Article on Shifting Debts and Bad Credit

jamo_DJ

Hi,

I think it needs pointing out that this arcticle does miss a point with bad credit references and credit cards.

In order to look at this fully, you firstly need to break down a bad credit reference into 2 different categories.

With defaults / ccjs
Without defaults / ccjs

In the former case of having a bad credit reference with CCJs or Defaults or both there are currently only 4 ways to get a credit card in the UK. Other lenders automatically say no if a default or CCJ is present.

1. Capital One (34.99% APR)
2. Vanquis (39.99% APR)
3. A prepaid credit card such as Post Office Mastercard
4. One which is given from your own bank on the basis of the relationship you have with them being strong enough to overrule the credit rating.

Secondly if a credit file does not contain defaults or ccjs but does contain bad payment histories, then certain lenders may consider offering credit but normally based on mortgage equity.

I believe that as a high percentage of borrowers would have a CCJ or default on their credit file, it would be quite irresponsible to point them in the direction of one of the 2 massively high APR cards I mentioned above as they would get into more of a mess already. The tools you recommended such as moneysupermarket.com do point users in the path of these rip-off cards. If a card was needed for lifestyle such as booking hotels, a pre-paid one would be much more sensible.

This somehow needs addressing in the articles on shifting balances and applying for cards.

I hope you understand my points.

Jamie.

MSE_Martin

Hiya,

You'll note - that's why I say its 'without a perfect' credit history rather than 'a bad' credit history

Martin