A credit rating is a record of how well you've managed your finances in the past. Things like missing a credit card payment or defaulting on a bill can damage your credit rating. This is known as having bad credit, which can make it harder to borrow money – whether that's a store credit card, a loan or a mortgage.
Credit companies want to know who they are lending their money to, so when it comes to applying for credit several things are taken into account.
First, they will assess your credit rating and your credit report, which is taken from the credit reference agencies. This assessment helps them create what's called a credit score.
When applying for credit, you want to have your credit history in the healthiest state possible. If you have bad credit, find out more about how to improve your credit rating with credit cards for bad credit such as the Capital One Classic Credit Card. Being turned down for a credit card may damage your credit rating. Safely check if you could be eligible for a Capital One credit card using our QuickCheck tool. This checks your eligibility across all of our cards without damaging your credit rating.