Financial Future

So, you’ve established the reasons for your poor credit rating. Now how can you go about fixing the problem?

Correcting Any Mistakes

If you disagree with the facts that the credit reference agency has on your file, you can dispute them. If the information is inaccurate, your record can be amended. The agency can’t change things just because you aren’t happy about it.

Re-applying

Be wary of making too many applications if you’ve been recently turned down for credit – every refusal will show on your record and count as another black mark against you. A better approach is to re-assess your finances, make a plan to tackle your debts, and apply again in a few months time.

Credit Repair Companies

There are companies who claim to be able to remove information from your credit file. Other than correcting inaccurate information, which you can do yourself, this not possible.

Debt Solutions

There are plenty of organisations to help you get a handle on your finances and manage debts. If the problem is out of hand, borrowing more money is not likely to be the best solution. You need to take advice from an independent, trustworthy source, such as a Citizen’s Advice Bureau or the National Debtline (www.nationaldebtline.co.uk). (The Debtline has separate pages for England & Wales and Scotland, as the law differs between the countries.) They provide a helpline, as well as fact sheets on how to deal with debt problems.

Often the first solution to managing your debt is to make a budget, listing all your debts and debtors. You should prioritise, and aim to pay off either the most important debts, like rent or bills, or the ones with the highest interest rates, such as credit cards with high APRs. If there are debts that you can’t afford to pay right now, you should contact your creditors and explain the situation. If you offer to make small, regular payments over a period of time they might be willing to be more flexible.

If you have a number of debts on which the interest is high, it might be a good idea to consolidate these. Arrange an appointment with your bank manager and discuss converting credit cards and overdrafts into a loan. You may get a lower interest rate, and it will simplify your monthly repayments while reducing the overall amount you owe with every instalment.

Credit cards are about more than just making purchases. They also offer a number of financial incentives and tools. A credit card can help you build needed credit, and there are rewards programs that offer a variety of possibilities from merchandise to cash back. Not just any rewards credit card will do; choose carefully. One card that might be useful for its rewards program is the MBNA Smart Cash MasterCard.

Overivew of the MBNA Smart Cash MasterCard

One of the most generous MasterCard reward programs available is the MBNA Smart Cash MasterCard. In order to receive approval for this card, you will need a good credit rating. (There are other MBNA credit card options for those with less than sterling credit.) Some of the details related to this rewards card include:

1.99% on cash advance cheques for 10 months
• 1.99% APR on balance transfers for 10 months
• No annual fee
• Up to 5% cash back on certain gas and groceries for six months and 3% cash back after the first six months
• Up to 1% cash back for qualifying retail purchases

The cash back program is one of the more generous programs available for rewards credit cards. Additional features that you can enjoy when you use the MBNA Smart Cash MasterCard include fraud protection around the clock, as well as insurance protection covering travel accident and car rental insurance. You will also receive extended warranty protection on purchases made with the Smart Cash card, as well as other purchase protection.

MBNA Smart Cash Cash Back Program

The main reason many choose the MBNA Smart Cash MasterCard is because of the generous cash back rewards program. The initial six months of the cash back program allows you to earn up to 5% cash back on your grocery and gas purchases. Be careful, though: the Smart Cash card comes with limits on how much you can get for your cash back during that initial six months. After six months, you only receive up to 3% cash back for grocery and gas purchase. Other everyday purchases can offer you up to 1% cash back.

The interest rate at the end of the intro period is 19.99%. However, your introductory period can end early if you are late or miss a payment. After the 1.99% introductory rate ends, it is important to understand that carrying a balance can negate the value of your cash back. Make sure that you attempt to pay off your balance at the end of each month so that your MBNA credit card is a great financial tool, and not another path to debt.

Balance Transfers with the Smart Cash MasterCard

For those carrying debt, one of the biggest advantages that the MBNA smart cash MasterCard has is its low intro rate. You can transfer higher rate credit card balances to your MBNA credit card at 1.99%. You can also use the cash advance cheques to move other balances within the 10 month introductory period for the same 1.99% rate. This can allow you time to reduce your principal and pay down your debt more quickly[spin].

[spin]Just remember, though, that missing a payment or paying late could mean an end to your introductory rate. Try to pay off as much of your debt as possible during the 10 month intro period so that you will not have to repay as much debt at the higher rate.

Conclusion

It is hard to beat the MBNA Smart Cash MasterCard when it comes to a cash back rewards program. The numerous perks and generous cash back rewards make it one of the most popular rewards cards.