by Lily S

Created on: January 25, 2009

The only people who are able to get credit cards in these difficult times are those who have exemplary credit records and people who in stable steady jobs.

First of all let's address the job issue. There is evidence that some lenders are blacklisting people who work in sectors that are vulnerable to recession - if you work in construction, real estate, any job where the bonus is a large part of remuneration, the banks will eye you unfavourably. There isn't much that can be done if you are in these circumstances, except to move to a more stable job, or take on an additional part-time job so that the lender feels they they are more likely to get their money back if something goes wrong with your main job.

Secondly, lenders will be scrutinising credit reports to ensure that those they lend to are good risks. Here are things to do to make sure your credit report is spotless:

1. Don't go into overdraft. Customers who are disciplined to always stay in the black, month in month out, are deemed to be good risks as far as banks are concerned.

2. Pay all your bills on time, from the utility bills to your cell phone bill. To the banks, those who make payments late are careless customers, and may make their credit card payments late too. They won't take the risk of giving you a credit card if you are a late payer.

3. If you have existing debts, clear them. Banks do not like customers who are overloaded with debt - they think this makes them more likely to default. Therefore before applying for a new credit card, spend some time paying down existing cards as much as possible.

4. Have a landline. Banks prefer to lend to customers with a landline instead of a cellphone. To them the landline signals that the potential customer is rooted and stable.

5. Don't apply for too many financial products. Everytime you apply for a savings or credit product, a search is done of your credit record. The banks will not know why a search has been done, only that someone has examined your record, and if too many searches have been done recently, they worry that you are simultaneously applying for credit from multiple lenders, and will decline you.

6. Check your credit file with firms such as Experian and Equifax (by law you are allowed to view your own file for a small fee). There may be mistakes on the file. If there are, write to the credit agency to put them straight.

In the course of making your credit record spotless, you may find that you are managing your finances so well, you don't need to take out an additional credit card! It was ever thus - the banks only like to lend to those who do not need it!

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