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Compare credit cards for bad credit

If you have a bad credit history, it can be difficult to get new credit, at least as a reasonable cost. Credit cards for bad credit are designed for customers who don’t qualify for conventional credit cards, usually because they have a low credit score.

Compare bad credit credit cards

The market for credit cards for those with bad credit histories is becoming more competitive, possibly due to a slowdown in the rate of applications over the last few years. This means you may get a more enticing offer, such as an interest-free period, although these kinds of promotions are rare.

The most important thing to remember when comparing credit cards for bad credit is to avoid making multiple applications at the same time. That’s because each application leaves a footprint on your credit rating and having multiple applications on your record (especially unsuccessful ones) will push your rating down further.

 

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What are credit builder or credit cards for bad credit?

These types of credit card are designed for people struggling with either a poor or limited credit rating.

They can help to create a positive loan repayment history, as the fact that you are successfully paying off a manageable credit card debt every month is noted on your credit file.

This is why they’re often called credit building credit cards rather than simply ‘credit cards for poor credit rating’.

Reasons for bad credit

A bad credit rating can often be the result of one or more of the following:

  • Not paying utility bills, credit card bills, loan repayments or rent on time
  • County Court Judgments (CCJs)
  • Not being on the electoral register

Improving your credit rating

A good start is to understand what you can and can’t afford to borrow before you start comparing credit cards for people with bad credit.

You should make sure that your credit limit is something you’re able to manage consistently over a period of time until you repay the amount in full, even if it’s with credit cards for poor credit rating – you’ll then start to establish a better credit history and increase your chances of eligibility with future providers.

Your credit card billing address should also match the address you’re registered to vote at, as any differences could affect your credit file.

Will you be accepted for Bad Credit

You may still be able to get a credit card if you have bad credit.

Credit card providers will always check your credit record when you apply, but the cards in our table above may still be available even if:

  • You have never borrowed money before
  • You have previously missed payments on your borrowing
  • You are unemployed
  • You have had county court judgments (CCJs) against you
  • You have been bankrupt

If you are yet to be discharged from your bankruptcy ruling, you will be unable to get a credit card.

Check you will be accepted

Avoid applying for cards that may reject you because too many searches on your credit report can make it even harder to get accepted in future.

You can see if there are any cards you can get before you apply by using an eligibility checker. Here is how to check which cards are likely to accept you.

Credit cards usually specify a minimum age (usually 18) and a minimum income, so check this too.

Bad credit history credit cards – all you need to know

If you have a bad credit history, it can be difficult to get new credit, at least as a reasonable cost.

But there are credit cards specifically designed for those with bad credit records. They can give you access to funds and, when used correctly, can help you rebuild your credit rating.

What are credit cards for bad credit?

Credit cards for bad credit are designed for customers who don’t qualify for conventional credit cards, usually because they have a low credit score.

When used in the right way – by paying off the balance in full each month – they can help you to slowly repair your credit rating. But this comes with a price.

Anyone with a poor credit rating, whether because they have a history of mismanaging money or they simply haven’t proved they can be trusted as a debtor, is considered more high risk than someone who regularly pays off all their bills.

Because of this, providers of bad credit score credit cards tend to apply higher rates of interest. But if you clear the balance in full at the end of each month you won’t incur any interest charges.

How can a credit card help with poor credit?

Each time you pay your credit card balance in full and on time, you earn a good mark on your credit file. Over time, this will act as proof that you can manage your debt and help improve your poor credit rating.

These cards offer the same credit card consumer protection as other cards. The other benefits of using this sort of credit card is that they can:

  • lead to an increase in your credit limit
  • lead to a reduction in your interest rate
  • improve your credit rating so you may be able to apply for a mainstream card with a lower interest rate or introductory offer.

However, credit cards of those with poor credit files usually have a high level of interest, so they shouldn’t be used for long term debt.

You should only spend as much as you can afford to pay off each month to avoid hefty interest payments. It’s also rare to see any introductory offers on poor credit cards.

Who do we include in this comparison?

We include unsecured loans you can get in the UK from our panel. Like other comparison sites, we make money when you click through to a product or service, or go on to purchase it after visiting our site. If you use one of our broker services, we make commission after you buy a product, but it doesn’t cost you anything extra. Our comparisons are free for you to use and you get the same or a better deal than going direct.

 

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