Refused credit? The Credit Card Centre could be the solution to help you get credit
Many people find us after they have been refused credit by other companies. Perhaps you need credit, but because you have a poor credit history or no credit history, or are on a low income, credit cards might seem out of your reach.
You might have heard the term 'sub prime credit' - industry-speak for someone with no credit history or poor credit history; who finds it difficult to obtain credit from mainstream lenders. We see things differently and treat each case on its own merit
How to Improve Your Credit Rating
Before you set out to improve your credit rating, it's important to find out why it is low. If you don't know, ask to see your credit reference file to find out. (See what can you do about a bad credit score to find out how to do this.) Assuming you know why you have a poor credit score, there are a number of simple steps you can take to help improve your credit rating and build credit history:
Make sure you are on the electoral roll. It only takes a few minutes to register with your local council and it will help to improve your credit score over time
Pay bills on time. This will begin to improve your credit history and will again give you an improved credit rating over time
Be careful about the number of times you apply for credit. Every application is logged on your file and too many applications may not help your credit rating
When applying for credit never give false details, always tell the truth. If there are inconsistencies with past credit applications or details that are held on checking systems differ from your application it will effect your credit score
Start to build a credit history over time and when you check your credit reference file you should find an improved credit score
How can you improve credit ratings if you can't get credit?
Specialist credit cards like our Vanquis Visa Card are specially designed for people with bad credit. Even if you have been turned down by other companies, you may be accepted by us. As long as you manage the card properly, stay within your credit limits and pay promptly, this is a good way to build credit history and to improve your credit rating.
Managing Your Finances to Repair Adverse Credit Score
It’s easy to find yourself with adverse credit, but what can you do about it? Applying for an adverse credit card is one way to build your credit rating (see how to improve your credit rating page) but you should also be thinking about addressing how you got into this situation in the first place.
Tips on how to manage your finances more effectively
For some people, adverse credit starts as a result of a one-off event, like divorce or a health problem which puts strain on personal finances, but for many others, adverse credit is a result of mi s-managing personal finances.
Adverse credit is not as uncommon as you may think. The Citizen’s Advice Bureaus deal with over 5,000 people with debt problems everyday; average household debt (excluding mortgages) in the UK is over £8,000 and rising*. Rather than ignoring your situation and living with impaired credit and the complications it can bring, why not take a few simple steps to manage your finances better:
Set yourself sensible financial goals. Where do you want to be in 1 month, 3 months, 1 year and 3 years?
Write down your outgoings - the money you need to get by each month. Include all the essentials like mortgage/rent, council tax and utility bills, food shopping, travel to work.
Look at the money you have coming in; if it’s more than your outgoings, take the remainder and give yourself a budget to include on clothes, going out, paying off credit debts or building savings etc.
If the money coming in is less than your outgoings, think about what you can do to reduce your outgoings
Why not search online price comparison sites for items you’re looking to buy, in order to get the cheapest price
Search out the cheapest gas/electricity/water providers as you could make substantial savings throughout the year
How about turning your heating down a degree or two to reduce your heating bill and at the same time help the environment
Are there any non essential items that you can cut back on i.e. do you really need that extra pair of shoes?!
Or try increasing the money you have coming in;
Maybe a new job
Gain some overtime at work
Can you turn an interest or hobby into an income earner
Could you have a car boot sale and raise money from old knick-knack’s that you no longer need or use
If it all seems too difficult - get advice. Your nearest Citizens Advice Bureau will be happy to talk through your financial situation and advise you what you can do about your debts.
What not to do
Whatever you do, don’t ignore demands for money, credit debts, council tax bills or the like. This is the fastest way to end up in an adverse credit situation, which is often avoidable. If you are having trouble paying debts, always talk to the company or entity involved or get independent advice.
It's important to understand your credit report and how it can help you get credit. Your Equifax Credit ReportT gives you clear, easy-to-understand advice for each item on your credit report and its possible impact on your ability to obtain credit.
We make it easy to understand what aspects the lender uses to make a credit decision, helping you get that credit or loan you want. And checking your credit report regularly is one of the best ways to protect yourself from identity fraud.
Find out more about the family of Equifax Products by Clicking Here.
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CreditExpert helps you to challenge anything with which you disagree; helping you to manage your credit rating. You also have the option to order your Experian credit score. This information will give you further guidance and an indication of how your Experian credit check may influence a lending decision.
CreditExpert also saves you time and trouble if you become a victim of ID fraud. A recent report from CIFAS has found that, on average, it takes victims more than 15 months to discover their identity has been stolen and over 300 hours to clear their name. CreditExpert's weekly alerts mean that you quickly learn about any changes to your Experian credit report. Experian's Victims of Fraud team will help you to resolve any problems. Find out more about CreditExpert® from Experian
The first step in repairing or fixing your credit history is to understand your credit score. Both Equifax and Experian can help you understand your credit score. You should know as much about yourself as any financial institution does. Your credit report shows you what a lender sees.
Every time you apply for credit or a loan, that request is recorded. Multiple requests on your credit history can look as if you are over-extending yourself or a fraud is being committed. If you are looking for a good credit deal or mortgage, you must check your credit report to ensure that it accurately reflects your position. Both Equifax and Experian allow you to check your credit report online and as often as you want.
