Credit Cards to Rebuild your Credit

What makes it important to have a good credit rating? Eventually you'll need to get hold of finance items such as a mortgages, a private credit, a credit cards or even a cellular number. "With no credit histories [or a poor record], you will find it more challenging to find a variety of goods and service offerings, from conventional credit commodities such as credit, cards and distance selling to utilities account and insurance," said James Jones, Experian's director of consumer relations, in an email reply to queries.

A wobbly credit file prohibits you from getting the best offers even if you are securing a credit or debit. "It can also be used to verify your creditworthiness and provide smooth entry to a wide variety of goods and related businesses, especially online," Jones said. If you find that you are regularly rejected for loans, you need to review your credit reports to find out why.

Although the probable cause is a poor credit record (missed or delayed payments) or a failure, there may be an error in your credit reports. In this case, you can take action to remove the error from your credit histories. Be sure to review your reports on a regular basis, at least once a year.

A free credit review can be obtained by registering for a 30-day evaluation version of CreditExpert - which gives you unrestricted credit reviewing for £14.99 per months once the free evaluation version is up. Jones says you can also order a copy of your mandatory review on-line for a one-time charge.

"One way or the other, you'll see your borrowings over the past six years and, based on the services you use, get guidance on what action you might take to make them better," Jones said. A number of good credit cards are available on the shelves. Such cards enable those who have an injured credit standing or no credit standing at all to gain creditworthiness.

Using one of these cards (and withdrawing your full credit every month) can help increase your creditworthiness. "You could, for example, be self-employed, work part-time, have a low salary, have never received loans before, or have been rejected in the past. The Barclaycard blank credit line, for example, has a credit line of between 150 and 1,200 and pays 0% interest on your purchase for three consecutive monthly periods (34.9% annual interest thereafter).

When you make full monthly payment on schedule, Barclaycard reviews the limits after 12 moths and can lower your annual percentage rate of charge and raise your credit limits. The Vanquis Bank Aquis credit line has a credit line of up to £1,000 and an annual percentage rate of charge of 29.8%. The Vanquis Bank checks your bankroll after every four settlements and can raise your limits after every check so that you can progressively create a high end map while at the same being able to prove that you can process payment.

The Lloyds Bank, Aqua and Capital Bank all have similar credit cards that could help you rebuild your credit histories. As soon as you successfully sign up for a Credit Builder credit line it is important that you administer the line efficiently to enhance your credit standing by fully withdrawing the funds.

Then you can look for further improvement by using other types of credit and correctly administering them. As well as requesting (and diligently managing) a credit or debit card, Rodford said there are other things you can do to enhance your creditworthiness. "Ensure that you are on the voters list at your present location, create a federal government account and administer your spending diligently, always paying your invoices and any credits you received on time," he said.

"Ensure that you do not overrun your credit line and always give accurate information about yourself when applying for credit. You will then over the course of being able to establish or enhance a credit track record and be able to compete for more competitively priced "normal" credit cards and a better monetary outlook.