Martin Lewis has shared some amazing financial quirks and loopholes in this week’s edition of the MoneySavingExpert.com newsletter.
The financial guru has helped millions of people across the UK save money or clawback cash they are owed over the years through the website that he founded and his Money Show Live TV programme – which returns in September for a new series.
But in the latest newsletter, he focuses on little known quirky financial tips and loopholes that could help you put hundreds of pounds in your pocket – and most you can start doing now to give you extra cash for summer.
Martin wrote: “This is about quirks in the financial system you can exploit to make money or improve your finances. The idea for this blossomed from the Loans Loophole – when borrowing MORE means you pay LESS that I put in this email a couple of weeks ago. It was popular, so I challenged myself to come up with 10 more.”
Below are Martin’s top 10 quirky ways to make more cash or improve your finances, to read the full details for each point, visit MoneySavingExpert.com here.
1. When paying just 1p on a credit card can be worth £10,000s
Martin explained: “Many people know that paying on a credit card is the ultimate financial self-defence weapon, as the Section 75 law means card providers are jointly liable for purchases over £100 (ie, a min £100.01), up to £30,000. So if things go wrong you can ask the card firm to sort it.
“Yet what few know is even if you just pay for 1p of the purchase on the credit card, the card firm is still responsible for the WHOLE amount.”
2. How an extra £100 can get you accepted for a mortgage
Martin wrote: “What’s well known is that mortgages typically get cheaper at 90%, 80%, 75% and 60% loan-to-value (or to put it another way, 10%, 20%, 25% and 40% deposits), so obviously if you’re nearing a border, it’s worth pushing to it to reduce the rate.
“Yet what few people know is if you push £100ish further beyond that, it can increase your chances of acceptance, as it no longer looks to mortgage underwriters like you’re scraping to get to the limit.”
3. How two people can have a financial threesome to make £340
Not as rude as it sounds, this is all about the fact that with bank accounts, two people can be three financial entities, meaning each can have their own account, and then there’s a joint account, as many have for bills.
That means you’re able to get three switch bonuses between the two of you.
Current switching offers include:
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First Direct – £100
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Virgin Money – £140 wine plus £50 to charity
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Santander 123 – offering up to 3% back on bills
4. How £1 insurance can get you a year’s 2for1 at cinemas and thousands of restaurants
Martin explained how this is all about manipulating a popular comparison website and the promotions it offers., he warned that you will “need to buy a qualifying product to get it.”
Read the full details on this nifty trick on MoneySavingExpert.com here.
5. When increasing pension contributions can boost Child Benefit
If you or your partner earn £50,000 or more per year, this starts to reduce your Child Benefit entitlement, in practice it’s usually still paid, but tax is increased accordingly, and by £60,000 you don’t get anything.
Martin explains how this is “based on your ‘adjusted income’ – which usually deducts pension contributions, so increasing them can increase your Child Benefit entitlement”.
6. How opening a bank account can get you £500 of insurance cover for £150
Packaged bank accounts charge you a monthly fee, but in return they include high-level insurance packages. For many these aren’t good value, as you could just buy the insurance cheaper directly.
Martin wrote: “For couples, and more so families, especially with expensive mobiles, these can be a blockbuster, as the insurance benefits dwarf the monthly fee. Most don’t even require you to switch to them to get it, nor have a min monthly pay-in, so you can just open it for the insurance, though that may feel more hassle than just moving your banking there.”
7. The best way to rebuild your credit history
The financial guru has some expert advice on how to start building your credit rating with lenders and it actually involves getting a credit card.
Martin explained: “The easy way to do this is to get a credit card, do £50-£100 a month of normal spending on it (not an excuse to spend more) and always repay on time. Provided there are no other issues, this should start to improve your credit worthines s within a year.”
8. Why some savers earning around £50,000 may be better off earning less interest
This is a tricky one to summarise and luckily, Martin has shared a blog of his from 2016 that explains it all – you can read it here.
9. When the cheapest way to get a loan may be via a credit card
Martin explained how this is the perfect time to shop around for a 0% credit card, though it’s best for people looking to borrow under £3,000, as above that credit limits get “tricky”. Full details are on the MoneySavingExpert.com website here.
10. How a couple may be able to get 5% cashback on all spending for six months
Cashback credit cards pay you for spending on them and may be a good option for those looking to save as they spend, full details here.
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