Getting Credit with poor credit History

Getting Credit with poor credit History

Have you been rejected by a Credit card company from being issued a card because of your poor credit or no credit history? Mainstream companies try to stay away from people with bad credit because of the risk associated with them. This however should not put an end to your hopes because there are several providers who are specialized in this area. These people do understand that poor credit can befall anyone and not necessarily those who miss payments through negligence. It can be due to the sudden loss of a job, major illness or even a bereavement that can cause a lot of financial upheaval in a family.

It is a known fact that at least one in four people in the UK have bad credit scores, as a result of which they find it difficult or unable to be approved for UK credit cards. What happens is that when you apply for a credit card to a reputed company, they   checks for relevant information from consumer credit information authorities to find out the credit worthiness of the applicant. If your credit rating is poor, mainstream companies usually shy away from offering you this facility.

The advantage of credit ratings is that they keep changing and even if you have a very bad score, there’s no need for it to remain that way forever. The mere fact of being aware of your rating gives you a chance to repair it.  Here are a few tips on how you can do so:

Financial Management

One of the main reasons for your negative credit score could be due to poor management of your finances and being irresponsible in your spending. One of the best ways to remedy the situation is by using your existing UK credit card with responsibility.

  • Use it if you have to, but only to purchase what is essential and not to buy things on a sudden whim.
  • Make sure that you make at least the minimum payment on time.
  • Never, ever go beyond your authorized limit.

By following the above directions for some time, the chances of your credit score going up, slowly but surely is very real.

  • Another option is to get a prepaid card. These are cards where you have to upload money into them before it can be used for purchasing. The benefit of having a prepaid UK Credit card is that you don’t have to go through a credit check to get one; on the other hand, a prepaid card will not be helpful to improve your credit score.
  • There’s another way of getting a UK Credit card and that is by applying for a joint card with a member of your family who has a better credit rating. If your partner’s credit history is much better than yours, the chances are that the card will be issued in your joint names. This will ensure that you get not only a better rate of interest but also help to improve your credit score in the same way it would if you had a credit card on your own.

Be warned however, that having

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