Adverse Credit
Being refused credit is both frustrating and time consuming. These days it’s not always having bad credit which is leading to those rejection letter, but the credit crunch. During these times, Credit Card companies, banks and Personal loans companies are being a lot more selective on the types of customers they are willing to accept.
Past debt problems, CCJs and Defaults can be a real burden if you are trying to borrow money. It’s the same for people who are trying to re-establish their creditworthiness, this can take many months.
Credit Reference Agencies
The first call for everyone is too see what information the Credit reference agencies are holding about you, after all, it may not be all as bad as you fear. The most popular Credit reference agencies, both offer a free trial
Experian (credit expert)
Equifax
Once you have a copy of your credit file, you will be able to judge the type of credit score you have, for example, if you have missed more than 2 payments in the past year then you are unlikely to be accepted for a Platinum Credit card etc.
Even people with CCJs can obtain credit, there are some lenders who specialise in people with “sub prime” credit. The interest rates are a lot higher, however, if you keep up the repayments on loans and credit card repayments your credit score will eventually increase and you may be able to obtain high street lenders cards again.
Sub Prime/Adverse Credit Cards
There are Adverse credit card companies, these credit cards are not designed for people who are currently in a financial situation, these cards are for people who have had previous problems but are now on the road to recovery as it was. They are an excellent way to start rebuilding your credit
Capital One - Classic credit card
We have also heard that MBNA are offering some applicants a Secured card which requires a deposit of £100, click here for MBNA and Monument are now taking applications again! Click here to search for Monument
Sub Prime/Adverse Credit Personal loans -
There are several companies who are willing to help people with lower than average credit scores. Some even offer a collection from your home service.
Sub Prime/Adverse Bank Accounts -
When you need a bank account it can be a daunting process, even more so when you have adverse credit, you spend all that time filling in the forms, answering their questions only to be told no!
Having a bank account helps you rebuild your credit, most banks report back to credit reference agencies, not only this, but paying by Direct debit can saves £s every month as some companies charge for paying by any other method!
Alliance & Leicester have had some positive replies across the internet from people who are rebuilding their credit, they appear to be helping people with less than perfect credit histories, although they don’t always offer a overdraft, you can get all the standard bank account perks such as Direct Debits, Standing orders and a Debit Card if your application is accepted.
Barclays -
Barclays now offer a debit card with their cash plus account, this isn’t a guaranteed option but if successful you can have your wages/benefits paid in and use the most common bank services such as Direct Debits and Standing orders.
Mobiles and Subprime mobile phone contracts
If you are unable to obtain a loan or credit card above, then there is still options available. T-Mobile are currently offering a T-Mobile Solo Light sim card, more details can be found here.
Prepaid MasterCard that can help rebuild your credit
Cash plus offer a prepaid MasterCard (much like a prepaid mobile phone) where you top up and use your credit online or in shops. They also offer a service which can help rebuild your credit.