| When people apply for credit cards, lenders check | | | | Can You Pay? |
| them out thoroughly, so it's not surprising that many | | | | This payment information will help lenders decide |
| people get turned down. Here's a guide to what | | | | whether people are likely to be able to pay them back |
| lenders look at when deciding whether you qualify for | | | | if they extend credit. They will look at how much |
| their latest credit card deal. | | | | people have already borrowed, whether they have |
| What's In A Name? | | | | paid it back on time and whether they have missed |
| First of all, credit card companies will search to see if | | | | payments. They will also look at the number of credit |
| your name is linked to any outstanding fraud cases. | | | | applications made and assess whether people can |
| This could be bad news if you share a name with a | | | | afford to take out more credit. All of this information |
| known fraudster. Next, they'll look at your address. If | | | | will contribute to the overall credit score. Lenders will |
| that has been linked to any fraud or bad debt, it could | | | | use this to decide whether to approve a credit card |
| count against you. That's why some people publicly | | | | application, and what interest rate and credit limit to set. |
| disassociate themselves from others in their | | | | After a certain period, provided the payments have |
| households who might not be good money managers. | | | | been made properly, this credit limit will be increased. |
| Lenders also check to see of your address is on the | | | | How To Get A Better Credit Score |
| electoral roll and whether there are any County Court | | | | Apart from managing credit card and debt |
| Judgements (CCJs) against you. If you're clear so far, | | | | repayments properly, there are other factors that |
| then you've passed the first hurdle. | | | | affect people's credit score. These include: |
| Delving Into Your Credit Report | | | | - Their age - older people score more highly |
| Next, lenders will look at the information held by the | | | | - Their marital status - married people are seen as |
| credit reference agencies. These agencies (of which | | | | better risks than single ones |
| Equifax and Experian are the best known) hold | | | | - Whether they own or rent their homes. Owning a |
| records on all credit transactions made from the day | | | | home is good for the credit score, while living with |
| people first open a bank account. Credit card agencies | | | | parents will not help much. |
| share the information given on applications. What's | | | | - Being on the electoral roll |
| even more important is that they share information | | | | - Avoiding CCJs, bankruptcies and voluntary |
| about how people have paid their debts. The credit | | | | arrangements. All of these signal that people are |
| report will show whether people have paid promptly, | | | | unable to mange their debt |
| paid late or defaulted on payments. This is a key | | | | - Making sure they have no financial links with |
| factor for lenders in deciding whether people should be | | | | someone who is a bad money manager. |
| granted additional credit. | | | | |