Apr 22 2017

Credit cards for people with bad credit history. #credit #report #and #free

#credit card for bad credit rating

Credit cards for people with bad credit ratings

For cards for those with bad credit ratings, we introduce our preferred provider, LoveMoney [1]

Key points

  • ‘Bad credit rating’ cards typically have a low credit limit and high interest rate
  • Can help to rebuild a credit rating if used responsibly
  • Pay balance off in full every month to avoid high interest rates and the risk of further damaging your credit score

The unfortunately named bad credit cards – also known as credit cards for poor credit – are specifically designed for people who have adversely affected their credit rating .

This may have been by missing repayments or running up debts in the past.

These cards are unlikely to be the right option for you if you haven’t had credit before or are in the early stages of building a credit score.

If you’re in this situation and are looking to get a credit card. you may want to consider a credit builder card .

Bear in mind that people who’ve had County Court Judgements † (CCJs) against them or those who’ve been declared bankrupt † in the past are unlikely to be accepted for a card offered through, and making an unsuccessful application could damage your credit score even further.

If you have been declared bankrupt or had a CCJ against you, consider contacting a specialist provider such as Vanquis to discuss your options.

Pros of credit cards for bad credit ratings

Need more information?

This type of card allows people who may be turned away by mainstream lenders to get credit.

This could be particularly useful if you’re going away on a foreign holiday, for example, and need a card for deposits for things like car hire or excursions.

They also offer an opportunity to get your credit rating back on track if you can demonstrate you can manage the card correctly.

Cons of credit cards for bad credit ratings

One downside of these cards is that you won’t get a huge credit limit. However, if you’ve had problems with credit card debt in the past, perhaps this isn’t such a bad thing.

This type of card also generally has very high interest rates, so you’ll be clobbered by big charges if you don’t pay off your balance in full each month.

What to watch out for with credit cards for poor credit

The biggest thing to be aware of with this type of card is making sure you don’t damage your credit rating further.

If you don’t manage your card well and your credit score dips even lower, it will almost certainly stop you from getting a card for a long time.

Try not to overspend and to pay your balance off in full each month.

By doing this you should avoid high charges and you’ll also gradually improve your credit rating for the future.

An improved credit score will then give you access to more attractive deals on credit cards and other financial products.

Things to consider.

  • Avoid withdrawing cash on the card – charges are likely to be huge
  • Check foreign usage fees if you plan to use the card abroad

Whatever you do, try to avoid using these cards to withdraw cash – the charges will almost certainly be huge.

You should also be aware of any charges for using your card abroad. There may be cards available that don’t charge for foreign usage, so make sure you shop around.

If you have debt problems.

If you’re struggling with debt, speak to your lender as a first port of call. The lender won’t want you to default on the debt, and may find a way to help.

You can also contact your local Citizens Advice Bureau. National Debtline or StepChange Debt Charity (formerly the Consumer Credit Counselling Service) for free advice. †

[1] introduces customers to LoveMoney, which is authorised and regulated by the Financial Conduct Authority.’s relationship with LoveMoney is limited to that of a business partnership, no common ownership or control rights exist between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites Limited is authorised and regulated by the Financial Conduct Authority (FCA) for insurance mediation activity under firm reference number 465053. You may check this on the Financial Services Register by visiting the FCA website, or by contacting the FCA on 0800 111 6768. Limited is registered in England and Wales (Company No. 5799376). Registered office: Imperial House, Imperial Way, Newport, Gwent, NP10 8UH, United Kingdom. Copyright 2006-2015 Ltd. All Rights Reserved.

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