For those looking to open new credit lines, the good news is that banks and other lenders are starting to lend again after years of tightening their purse strings. The bad news is that unless you have a credit rating as pure and unblemished as the first snowfall, they probably won't be offering you credit.
Many people were affected by the recession through redundancy, job cuts or lowered salaries, and encountered financial difficulties as a result. This might have shown up in their credit files as a late payment, or more seriously, a default or County Court Judgement.
Some banks and other high-street lenders are selectively choosing to lend only to the most ‘ideal’ of customers, such as people who haven’t changed their address or job for a decade or those who have never made a late payment on a bill or loan.
Perhaps you’ve discovered this the hard way by having your credit card application declined. If you have, stop and do some research before applying again. Refused applications can do further damage to your credit rating, reducing your already low score. Having your application rejected is a sign that you need to work on building up or rebuilding your credit rating.
Luckily, there is a credit card on the market that can help you to do just that. aqua accept applications from people who have lower-than-average credit scores because they take the current circumstances of the applicant into consideration when deciding whether to offer a card to a customer.
aqua credit cards are also a good option for stay-at-home mums, part-time workers and students, who might not have bad credit but whose circumstances put them outside the radar of most mainstream lenders.
The best thing about aqua credit cards is that they won’t cost you a fortune. While there is a perception that people with bad credit can only access new credit at enormous cost, a classic aqua credit card has an APR of 32.9%, which, while higher than some mainstream banks, is low enough to allow you to use your credit card without fear of large repayments.
aqua is also different to other lenders in that aqua staff work with you to help you manage your overall finances. When you first apply you have the option to speak with a customer service representative via the customer helpline. They can guide you when it comes to including the right information on your application and help you decide which of the aqua range of credit cards is best suited to you.
Most people apply for the classic card, but you also have the option of applying for the aqua Advance card, which rewards regular and timely repayments with incremental reductions in the rate of repayment. While you take out an aqua Advance credit card at an APR of 34.9%, if you manage your account carefully, you can reduce your rate by as much as 15% over three years. After three years, you’ll have a low interest rate credit card as well as a much improved credit rating.
Now that’s good news.