Getting a Credit Card with bad credit is something that is possible but there are a number of drawbacks.
For example, you don’t really have much choice as the main high street lenders will not be interested in lending to you.
The other problem is that even when you do get a Credit Card, the chances are that the Interest Rate means you should only use the card in an emergency, and pay it back as soon as possible to avoid getting into debt.
Why get a Credit Card?
Why would you even want a Credit Card? Perhaps your Bank Account only has a Cash Card and you need to make payments online.
Another reason is that you might want to use it in an emergency or use it throughout the month and repay the balance in full at the end of the month.
Whatever your reason there are still a few lenders who will at least consider bad credit. I have listed below the four providers I am aware of.
Aqua Card say that they will accept applications from people who have previously had County Court Judgments or have Defaults that are more than 12 months old.
Whilst Aqua Card can’t guarantee they will accept you, there is a good chance they will. A Credit Limit of up to £2200 is available.
I once had an Aqua Card, until I defaulted on it. At the time of applying I had a CCJ and a couple of Defaults registered on my Credit File. I was accepted with Aqua Card without issue. As I kept paying on time I found that my Credit Limit was increased.
Capital One Credit Card
Capital One are probably well-known for their Credit Cards. In terms of their Credit Card for Bad Credit, you are likely to be accepted with Capital One.
Don’t expect a huge Credit Limit though. If you pay the Card off on time each and every month then you are likely to get a Credit Limit increase at some point, usually after your fourth month statement has arrived. However you will need to have managed your account well during this time.
A relatively new provider. Luma can also provide credit cards for customers with bad credit, or who are looking to improve their credit rating. They appear to be linked to the Capital One credit card company.
Vanquis also provide Credit Cards for people with Bad Credit. The typical APR of a Vanquis Card is quite high so I would only recommend applying if you are going to be sensible with the card and repay the balance in full each month.
Further Thoughts on Credit Cards for Bad Credit
It is important to note that the above credit cards should only be used sensibly. This is due to the higher interest rate the companies charge. If you are struggling for money, you should really steer clear and work out why you are struggling financially.
If you use the above cards sensibly, you should start to build up a better credit rating. This could mean that you will be able to obtain a Credit Card with a much lower APR from a high street lender.
This won’t happen overnight but at some point provided you are repaying all your other Credit commitments on time it will get better.