If you are thinking about getting a credit card, then you might wonder whether there will be any hurdles in your way. A credit card is a really useful thing to have as it will allow you buy items online securely and also give you some interest free credit. However, credit card issuers will do a credit check and this could worry some people as they may not have a good record and therefore may not be able to get a card. However, it is well worth thinking about what they might be looking for and whether you might be at risk of not getting a card and also what you might be able to do about it.
What a Lender is Looking for
A lender will want to see that you can be trusted with a credit card. This means that there will be looking for evidence of this on your credit record. There are different things that they might be looking for. Unfortunately, there is not a standard thing that every lender will be looking for as they all have their own ideas about what they think will make the perfect borrower. However, we can make some assumptions about the sort of thing that they are likely to be looking for. They are likely to want to look at whether you have borrowed in the past. They will look to see whether you have repaid your loans in the past. This will be of interest to them as they will want to get their money back and so they will be keen to make sure that you have repaid loans in the past. With credit cards, the card issuer will make more money out of you, if you do not repay the balance in full each month. They will then be able to charge you interest. This means that they may perhaps be more lenient with you, if you have missed a few payments but they will want their money back eventually so do not miss too many.
They will also look at any other payments that you make regularly. Things like utility bills and phone contracts, they will look and see if you have paid those on time and this will help them to also decide whether you should be trusted with a card. This level of trust they feel may also determine the credit limit that they give you as well so if they feel you are trustworthy they may give the option of borrowing more money.
How to Improve Your Credit Record
If you fear that you will be turned down or you already have been, then there are things that you might be able to change that will help you. The most important thing is to make sure that you are paying everything on time. It can be easier to set up direct debits for paying the things you have to pay regularly and then you will not forget to pay them. Set them up to go out just after you get paid and then the money will be there for you to use. Also make sure that you do not have too many loans as this may reflect badly on you as it can look like you are desperate for money. This can also be the case if you apply for a lot of loans, especially if you get turned down a lot. Some lenders will not lend to anyone if they have been turned down before and that means that you need to be careful when applying. You might even be able to check with the lender before applying to see whether they are likely to accept.