You don't have to have defaulted on a loan or credit card to have your application for credit turned down. The list of criteria for lending is so tough now that even a late mobile phone payment could lower your score. There have even been reports of lenders quizzing loan applicants who are employed by companies that have a disclosed financially unstable status.
This backdrop explains why credit building credit cards have become so popular. Their arrival provides welcome support for people excluded by high street lenders and who want to repair their credit record. This group of people used to be a minority but are now a much larger proportion of the population.
The best known credit provider for supplying people with credit building credit cards in the UK is aqua. They assess applications on a case by case basis, so even if you have had problems in the past, aqua will base their decision on how financially secure you are today. When you go to apply for a credit card, they will listen carefully to the information you provide and base their decision on your current ability to make repayments.
One of aqua's credit cards, the Advance credit card, even gives you the opportunity to lower the amount of interest over time. Starting with an interest rate of 34.9% APR, this can be lowered by up to 5% a year down to 19.9% if you manage your account responsibly – simply by paying your bill by at least the minimum amount on time.
Think about how useful a credit card would be this Christmas and in the New Year sales. We all know that the best bargains go to those who can afford to buy, but it can tricky finding the money to pay for pricey necessities after an expensive Christmas. By purchasing these goods on a credit card, you can spread the cost over a few months. Particular types, like the aqua Classic credit card, even reward you for paying off your balance each month by removing any charges you may ordinarily receive when using your credit card to make payments.
