Compare Credit Cards For People With Bad Credit Scores

When you apply for a credit card, the company will calculate a credit score for you. This is designed to reassure them that you are a responsible borrower and will be able to repay what you owe. Credit scores are calculated using data from several sources including credit rating agencies, your application and any past information they have on you. People who have a high credit score are seen as lower risk customers and are more likely to be given a credit card, often at a lower rate of interest. If you do not have a strong credit score, finding a credit card can be challenging. Here is our guide to the top credit cards for bad credit scores.

 

fixing-bad-credit

 

Benefits of “Bad Credit” Credit Cards

If you use these cards correctly – paying off the balance on time, every month – a “bad credit” credit card will help you rebuild your credit history and increase your credit score. Over time you should be able to increase your credit limit and negotiate lower interest rates. Eventually you should be able to switch to a mainstream credit card with even lower rates and introductory offers.

 

Downsides of “Bad Credit” Credit Cards

The main downside of bad credit credit cards is the high ARP/interest rates they carry. As a result they should never be used as a form of borrowing. Only spend as much as you can afford to payoff at the end of each month or you’ll find your debt spiralling out of control as the interest charges mount up. Failure to manage a “bad credit” credit card properly will result in an even lower credit score from which you may never be able to recover.

 

 Compare “Bad Credit” Credit Cards

These credit cards are specifically designed for people with poor credit history. They generally start with a low spending limit which is reviewed over time and increased as the customer shows they can repay the debt on time every month. The interest rates are high but are often reviewed downwards over time as the users credit score improves.

 

Aqua

The Aqua basic card will allow you to rebuild your credit score over time. In addition they offer 4 months of 0% interest on spend – this can be very useful if you are trying to pay off other debts such as pay day loans. They offer free credit reports and alerts so you can track improvements in your credit score over time.

 

aqua credit card

 

Credit Limit: £250-£1200

Interest Rate: 34.9%

Card Issuer: Mastercard

Minimum Payment: 1% or £5 (whichever is more)

 

Barclaycard Initial

This card is a popular option and the best known brand in this category. It allows users to rebuild their credit score while enjoying a 3 month, 0% interest period on spend – allowing them to clear off other debts during this period. Barclaycard will review the cards interest rate after 1 year and will often reduce it if the customer has paid off the balance of the credit card on time every month.

 

barclaycard initial

 

Credit Limit: £250-£1200

Interest Rate: 34.9%

Card Issuer: Visa

Minimum Payment: 1% or £5 (whichever is more)

 

Capital One Classic Platinum

This card allows the user to rebuild their credit score and will be offered up to 2 optional credit limit increases per year as their credit history improves. Capital One is a well known brand and this card offers a competitive interest rate.

 

capital one classic platinum

 

Credit Limit: £200-£1500

Interest Rate: 29.8%

Card Issuer: Mastercard

Minimum Payment: 1% or £5 (whichever is more)

 

Marbles Credit Card

The Marbles Credit Card offers a number of benefits to help customers build up their credit score. A credit limit review is carried out after only 3 months while their “Fastcheck” service allows you to apply for this credit card without any rejection affecting your credit score. The interest rates on offer are the best in this category.

 

marbles-card-large

 

Credit Limit: £250-£1200

Interest Rate: 24.8%

Card Issuer: Mastercard

Minimum Payment: 1% or £5 (whichever is more)

 

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