Credit card repayments boost future applications

Equifax has advised UK credit card customers to get their finances in order for the New Year by keeping track of what they owe.

Neil Munroe, the firm's external affairs director, suggested that people should find out "exactly what they have to repay" in order to keep their credit card balances under control.

These actions could increase a borrowers' likelihood of being accepted for 0% credit cards and other credit card deals in future.

This is because building a solid repayments record increases a consumer's credit score, making them look more trustworthy to credit card providers and other financial services firms.

Mr Munroe added: "Now more than ever, consumers need to take stock of their finances and make sure they maintain a healthy credit file.

"After the inevitable Christmas spending spree it will be even more important for consumers to know exactly what they have to repay so that they can avoid a real New Year financial hangover."

Figures compiled by financial charity Credit Action and released yesterday (December 1st) suggest that each UK household currently owes around £9,000 in non-mortgage debt.