25 May 2005
New research has revealed that the country's debt problem is not severe as some of the media makes out, with many people managing to clear their credit card debts.
A recent survey by MyCallCredit showed that during 2004 73 per cent of borrowers paid off their credit card balances each month.
In addition, only 0.76 per cent of homeowners were experiencing difficulty in keeping up their mortgage repayments.
However, there are other considerations to be taken into account when applying for credit, the company warned.
MyCallcredit director Alison Nicholson said: "So many different aspects of your life affect how a lender will view your suitability as a borrower and some of them aren't that obvious.
"So if you want to be sure of obtaining credit in the future you need to take control of your credit history."
Credit card holders are advised to make payments on time, as a late payment can have a negative affect on your credit rating.
Those who decide to stop using their credit card are advised to inform their lender, rather than just cutting the card up, as the account will remain on file, affecting your credit rating, until the lender is informed.
Which is the right credit card for you? Find out now by comparing cards with uSwitch.com's free and impartial comparison service.
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