It is true that as many as one in four individuals in the UK have a poor credit rating. This, unfortunately, can put a block in the road when it comes to applying for a new credit card. Additionally, as the credit crunch tightens its grip on the economy, credit card companies can afford to be more particular about who they lend to.
When you apply for a credit card, the card company will check with consumer credit agencies to determine whether or not your credit history is in good standing. These organisations will know when payments have been missed on both current and closed accounts. The report will state when, if any, credit card payments were missed, loan payments were missed, if there has been bankruptcy, etc. These scenarios, as well as paying bills consistently on time, will determine your credit score.
There are many situations involving loans or credit cards that can result in being ranked with poor credit. Some of these instances can include defaults, mortgage rent arrears, bankruptcy, delinquency, individual voluntary agreements, previous repossession, or late/missed payments on credit cards or loans. A poor credit history can creep up on anyone. There are many people affected by a bad credit history in the UK, and those people are not just those who regularly miss payments or people who cannot hold down a job. Situations such as redundancy, bereavement or divorce can upset years of steady financial arrangements.
SimplyFinance is here to help those with both good and bad credit alike. To find which credit cards are available to those who have a bad credit rating, use our Credit Card Comparison Tool.