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Think twice about ‘buy now, pay later schemes’

Klarna is one of the biggest Buy Now Pay Later services available worldwide and enables consumers to pay for items in instalments or at a later date, interest free, and a welcome payment option for many, as evidenced by their 147 million global users. But just recently the company announced that they will be sharing data with UK credit reference agencies, meaning that purchases made with them will now directly impact your credit score.

A strong credit score is of course vitally important when trying to secure a mortgage. So here’s some tips from Mortgage Advice Bureau’s Head of Lending, Brian Murphy, on how to give your credit score a boost… 1. Get on the electoral roll: One of the quickest

and simplest ways to give your credit score a muchneeded boost is ensuring you are registered on the electoral roll. You should also ensure all of your bills and bank accounts are registered to the same address. 2. Use credit responsibly: Credit cards and now

Klarna can be great ways to boost your credit score, as long as you are responsible with them. Always try to keep a good amount of available credit, which is the difference between your outstanding balance and your total credit limit. Low available credit tells the credit agencies that you are struggling to keep tabs on your finances.

6 TIPS TO SLASH YOUR SUPERMARKET SHOP

Millions of UK households are already finding their finances stretched by the current cost of living crisis. James Andrews, Senior Personal Finance Editor at money. co.uk, says if your weekly shop is starting to look unaffordable there are a few quick ways you can make big savings at the supermarket. Here’s six of them…

1. Discount codes and introductory offers

can help. Look for them on supermarket websites, newsletters or in the store magazines. Some shops limit the number of coupons and codes you can use in one transaction, but you can get around this by splitting your shop into multiple loads at the till.

2. Use free loyalty schemes to get ahead.

Sainsbury’s Nectar and Tesco Clubcards reduce the price of your shop and let you collect points as you spend, which can be redeemed for discounts, and most of the mainstream supermarkets have something similar in place.

3. If you shop online for groceries, you can

compare prices more easily. Spend time looking at

even do the same shop at multiple stores and then compare the total bills to see how much you could save.

3. Don’t miss repayments: This may go without

saying but its importance begs it to be highlighted.

Missing repayments can be detrimental to your credit score as it shows you are incapable of paying bills on time, nor can you manage your finances. 4. Don’t apply for more credit: If you find yourself

in a situation where you have bad credit, applying for more will only serve to worsen it still. Further to this, if you are in a situation where you continuously use your credit card but can only afford to pay the minimum repayments, you should cease using it as soon as possible and focus on repaying any credit owed. 5. Get organised: Having your finances organised and with a clear trail shows lenders you’re responsible and that you can manage your finances well. Having a history of bank accounts and other banking products (such as ISAs, credit cards etc.) will give your mortgage adviser a decent enough history to look back through.

4. Do some detective work at your local store to find out when the yellow stickers come out. You

could get tomorrow’s lunch or dinner for a fraction of the price if you shop at the right time.

5. Avoid being tied to one brand. Believe it or not,

many own brand products are often made in the same factory, with the same companies supplying the likes of Aldi as well as Waitrose - you might think you need to splash out to get quality food, but thanks to the rise of shops like Lidl and Aldi, you can get good quality groceries at much lower prices.

6. Make a budget. Figure out how much you can afford to spend before arriving at the shop and plan your meals with a list, then tot your items up as you go along. If not, it’s easy to end up spending an additional £20 or £30.