Credit card debt is a growing problem as millions of Britons struggling to pay down their borrowings.
Almost one in four have had an outstanding credit card balance for at least six months, with many running much longer, according to new research from insolvency trade body R3.
Credit cards are now the most common debt worry, with millions paying pricey APRs of 18.9% or more.
Even relatively minor debt problems can also damage your credit record, making it hard to set up a current account, or take advantage of some of the attractive 0% credit cards on the market.
This is where prepaid cards for bad credit, such as the icount prepaid Mastercard®, could help.
These cards could help you clean up your credit record, and put your debt problems behind you.
Once you have repaired the damage, you can apply for the ‘best buy’ bank account and credit card deals on the market with the confidence that you will be accepted!
Your credit report is a personal history of all the credit you have taken out in the last six years, including mortgages, credit cards, bank accounts, hire purchase payments and mobile phone contracts.
The data is held by credit reference agencies such as Experian, Equifax and Call Credit, and lenders check this against their own records and lending criteria, before deciding what to offer you.
This means that if you’re applying for a new loan, card or mortgage, a good credit rating really counts.
Applicants with debt problems may be quoted higher rates of interest, worse repayment terms or be rejected altogether.
No credit checks
‘No credit check’ cards such as the icount current account with prepaid Mastercard® could help you get round this hurdle.
That is because they offer instant 100% guaranteed approval even if you have been turned down by other lenders.
They can do this because you do not actually borrow money on the card, but can only spend money you have transferred yourself.
The icount prepaid Mastercard® also includes a free CreditBuilder option, which gets to work on your behalf, potentially helping to repair your credit rating.
Many people do not realise that a single missed payment on a utility bill or mobile phone agreement could blot your credit report. Repeated missed payments can cause serious difficulties.
You will face even bigger problems getting credit if you have a County Court Judgement (CCJ) against your name, or have never obtained credit before and have no credit record.
CreditBuilder could help you make good the damage, month by month. As long as you make every monthly card payment on time, it will report your success to the credit reference agencies, potentially improving your chances of getting credit in future.
This way you can demonstrate that your credit problems are behind you. Just be sure to maintain any other credit payments as well.
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