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If you’re experiencing difficult debts, confusing credit cards or inscrutable ISAs, then our economics expert is here to help. Why not write to OurExpert@CreditChoices.co.uk
Andy Williams is our Online Savings Expert at CreditChoices.co.uk and can assist with all monetary matters no matter how big or small, from piggy banks to re-mortgaging and beyond.
Our expert says...
You’re not the only one Grace, the credit crunch is now beginning to take a stranglehold on UK borrowers’ finances, leading to action this week by Egg who withdrew over 160,000 customer accounts. 2008 looks set to be a year of prudence, both for banks and borrowers.
If you’re constantly unsuccessful in credit card applications then this may be due to blemishes on your credit file. Defaulted payments, irresponsible spending, county court judgements and a financial life spent in the red and out of the black will all count against your application. In the current climate, it takes only a minor faux pas on your part for the credit card supplier to refuse an application.
The best way to boost your credit rating is to make sure that you’re on the electoral role. This can be achieved by contacting your local council. By registering yourself on the electoral role you’re significantly increasing the likelihood of being accepted for a credit card.
If it’s the functionality of a credit card that you’re looking for (cashless shopping, online shopping etc.), then the best option for you is a pre-pay credit card. The card is pre-loaded with money by yourself before you start spending. Therefore, you can use the card to make purchases both in shops and online, plus you have the comfort of knowing that you’re only spending as much as you can afford.
If you want to improve your credit rating, get an adverse credit card and use it responsibly. By paying the balance off in full and on time each month, you will improve your credit file and increase your chances of being accepted for a standard credit card. It’s imperative that you clear the balance on adverse credit cards at the end of each month though; interest on these cards can be anything up to 30%. If you don’t clear the balance then the amount that you pay back will rapidly spiral out of control, so be responsible with this card.
