The Ultimate Guide to Working as a Professional Santa Claus

Editor’s note: This article was originally published in 2014, but we’ve brought it back for any new Santas.

Do you love Christmas? Are you full of cheer? Can you grow a belly and — more importantly — a beard?

You might have what it takes to work as a professional Santa Claus.

If you’ve thought about pursuing this unusual seasonal job but didn’t know where to start, keep reading for advice from professional Santas in three different states. They share the inside scoop on working as Santa this Christmas.

What Are the Requirements for Santa Jobs?

Yes, there are a few important requirements if you want to work as a professional Santa Claus.

First, you need to look the part. It’s best if you’re over age 50, have a belly and can grow an impressive beard. (But it doesn’t have to be white. Some Santas actually bleach their beards!)

Jim Beck, who worked as a professional Santa in Denver for eight years, says he got into the business because people kept telling him he looked like Santa — even without the beard. So after he became disabled and could no longer work in construction, he decided to give it a shot.

Michigan Santa Claus was also a natural. “Mrs. Claus always says, ‘My Santa has a real beard and natural cookie zone.’ I’ve actually had my beard for nearly 45 years!”

More importantly, you have to want to be Santa Claus. You should have a genuine love of Christmas and children.

Santa Tim was a professional Santa in Lenexa, Kansas. He started working as a Santa to “enjoy the whole Christmas spirit and give back a little bit — to share hope and joy and love.” (If that’s not a Santa answer, I don’t know what is!)

Where Can You Find Santa Jobs?

Professional Santa Clauses have lots of work options, including shopping malls, corporate and community events and private home parties.

The Santas we interviewed mostly did private home visits, with some corporate events mixed in. None of them worked as mall Santas — though some Santas do prefer these gigs because they’re long-term positions with steady hours.

When asked why he didn’t work at the mall, Santa Tim explained, “First of all, I want to be independent; secondly, you can only spend around 30 seconds with a child while at the mall. When I do a home visit or corporate event, I get a lot more time with each child.”

Santa Jim Beck has worked at the mall in the past, but now sticks with mostly private parties because he “enjoys the smaller venues.”

How to Start Working as a Santa

Ready to find work as a professional Santa Claus? Here are the techniques our Santas suggested:

1. Go to Santa School

You probably didn’t know it, but Santa schools are a big business.

One of the most comprehensive is the Professional Santa Claus School in Denver.. Course options even include technological training to do online visits. 

Santa Tim graduated from this school and found it a “very worthwhile investment” because there are “certain amounts of psychology that go into speaking to children.” He learned a lot about that there, including how to react when a child says they want an iPad or tells you about abuse. Mostly, he enjoyed the school because it set “such a high standard; you’re not just Uncle Joe from next door anymore.”

2. Network With Other Santas

You don’t have to go to Santa school to find success as a Santa.

Santa Jim Beck got started by working for an established Santa who “subbed out other Santas.” Though he had to pay the lead Santa a cut of his earnings, the experience led to gigs of his own.

If you’re just starting out, this is a smart move. Find a local Santa who has more work than he can handle, then offer to take on any gigs he can’t or doesn’t want to do. If you offer him a percentage of your earnings, what Santa is going to say no?

3. Buy a Suit… and Start Working

That’s how Michigan Santa Claus did it.

His first Santa suit was made by a friend who is a professional sewer. He wore it while helping to sell Christmas trees at the Home Depot where his son worked. He wanted to “see what the response would be and if I liked it.”

4. Build a Website

For all of the Santas we interviewed, web inquiries are key to the majority of their business. Creating a website is an essential step in starting your business.

If you don’t have the money for professional web design, don’t fret: You can ask a friend for help or even use free tools to DIY your site.

5. Create a Profile on Gig Salad

When looking to hire a professional Santa, most people’s first stop will be an internet search. And Gig Salad, a site for booking live entertainment, might be one of the first things that pops up.

For that reason, Santa Tim says creating a Gig Salad profile was the “most effective” thing he did. Membership ranges from $29.99 to $39.99 per month.

6. Book Return Visits

The first year of being a Santa is definitely the hardest. However, once you’ve visited some families, Santa Jim Beck says, “They’re generally going to want you back next year.”

People want continuity for their kids, which means guaranteed repeat business each year — in addition to any new clients you drum up.

Santa Tim says this works for corporate events, too — as does word of mouth. “One HR lady will ask another one, ‘What Santa did you hire?’ and that will get you some more gigs.”

