It is a fact of modern life that credit cards are an
increasingly essential financial tool. There are many situations
in which if you do not have a credit card, you will either be
unable to pay for goods and services, or to take up special
promotions. There are also countless more situations when having
a credit card will simply be extremely convenient. Credit cards
are also safer than carrying large amounts of cash around with
you, especially when you travel.
Criteria
Well, first of all you should be over 18 years of age. You will
also need a job or some form of regular income. These are then
main criteria and if you can demonstrate them well, you will
probably not have much trouble getting approval. You may have
had a card in the past that you failed to pay or some other
blemish on your credit report. If this is the case, you will
find it more difficult to get a card.
Credit Rating
Your
credit history plays a very significant
role when it comes to assessing who will be approved for credit
and who will not. It is based on personal information, your
salary, if there have been defaults or court judgments awarded
against you, and a host of other factors. They are all put into
an equation that computes a personal score for you. Lenders will
then decide whether or not to lend to you based on this score.
You should also be aware that many other companies will use your
credit report also. It is not only credit companies, but also
insurance companies and even employers, when looking at job
applicants. This may seem surprising but the thing to remember
is that you do not want to damage your credit report by failing
to meet repayments.
Refused Application?
If you are finding it difficult to get approval for a credit
card, you may consider seeking a co-signor. This is someone,
usually a parent or close relative, who will guarantee the debt
for you. They must understand the nature of the agreement, and
if the situation arises whereby you are not able to make your
repayments, they will become fully liable for the amount you
have borrowed. It may also be a good incentive for you to repay
it.
The final thing to remember is that if you have been turned down
for a credit card, it may be an indication that you are not
ready for one.
About the author:
Joseph Kenny is the webmaster of the UK credit card comparison
site
http://www.creditcards121.co
m/, where you can find a selection of
credit card
advice. For US visitors there is also the comparison site
http://www.credit-cards-i
nfo.com/ for all US interest free offers.
