Being refused for a credit card application can be a frustrating experience and it’s most likely your credit rating is behind it.
A low score can be caused by everything from previous missed payments to having a lack of credit history. The latter can be confusing for some, but – believe it or not – some lenders prefer to see that you’ve asked for credit and made repayments on time in the past.
Improving your position can take time, so patience is key. But if you want to boost your credit rating then why not try some of these simple and effective ways to get back on track?
Check your file is accurate
Your score could be harmed if some of the details on it are inaccurate. Mistakes can happen, so it’s well worth checking everything is as it should be, if it’s not get it corrected as soon as possible.
Get a card with higher interest rate
If you’ve previously found yourself struggling to make repayments on time then opting for a card with a high interest rate might be something you feel a little bit unsure of. However, if you use it responsibly it’s a great way to build up your score and show you can be trusted to borrow. The way to make them work is to make a purchase on them – perhaps monthly – and then clear the balance in full on time. There are a number of options designed to give people with a poor score a second chance, so compare credit cards to find the right one for you.
Never miss a payment
If you’ve been known to be forgetful in the past then it might be worth setting up a direct debit to ensure you’re at least covered for the minimum repayment due on a card each month. However, it’s preferable to cover the full bill, ensuring payments are never missed. It’s also worth making sure you stay on top of your spending to ensure your credit lending is never exceeded.
Don’t max out your card
While it may seem better to show you can comfortably repay larger sums each month it’s actually better to avoid doing this as it gives the impression you are close to maxing out your card. Instead stick to smaller, but regular repayments to help – rather than hinder – your rating.