How Much Money Can You Make Working as a Santa?

The pay range for professional Santas varies widely, depending on how much you work and how much effort you put into marketing yourself. The majority of Santas only work during November and December, though some keep the holiday spirit going all year long.

Santa Tim estimates you can earn “$3,000 to $7,000 in a season” working part-time on some weekday evenings and during both the morning and evening on the weekends.

How Much Does It Cost to Start Working as a Santa?

In addition to growing out your beard, there are some start-up costs involved in working as a Santa.

If you choose to attend Santa school, that will be one of your biggest expenses.

Santa Tim says the rest depends on your “level of professionalism,” adding, “If I’m going to represent Santa for children, I want to be as professional and realistic as I can be. Children are looking at everything about you: your eyes, your cuffs, your boots, your belt. I put $200 to $300 into bleaching my hair and beard; I have two suits that each cost over $1,000, a $300 belt and $300 boots.”

Michigan Santa agrees, saying it’s “very important” to “not ‘skimp’ on the suit.” His is “lined wool with real sheepskin white fur trim.”

In addition to the suit and the website, he also says, “It’s very important to set up as a business account and register the name of the business with the state establishing LLC … [And] we’ve never had an issue, but we do carry Entertainment Liability Insurance.”

What Do Aspiring Santas Need to Know?

So you still want to work as a Santa? We asked our professionals for the one piece of advice they’d give to aspiring Santas, and here’s what they said:

“Grow a beard and learn how to laugh!” — Santa Jim Beck

“Before you become a Santa, you really need to understand what it’s going to do to your life… You are going to have to be Santa Claus. I have a different standard every day; it’s a high level of responsibility. It’s everywhere you go: If you’re driving your car, and you have road rage — people are going to say: ‘Oh, Santa’s having road rage.’ You have to really govern yourself … Even in street clothes, some kids will come up and grab your legs and tell you what they want — so you’ve got to spend a few minutes with them.” — Santa Tim

“Always stay in character when you have your Santa suit on. Work on that ‘HO HO HO;’ it must come from deep within the belly! When [Mrs. Claus and I] have an event, we take the children into our arms and on our laps and in our hearts, as our own. Yes, we do receive payment — but you’ve got to love children and their families too!” — Michigan Santa Claus

Susan Shain is a freelance writer and digital nomad. She covers travel, food and personal finance (basically, how to save money so you can travel more and eat more). Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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The Santa Claus Rally: Early Holiday Sales Shatter Records to the Tune of $72B

Shoppers are setting holiday sales records this year thanks in part to early promotions, online buying and winter storms over the Thanksgiving weekend. 

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5 Ideas for Budgeting Your Holiday Bonus or Christmas Cash

The holidays can be a financially stressful time, but one bright spot in the darkness of winter is when you get gifted with cold, hard cash.

It could be the dollar bills your mom still stuffs in your Christmas card even though you’re past the fledgling adulthood stage. Or maybe it’s the holiday tips you’ll receive or the end-of-the-year work bonus you’ve been looking forward to.

However this monetary joy comes your way, we know you’ll really appreciate it. But before you frivolously spend that cash, here are five financially responsible suggestions for what to do with your holiday bonus.

1. Build Your Emergency Fund

If you’re among the millions of Americans who don’t have an emergency fund, it’d be wise to use save some of your bonus money for a rainy day. An unexpected expense, like a car repair or hospital bill, can have you turning to credit cards or loans if you don’t have any savings. 

While many financial experts recommend having three-to-six months worth of living expenses in an emergency fund, others suggest you don’t need as much. We won’t argue about the amount here. Just know that having something saved is always better than nothing.

Pro Tip

Separate your emergency fund from your everyday checking account to avoid spending the money. Earn interest in an easily accessible account, like a high-yield savings account or money market account.

2. Decrease Your Debt

With all the gift giving, it’s easy to take on additional consumer debt this time of year. Even if you’ve managed to avoid that (yay you!), your extra holiday cash could help knock down your existing debt load. We’re looking at you, student loans.

Use the money to pay down your smallest debt if you’re a fan of the snowball method, or pay down your debt with the highest interest rate if you follow the avalanche method.

3. Add to Your Retirement Savings

All too often, we don’t think about our retirement savings until we’re creeping closer to our 60s. But funding retirement accounts earlier means you’ll benefit more from compound interest.

