Not being able to get credit can be frustrating and the thought of being turned down can put a lot of people off even trying. If this sounds familiar, or you’ve been refused credit, a credit building credit card could be right for you.
Having a low or bad credit score isn’t the end of the world. There can be many reasons why it may be low or bad.
The two main reasons are:
Past problems with credit
If you’ve ever had difficulties with credit in the past, this could affect your credit score. This is a common reason people have trouble getting access to credit. Some of these problems can seem relatively minor at the time, but have a much bigger impact than you think.
Past problems with credit can include:
- Not paying a bill on time – or even at all
- Building up a lot of debt
- Going over the limit of another credit card you have
- Getting an Individual Voluntary Arrangement (IVA)
- Being made bankrupt or having a CCJ against you
No credit history
Not having a perfect history of using credit isn’t the only thing that can stop you from getting a credit card or loan. If you don’t have any history of using credit can also stop you from getting credit.
A healthy credit history is one of the ways lenders can decide whether to provide you with credit. It shows that you’ve used credit responsibly before, which is why your chances of being accepted are better.
When you don’t have a history of managing credit to show lenders, they don’t have much information to help them make their lending decisions. This can be especially hard if you’re new to the UK. You might have a fantastic credit history in another country, but it can’t be transferred.
As a result, it can make it hard to get a credit card or create accounts for things like mobile phones or broadband.
If any of this sounds familiar, it can be frustrating. But the impact on your credit rating doesn’t have to stick with you forever. If used responsibly, getting a Capital One credit building card is just one of the steps you could take to help improve your score – and your chances of being accepted.