Debt Management Solutions – Prepaid Cards

Rejection rates for credit card applications are running at 18,000 a day, says
one report - but the truth about credit is more complicated than headlines
suggest.

Credit of any sort - from bank loans to mortgages and credit cards - has never
been freely given by lenders. You have to prove you are in control of your
finances. If you do, your chances of getting a loan when you need one will be
greatly increased.

It's always been the case that lenders are choosy. Back in 2007 one survey
showed some 3.5 million credit applications had been refused, with a similar
number rebuffed last year, according to another. And an analyst's study last
year found that up to 60% of applicants for any form of credit have been
refused.

If you are among those who have been refused credit recently or if you are
thinking of applying for credit soon don't panic - take action instead.

A good place to start is your credit report, which lists what you've borrowed and
how well you're managing your repayments. It gives you a snapshot of your
current status, what credit you've had in the last few years and how you have
managed it. Your credit report can also help you to see where you could cut back
and whether you could close some accounts altogether.

Lenders check it when they decide whether to make you an offer and what terms
to set - such as interest rates. It is crucial that it's up to date and accurately
reflects your circumstances. It pays to manage your money well because a
better credit history makes you more likely to get a better deal.

To stop the credit crunch becoming a personal credit crisis, check this list of tips
on further steps to take - and what to avoid, debt management solutions are
readily available from citizens advice centres. A prepaid card could be the answer
to your problems, there is no credit check, no bank account is required, no proof
of income and you can’t get in to debt as you can only spend the cleared credit
balance amount you have deposited on the card.

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