Funnel your extra holiday earnings to your retirement accounts before you start dreaming of all the material stuff you want to buy that won’t mean a thing a decade from now.

If you’re trying to max out your retirement funds this year, the 401(k) contribution limits for 2019 are $19,000 for individuals under 50 or $25,000 for those 50 or older. The 2019 Roth IRA limits are $6,000 for individuals under 50 or $7,000 for those 50 or older.

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4. Pay an Annual Bill

It’s crazy how paying off a large bill actually feels like a gift when you reach adulthood.

Earmarking the money for your annual car insurance bill, your kid’s summer camp tuition or another big, once-a-year expense means you don’t have to scramble to get the money together when it’s due.

If you don’t have enough to pay the entire bill, consider setting up a sinking fund — savings that you’ll periodically add to until you have all the money needed.

5. Invest in Yourself

If you’re searching for what to do with your holiday bonus that’s actually fun, here’s one: Use your extra cash to do something good for you — something that’ll have a positive impact in your life.

Maybe there’s an online course you’ve been wanting to take that’ll help with your career advancement. Perhaps you have a business idea you’ve been wanting to get off the ground. Or maybe you want to hire a personal trainer or fulfill another personal development goal.

Don’t wait until the new year to get started. Invest your holiday money into finally making it happen.

Nicole Dow is a senior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Frugal Gifts (That People Would Actually Like) for the Holiday Season

It’s like clockwork.

Every year, right around Black Friday, I start getting messages from readers asking for holiday gift ideas. These requests come in one of two flavors — either they’re frugal people looking for good “bang for the buck” gifts to get for relatives, or they’re people wondering what on earth to get for their frugal relative who seems to not want much of anything.

Often, I’ll point them back to previous holiday gift guides, like this one from last year, or this 2017 guide. However, I’m often asked for an updated list, likely because they grabbed the good ideas from older lists and now want more good ideas.

So, let’s answer those eternal questions. What are some great low-cost gift ideas that everyone would like? And what would a frugal person like as a gift for the holidays?

If you’re a frugal person giving gifts, be thoughtful.

If you’re a frugal person and want to give the best gift you can on a limited budget, your best approach is to be genuinely thoughtful about the gift and the recipient. Spending the time to conceive of an inexpensive good match with that person’s interests will go farther than almost anything else.

So, how do you make this happen?

The first thing you should do is some homework on the gift recipient. A good place to start is to look up their social media accounts and see what it is that they share about frequently. You might also dig through your text exchanges with that person or another contact you may have had with them in the past several months.

If that doesn’t give you any general areas of interest to investigate, contact someone who does know them well and just get an idea of the kinds of things they’re really into. You don’t necessarily need to know specific things they want; rather, you just want a general area of interest to hone in on.

For example, if someone in my life did a cursory study of me, they’d probably learn that I enjoy board games, cooking, cold-brew coffee, hot sauces and craft beer. It’s not that hard to figure out things that I like.

Then, take those narrow interests and look for inexpensive gifts in those specific niches. “Stocking stuffers” are often good places to start, for example. Just Google “stocking stuffers for board game enthusiasts” and you’re probably headed down a good road for someone who’s into board games.

If their interest is something that’s usually inexpensive by default, like hot sauce or craft beer, research lists of top examples or unusual examples of those items. You might look for a list of “top craft beers of the year” or “best new hot sauces of the year” in Google, for example.

From there, you should have a number of specific things to buy that are high quality but inexpensive examples of things that they’ll love.

Here are some good general tips.

Unless you know the person well, a consumable gift is probably a better choice. If you buy something that’s non-consumable and they already have it, it can be a disappointing gift. If you can’t find a strictly consumable gift, ask yourself whether it’s something that they could easily use more of if they were to already have it.

Ask an expert. If you’re still stuck, find someone who knows a lot about the particular niche you’re looking at and ask them for specific advice. For example, if you decide that someone would love a six-pack of good beer, stop at a craft beer store and ask for a good but off-the-beaten-path recommendation. If you know anything more about their specific tastes, that’s even more helpful.

Smaller gifts are better than large ones. People often don’t have a whole lot of space for things, particularly permanent things. A non-consumable gift means that you have to find room for it, and for many people, that means having to make a hard choice between keeping this gift or something they already own. A small gift makes that choice simple or insignificant; consumable gifts eliminate that choice entirely.

