With Credit still being tight for most people in the UK, there are certain lenders who will prey on the vilnerable, those who are already in debt and feeling desperate. Young people getting their hands on first credit and those who, let’s face it, have got in too deep.

Store Cards, may seem easy to obtain and look like a traditional way to get items and worry later, but unlike credit cards, they are usually linked to one shop or one group of stores, with higher APR’s than traditional credit cards. Interest usually accrues more and more because you don’t pay your balance back in full straight away.

Uncompetitive Credit Cards
Credit4everyone have listed credit cards which can help increase your Credit Worthiness, however, you should only use these cards if you can pay back the full balance, some of these cards such as the Vanquis card can cost as much as 59.9%! Be warned.

Using an Overdraft without permission
Overdrafts are not cheap at the best of time, however, an arranged overdraft can be a lot cheaper than one that’s not authorised beforehand. Bank charges and unauthorised fee’s will make paying back the overdraft harder! Speak to your bank at see if they are willing to help you before going into the red. If your account goes into the Red, go and speak with the bank, don’t hide away thinking you will deal with it soon!

Payday loans
Again, useful if a real emergency has risen, however, Payday loans can work out expensive. Txtloan for example will lend £100 for 7 days with the repayment of £110 which at first site appears to be excellent value, however, miss the repayments and charges of £20 are applied within the first 3 days and again a few days later, a one week loan repaid one month late could cost up to £200!

Money Lenders
Home Money Lenders offer easy cash loans direct to your door, collecting repayments weekly, the APR doesn’t reflect the cost of the loans as you are paying a service charge for the collections. Make sure if you are going to be taking a small cash loan you take it with responsible lenders such as Provident and not illegal money lenders. Illegal money lenders can do extreme things to get back their money and often cause a lot of heartache for families.

my Travel Cash is a prepaid MasterCard, available in either Euros or US Dollars, that offers one of the best exchange rates available.

You simply order a card, top it up (also called loading) and you are ready to go.

Providers of bad credit credit cards charge higher interest rates as a form of insurance against people who fail to make repayments. By using the card, making payments on time and staying within your allocated credit limit, over time your credit score should improve.

After demonstrating financial responsibility over a period of time, not just with your credit card but with your other financial commitments too, you should become eligible for standard credit cards which offer more generous credit limits at lower interest rates.

Compare Credit Cards which are suited to people with low/bad credit scores.

“The current market conditions mean that many lenders want to be certain that new applicants are not at any risk of becoming indebted” confirmed Neil Munroe, External Affairs Director, Equifax. “And this includes looking at how many credit cards they may have on their credit file – even if some of those accounts aren’t being used at all. A considerable number of credit cards on an individual’s credit file could have quite a detrimental affect on their credit score – and could be the difference between them getting a yes or no on a new loan or credit card application. Their score will also, just as importantly, could have a significant influence on the rate they are offered.

“Many consumers keep extra accounts open for an emergency. However dormant accounts, where the account is not active but has not been closed, can leave consumers vulnerable to credit refusal and even ID theft. It’s crucial, therefore, that if someone has an account or card they simply are not using – and probably don’t intend to use again – they close it down.”

Equifax is advising consumers to get a copy of their credit report to check on all the accounts they may have opened and identify any that might be worth closing. Getting an up to date copy of their credit file will also give them a valuable insight into any accounts that may have a small outstanding balance that, perhaps, they had forgotten about because the minimum payment was being made by standing order each month.

“Of course many consumers have a very good grip on their financial commitments” continued Neil Munroe. “But a recent survey we conducted amongst Equifax Personal Solutions customers* revealed that 15% didn’t know how much they owed on credit cards and other loans. For these individuals, getting a copy of their credit report could provide a useful insight – and even save them some money in the long-term.”

The Equifax Credit Report, with the facility to access credit information for the first 30 days free, is accessible simply by logging onto www.equifax.co.uk. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life’s challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

*Survey conducted May 2009 amongst 1704 Equifax Personal Solutions customers

Remember, just one missed payment could damage your credit history for up to six years. That’s a massive risk when are not in control (due to an accident, sickness or sudden unemployment).

So how do you protect yourself, your income and your family during these times?

British Insurance staff are UK based and very well trained. They are a multi-award winning insurance provider. British Insurance are market leaders for accident, sickness and unemployment insurance. They are recommended in virtually all national newpapers, as well as TV programmes such as ‘Tonight’ with Sir Trevor McDonald and ‘GMTV’ with Martin Lewis.British Insurance are fully authorised and regulated by the Financial Services Authority.

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