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graphic  Tenen Haus > Credit Cards > Bad Credit Credit Card - UK Guide


graphic In a nutshell
A credit card that can be taken out by people with credit problems

graphic Best Credit Card For
People with bad credit or other related credit rating problems.

graphic Credit Amount
There is no average credit limit you'll be given for a credit card - it will all depend on your card company's own limits, your salary and how your credit rating comes out when it's checked. If you have bad credit then you are extremely unlikely to be given a high limit and how much you get will probably be staggered according to the severity of your actual financial problems. You may find, however, that if you manage your bad credit card responsibly once you are given one, you may be able to raise your credit limit over time.

graphic Advantages
We may all want to get the credit card with the lowest interest rates in the sector - unfortunately we won't all get it. If you have bad credit or related problems, then many standard card companies won't accept your application. You won't have this problem with a bad credit credit card. These cards are specifically designed for people with credit problems. You can also use a bad credit credit card to help you build up a better credit rating. If you manage the use and repayment of your card account responsibly and in a timely manner, then you'll build up positive marks that can help you get lower interest rates later and perhaps even tidy up your credit rating. So, you can sometimes use a bad credit credit card as a stepping stone to a mainstream card later on.

graphic What to look out for
If you're in a bad credit situation then you need to be extremely careful that things don't get any worse. Credit card APRs are high compared to other lending products in any case - as a bad credit customer you'll have to pay higher rates just to get a card from many providers.

And, if you get even further into debt with your bad credit credit card, you could just make your poor financial record even worse. It's tempting to use your card and then to only pay back the minimum repayments necessary every month - but interest will keep rolling up and you might be surprised at how quickly you can find yourself in serious debt (and how little your repayments will actually go to paying off what you owe). And, if you get into serious trouble, you run the risk of having your property or possessions repossessed so that your card company can get their money back.

Another downside can occur if you start missing payments, for example. Do this and you won't just get fined by your card provider, but it'll show up on your credit rating as well.

graphic Alternatives
Unfortunately, with a bad credit record, this kind of card may be your best and only option.


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