Is Your Credit Rating in Need of a Doctor

Is Your Credit Rating in Need of a Doctor

There is now stronger evidence than ever showing that having runaway debts can make you physically ill.

The Money Advice Trust is the latest organisation to say it sees a growing link between the number of people contacting it with money worries and who also reported how depressed and stressed they were.

A Trust spokesperson Beccy Boden Wilks said: “We often speak to clients who feel depressed and who have visited their GP due to the stress and anxiety caused by their debt situation.”

Her comments come in the wake of a new report jointly carried out by The Royal College of Psychiatrists and the health charity, Rethink, which found a clear correlation between mental illness and personal debt problems.

As might be expected, Ms Boden Wilks said that those who are dealing with debt must first find a solution to those issues where payment must be made to avoid the worst consequences, such as rent or mortgage payments to avoid losing a home or utility bills to prevent disconnection. These are the urgent priorities.

But to get back to full financial health, repairing a damaged credit rating is also important over the longer term.

Of course common sense tells us to go and see the doctor when we feel ill. But how do you go about mending your credit rating when attempting to cure your debt worries?

With this problem in mind, help might be available from what at first seems a quite unlikely source ñ a credit card company.

Visa has launched its Capital One Classic credit card designed specially to help those wanting to rebuild their credit rating.

It has a very low credit limit of just £100 to start with but which starts to increase after just four months for customers who demonstrate they can manage their accounts responsibly.

And to help keep on top of repayments, applicants can also register for free email alerts to help stay in control.

Whilst the card is ideal for those wanting to repair their credit rating, is isnít suitable for those who have been made bankrupt over the previous 12 months or who have never had credit in the UK before. In fact being turned down for this card could damage your credit rating even more!

But if youíre over 18 and on the electoral role, your application is likely to be successful even if you have had CCJs or other financial defaults lodged against you in the past.

All in all, Visaís Capital One Classic might be just the credit card youíre looking for if youíre determined to get your damaged financial health back on track and fighting fit!

 

  • Low, easy-manage credit limit from £100.
  • A credit limit increase after four months if you manage your account responsibly.
  • Register for email alerts to help you stay in control.
  • Before you apply, check you’re eligible, we’re more likely to accept you if:

     

  • You’re over 18.
  • You have some history of managing your credit even if you have had CCJs or defaults in the past.
  • You are on the electoral roll.
  • We’re not likely to accept you if:

     

  • You’ve never had credit in the UK before.
  • You have been declared bankrupt in the last 12 months.
  • Compare the Capital One Credit Card with other Credit Cards.

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