Can't get a credit card?
When you apply for a financial product your creditworthiness
is usually checked. This is called credit
scoring
The card issuer will use one of the two major credit reference
agencies, Experian and Equifax.
One in four applications are turned down
either because of a genuine bad credit history or a combination
of mistakes or false assumptions by the card isssuer.
To read more click on either of the following that may
apply to you.
I've
got a bad credit history
I don't understand why
I've been turned down.
Reasons for being turned down
Possible categories
You're not
worthy
How are you
credit rated?
How to check
your credit rating
How to appeal
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Possible categories
You may fit into one of the following categories:
- You've been mislabeled as
having a poor or bad credit history. (See How
to appeal)
- You've had a distant past history of bad
credit - but may feel you can show you are
a reformed character. (See How
to appeal)
- You have a recent history of bad credit.
See I've
got a bad credit history
- You have an unconventional source of income,
and normal credit scoring techniques make you look like
a bad bet. They want to see jobs and regular income and
can't cope with anything too exotic. Try to reason with
the card providers directly. (Good luck!)
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You're not worthy
The card issuer may feel you're not worth their
effort.
Maybe you don't spend enough
on any existing credit cards.
Perhaps your turnover of cards looks too high?
ie they won't make any money out of you before you move
onto one of their competitors...
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How you're credit rated?
Here's an enlightening article in the Guardian
about how you are assessed / credit scored.
Secret tips that let you beat the credit guard
If you've got a good job and no debts but have been
turned down for a loan with no reason given then you need
to read this. Patrick Collinson pulls away the veil over
how banks assess you
Patrick Collinson, the Guardian Click
here to read more
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How to check your credit rating
For £2 you can get details of the credit files held
on you by the two credit reference agencies, Experian
and Equifax
If the information on your file is wrong, or you would
like to add a note of explanation, Experian and Equifax
will add an agreed statement to your file. Contact them
at:
Experian, Talbot
Street Nottingham NG80 1TH United Kingdom
Equifax, Department,
PO Box 1140, Bradford BD1 5US United Kingdom
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How to appeal
The card issuer is supposed to give you the main reason
for refusing your application. They should also tell you
which agency the lender used, Experian or Equifax.
You can then get a copy of your file
from the agency. When you've got this you can then appeal
to the card issuer to reconsider.
Ideally you can see what the problem was. It may be that
you've changed your name recently so don't appear to have
a credit record. (See
categories). Whatever, if you feel there
has been a mistake put your case clearly
and unemotionally.
Remember that the card issuers are businesses, not public
services, and don't owe you anything, so be
cool and courteous.
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Credit Card Guide
What is a credit card...
The usual terms... How
to apply for a creditcard
Interest and Credit Cards...
Low
interest credit cards... When
does the interest charge start... How
interest is calculated.. How
to get interest-free credit... The
APR and Credit Cards...
Introductory
deals / special offers... Crad Introductory
interest rates...
Card Purchase
protection... Faulty
goods... Anti
fraud guarantees... Emergency
cards / cash... CreditCard
Protection... Stolen
cards / Fraud... Internet
crad fraud...
Reward
schemes... Cashbacks...
Cash
withdrawals... Holidays
and your card... Free
Travel Insurance...
Never heard of the card issuer?...
Minimum payment amounts...
Credit Card Statements... Annual
Fee... Late Credit Card payments... Credit
Limit...
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