The demand for poor credit finance, including credit building credit cards and personal loans, remained high in 2010 after one third of all credit card applications were declined due to poor credit. The research from Equifax, published in the Daily Express, also found that a third of those declined had no idea why they were refused credit.

Poor credit card knowledge sees applicants refused deals

Neil Munroe from Equifax, one of the UK’s leading credit reference agencies, said: “The credit card market is still relatively subdued as lenders remain cautious about who they extend new credit to.”

One of the ways that you can increase your chances of avoiding credit builder credit cards is to regularly check your credit file.

Mr Munroe continued: “It’s vital consumers understand…how they can make sure their credit rating is at its best for them to get the most favourable interest rate.

“More than half of those who were refused a new credit card simply gave up applying. If they had checked their credit file they may have found they could do something to improve their chances in the future.”

There are various ways that you can improve your credit rating, such as ensuring you are on the electoral roll, correcting any personal information that is inaccurate (such as your address) and querying any adverse credit that has been registered in error.

Poor credit finance can help rebuild credit rating

If you have been refused credit due to a poor credit rating, credit building credit cards are a good way to help rebuild your credit standing.  A poor credit card can help you demonstrate that you are capable of managing a credit card responsibly by making your repayments on time every month.  By proving that you can manage poor credit finance, your credit rating will improve making it much more likely you will be approved for a leading credit card in the future.