Winning The Credit Card Game When You've Got a Bad Credit Rating
Making successful applications for credit cards can seem like an uphill struggle when you've got a bad credit rating. Many mainstream card companies are simply not interested in applicants who fall short of the qualifying criteria that they set for their products.
Even if you have a reasonable credit history, companies may still decline your application because of other factors. For instance, some applicants have been refused in the past because they were not in full time employment or did not own their own home.
Fortunately, the market in the UK is extremely competitive. Hundreds of issuers now vie for your business, and as a result a number of companies now offer credit cards exclusively to people who have been refused elsewhere.
But, even though there are more opportunities to obtain credit cards these days, being accepted is by no means guaranteed. In these circumstances, it helps to do a bit of preparation before applying.
Here are some application tips that will help to stack the odds of acceptance in your favour…
Be selective in your applications
The more credit cards you apply for, the worse your credit history becomes. It's true! Every time you apply, the credit card company will check up on your credit history. Every time they do this they leave a 'footprint' on your credit record. The more footprints there are on your credit record then the lower your credit score, and the less likely they are to issue you with their products.
Focus on your recent credit history
Credit cards companies who specialise in offering cards to people with adverse credit records are more likely to issue cards to people who have proven reliable in their credit repayments over the previous six - twelve months.
For a lot of these companies it doesn't matter if you've got CCJs or defaulted payments on credit cards blotting your distant past. What matters is your more recent form. If you can prove that you've turned over a new leaf, your applications are more likely to be accepted.
How much is your home worth?
If you're a homeowner, knowing how much your property is worth could prove invaluable when applying. This is because lenders who focus on the sub-prime market may choose to weigh the equity in your home as a significant factor in their decision as to whether to award you with their offer or not.
Make a personal budget plan to support applications
A simple list of your income versus expenditure is a powerful way in which to exert influence on the application process. By supplying this information, companies can see how responsibly you are handling your finances now, perhaps tipping those decisions in your favour.
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