Hello
i have just done a credit check and im waiting to hear back. but out of curiosity i wondered how bad my credit rating really is. i have been receiving credit card offers in the post from reputable companies with 2.5%
would they send it to me if i had bad credit rating or do they just send these to everyone on their mailing list
thanks for your hope..
please no smart alex comments about people with bad credit,its not funny or helpful
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{ 12 comments… read them below or add one }
Sure you get them but if you think you will get an American Express or one of the biggies dream on you also get a denied when they do the credit check.
Hi hun!
Yes, unfortunately these companies do send them to everybody, or at least most people. Some companies will send you a ‘guaranteed’ product letter if you have held an account with them for some time and they know that your credit rating is fine. For example, if you held a bank account with the Halifax for a few years, regular wages being credited, never overdrawn or kept within limit if you have an overdraft, lived at the same address for 3 years plus, etc., then they have a pretty good view of your credit history. It is possible they will have credit scored you before sending out a guaranteed product letter, hence their confidence in offering it to you.
If you receive a bog standard offer from a company and apply for the product, they will then credit score you and if your credit rating is poor, they will decline the offer. Daft, I know, but don’t just assume that because you have received an application that you will be offered the product.
Hope this helps.
Years and years ago when I was bankrupt, broke and not working, the mail would be full of “you’re pre-approved” offers — trouble is, almost every time I replied to them, I was declined. I think the only thing “Pre Approved” about the things is that you’re pre-approved for a mailbox full of credit card spam. lmao
Not sure about credit score or credit reports in the UK, but in the US it’s the law that credit rating firms are to give us one free credit report per year to tell us our “credit score” plus if we are denied on a credit card or rotating account application, the company is required to send us a report telling the reasons why – though for some odd reason, one is required to ask in writing and wait months for a reply.
credit card companies buy a list of potential credit card customers who have a credit score above the minimum(just the score, they don’t check the report). If you read the fine print on these offers it will tell you what you want to know. It will have verbiage such as “rates as low as 2.5%” or credit limit up to “$5,000″. The reality is they don’t actually check your credit until you apply. They have no idea of your ability to repay the loan. You may end up with a credit limit of $300 and a 29% interest rate by the time they actually look at your application. Some of these cards have very high annual and maintenance fees as well. The link below is an example of how bad it can be. Check out the First premier card.http://articles.moneycentral.msn.com/Ban…
Tom is right on the spot. If you did a credit check, how is it? The score is just one part. Do you have accounts in collections? Not so long ago a friend of mine applied for a miles aadvantage card with citibank. His credit score is 765, they denied it. He doesnt have accounts in collections and his credit is regular BUT he paid them late in the past and cancelled the account… so in short, it all depends what company you receive the offer from. Right now credit is tight, but they are extending 0 percent offers to valulable customes still….
Poor credit rating doesnt always mean you paied late or that you have accounts in collections. For example your credit might be low if you ask too much credit and open several cards… but if its low due to not paying ur cards on time… boy u r out of luck
Yes they are vultures. When my credit was worse, I was getting them. Then if I applied and was turned down, guess what?? It hurt my credit score even more.
I started returning them in their prepaid envelope with the other credit offers and other junk mail I received. The heavier you make it, the more postage they have to pay.
I finally opted out and rarely receive them now.
Please beware of such companies. These companies work upon their own business interests. I’ve heard a couple of them charging even zero% for the first year and then moving up to charge you with the highest APR.
So, it’s better you look well before you leap.
These are just questionnaires they send out to people making them think your credit is good enough to get one of their credit cards. After you wait for an answer you find that you’ve been turned down. I seen this happen to many people that i know.
yes they do i am bankrupt and i keep getting YOU ARE PRE APPROVED.. And BTW i went bankrupt on my Credit Cards too so sorry good luck with your approval though
risks are different now
yes they do i even get emails from them
We used to get frequent solicitations from Capital One to open a credit card account. I think there are still financial organizations that cast their nets wide, regardless of your credit rating. They know they can always look at your application and turn you down if your credit doesn’t look good enough.
I’ve heard that after people declare bankruptcy, credit offers arrive by the bushel. This is because they can’t declare bankruptcy again for a long time, seven years I believe it is.
The criteria used by the three major credit rating companies for rating people are rather complex. I’ve been reading articles on Internet news sites about this issue. The main criterion is whether you pay your bills on time. Another important one is your ratio of debt to available credit. Also, accounts you’ve had for a long time are preferable to new accounts, especially if they’ve been paid regularly.
Your ratings can change. Every month you keep current with your bills, your low score will rise. If there is something inaccurate in your report, you can send in documentation that it’s wrong, and often the negative impact on your credit rating can be removed.
Bottom line, wait until your credit check comes back. Then seek some good advice, either by an Internet search or by talking to someone at your bank, before opening any new credit card account.