The Fixer: Credit score crisis
It can seem impossible to get a fair result when you are battling a large, faceless organisation alone. But never fear! The AOL Money Fixer is here to help.
This week she helps a cash-strapped bride-to-be find the right credit card to spread the cost of her dress despite her poor credit score.
My fiance and I are getting married in October this year. As we are not rich, my fiance has had to take out a personal loan to cover the considerable cost of the venue, the flowers, the cars and everything else.
We are repaying the loan together. However, I am going to pay for my dress, which costs just over £500, myself.
I really have my heart set on this particular dress, which I have now tried on twice. But what with the loan repayments and everything else I have to pay on a monthly basis, I cannot pay for it in one go.
And with the wedding approaching, I no longer want to put off buying it because the shop will need time to make a few alterations.
With this in mind, I have tried applying for a number of 0% credit cards that would allow me to spread the cost of the dress over a few months without incurring any interest. Unfortunately, however, my applications have all be rejected.
When I checked my credit file recently, I also noticed that the rejections were noted on it - making it even less likely that I will be accepted for a card.
Is this normal? And are there any credit cards that are likely to accept me? Please help me as I can't really take on more costly debts, but I don't want to give up on my dream dress.
H Mather, Coventry
Dear Miss Mather,
As you have found out the hard way, most of the market-leading 0% credit cards available are reserved for those with excellent credit scores.
And it is normal for your rejected applications for these cards to be noted on your credit file. This does not mean that you will fail to qualify for all the credit cards you apply for, though.
To avoid further damage to your credit file, I suggest screening deals and only applying for those that you are likely to qualify for.
It is also worth checking out the recently launched Capital One Classic credit builder card. It could well be the answer to your prayers because it is aimed at people with poor credit scores, but offers 0% on purchases until November 2012.
Make sure that you pay off the debt in full by then though as interest will be charged thereafter at a massive 34.9%. Enjoy your wedding - and your dress.
Whatever your financial problem, write to email@example.com and The AOL Money Fixer will get on the case.
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