Bad credit credit cards: whats causing your poor reputation?

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Bad credit credit cards: whats causing your poor reputation?

20th March 2011

The recession hasn’t helped the cause of thousands of people with a poor credit rating, slashing even further the bad credit credit card they can apply for. Even though common factors for a poor financial reputation amongst consumers include a lack of repayments and defaulting on particular loans, are all of the bad components of a person’s report their fault? In this article, we are going to explore what you should do if you believe your applications are getting declined inappropriately.

Of course, it’s important for us to remember that declined applications are increasingly problematic, and making further enquiries erratically could perpetually worsen the bad credit score you have already. All of the declined requests you make for credit get jotted down into your report – a fact that many consumers aren’t aware of. If you rack up dozens of unfulfilled applications for credit, this makes the alarm bells of prospective lenders in future ring loudly, especially when they ask for your history from credit referencing agencies. Think about it this way: if someone asked you for £100, and you found out that the 20 people they had asked beforehand said ‘no’, you wouldn’t be too foregoing, would you?

The real thing you need to do is to determine why the lenders are saying no – determining what the problem areas of your report are. The interesting part of the story can be this: even though defaulting on payments and settling debts late will cast you in an unforgiving light, some of the bad areas on your report might not be your fault.

Naturally, there are going to be a number of different machines and people who are adding information to your credit report frequently. This is because of how your commitments will change, and lenders will make feedback on what their experience with you was like. Also in your report are details about your address, your job and other commitments you have. Even though this gives creditors valuable insight into your background that will influence your decision, any mistakes or discrepancies in your report really might put you in a compromising position.

Because of this, you want to ensure that you check and double-check the background that credit referencing agencies have on you. The last thing you want is to be wrongly penalised just because the information that lenders receive about you is incorrect. So: how can you receive a report that you can critique and verify? Credit referencing agencies allow you to access your credit report for free for a month or so usually, with a fee of a couple of pounds for each updated copy that you might request throughout the year. Just like you would get an MOT for your car or a check-up with the doctor, making sure you are knowledgeable about your credit report will ensure you make the right decisions when applying for bad credit credit cards, and improving your reputation to get better cards with less interest.

Posted in Credit cards

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