How to Compare Bad Credit Rating Credit Cards
Bad Credit Rating Best Buys
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» Suitable for people with a poor credit history. |
Credit limit from £250 to £2,500. Why? "The Capital One Classic credit card enables people with a less than perfect credit history to rebuild and strengthen their credit score.
Offering an instant decision when you apply online."
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» Suitable for people with a poor credit history or who are new to credit. |
Credit limit from £250 to £2,000. Why? "Barclaycard Initial is a great card for anyone new to credit or looking to rebuild a poor credit history.
Offering all the cardholder services you would expect from a Barclaycard including added fraud and purchase securities, as well as a travel service and shopping discounts."
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» Suitable for people with a poor credit history. |
Credit limit from £250 to £1,600. Why? "From our friends at the Halifax, the aqua card can help to put the points back onto your credit report - with a marginally cheaper interest rate."
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Bad Credit Rating FAQ's
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Bad credit rating credit cards enable people with a poor credit history to get the credit they need to start rebuilding their credit score.
Bad credit rating credit cards can help you to improve your credit score by using them as a 'credit' tool to prove to lenders that you can be trusted with credit again.
These cards are best for...
- People with past credit problems
Bad credit rating credit cards are suitable for people with past credit problems who want to rebuild and strengthen their credit score.
- Rebuilding and strengthening your credit rating
These credit cards are best used as tools to rebuild and strengthen a poor credit history, by using these credit cards for regular spending, which can be - and is - repaid in full each month.
These cards are not suitable for...
- People with current credit problems
If you have a poor credit history and are currently still in the process of getting your finances under control, you should continue to repay back any current debt before you start trying to rebuild your credit score.
- Not repaying your balance in full
Lenders consider people with a poor credit history to be of greater risk. Because of this, bad credit rating credit cards have considerably higher interest rates than the majority of credit cards.
By not repaying your bad credit rating credit card balance in full each month, you will not only incur very hefty interest charges, but you could also slip back into debt again.
Knowing what's on offer...
- The chance to prove you can be trusted with credit
The main 'feature' of a bad credit rating credit card is the chance for people who have past credit problems to gain access to credit again.
It's important to use this credit wisely and to think of it as a second chance to really prove to lenders that you can manage your finances responsibly.
The way to improve your credit score is to take out a bad credit rating credit card and then to spend on it regularly, always repaying your balance in full.
- Only spend what you can afford to repay
Bad credit rating credit cards carry very high interest charges so these cards should not be seen as easy access to a small cash loan.
Instead, you should only spend on these cards what you know you will be able to afford to repay at the end of the month.
Budget your income so that you can repay your balance in full, this will not only keep you in good standing - but if you make use of the interest free period on purchases and repay your balance in full you won’t be charged any interest at all.
- Avoid cash transactions
Cash transactions generally always carry higher interest rates than purchase transactions on credit cards, and bad credit rating credit cards are no exception.
Not only will cash transactions carry higher rates of interest and handling fees, but they are not included in the interest free period.
The interest free period, which is usually only on purchases, means that when you clear your balance in full you aren't charged any interest. Cash transactions however, will incur interest charges from the date of the transaction - even if you repay your balance in full.
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Compare credit cards for a bad credit rating
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