Article by Individual Finance

When it comes to getting a credit card, you can usually understand why people with bad credit often get refused; they’ve shown in the past that their handling of money isn’t exactly perfect, so giving them more credit to spend isn’t in a lender’s best interests. But what if you’re just starting out on the credit ladder – say, you’ve just had your 18th birthday or you’ve somehow managed to get through life without having any dealings with credit companies? Believe it or not, that can actually be just as bad as having bad credit!

While that might sound crazy though, it actually makes sense when you consider what card providers look for – namely, security. In giving you a card, they’re lending you money and expecting it back with interest, so it’s no surprise that credit card companies want some kind of assurance that this is going to happen. That’s what credit checks are for, because they check against your credit history and see how responsible you’ve been with your finances in the past. If you’ve got a good credit history, they’ll see that and happily hand over a card; if your credit rating is bad though, they’ll see that too and turn you away.

Unfortunately, if you’ve not had any kind of credit in the past then all these companies will see is… well, nothing! There’ll be no proof of how well you can handle money, no assurance that you won’t overspend on any credit they give you and no evidence that you make regular repayments on anything you borrow. And sadly, that means you’re likely to be turned down simply for the fact that the card provider won’t have any way of telling if you’ll use it wisely or pay off enough interest to make it worth their time.

Of course, that doesn’t mean you can’t get a credit card – it just means you’ll need to approach a provider that specialises in cards for high-risk borrowers. Some, like Capital One and Vanquis, have cards for people with bad credit and these can also work for people with no credit, although they have interest rates much higher than most other credit cards (usually between 35 and 40%). However, Capital One also has a ‘no credit’ credit card with a slightly lower rate (around 29.9%), as does Barclays. If you’re just starting out, these can be ideal for building a credit rating especially since they can even have their rates lowered and credit limits raised if you use them responsibly.In SummaryNo Credit Credit Cards…

Can be hard to get approval for from the mainstream credit card providersAre usually lumped in with credit cards for people with bad creditDo exist, although they have higher interest rates than regular credit cardsCan be provided by the likes of Capital One, Vanquis and BarclaysCopyright: Individual Finance, 2010


About the Author

Individual Finance has informative articles on a wide number of aspects relating to UK finance. It also keeps users up to date with the latest money-saving offers and vouchers through regular e-mail newsletters.

IF’s Martin Mathers is a professional journalist with 12 years of experience, covering everything from finance and business to movies, music and technology.

Article by Rose Graham

Are you of the opinion that bringing your debts under control or making repayments regularly will boost your credit score only after years? Definitely not. This is one of the most significant parameter that is used to determine your credit score.

Hence, if you are in a position to repay your debts on time, it will certainly have a huge impact on your credit score. Hence, make sure you keep this bad credit tip in mind at all times. Regular repayment of debt and keeping the total debt amount under control-these two tips will help you a lot.

Simultaneously, you should get a copy of your credit report and go through the same. This is where most of us make the mistake of ignoring professional advice. Just as you would contact a tax professional for any notice received from the internal revenue service, you should contact a professional credit repair experts for any information that you have received from the credit bureaus.

The credit report, once studied, should clearly point out the various areas where disputes can be raised. This is an important point because disputed items shall be removed in a span of a month and this will boost your credit score. This is your second tip. Give sufficient importance to disputes and make sure you understand their dispute filing system properly.

Thirdly, you should undertake some transactions that are designed primarily to boost your credit score. For example, going in for loan, not spending the same and using the loan money to repay the loan along with interest is one smart move to boost your credit score.

While this option is often utilized by those who have filed for bankruptcy or those who have a settlement on their credit report, it can also be used if you can afford low interest loans. You will have to bear the interest cost but that is a small price to pay for the fantastic boost that your credit report will enjoy.

These three bad credit tips will definitely help you see an improvement in your credit score in a span of a single month. However, you should never be satisfied with small rises.

Rather, you should go in for concerted effort that will help you boost your score and retain your credibility in the market for a long time in the future. These 3 tips will definitely help you manage the task better.

There are options available to repair bad credit and raise your credit score. Something as simple as disputing negative items can help. These items can be erased from your credit report, resulting in a significantly higher rating. Click the following link for more information on how to repair bad credit quickly and legally: Credit Report Repair

About the Author

Rose Graham has been involved in the public sector, helping consumers rebuild their financial well being for the better portion of her working life.