If you went down this path with me and were trying to keep to a budget of, say, $15, you might end up coming across things like these:

• A couple of Keyforge decks (each one’s unique, two so two people can play)
• A fancy deck of playing cards (cards often wear out, and unusual ones are fun to play with)
• A bottle of Weak Knees Gochujang sriracha (highly regarded hot sauce)
• A six-pack of craft beer recommended at the local craft beer store
• A three pack of national park themed pocket notebooks

Every single item there could be figured out by looking at my personal social media accounts, figuring out what I like and doing just a bit of homework for stocking stuffers. They’re all consumable or unique and aren’t going to take up much space in my home. Not only that, there are many similar items to everything on that list that I’d also like.

If you’re a person giving a gift to a frugal person, focus on what they’ll actually use.

Let’s reverse the picture a bit and imagine that you’re a person who’s less price-conscious but you’re struggling to figure out what to buy for someone who’s frugal or a minimalist. What do you buy for someone who doesn’t really want much of anything?

In general, a frugal person is going to want something practical. They’re going to want something that they’re actually going to use, and that means being at least somewhat in touch with what their interests are.

Consumable gifts or “experience” gifts are often a really good idea for a frugal person because they’ll want to use — and use up — the item. It won’t take up space and, often, it’s a substitute for another expense they might have in their life. A consumable item — particularly a high-quality version of something they like — is usually a good gift for a frugal person.

Of course, frugal people also want something in touch with their interests, meaning some thought was put into the item. The magical ingredient in any gift is that you actually thought about the recipient instead of just buying something at random. What does that person actually like?

So, how do you pull this off? The strategy really is similar to the strategy for the “gifts from a frugal person” noted above. Start by studying the person. Look at their social media and all communication you’ve had with that person in the last several months. What do they seem to like? If you can’t get any leads that way, ask someone who knows them well, not for specific ideas but for areas of interest.

Once you have some areas of interest, start researching gifts in those areas. What are some consumable and/or practical gifts in that niche?

If you went down this path with me, you might end up coming across things like these:

• A book that we can both read and then talk about that’s of overlapping interest (touches on the social/meaningful aspect)
• A really high-quality but extremely practical cooking-related item, like these Pyrex Ultimate food storage containers, that I’d definitely use but never invest in myself
• An “experience” gift, like a ticket to a convention related to a hobby of mine
• A gift certificate to a board game retailer or bookstore (this acknowledges my specific hobby but lets me find what I want within that genre)
• A selection of items from the “stocking stuffer” list above

I would be thrilled to open any of these items as a holiday gift, much more than a random gift.

You can never, ever go wrong by adding some additional meaning to the gift.

I could make long lists of specific items similar to the ones mentioned above, but there’s value in doing your own research. Often, you’ll find something somewhere that’s in line with one of their interests but has a little something “extra” that makes it a more meaningful gift.

For example, if my dad found some excellent bottle of hot sauce and gave it to me as a gift, it has a little extra meaning because hot sauce is something we both enjoy and have shared over the years. I’d probably pop open the bottle immediately and find something to sample it on, and we’d both try it. That adds a little extra meaning to the gift.

Another example is if a friend gives me a book that they’ve read and really love that they think I would also enjoy. This opens up the opportunity of being able to talk about the book with them, giving the gift an extra social layer on top of the gift. There’s a potential connection between us there that doesn’t exist if you just buy a random book for someone.

A great way to enhance this kind of meaning is to include a note with the gift. Just get a sheet of paper and write down why you chose this gift for this person. Touch on that shared experience in the past, or mention how you hope it will help you connect in the future. Put it down in words so you don’t have to have the right words on your tongue at the exact instant they open the gift, because it’s often hard to plan it well and remember it.

For example, I might get a copy of one of my best-loved books for a friend and write a note on a sheet of paper to stick inside the book. I could simply write about how much I loved the book, how I remember us reading similar books in the past, and how I can’t wait to talk to them about the book when they get finished with it, maybe even suggesting going out to lunch with them to talk about it in a few months.

Another great way to make a meaningful gift is to make something that you know the recipient will like. Does someone you’re giving a gift to love hot sauce? Make some homemade hot sauce and bottle it and maybe print off a personalized label for them. Does someone you know love craft beer? Make some homemade beer that you chose specifically for their tastes and give them a six-pack or 12-pack of it. That type of personalization adds some nice meaning to the gift.

Whatever you do, don’t just give something random and thoughtless.

