Martin Lewis has warned people against applying for several credit cards during the cost-of-living crisis.
When applying for a credit card, it's important to know that your credit report will list how many times you've applied for cards and loans. But if you submit too many loan applications in quick succession, a bank can view you as a risky borrower.
Banks may also believe you are struggling financially. Fortunately, Martin has found a way around this and recommends applicants use a free soft check eligibility calculator first.
READ MORE: Man so ill he can't even cut his own food told he's fit for work
Eligibility checkers show how likely you are to be accepted for a deal before you apply, reports the Mirror.
In the latest MoneySavingExpert email, Martin said: "Almost every credit application goes on your credit file. The system is effectively anti-shopping around, as get rejected or a worse rate than advertised, and you'll need to apply elsewhere, but too many applications, especially close together, is negative."
He added: "Eligibility [calculator] searches do go on your file, but only you can see them, lenders can't, so it doesn't impact your future creditworthiness."
MoneySavingExpert listed several free eligibility calculators in its latest email. Martin went on to explain that having a low eligibility score doesn’t necessarily mean you won’t go on to be accepted for credit.
As an example, if it says you have a 20% of being accepted, this means two in 10 people. The MoneySavingExpert founder shared an email from a reader called Martin who found himself in a similar situation when he used an eligibility calculator.
He said: "I applied to the top eligibility checker result, which I'd only 20% chance, and guess what? I was accepted and offered a £3,500 limit at 0% for two years.
“This debt was 20% APR. I can now focus on other debts, potentially having an extra £1,328ish over the 0% period to reduce the amount owed."
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ NEXT:
Mum leaves behind five children after dying in fall down stairs
Family 'mortified' after being thrown out of Liverpool Empire's Mother Goose panto
Teen told mum 'don't worry' minutes before he was killed in hit-and-run
11 characters that were once a familiar sight on Merseyside streets
