How to Use a Bad Credit Rating Credit Card
Bad Credit Rating Best Buys
 |
» 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."
% APR
|
 |
» 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."
% APR
|
 |
» 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."
% APR
|
Bad Credit Rating FAQ's
|
Bad credit rating credit cards should be seen, as used, as tools to help improve your credit score and allow you to get back on your way to access to more competitive financial products in the future.
Using your bad credit rating credit card wisely is of the utmost importance when trying to rebuild a poor credit score, and will also keep you away from getting back into debt again.
Making the most of your card...
- Budget your income and always pay back your spending
The best way to use a bad credit rating credit card is to spend regularly and always repay your balance at the end of each statement month.
When spending money on credit, it's important to budget your income so that you always have enough left at the end of each month to pay back any spending on your bad credit rating credit card.
- Improve your credit score
Bad credit rating credit cards should be used as tools to improve your credit score. By using them wisely - always repaying your spending and never exceeding your credit limit - you will soon start to benefit from an improved credit rating.
There are other ways to improve your credit score, which should be done simultaneously to using a bad credit rating credit card.
- Have you salary paid into your current account
- This will show lenders that you have a regular salary.
- Use a debit card for your current account
- Although a debit card has nothing to do with borrowing money - as the transactions come straight out of your current account - using one regularly and never going overdrawn will help to improve your credit score.
- Always pay your bills on time
- Paying your utility bills and council tax promptly will have a positive knock-on effect to your credit rating, and some utility companies may even give you a prompt payment discount!
- Work on a long-term strategy
- Try and save a small percentage of your salary every month. Put it into a separate savings account so you'll be less inclined to spend it.
- Take out a credit card
- Take out a bad credit rating credit card and use it wisely. If your application is declined, it is best to wait 3 months before applying for another card, as frequent credit applications can further damage your credit score.
Things to watch out for...
- High interest rates
Bad credit rating credit cards should be used like a charge card - always repay your spending in full each month.
The interest rates charged on bad credit rating credit cards are notoriously high, and any balance left to rollover from one statement to the next will incur a hefty interest cost.
Not only will you face these much higher interest costs, but you should also try and avoid leaving your credit card debt unpaid so your finances don't become unmanageable again.
Compare credit cards for a bad credit rating
|
