Borrowers with “reasonable control” can boost credit rating

As long as a person has “reasonable control” over their finances, they should be able to handle debt management issues, it has been claimed.

David Kuo, the head of personal finance at, said that ensuring bills and mortgage repayments are met on time is the “best” way to improve a credit rating.

He added that in his opinion, prepaid credit cards will not help a person boost their credit history as some companies may view such things as “irrelevant”.

“I think prepaid credit cards are not one of the highest on the list, because … you are not taking on any kind of debt,” he remarked.

Apacs, the UK payments association, has noted that prepaid cards are a small, but increasing, segment of the market.

It stated that they target people with no bank accounts that do not have access to other forms of finance, as well as teenagers because they cannot exceed the limit.

By Jamie Price


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