Whilst some people, such as those with bad ratings, may always have experienced problems when it comes to getting a credit card, over recent months a greater number of people may have found themselves being turned down for credit cards due to the current financial climate.
In some cases card companies reserve their best deals for those with excellent ratings, and they also have to be very careful about who they lend to because they could otherwise stand accused of irresponsible lending.
So, just what sort of factors can stop you from getting a credit card when you make an application? A number of factors that could be stopping you are listed below:
Failure to fit in with the lender's criteria: If your details do not fit in with the lender's profile or lending criteria then you may find yourself being turned down. The profile set by lenders could relate to anything from the credit rating requirements to the age group of the borrower. In order to even be eligible you would need to fit in with these requirements.
If you have already had a lot of searches on your credit file: When you apply for your card the lender will run a search on your file. However, if the lender sees evidence that there have been a lot of searches on your file in a relatively short period, indicating that you have been applying for a lot of finance in a short space of time, then you are unlikely to be successful. Each time you apply for finance a search is carried out on your file, and this is reflected on the file for other lenders to see.
If you have no credit rating or history: You may experience problems in getting a credit card if you have not taken out any finance in the past, as this means that you will have no rating or history or score, making it difficult for the card provider to determine whether you are an acceptable risk or not.
These days many providers would rather turn away the business than take a chance on giving credit to a consumer whose repayment habits they know nothing about.
If you've never had a credit card or credit agreement before, you can start to build a credit history with a bad rating credit card.
Having damaged credit: If you have damaged credit you will find that these days most card companies will not look twice at your application, as they do not want to get lumbered with a borrower that has had past problems. County court judgements, defaults, and a low rating will all go against you when applying for a credit card.
You can also compare bad credit rating credit cards, which are designed especially for people with damage credit to help rebuild and strengthen a poor history.
The electoral register: Another reason why you may find yourself unable to get a credit card is if you are not on the electoral register. This enables lenders to verify your name and address, so it is important to ensure that you are on the electoral register.
It is also worth considering how you can improve your rating before you apply for a credit card. Such as checking your credit file and keeping up with all existing payments and bills.
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