If you’re an adult living in a busy country like the UK, life would be hard without a credit card. And what about the difficulties you face if you don’t have enough credit history to apply for a credit card? Without a doubt, getting a new account from scratch is hard. The bank people can tend to get very suspicious when they can’t see any credible history. This blog post will be all about sharing with you a few vital steps on how to open a credit card account and build a credit profile.
Step 1: Analyse your credit report and ensure that it is positive. If you never had a loan or credit account, it may be difficult to evaluate your credit report because there is no enough data to support your application. This will make them suspect that you may not be a responsible person and thus not be able to return the money borrowed, on time. It’s definitely easier to apply for a new account if you already have positive records in your credit report. Whether or not you have a good credit report, keep reading below.
Step 2: Begin the application. Start your application to the card that you think would best suit you as soon as possible. There are two potential outcomes to your application. Your application could be accepted, which would be great news! Or your application could be denied, after which they will send an explanation letter why you are denied. The best thing to do next would be to try applying again and this time, look for cards that have simple acceptance standard.
Step 3: Be responsible with your finances. Utilize your credit card only for only paramount purchases once in a month at least. Pay your bill in full and on time every month. If you are a responsible credit card owner, your credit score would get better sooner. One who has negative reports would have a slow score amendment on their credit reports.
Step 4: Apply for the Credit Card you need. You are now able to apply for an alternate card provided that you were able to enhance your score in credit report a couple of months earlier. You can begin applying a standard credit card provided that you were utilizing a different type of card in the recent past. You might close your old accounts however it might hurt your credit rating. But it is an insightful choice if your current credit line is unmanageable.