Switching credit cards

Can money be saved by shopping around?

Hundreds of credit cards are available in the congested UK market. It is wise, therefore, to look at all the options before making your choice. The card with the cheapest APR might not be best for you. Try the a1credit.co.uk credit card comparison service. It will lighten your task. All you need to do is to provide a few details about what you require. The calculator will work out which of the cards available is right for your needs.

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After choosing which card to apply for, with the help of the a1credit.co.uk comparison service, the application process itself involves giving a few basic details, after which the card company can perform a credit check. Once this is complete, you will be given a decision.

Is it possible that my credit-card application be turned down?

This depends on your financial situation. If your credit history is excellent, there should be no problem. A credit check is based on information such as your area, house value, late payments made on credit cards, loans, utility bills etc. In addition, credit cards you have been refused or whether any County Court Judgements are recorded against you will be taken into account. If in doubt about your credit rating, inform a1credit.co.uk and it will give you a list of cards that are more likely to accept your application.

To switch credit cards, should I contact my current provider?

To perform a balance transfer you usually only need to contact your new card provider. If you then wish to close the old account, you should contact your old bank and ask it to do this.

Will my new credit-card company be reliable?

Companies on the a1credit.co.uk credit-card comparison service are well-established lenders.

With financial problems, can I still apply for a credit card?

With a damaged credit rating, your choice will be restricted. State that you have a bad credit rating in your search and choose between the options available. If not sure whether your credit rating has been damaged, contact the credit agencies for a report (a small fee is charged).

Can I protect my details against fraud?

The a1credit.co.uk service is fully secure. Information provided to a credit company should also be protected, but you could check its compliance with the Data Protection Act.

Due to lower overheads, it is worth noting that Internet-based companies tend to offer lower APRs than high-street banks.

Can I improve my credit rating?

For example, you could apply for a new credit card, keep your balance low, or pay your balance off in full each month. You could take out a personal loan and consolidate your debts. You might cut your interest payments if you can find a cheap offer. You could ensure that you are on the electoral register at your current address and you could obtain a copy of your credit report and see what can be rectified. You could draw up a budget to see the maximum you could afford to pay back each month and stop credit-card purchases until finances have improved. You could set up direct debits for card payments, loans, utility bills, council tax etc.

Would debt consolidation help?

This does not lessen your debts, but simplifies matters by moving them all to one account. You could, for example, take a loan at a low APR to pay off an overdraft on a store card and other debts and then set up a direct debit through your current account to pay off the loan.