Most people, when they don’t know what to give someone as a gift, will default to giving something with incredibly broad appeal, like an Amazon gift card or a Starbucks gift card. The thought process makes sense: it’s something everyone can use, right?

The only problem with such a gift is that the recipient is also aware of the lack of thought into the gift. If you give someone an Amazon gift card (outside of rare situations where it’s actually an item on a teenager’s gift list or something like that), it’s pretty clear that they’re giving you a gift as an obligation and with minimal thought.

Try to avoid that. A $1 gift with some thought behind it is worth more than a $10 gift card to Starbucks. I’d far rather get a deck of Bicycle playing cards from a friend who shouts “DEAL ‘EM!” as soon as I open it than a $10 gift card, because that deck of cards actually has meaning and camaraderie with it, and in my experience, most people feel the exact same way.

Use the advice above. Do some homework into the person. Find something good that’s actually in line with what they like and, even better, something that touches on a commonality you have with that person. Write a little note to say why this gift is specifically for them, ideally touching on your shared relationship. That’s what makes a great gift.

What if it’s a “white elephant” or some other random exchange?

Sometimes, you wind up in gift exchanges with rules that leave the specific recipient outside of your control. In those situations, go for something either highly practical or consumable within the price range of the exchange. The nice thing about a highly practical or consumable gift is that it can easily be shared or re-gifted if the person doesn’t like it.

My approach in these situations is to think of a general type of item I want to put in that exchange — “hot sauce” or “chocolate” or “movie” or something like that — and then I do a few minutes of homework to find something of good quality in the price range of the exchange, either by searching online or asking someone with some expertise. That way, you’re never the person that put the “dud” gift in the exchange.

For example, if I decided to put “hot sauce” into an exchange with a $10 limit, I might go for the aforementioned bottle of Weak Knees Gochujang sriracha. If I decided to put “coffee” in a $20 exchange, I’d probably just go to a local roaster and buy a bag of their best beans as recommended by the person working there (most coffee shops have a specific type they’re known for).

If you are still stuck, why are you giving this person a gift?

If you are still finding yourself struggling as to what to buy for this person, this might be an indication that you shouldn’t actually be buying a gift for this person. A gift exchange usually relies on a close relationship with someone you know well, and if you’re still struggling to come up with something for that person, do you really know them well?

A struggle to find a gift for someone can be a sign that you need to work on your relationship with that person. For example, I could find a lot of gifts for my wife without much trouble, and the same is true for each of my kids, but for some of the people on the fringes of my extended family, I’d really struggle to come up with a gift, even after doing some homework. To me, that’s a sign that I shouldn’t be buying a gift, but also a sign that I should be working on that relationship or accepting that it’s distant (and probably fading).

What should you do if you’re obligated to give a gift in this situation? I’d really focus on the past, on what you once had in common, and use that as the basis for a small gift. After that has been handled, think seriously about whether you want to repeat this experience next year. Is it time to end the gift exchange, or is it time to build up that relationship again?

People come first.

The one thing to remember with holiday gift-giving is this: it’s about the people, not the stuff.

Don’t worry about giving the perfect gift to someone. Rather, just follow your initial instinct after using the tips above, then make an effort to spend meaningful time with that person and connect with them in a meaningful way.

The gift you give will be forgotten, but the relationship won’t be. The time you spend with people in a meaningful way, actually listening to them and doing something with them rather than just telling them about your life, is what will be remembered most of all, and if you do somehow mess up the gift, it’s much easier to forgive if you share a strong connection.

People come first, not stuff. Don’t overthink the gift and don’t overspend on it.

Happy holidays, and good luck.

The post Frugal Gifts (That People Would Actually Like) for the Holiday Season appeared first on The Simple Dollar.

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9 Work-at-Home Typing Jobs for Fast and Accurate Typists

There is one job that people always ask about, and that’s data entry. The reason I don’t cover data entry gigs on the website is most straight data entry jobs only pay pennies per document, which is by no means a fair wage. And often, these companies have substantial account threshold requirements, so you won't […]

The post 9 Work-at-Home Typing Jobs for Fast and Accurate Typists appeared first on The Work at Home Woman | Legit Work From Home Jobs.

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Five tips to improve your credit score and cut the cost of borrowing

Five tips to improve your credit score and cut the cost of borrowing

When it comes to borrowing money, understanding the APR (Annual Percentage Rate) that you’ve been offered isn’t always as simple as it could be

Didier Baclin Tue, 12/03/2019 - 11:44

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From credit cards to loans to mortgages, there’s a huge amount of products and providers for you to choose from in the market, but there’s also a variety of factors that lenders will look at when they are considering whether to lend to you and at what rate.

