Bad Credit History

One of the main reasons you may not be accept for a credit card is bad credit history, people with CCJ's, IVA's, mortgage arrears or those who have been made bankrupt may face serious problems trying to obtain a credit card from mainstream lenders.

Young people with little or no credit history may also find it difficult to get approved for a credit card, in these circumstances it's often easier for those with no credit history get a credit card from their high street bank (it may not be the best deal available) Most high street banks now have advisors on hand who may be able to arrange a card with small credit limit. If you can use the card responsibly over a period of 6 - 12 months you can build a good credit file which will open up more credit opportunities to you.

In many cases you may not know the reason why you application has been rejected. If you feel that there is no good reason you should have been rejected then it might be worth obtaining a copy of your credit file. Credit card companies in the UK use one of two credit reference agencies (www.equifax.co.uk or www.experian.co.uk) these two companies hold lots of personal information about you, the places you have lived and info on any loans or credit agreements you have entered into. In some cases this information is wrong and it can effect your ability to get credit.

It's your legal right to see what information is held on you and you can get a copy of your credit file by doing the following.

Write to any of the credit reference agencies and ask for a copy of your credit reference file, which will cost you £2.

Your letter should include:

  • Your full name -also any other names you have been known by e.g. you maiden name;
  • Your full address including postcode;
    any addresses where you have lived over the past six years;
  • Your date of birth
  • A cheque or postal order for £2 made payable to the credit reference agency.

The addresses of the credit reference agencies are:

Equifax Plc
Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US
www.equifax.co.uk


Experian Ltd
Consumer Help Service
PO Box 8000
Nottingham
NG80 7WF
0870 241 6212
www.experian.co.uk

You should keep a copy of your letter and you may want to send it by recorded delivery. The credit reference agency has 7 working days to send you your file after receiving your letter and fee.