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How We Pay For Purchases is Changing Even More

If you think back 50 years ago, if you went into a store to make a purchase, it was probably paid for with cash. There were the early credit cards, but not everyone had one, or even knew about credit cards.

Cash was King.

Fast forward to last year and credit and debit card use overtook cash being used for purchases, we are steadily moving to a cashless society.

Other countries have began this move, and it is thought that in the next few years, Great Britain will go for the most part, cashless as well.

There are some advantages to being cashless, one being you don’t carry money on you, which reduces the risk of crime. It reduces the risk of crime for the shop owners, pubs, and stores as well. No cash on the premise.

Our shopping habits have and are changing, we do a lot of shopping online, so we need to use credit and debit cards, or other pre-paid accounts, as there is no way to put cash in the computer for the purchase, and who sends cheques any more.

Today there are so many options to pay for an item, and cash is way down the list.

There are:

* Credit cards

* Debit cards

* Mobile phone payments

* Key fobs

If you wish to donate money to the homeless, buy a copy of the Big Issue, even give money to Buskers, it can all be done without the use of cash.

We have come a long way in the past 50 years, banking, how we pay for purchases, get a loan, pay our bills, it all has changed.

Even our debit and credit cards have changed, just six (6) short years ago we started having the capability to pay for purchases sing contactless cards. Initially the maximum you could charge using contactless was £25, but that has not been increased to £30.

Currently there are £6 billion made in payments each year using contactless technology, and that is with the £30 cap.

However, banks want to increase the cap on contactless card transactions, but there are security issues.

Currently if someone stole or used your debit or credit card in a contactless manner, not requiring a PIN, the most they can spend is £30 on each transaction. If this cap was much higher or limitless, that does pose a security concern.

However, NatWest is trailing a new contactless card that uses the account holder’s fingerprint as a part of the security system.

Each new card will have the account holder’s fingerprint electronically on the card, and when the account holder places their finger on the card, it will authorise payments over £30.

This means the cards can be used for larger purchases, such as the weekly food shopping, petrol, and really for anything.

It is paving the way to raise the bar on contactless payments.

The Head of Effortless Payments at NatWest, David Crawford stated, “This is the biggest development in card technology in recent years and we are excited to trial the service.”

And NatWest are not alone, last December the largest bank in Italy, Intesa Sanpaolo also launched a trail.

The technology making the use of fingerprints possible is a company called Gemalto in the Netherlands.

Gemalto stated, “Fingerprint authentication sweeps away limits on the value of contactless payments, removing the need to enter a pin or sign the receipt. As a result, it simplifies the consumer experience at the point of sale and makes it faster and safer.”

They added, “The fingerprint information is only stored on the card. It is never sent to the bank or collected by a third party. Inside the chip of the card, the fingerprint data is encrypted; nobody can access them.

It is only a matter of time before all the banks follow suite and begin using the new technology.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.