won’t clean up your credit record, it will be a way to build a nest egg while you’re getting back on financial track. Read our article about it here.

Keep Checking Your Credit Score

From CreditKarma to Experian to ClearScore, there are now several ways you can stay alert of your credit score for free. Sign up to these services to receive alerts to any changes in your score – and monthly or weekly report updates, too. You can pay for some premium features, but the free versions are usually enough to keep track of your credit rating.

The post How to clean up your credit record appeared first on MoneyMagpie.