A Brief Guide – Credit Cards For Bad Credit

January 15th, 2011 by admin

Finding someone to give you credit can be tough if you’re the kind of person with a credit rating. A few kinds of loans are in fact, available. When you want to buy less costly items it is best to use your credit card, rather than arrange a loan. There are a number of credit cards for bad credit holders available that help improve your bad credit rating if used properly apart from providing the credit you’re after.

It’s a common place practice for credit card companies to limit their offers to people with good credit, but Capitol One, Vanquis and Aqua are the exception to this rule. You could be approved for one of these cards if you’ve not been registered bankrupt in the last 12 months, are on the electoral roll and have some form of good credit in your history. If you are in need of some quick and simple credit, all three companies have extensive experience working with people with a bad credit rating, so it’s likely they could help you.

Such credit cards come with a few catches, not surprising though. Poor credit can be caused by not having a home address or a heating (utility) bill, which are both things can can hurt your ability to apply for a loan. The most important aspect to consider is the interest rate on the credit cards.  Having an interest rate of 35-40% makes them much more expensive than other credit cards and in the end can actually increase your debt instead of reduce it. Some credit card limits are between $250 and $1500 preventing one from incurring more bad debt.

As well as being a good source of quick cash for people with bad credit though, these credit cards can actually help repair a bad credit rating if used responsibly – regular payments can raise your credit rating and leave you with more options to get credit elsewhere. Compare credit cards here.  What’s more, the card providers often lower the interest rate and raise the spending limit if you can show responsible use of the card, so there’s the option for it to be a long-term source of credit rather than just a quick fix.

Summary of Credit Cards for Bad Credit.

  • Can have their rates lowered and credit limits raised if you use them responsibly
  • Are offered by a select number of lenders
  • Easy to apply for and quickly approved if you fit the requirements

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