mo’s guide to Credit Cards for People with Bad Credit
Poor credit can be a challenge, however there are credit card designed specifically for people in this situation.
Credit cards for bad credit are also known as credit builder credit cards, credit repair credit cards and credit cards for poor credit.
You may be searching for one of these credit cards if you have been rejected for the better interest rate offers, or you have checked your credit score with one of the Credit Bureau’s and found that your score is lower than you expected.
How Credit Cards for Bad Credit work
- Credit cards for bad credit are designed to help you gain access to the benefits of a credit card, and enable you to take steps to improve your credit score over a period of time.
- They are generally a much higher standard interest rate than the leading credit card offers. Typically the interest rate on these cards range between 29.9% APR and 59.9% APR.
- They usually don’t have introductory offers. These are credit cards for people that represent a higher risk to the credit card provider, typically because of issues with credit in the past.
- Putting large purchases on a credit card can provide extra consumer protection when something goes wrong. Section 75 of the Consumer Credit Act means that if you pay for something on your credit card costing between £100 and £30,000, the credit provider is equally liable if something goes wrong. This is a legal protection provided so you are never put in the position of paying for something that wasn’t received or was not as described.
Do the smart thing - get set before you apply
- Borrow only what you need. Spending more than you need can lead to deeper credit problems.
- Repay at least the monthly minimum repayment on time, every time. Where possible repay the balance in full every month. This will have the most impact for improving your credit score.
- NEVER WITHDRAW CASH ON THESE CREDIT CARDS!
- Use monva’s Eligibility Match to check you meet the lender criteria, and then use lender pre-approve checks before applying to avoid harming your credit file.
- If you are declined for a credit card for bad credit, you may wish to seek advice from your local Citizens Advice. Do not keep applying as this may harm your credit score even further.