If you have suffered at the hands of credit card issuers, who will not let you take out one of their cards and you are wondering, why? And are then told that your credit rating is low, so we will not lend you any money and you are wondering how you can have a low credit rating and how this is worked out, well I will try to explain it to you.

Apply for a credit card...........

Well the only thing that credit card issuers think of is profit, so when you apply for one of their cards, they then try and work out from all the data that is held on you, if you are going to be a profitable customer or if you are going to be a customer that eats away at their profits, by being a bad debtor.

Once this is done you will be told if you are to receive one of their cards or not, based on the scoring system that is applied by the company that you are trying to borrow from, as the scoring system can be different for each lender, so where one card issuer will knock you back, another could let you borrow from them.

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But remember that credit card issuers are not there for you just to hand over cash at the drop of a hat because you are wanting it, so if you are seen by one to be a credit risk then a domino effect can then happen as one credit card company after another follows suit, leaving you with the feeling that you must be on the “Blacklist”, which is a list that doesn’t exist.

Honesty helps......

This next section will try to explain on how your credit rating is worked out. Firstly your initial point of contact is your application form, this is where the lender sees most of your current personal information, and this will mostly consist of your earnings, how many family members there are in the household and if you are a home owner or not. They will also use their data on current customers to help them and will also use Equifax and Experian, which are two-credit reference agencies, who have a base of information that is taken from the electoral roll, that will confirm everybody that lives in you home, it will also know if you have a bad history of debt that incurred any County Court Judgements or Bankruptcies. They can also check that you have kept up your payments and transactions, which are drawn from bank information and other sources where bad debt may have occurred.

Keep your finances in order.......

So to gain a good credit rating, make sure that you pay all of your bills on time and try not to default on them, as this will hit the credit rating that you may have built up and make sure that you are on the electoral roll, as this will gain some trust that you are who you are and that your application has not been lied on.