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.