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