What can I do if I have poor credit history?
With the myth de-bunked, let’s look at a couple of real solutions for you.
The good news is that positive credit history can be built. The bad news is that it will take time. You will need to be disciplined and diligent in the future use of credit in order to build a good track record.
Credit Builder cards are designed for people with damaged credit histories or no credit history at all. You will find that credit builder cards usually come with higher interest rates than ordinary credit cards. However, if you clear the balance each month, you won’t pay any interest anyway.
You may also find that you’ll have a relatively low credit limit to start with. If you use the card responsibly though, the provider may increase that limit in time and this can help you improve your credit score
Pre-paid cards can be a useful alternative too, they’re just not credit cards. They allow you to load cash onto them that you can then use to spend in any way you choose. Most pre paid cards are provided by Visa or MasterCard so they can be used in all the same shops and restaurants as other cards. They’re also a useful alternative to carrying cash around with you.
If you have poor credit history or have no credit history at all, you can use our site to compare credit builder credit cards.