Applying for a Credit Card
When you apply for a UK credit card your application will be assessed by a number of factors, and the UK credit card provider will try to assess the risk you represent. UK credit card providers use credit reference agencies in order to obtain personal information about individual clients. Information about credit history, any county court judgements, arrears or defaults will be gathered and carefully considered. UK credit card providers will base their decision upon the report they have been provided with by the credit reference agency. If your credit card application is refused then you are within your rights to ask the UK credit card company which credit reference agency they used and to then procure a copy of your report from that agency.
If you have a bad credit history then it does not automatically follow that your application for a UK credit card will be refused. A UK credit card provider might simply offer you a lower credit limit, or in some cases you might be bound to paying off the outstanding balance every month. Remember that if you are refused by one credit card provider then you will not necessarily be refused by another UK credit card company. Every provider will have different criteria, so there is likely to be a product out there, somewhere, to suit your situation and your requirements.
You can now also apply for many major credit cards online saving you the hassle of long telephone applications or visiting the bank to apply. Many companies also have an instant approval feature allowing you to receive an almost immediate decision on whether you application has been successful.
Credit Reports
When a credit card company is assessing your application for a credit card they will use not only the information provided by you but also a personal assessment which they will procure from a credit reference agency. Credit reports are made up by a systematic evaluation of a person’s individual statistics. Details about your credit history and any records of county court judgements, defaults or mortgage arrears will all be accessed and assessed by a credit reference agency. The credit reference agency will then compose a personalised report which will weigh up your credit risk, and pass it on to the credit card provider.
If you are refused for credit then you will not be able to ask the credit issuer exactly why you were not accepted, but you will be able to ask them which credit reference agency they used. By approaching the credit reference agency you will then be able to procure a copy of your personal credit report for a small fee, which may be of use to you in the future. To learn more about credit report services and how to get hold of your individual report visit the Checkmyfile website.
