| When people apply for credit cards, lenders check | | | | Can You Pay? |
| them out thoroughly, so it's not surprising that many | | | | This payment information will help lenders decide |
| people get turned down. Here's a guide to what | | | | whether people are likely to be able to pay them |
| lenders look at when deciding whether you qualify for | | | | back if they extend credit. They will look at how |
| their latest credit card deal. | | | | much people have already borrowed, whether they |
| What's In A Name? | | | | have paid it back on time and whether they have |
| First of all, credit card companies will search to see if | | | | missed payments. They will also look at the number |
| your name is linked to any outstanding fraud cases. | | | | of credit applications made and assess whether |
| This could be bad news if you share a name with a | | | | people can afford to take out more credit. All of this |
| known fraudster. Next, they'll look at your address. If | | | | information will contribute to the overall credit score. |
| that has been linked to any fraud or bad debt, it | | | | Lenders will use this to decide whether to approve a |
| could count against you. That's why some people | | | | credit card application, and what interest rate and |
| publicly disassociate themselves from others in their | | | | credit limit to set. After a certain period, provided the |
| households who might not be good money managers. | | | | payments have been made properly, this credit limit |
| Lenders also check to see of your address is on the | | | | will be increased. |
| electoral roll and whether there are any County Court | | | | How To Get A Better Credit Score |
| Judgements (CCJs) against you. If you're clear so far, | | | | Apart from managing credit card and debt |
| then you've passed the first hurdle. | | | | repayments properly, there are other factors that |
| Delving Into Your Credit Report | | | | affect people's credit score. These include: – |
| Next, lenders will look at the information held by the | | | | Their age,older people score more highly – |
| credit reference agencies. These agencies (of which | | | | Their marital status, married people are seen as |
| Equifax and Experian are the best known) hold | | | | better risks than single ones – Whether they |
| records on all credit transactions made from the day | | | | own or rent their homes. Owning a home is good for |
| people first open a bank account. Credit card | | | | the credit score, while living with parents will not help |
| agencies share the information given on applications. | | | | much. – Being on the electoral roll – |
| What's even more important is that they share | | | | Avoiding CCJs, bankruptcies and voluntary |
| information about how people have paid their debts. | | | | arrangements. All of these signal that people are |
| The credit report will show whether people have paid | | | | unable to mange their debt – Making sure |
| promptly, paid late or defaulted on payments. This is | | | | they have no financial links with someone who is a |
| a key factor for lenders in deciding whether people | | | | bad money manager. |
| should be granted additional credit. | | | | |