Liz Marsden asked:




Damaged credit ratings can happen so easily and often people have no idea that they’re considered a poor credit risk by loan companies or their bank. The first they know about it is when they check their credit rating file.

Or they become aware of the problem when they apply for a loan, credit card or mortgage and their application is refused. When the refusal is questioned they realise that a previous, apparently minor financial problem has damaged their rating.

Adding to the problem is that the refusal of a credit application will also appear on your file as a negative… It doesn’t seem fair does it? That’s why it’s important that before you apply for credit you check your credit rating file.

When credit conditions were easier, and that’s not too long ago, these minor factors were pretty much ignored by loan companies who were rushing to try and push credit cards and loans onto people. Wow, how times have changed…

So, how do you improve your credit rating? What can you do? Well, you can apply for a credit repair credit card and there are a number of companies supplying these.

Credit repair cards are an ideal way of raising credit. The main benefit is that if you have a poor credit history they will enable you to prove that you can organise your finances and behave responsibly. For example you can show that you can make payments on time, not exceed your credit limit and repay more than the minimum amount each month.

You will only be allowed a reduced level of borrowing with a credit repair card but the idea isn’t to go on a spending spree! In fact the last thing is to be able to get into debt again!

Credit repair cards charge a higher rate of interest than mainstream credit cards, but if you use them carefully and pay off all or most of the balance each month the interest paid will be low.

Once you have proved you can manage your credit repair card you will once more be able to apply for loans, mortgages and regular credit cards.

Craig