Debt Consolidation Credit Counseling In Phoenix

If you want to take advantage of a low rate credit card, then now might be the best time to do so. Recently there have been some major changes in the world of credit cards; fees for services such as cash withdrawal and use of cards abroad have gone up, limits have been cut and more applications are being turned down. With the economic downturn currently affecting the market both in the UK and abroad, things may get worse before they get better. This means even more changes to the types of cards being offered. One type of card that may be affected is the low rate credit card.

The first thing that you need to ask yourself is whether a low rate credit card is the best option for your needs. Many people fall into the trap of thinking that low rate cards are the best cards available on the market and forget to look at other types of card that may be more suitable. Yes, low rate credit cards are amongst the best on the market, but they are not the only option or even necessarily the best one for you. If you want to transfer your balance so that you can reduce the amount of interest you are paying, then you could perhaps look at 0% balance transfer cards. If you simply want to make a cash purchase with minimal interest payments, then a 0% cash purchase may be more appropriate for you.

So who holds this information on your credit rating? There are three credit-referencing companies in the UK and all three hold similar data files. Financial service companies often reference at least two or even all three of these companies to get a more rounded idea of what you would be like as a customer.

With the current economic downturn, the number of people being approved for low rate credit cards is falling. Whereas in the past credit card companies would overlook minor flaws in a person's credit rating, nowadays they are much less willing to be so forgiving. This means that if you missed a few payments last year you may find yourself being declined, whereas six months ago you may have been accepted. The first thing that you will need to do if you want to apply for a low rate credit card is find out what your credit rating actually is. This is a simple matter of contacting one of the credit reference agencies and asking for a credit report. There is a small fee for this service. When you get your report check it thoroughly, as the referencing agencies are not infallible and mistakes can be made.

Your credit rating can be improved, though. Applying for credit and being accepted will boost your rating. Paying off loans and credit that you have been given in full, and paying off monthly repayments on time will prove to credit card companies that you are not a "bad risk" customer. You can simply apply for credit that can be easier to get hold of, such as store cards. You can then make purchases using that card each month and pay it off in full in the following months, again establishing a pattern of good credit behaviour. Alternatively you can take out a small loan and do the same thing, ensuring you meet all the payments in full, preferably paying more than the required minimum amount.

To be accepted for a low rate credit card, you need a good credit rating, and a good rating takes work. If you are prepared to build things up slowly then everything should be fine. One word of warning, though. If you get to the point where you feel you are ready to apply for a card and are turned down, don't apply for another immediately with a different company. The referencing agencies also monitor when you are accepted and declined and being declined over and over does not reflect well on your credit rating. Simply carry on working on your credit rating and try again after three months.