I just have a bad credit history, what can I do?
The important thing is to not apply for multiple credit cards in the hope that one will accept you, because any rejection you get, will be listed on your credit report. But if you really want a credit card, then you can turn a bad thing good by considering one of the available bad credit cards – sometimes known as credit builder cards.
What are the benefits of a bad credit credit card?
Cards for bad credit offer a way to build up your credit rating while still allowing you the benefits of having a credit card. Other benefits will vary according to who’s issued your card, but here are some benefits you might want to look out for:
- Flexible payment dates so you pay on a date that suits you
- Text alerts so you never miss a payment
- Credit limits that increase if you manage your credit well
- Gradual lowering of interest rates if you manage payments
- Free ongoing access to your Experian credit report (the largest of the credit reference agencies)
…and the drawbacks?
Most credit cards for bad credit come with very high interest rates. But as you’ll be paying off the bill in full every month you shouldn’t let that put you off (but make sure you only spend what you can afford and make the payments each month or your credit score won’t improve).
The credit limits also tend to be lower on credit builder cards too which means you probably won’t have lots to spend on big purchases, but it will see you right for your day to day needs.
What else do I need to do?
There’s only one thing you need to do to ensure that your credit rating gets back on track and that’s pay your credit card bill every month, in full.
So start comparing cards for bad credit using our comparison service now and find the card that’s right for you.