Specialist Credit Cards Can Help Your Credit Rating

With the levels of consumer debt in the UK soaring, it is no surprise that many households and individuals have found themselves with unmanageable levels of debt.

In many cases, this has resulted in missed and regularly late repayments on credit cards, loans, and other financial commitments, and because of this many individuals have found that their credit rating has taken a real battering.

Most of us have seen the claims that some companies make with regards to credit repair, and it can be all too tempting to pay a fee in order to get your credit rating ‘repaired’ by one of these companies. However, the only way to actually repair your credit rating on a permanent basis is by making regular and timely repayments when it comes to your financial commitments. Although it can take a while for your credit to start improving noticeably, this is the only effective way to improve your rating.

You can get a helping hand from certain card issuers that cater for those with poor credit. Having a bad credit rating puts you in something of a catch 22 situation – you need to be able to get credit in order to start improving your credit rating, but with a poor credit rating getting credit can seem impossible. However, with the credit cards on offer from issuers such as Capital One and Vanquis, you can get a credit card with a low credit limit, and you can use this to start improving your rating by spending on it and then repaying the balance responsibly.

Although these cards don’t offer special incentives such as rewards, cash back, or 0% interest deals, they do provide an effective solution for those that wish to improve their credit and are unable to take out a regular credit card. Once your credit rating has improved, you may then find yourself eligible to apply for a more mainstream credit card that offers rewards and incentives, as well as lower interest rates.

Alisdair Milton
3rd November 2006

More Information:

• Credit Building Tactics
  Much is written about credit ratings, the score against an individual’s name, that rates their eligibility for credit. This article discusses different methods that you can use to try and build a new, better credit rating.
• Using Your Credit Card To Build Credit History
  Let’s say you want to buy a house, but you need to get a mortgage to help pay for the house. However, you have no credit history to speak of, so how can you apply for the mortgage to get your dream home?
• Applying For Credit Cards When You Have Bad Credit
  For those with a poor credit score, getting a credit card is harder. However, there are solutions and we will discuss and offer these in the article.
• Credit Card Options For People With Bad Credit
  There are many items that you can only pay for with a credit card. If you want to book a holiday on the Internet, a credit card is a secure way to pay. And if you want to hire a car when you get to your destination, a credit card is your only option.
• Causes and Cures Of Credit Card Debt
  For some, credit cards can prove a temptation too far, and soon they find themselves in debt. Simple precautions will keep the savvy card holder from such dangers.
  

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