Credit cards aren’t as readily available as they once were, so savvy shoppers now need to research the market to avoid being stung by expensive cards – or being refused altogether.
Credit card companies are being increasingly choosy over who they accept. So diving into applying for a card could leave consumers paying over the odds, or being declined outright.
All is not lost though. There are a few basic rules that can be followed that may help improve your chances of securing the right credit card to suit your needs. Following these steps could steer you clear of excessive fees, excessive interest and having your application rejected.
1. Compare as many cards as you can.
At Confused.com we’re passionate about this. 1 in 6 people got their credit card through a price comparison site last year. But that still means that millions of people potentially missed out on better deals and are now paying more interest than they need to.
2. Check the basic acceptance criteria on the card before you apply.
Many cards are unavailable to under 25s or people with annual incomes of less than £25,000. Thousands of people make this mistake every year. Don’t waste time and damage your credit rating by applying for cards that don’t apply to you.
3. If you have ever missed payments on cards or loans, check your credit report.
If your credit report is looking weak make sure you apply for suitable products, as you will be unlikely to get accepted for cashback cards or the leading 0% balance transfer deals. Follow this link to find out how to check your report.
4. When no-one else loves you, your bank might.
Banks sometimes offer preferential acceptance criteria to their current customers. And whilst deals might not be at the top of ‘Best Buy’ tables, they can still be competitive. At the time of writing, Halifax’s All-in-One card offers a good all-round deal with a 9 month 0% balance transfer offer and 9 months with no interest on purchases, and a typical Annual Percentage Rate (APR) of 15.9% (variable).
Used correctly credit cards could be a cost-effective way of borrowing money. Just ensure you compare what’s available to get the right deal for your needs and you might be able to save a tidy sum on interest payments!