By knowing the different things that lenders look at to determine your credit health and personalised rate, plus acknowledging where you can make improvements, you could save yourself a significant amount of money the next time you want to apply for a credit product.

An initial word of caution on credit scores

Your credit score is based on your credit history or a credit file. This is a record of your address details, all your previous financial transactions, plus if you have any credit cards or car loans, mobile phone deals or mortgages.

These records show what your financial commitments are and how well you’ve managed money in the past. The records are kept by the UK’s three credit reference agencies: Experian, Equifax and Transunion.

Lenders will use the information from the credit reference agencies to see the specific credit score of each potential customer. However, the score that the credit agency gives you is based on their own judgement of your file - it’s a guide, not a guarantee of how a lender will see you and doesn’t give a full representation of your financial situation.

Banks and lenders must also look at a whole range of ‘affordability indicators’ to determine your ability to keep up repayments on a specific loan. For example, at Zopa, we would never lend to someone if we weren’t convinced they could repay their loan without compromising on necessary spending or if we thought they might struggle to make repayments in the future.

Zopa now has a ‘Borrowing Power’ feature with a score from one to 10 to help customers get a clearer picture of their credit health, including credit score and tailored insights of how to improve if it needs a little TLC. It also shows exactly which Zopa loans and APRs a customer might be eligible for.

Demonstrating the ability to make repayments on your loan is a major part of what makes you attractive to lenders and helps to determine if they should or shouldn’t lend to you.  

You should keep an eye on your credit score to make sure you’re improving it over time and ensure that you’re applying for a realistic amount of credit in terms of your financial situation, but there are many other things that you should consider that could improve your chances of accessing more affordable credit.

1. Register to vote

Make sure you’re on the electoral roll. Lenders use this alongside additional information to confirm your identity, check that you are who you say you are and as a proof point of stability.

It’s also worth noting that you’re less likely to be accepted for a loan if your address on your credit history, or the address where you’re applying for a loan, doesn’t match the address where you are registered to vote.

2. Get on top of your debt

Being in lots of unmanageable debt, using payday loans or failing to pay bills on time can damage your credit score. Any missed payments stay on your record for up to six years. 

If you use credit cards, you need to keep an eye on your credit use. If you have a credit card that has a limit of £1,000 and you spend the full £1,000 each month, your credit utilisation on that card would be 100%. The ideal amount you should spend is between 25% - 30% of the credit available to you across all products.

3. Avoiding a thin file is just as important

Lots of people think that they won’t be able to borrow money because they have too much debt, but there is such a thing as not having enough. This is known as having a “thin file”. It’s a bit of a chicken and egg situation - lenders want to see that you can handle debt well, but they can’t if you’ve never had any credit products before.

Typically, this affects people who have recently moved to the country or don’t have a utility bill in their name. Taking out a credit card, using it sensibly and repaying more than the minimum payment each month or setting up a direct debit for a utility bill will help boost your credit health.

4. Check your disposable income

There’s usually that period between paying all your bills and waiting for pay day where you have the least disposable income. If you don’t have a lot of money left during this period, lenders will be considering whether you can afford the loan or credit card repayments.

If you can adjust the amount you want to borrow or make any changes to your other monthly outgoings so you have a higher disposable income each month, this will help you paint a better picture of your affordability to lenders.

5. Don’t apply for too many products

Be careful about applying for too many financial products in a short space of time. Lenders may think twice about lending to you if you’ve applied for lots of different loans and have hard searches on your credit file – it may give the impression that you aren’t great at managing your money.

Some lenders will show you a personalised rate without marking your credit file – this is called a soft search. If you are shopping around, you should check to make sure that a provider only makes a soft search initially.

If your score isn’t in great shape, then you might want to avoid hard searches altogether for a while by holding off on making any new credit applications until your credit score is in better shape.

The aim is to make sure all lenders see the absolute best version of you before you ask to borrow money. While most people know that a poor credit score will result in being rejected for a loan or credit card, many don’t understand that it could end up costing you more money if you are accepted.

You want to give yourself the best shot possible at getting the cheapest credit that you can.

Didier Baclin is chief product officer at Zopa

The views expressed in this article are those of Zopa and do not necessarily reflect the opinions of Moneywise. 

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