Bad credit credit cards
What is a bad credit credit card?
A bad credit credit card or credit builder card is a credit card designed as a option if your credit history isn’t great. Not only does a bad credit credit card provide access to short term cash but also can be a great tool in helping you rebuild your credit history for the future.
How much does a bad credit card cost?
You can expect APRs of between 25% and 60%. This is more expensive than offered by the high-street banks but as a bad credit option they are often a much cheaper option than a short term loan.
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Who can get a credit card for bad credit?
The clue is in the name; if you have bad credit then these cards are for you.
If you are:
- New to credit
You may want to consider a credit card for bad credit. You might think because you’re new to credit you’ll have a squeaky clean record but this isn’t the case. Use a credit-builder credit card to prove you can manage credit.
If you are unemployed, it can be very difficult to get any kind of credit but many bad credit credit cards accommodate for this.
If you have:
- Missed repayments on previous borrowing
- Received a county court judgement in the past
- Been declared bankrupt
The credit cards for bad credit could also work for you but it is worth comparing your options here.
Why should you get one of these cards?
If you’ve got bad credit, these cards are much more likely to accept you. They could also be a cheaper alternative to payday loans if you’re only looking to borrow a small amount.
If you pay off your monthly balance on time and in full, not only will you not pay any interest buy you could have a much better credit score within a matter of months. This will open you up to providers offering better rates, benefits, and a higher credit limit.
Why shouldn’t you get one of these cards?
If you have a spotless credit score, it may be worth comparing other options using our All Credit Cards comparison table. You could get better benefits and much better interest rate on your purchases.
If you struggle to manage your money or you’ve had difficulty dealing with debt and credit in the past, you should think about whether or not you really need the money as you could end up in more difficulty.
When using a credit card, keep your other accounts like other credit cards, loans, catalogue purchases, mobile phone and mortgages in order and don’t take on more debt than you can handle. Do not look for a credit card to consolidate further debt as this could put you in further trouble with your lenders.
What to remember:
When using a credit card you need to be disciplined with your repayments so that you do not build up debt you cannot repay. Most providers will help with this by offering a smaller initial credit limit. By staying on track not only will you not pay any interest you will also increase your creditworthiness, opening up better rates and larger credit limits.