Frank O'Donnell

Confused.com, who monitors financial products, reported that that almost 40% of people will not apply for a credit card for fear of damaging their credit score.

Just one late payment can result in a reduction in your credit limit down to whatever the outstanding balance is so it is not surprising that cardholders are having concerns about what information is in their credit file. 

Borrowers are right to be concerned about their credit rating as it is not only taken into account for credit card applications but also when it comes to applying for a loan or a mortgage.

Confused.com have devised a credit scoring tool on their website to help borrowers check which cards on the site are most likely to accept your application and that do not leave a credit footprint on your file.

A worrying 25% of people have not checked their details on their credit file to ensure they are correct and think that getting inaccuracies removed can be a major operation. 

Joanne Garcia, head of credit cards at Confused.com points out that people should check their credit file for mistakes and inaccuracies that could leave a devastating effect on your credit score. 

For those who don’t have a great credit rating there are ways that it may be improved.  Confused.com recommends checking your credit record to ensure it is accurate and ask for any errors to be corrected.  Make sure you are on the Electoral Roll and that you’ve paid off any County Court Judgments in full. 

It is important to have a consistent history of repaying borrowing on time and by setting up direct debits, it can ensure you don’t miss any repayments. If there are any accounts you no longer use, cut up the cards and close any unused credit accounts fully by writing to the card issuer.

With Christmas just around the corner, there is likely to be an increase in people using credit cards, but if you do not pay off the amount in full each month, it is important to have a low interest rate in place.