Having your credit card application turned down because of a weak credit history can be frustrating – but there are credit cards available for people with less than perfect credit that can actually help you to strengthen your credit rating, if used the right way.
uSwitch looks at why your credit card application might have been turned down and how to use a credit card to strengthen your credit rating.
Why was my credit card application turned down?
There are a number of reasons why your credit card application could have been turned down – many people are turned down because they do not have enough of a credit history and lenders are unwilling to take a risk on someone who does not have a proven record of good credit.
It makes sense to check your credit report before you apply for a credit card – your credit report contains the information lenders see when they decide whether or not to accept your application, and knowing what it contains can help you to decide what credit card to apply for.
For example, if you check your credit report and find that you have good but not perfect credit, you will know not to apply for a credit card that requires applicants to have an excellent credit rating.
Not only will this save you time filling in credit card applications that might not be accepted, but each time you apply for a credit card, the lender will check your credit report, and their check becomes part of your credit history. Lots of checks on your credit report in a short period of time looks bad to lenders, and could affect your credit rating.
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What credit card should I apply for to strengthen my credit rating?
If your credit history is less than perfect, it could pay to make sure you apply for the right credit card – there are credit cards on the market designed to help you improve your credit rating.
Credit cards open to those with a less than perfect credit history do have some drawbacks – they may have a higher than usual APR and the credit limit may be lower. However, a higher APR is a small price to pay for a credit card that could help you improve your credit rating in the long-term.
If you are realistic about what you can afford to spend on your credit card, and make your repayments in full and on time, this should show up on your credit report and may help you to build a better credit history.
With uSwitch, you can specifically compare credit cards designed to help you strengthen your credit rating, so it’s easy to find the right credit card. Find out more about how to improve your credit score.
What else can I do to strengthen my credit rating?
If you have been declined for a credit card, or you just don’t want the temptation of a high credit limit, a prepaid card could be a good option because you can only spend what you load onto it. In some instances, prepaid cards can even help you to strengthen your credit rating.
With a card like the cashplus prepaid MasterCard® with creditbuilder, the card provider lends you a full year’s worth of monthly fees – interest free. You then pay back this interest free loan with the monthly card fee. If you make all the payments in full and on time, it could help to strengthen your credit rating, by showing lenders that you can manage credit responsibly and handle repayments. Find out more and apply now.
Find a credit card to strengthen your credit rating
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