Bad credit and credit cards

Having a bad credit history doesn't exclude you from getting a credit card but you may have to pay substantially more for your plastic.

Late payments

Every time you make any kind of late payment or if you default on payments altogether, it will show up on your credit report. Too many missed payments and lenders will decide that you're a bad credit risk. As a result your application for a credit card may be rejected or you'll have to pay a higher rate of interest.

Improving your credit rating

The only true way to improve your credit report is to start getting out of debt by paying your bills on time and borrowing within reasonable limits. Your rating will improve even after just six months. Be very wary of so-called' credit repair' or fee-charging debt management firms, which claim that they can improve your credit rating - they do not have the authority to amend your credit report. Information on a credit report can only be changed or removed if it is inaccurate and the credit reference agency will do this free of charge.

If you are turned down for a credit card, ask why. Lenders will usually tell you and if it turns out that it's because your credit report isn't a true reflection of your financial situation then you can at least get any mistakes rectified.

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