Making Sense Of Money

Credit Cards For Bad Credit

Credit Cards For Bad Credit

 

A bad credit credit card can not only provide you with a flexible short term borrowing and cash-flow solution but it can help you to build or rebuild your credit rating for the future. Credit cards for bad credit – interest rates will be higher but, used properly they can be a real advantage.

So if you have a history of defaults, arrears, CCJs, or bankruptcy. If you are struggling to get your first credit card because you don’t yet have a credit history, the good news is there are a few bad credit credit card providers who offer you the chance to rebuild your credit rating whilst enjoying the convenience of using a credit card.

    

Getting a credit card with good credit is hard enough these days but with a less than perfect credit history it can be quite difficult. Any application for a credit card will be subject to a credit check and if your history is chequered, if you’re self employed and can’t show a regular income, if you’ve got CCJs, arrears, defaults etc on your file or if you don’t yet have any history your application may well be declined.

Worry not though – there are a number of specialist UK providers who focus solely on those with a bad credit history who are looking to build their credit rating or those yet to have any previous credit history at all and want to build their reputation.

Obviously, there is an increased risk to the bad credit credit card provider … quite a big increase as a credit card is an unsecured form of finance and hence they rely on the borrowers promise to repay only. That’s why there will be quite an increase in interest rates over main stream credit cards and credit limits will be lower, at least initially. The big benefit of these credit cards is that they can give you a second chance to prove yourself with money.

A credit card is almost a necessity these days – it can provide a secure way of buying online or major purchases, peace of mind as an emergency access to finance, and a secure way of carrying money worldwide. Used wisely and it can be a real friend.

For those with a bad credit history a credit card can actually provide real help in re-building your credit score and building a rating for those with no credit history yet.

They provide an opportunity to demonstrate an ability to handle credit properly and reliably and build the trust lenders have in your ability to manage debt.

As previously mentioned, correctly managed and a credit card can actually help rebuild a credit rating. Use it regularly, pay it off on time each month and you’ll notice an improvement in credit score after only a few months at which time you may be able to apply for a standard credit card or get an increase in limit and a reduction in interest rate.

As mentioned, credit limits will be low – typically to start with you can expect something between a couple of hundred pounds and a thousand or fifteen hundred if you shop around. Actual limits will depend on lender and the personal situation of the borrower. Interest rates will also be higher so do study the facts closely and understand everything fully.

It’s also important not to confuse these credit cards for bad credit with pre-paid cards which often look like credit cards but are actually debit cards that need to be topped up with cash before you can use them and provide no form of credit whatsoever.

Credit Card Consolidation – Is It Always The Right?

Posted by on 10:01 pm in credit cards with bad credit, debt consolidation | 0 comments

Credit Card Consolidation – Is It Always The Right?

Credit card debt can easily mount up, especially if you have access to multiple credit cards. The ease, the temptation, the access to finance is sometimes hard to resist and, even with the best of intentions, sometimes the full balance isn’t paid off and the longer this goes on the harder it is to clear the balance and hence the need for credit card consolidation. Credit card debt is flexible but not cheap and if it’s built up to a great degree, it MAY be in your interests to transfer the balance to a loan. If you’re considering this though...

read more

Credit Cards For Poor Credit – Good Or Bad?

Posted by on 7:15 pm in credit cards with bad credit | 0 comments

Credit Cards For Poor Credit – Good Or Bad?

There’s always two sides to an argument and that’s certainly true when it comes to credit cards for poor credit – use them correctly and manage them well and they’ll be your best friend but use them inappropriately and they can turn a poor credit rating into bad, really bad, in the blink of an eye! There are a growing number of UK poor credit card providers which reflects the decrease in those still retaining a perfect credit history and the mainstream financial institutions reluctance to lend to those with poor credit. These providers are...

read more

How To Use A Credit Card To Repair Bad Credit

Posted by on 10:08 pm in credit cards with bad credit | 0 comments

How To Use A Credit Card To Repair Bad Credit

A credit card is pretty much a necessity these days and, if you are a victim of bad credit, it can also be a great tool to repair your credit. Use it the wrong way though and it will damage your credit rating further so let’s look at the best way of how to use a credit card to repair bad credit and understand the potential benefit to your credit file. Check Your Credit File You may know why you’ve got a bad credit rating but it’s always a good idea to check your credit file and check that the information held is accurate. There are three main...

read more

Plastic For Bad Credit

Posted by on 6:36 pm in credit cards with bad credit | 0 comments

Plastic For Bad Credit

These days debit cards, cash cards and credit cards are a way of life with most people preferring to carry plastic than cash. In today’s world a credit card is often the most convenient and secure way of buying; allowing you to buy online, over the phone and spread the cost of everyday purchases. You can also use a credit card worldwide and hence making it easier to manage money when on holidays or trips abroad. We all know the main credit card companies and it’s easy to shop around and find the right credit card for you, your circumstances...

read more
Positive SSL