Finding a Credit Card During the Credit Crunch
15 Feb 2008 Tell a Friend
The credit crunch that is currently plaguing the UK is going to affect more than just mortgages and loans. The affect has not been too strong yet, but it is believed that the credit crunch will soon be felt by the UK credit card industry as well.
Credit cards are highly prevalent in the UK. According to HoffmanBrinker.com, there are 24.5 million credit card transactions made each day in the UK adding up to £1.45 billion. In 2006 alone, 181 million credit cards were issued in the UK. That equates to roughly four credit cards for each adult in the country.
Credit cards will no doubt remain a staple spending tool for UK consumers, but with the credit crunch holding strong, some consumers may find it harder and harder to find the best credit card for their needs. In addition, it has been common practice in the past to hop from card to card in order to maintain a low interest rate. People that have made this a common practice may find it more difficult to keep doing so in the future.
There are a couple of ways to stay ahead of the credit crunch so that you'll still be able to find the right credit card deal for you. The most important thing you can do is to be aware of your credit history and to be aware of how your spending and borrowing can affect your credit score. Take advantage of offers from companies who offer free credit report viewing so that you know exactly what is on your report at all times. Knowing what is included in your credit history will make it easier for you to know which credit card offers you will be most likely to qualify for.
Another tip to remember is that each credit card application you submit puts a dent in your credit history, so it's best to apply to as few companies as possible. This is why it is important to know the types of offers you will be most qualified for before you start applying to different card companies.
It may also be beneficial to do some research on how to improve your credit score before you start the hunt for the best credit card offer. You may be able to find some tips on types of cards that are beneficial to your credit type and to your financial situation. Below you will find a few tips for those who already know the general status of their credit history as well as their credit card spending and repayment habits.
If you have good credit and you have an outstanding balance on your credit card, you may want to consider transferring your balance to a card with a lower interest rate.