The True Cost of Loyalty: Exploring LFC Season Ticket Financing Options
It is no secret that season tickets are expensive and the average Liverpool Football Club season ticket is now £869. The good news for Reds fans is the club has consistently held season ticket prices despite inflationary pressures after the COVID-19 pandemic.
Held prices or not, the season ticket is expensive and if you are buying for a family, the costs can rapidly rise. It is no wonder, many fans are turning to financing solutions to afford to follow their favourite club.
This isn’t a Liverpool only problem, the use of finance to buy annual season tickets spans all major clubs in the Premier League. Let’s investigate further.
Season Ticket Financing Options
The simplest solution and one that most fans opt to use is a credit card. Often these are on introductory rates that guarantee 0% interest for a year, allowing people to spread the cost of a season ticket over 12 months.
Problems ensue if you fail to repay the amount outstanding within the 12-month grace period and with future season ticket costs on the horizon many fans find themselves falling behind on their debt.
When an introductory offer ends, you can refinance onto another 0% credit card if your credit rating is good enough. But failing to repay your existing credit card will mean a balance transfer which will in turn eat into the available credit for next year’s season ticket.
For example, if you take a credit card with a £1000 limit on 0% and buy your season ticket, then only repay £500, you will find by the time you balance transfer you will either need to extend your limit or find money elsewhere.
This causes a common debt problem known as a debt spiral and often leads to problems with your credit score.
What if I Have Bad Credit?
If you already have a bad credit score, you have your options for credit cards limited. Often you will only be approved for cards with much higher interest rates. For example, a typical bad credit or credit builder card will have an interest rate of over 30%.
The total cost of your season ticket in this scenario is £1129.70.
Bad credit scores also limit the amount you can borrow on a credit card, and you may not be able to fund the entire season ticket.
Because of the restrictive credit limits and eye-watering interest rates, savvy bad credit borrowers prefer to finance using bad credit loans with a 12-month term.
Bad credit loans are still expensive but should come with a comparatively cheaper interest rate compared to an adverse score credit card.
What is Bad Credit?
Bad credit is a term used to describe someone who is a higher risk to financial institutions. It can occur for several reasons but normally one of the following causes a bad credit score:
- Not being registered to vote,
- Missing payments on financial commitments,
- Ignoring outstanding debts and having accounts in default,
- County Court Judgements or Bankruptcy.
Once you have a bad credit score it will take a lot of work to repay your debts and improve your score. This is because your bad credit history will be recorded for 6 years, and you will find it an uphill battle to not only improve your creditworthiness but also for the old information to drop from your record.
For example, if you have a CCJ against your name, it will always have a high impact on your credit score, especially if it is unpaid. Even once paid, a CCJ will still negatively impact your score and you will struggle to improve your credit score enough to reach a fair or good score.
How is Bad Credit Calculated?
Credit scores are calculated by credit reference agencies. There are three major credit reference agencies in the UK and one minor agency. These are:
- Crediva (Minor Agency).
The major credit reference agencies use your financial history to calculate an overall score. This is different between agencies, and you may notice your score is different between them as well.
Different lenders use different agencies to assess you when you make an application for finance. If your credit score is better with Equifax, you should seek out a lender who uses Equifax as their partner credit reference agency.
Doing so may help you achieve a better interest rate than applying through a lender that uses an agency that rates you poorly.
Can I Get Bad Credit Finance for My LFC Season Ticket?
Football fans in general find themselves in a conundrum each year. Wating lists for season tickets are often lengthy and for clubs like Liverpool FC it can take years before you reach the top of the list and can purchase a ticket.
Failing to purchase a season ticket relinquishes your option to buy a season ticket and you will need to rejoin the waiting list if you choose to buy again in the future.
For those struggling to afford next season’s season ticket, it can be a very difficult decision and understandably, many opt to use finance.
In general, the financial advice would be only using finance when it is necessary, and you would need to assess whether a season ticket is necessary.
The good news is if you must use finance, there are always options available to you even if you have a bad credit score.
Bad Credit Comparison Website
The latest development in the bad credit finance sector is the launch of a bad credit comparison site – the first of its kind in the UK.
By using a bad credit comparison site, you will be able to compare interest rates and lenders to find out which option is cheapest for you.
It also preapproves you before making a loan application with a soft credit check so you can apply for your new finance with confidence and not worry about further damage to your credit score.