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It
is all too easy to get turned down for a credit card if
you have had one or two problems with paying bills in the
past, whether it be with loans, mortgages, credit cards
or utility bills, if you miss a payment it may get put on
your credit file at one of the credit scoring agencies.
When
banks or other financial institutions get an application
for a credit card they need to be as sure as they can that
they are going to be repaid any money they lend. They do
this by looking at your credit file from the credit scoring
agency they use. These are normally Equifax or Experian.
Once they have seen your record they apply their own individual
formula to it to determine your elegibility for lending.
If
you know you are having trouble to keep up on repayments
it may be an idea to try to consolidate your debt. Some
people do this by taking out a low cost personal loan with
a view to spread out payments over a longer time to help
reduce the monthly payments and so enable them to pay bills
on time in the short-medium term. This may help prevent
more late payments which could make their credit score even
worse. After a period of making regular payments, the lending
institutions may look more favorably on the applicant as
they can see they are coping with any debt they have. They
could then apply for a credit card, and if they get one
with 0% on balance transfers, or even better 0% on balance
transfers and purchases, they could transfer their loan
balance to the card and stop paying interest for the duration
of the offer, see 0%
credit cards for more details.
If
a loan is not a convenient option you could try a credit
card geared toward people with bad credit.
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