Build up credit history, expert advises

Those who are being rejected by credit card companies may simply not have enough experience borrowing money rather than having a bad credit rating.

That is according to Kevin Boon, from the Consumer Credit Counselling Service, who said that banks may not be willing to lend to people who have a short credit history because they want to know they can trust the borrower.

Writing for the Independent's Money Matters column, Mr Boon claimed that even those who believe they are ideal customers because they have made all their repayments on time could still be rejected if they haven't borrowed enough in the past.

"Credit scoring tries to predict your behaviour. If you have no credit history it is difficult for lenders to do this, so you are more likely to be rejected," the expert explained.

Finance specialist Victoria Bischoff recently recommended that consumers make use of new government plans to allow everyone to view their credit rating online for a fee of £2, as this can offer clues on how to make it better.

Posted by Gemma Walker