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Expert: Failed credit card applications count against credit records

Expert: Failed credit card applications count against credit records

• Pay off those credit cards with a remortgage or loan

 

Consumers should ensure they will be certain of securing a credit card with a lender before applying for the product, one financial expert has warned.

According to David Kuo, head of personal finance at Fool.co.uk, every failed plastic loan application counts against an individual's credit record.

Mr Kuo advised those who want a new credit card to view their financial situation objectively.

"What people need to do is to have a look at their own credit record and look at it from the eyes of a banker or whoever is providing the credit card," he said.

He urged people to look at how many credit cards they own and what the outstanding balance is of all these cards.

Recent research from MoneyExpert revealed that one in 20 people have seen their credit card limit cut in 2008, with the average reduction being £1,600.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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