How To Apply For A Credit Card In The UK
The first step in applying for a credit card is gaining access to your credit score. Once you know your credit score and how your sco 00004000 re rates, you can then make the appreciate decision on the type of credit card you can qualify for. In the UK, there are two major credit scoring companies, Experian and Equifax. You can obtain your credit report and corresponding credit score from these two companies. The UK Credit-Card Centre provides access to your credit report through both Experian and Equifax. CreditExpert helps you to challenge anything with which you disagree; helping you to manage your credit rating. You also have the option to order your Experian credit score. This information will give you further guidance and an indication of how your Experian credit check may influence a lending decision. CreditExpert also saves you time and trouble if you become a victim of ID fraud. A recent report from CIFAS has found that, on average, it takes victims more than 15 months to discover their identity has been stolen and over 300 hours to clear their name. CreditExpert's weekly alerts mean that you quickly learn about any changes to your Experian credit report. Experian's Victims of Fraud team will help you to resolve any problems.
Once you understand your credit score, you can then decide on what card you can qualify for. There are a number of card types; low rate cards, cards that come with reward programs, cash back cards, and cards for people with less than ideal or "bad" credit.
Choosing a card that fits your needs is what we are all about. We provide the tools and information necessary to make an informed decision on not only the card that best fits your desires, but also the credit card that fits your credit history.
How To Apply For A Credit Card In The UK
The next step in choosing a card is to figure out what type of card you want. Cards within the UK are divided into five main categories:
Balance Transfer
Balance transfer cards allow you to consolidate credit-card debt onto one card, allowing you to shed yourself of high interest rates. And therefore saving you money. But initiating a balance transfer from a high interest rate card to a card with a lower interest rate is not void of pitfalls. You need to understand how a balance transfer works. And more importantly you need to understand the fees associated with the transfer. Many times there is fine print attached to the transfer that includes hidden charges. Some cards may charge a transfer fee that can be a percentage of the balance transferred. Be sure that there is a cap on the amount, or else a balance transfer in the thousands may end up costing you hundreds of pounds. Also, be sure the bank doesn't charge a high annual fee, or joining fee. Barclaycard, Virgin, and Capital One all offer cards with balance transfer benefits.
How To Apply For A Credit Card In The UK
Low Interest
Low Interest Rate cards offer introductory rates of up to 0% APR for anywhere between 3 to 18 months for when the credit-card account is opened. This rate can, depending on the credit card company can apply to new purchases, cash advances, and balance transfers from other credit accounts. Barclaycard and MBNA both offer low rate cards.
Rewards/Loyalty
Rewards cards are the fastest growing segment of the credit-card industry. Since everyone uses credit cards, it's only natural to want the benefits of a rewards program from your everyday purchases. Rewards programs come in a variety of flavors; cash back rewards, shopping rewards, travel rewards, entertainment rewards are just a few of the rewards program available. If you use these cards in the way they are intended, they can prove to be very beneficial to your credit card purchasing. MBNA, Sainsbury, American Express and MBNA offer rewards program connected with your spending.
Travel
Cards that offer travel rewards programs are reasonably flexible and might provide airline miles, points that are redeemed for hotel accommodation, or both. You earn reward points or airline miles whenever the credit-card is used for everyday purchases. Cards used for travel related spending such as purchasing airline tickets or hotel reservations, a greater number of reward points are usually awarded. Reward points can be redeemed for airline tickets, hotel accommodations, car rental, or special priority treatment or upgrades while traveling. Bmi, Lloyds, American Express, and Virgin all offer travel related cards.
Bad Credit
Worrying about your credit problems is not going to solve them. We promote credit cards for individuals with bad credit or simply put, less than perfect credit. Simply qualifying for a card will not help you build, re-build or re-establish your credit. The key to improving your credit rating and subsequent credit history is making on-time payments with all of your creditors and maintaining your account balances well below the credit limits. This is the key to changing your financial future, and fixing your credit history. Capital One, aqua, and Vanquis all offer cards dedicated to restoring and helping you with your credit problems.
So applying for a credit-card should not be a dreadful experience. At the UK-Credit-Card-Centre we provide the tools and information that allows you to make informed decision on your credit future. So take the time to understand the process of applying for a card and you will make the correct decision. So visit the UK-Credit-Card-Centre and start your credit-card search.
What will a credit check involve? UK Only?
My husband and I are trying to rent our own flat, and are putting in an application tomorrow. It’s going to cost us £90 for the credit checks, but I’m not fully sure what these involve. As far as I know, I have no credit history as I have never taken out any loans, overdrafts or credit cards. I only have a single debit card, and on that, I have paid for my car insurance and online film rentals, one or two of which have been a few days late. My husband has had loans and overdrafts, but they are all paid off.
What will the credit checks involve? What will they look for, and what happens if we fail? Does that mean we will never get a flat?
Your own lack of credit history is a negative point, although a few days late paying bills isn’t going to make much difference. Ever had a phone on contract? that is credit history, presuming your car insurance is paid monthly, that’s credit history.
I presume your husband’s loans were all well managed – no missed payments etc?
And I presume your income is at least 2.5 x the rent?
If so, you should pass the credit check but as you have no history of renting (landlord doesn’t know if your likely to damage the place) you may be asked to provide someone who will legally guarantee that you will pay for rent and damages.
The APR refers to the interest charge if you do not pay off all your balance when you get your monthly statement.
If, when you get your monthly statement, you pay it off in full, you will not have to pay any interest charge.
Sometimes, card companies claw back some money in the form of “payment protection” which is just an insurance policy. You don’t have to agree to this, though and you shouldn’t need it if you are sensible with your card.
Credit cards are a good idea provided you don’t spend more than you can afford to pay back in one go.
Credit searches and account info UK answers only?
I recently applied for applied for a couple of credit cards and got turned down despite the fact that all my payments are up to date and never had any late or missed payments. the strange thing i have noticed is that none of the searches have shown on my credit file on either experian or equifax despite me having made the applications over a month ago and i am starting to think there might be something wrong. i live with my father who has the same name as me and some of his account information is showing on my credit file despite me having contacted experian several times about this. could it be that my applications are going through my father’s credit file? any advice on this will be very much appreciated.
i subscribe to experian and equifax’s credit reporting services and check them at least once a week or when i get an alert. there is no adverse information on my file so i don’t understand why this is?
they have told me this in writing before but the problem has started again after months of not having it. i only have a total amount of credit of £3000 and have never missed any payments so i am not really over stretching myself here as i can easily afford more.