credit card employ and your credit report
Credit cards have ballooned in popularity in the UK. A recent study has shown that very soon, over a third of all adults in the UK will have credit cards, and the numbers are still increasing rapidly. It’s important to remember however, that credit cards can have important co equences on your credit report however, so some caution is advisable when using them.
Your credit report is extremely important for a wide range of purposes. These days they are not only employd by lenders when deciding whether or not to lend to you, nonetheless also if you a ly to rent a flat, a ly for i urance or in some cases, even when you a ly for a job. So you should take care not to damage your credit report in term of credit card employ.
For most people, using credit cards wisely and re o ibly will not damage their credit report and in some cases, can show lenders that you’re acconvention/ed to credit and can meet your obligatio and so help you to build up a positive credit history. However, one of the important items on your credit report will be the amount of credit to which you have acce to. If you have thousands of pounds of unemployd credit open to you, it may caemploy some lenders to be cautious, even though you havent employd the credit. This can be damaging if you’re a lying for something important like a mortgage and the lender raises concer on this ground.
From the lenders point of view, if you have a lot of credit cards in your wallet, even if you havent employd them, they will see that you have the option at any time to end all that money and probably afraid that you’ll do so. Therefore, if you do have a lot of credit cards in your wallet, that you decide you do not need, or if you have been switching balances from one credit card to the next without closing each account as you go, you may intend to to co ider closing some of these accounts so that lenders can rest a little easier knowing that you cant go out on a ma ive sho ing ree tomorrow and bankrupt yourself.
Another danger of credit cards is that it can be easy to mi payments. Becaemploy they are not fixed monthly payments every month, nonetheless co tantly vary, it can ha en that you mi or are late on the odd payment. This will look very bad on a credit report as lenders will lose confidence in your ability or willingne to keep up to date with repayments. Therefore, you should be careful also about this a ect of credit cards if you wish to avoid unintend toed damage to your credit report.
