Have bad credit? Applying for a credit card?
If you're considering applying for a credit card but are concerned about having a poor credit history, fear not. You have options and there are still deals to be had. This guide is here to point you in the right direction and outline what to consider when applying for a credit card with poor credit.
Understand the status of your credit file
The first step when considering a credit card (especially if your credit isn't great) is to understand the status of your credit file. You can access your credit report for free by visiting a number of online credit reference companies such as Clearscore or Noddle.
Knowing where you stand in regards to your credit status will allow you to work out the best way to proceed with your credit card search. You can maximise the quality of your credit report by ensuring your credit report is fully up-to-date and as complete as possible. Ensure your address and other details are all correct and, If you're not already, register on the electoral roll. This illustrates to providers that you have a stable address.
Compare your options
There are a number of credit card providers that specialise in products forthose with poor credit. If you have bad credit and are looking for a credit card you can compare these providers side by side in our bad credit credit cards comparison table. When comparing credit cards with bad credit be sure to match the lender's acceptance criteria before you apply. This is vital as by not doing so you'll increase the chances of being declined. You can find more information on each provider as well as consumer reviews in our bad credit credit cards product library.
What to expect from bad credit credit cards
In the eyes of the credit card providers, lending to applicants with poor creditcomes with greater risk than lending to those with perfect credit. As a result, the interest rates on bad credit credit cards are higher than others on the market. However, if you clear your balance in full each month not only will you avoid paying interest and being affected by these rates, you will also start to rebuild your credit file.