Credit Cards For Bad Credit UK - People With Bad Credit Rating & Poor Credit History

Credit Cards For People with Bad Credit Rating

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No one has an automatic right to credit and whenever you apply for a credit card you will be scored by a credit reference agency.

If you have a bad credit history such as CCJs, defaults, missed payments or bankruptcy, you are likely to encounter problems getting accepted for cards which offer the most competitive deals.

However, all is not lost as certain card issuers invite people to apply even if they have a poor credit rating.

The cards you may be able to get will probably be more expensive in terms of interest rate than the regularly advertised ones. However if you make regular repayments with your new card, your credit rating will improve and in time and you'll be able to climb back up the credit ladder and get a better deal.

Card	Intro Rate Balance Transfers	Balance Transfer Fee	Intro Rate Purchases	Cashback / Rewards	Typical APR (variable)
Capital One Classic More tolerant of individuals with poor credit history	-	-	34.9%	-	34.9%	Details / Apply
Aqua	-	-	35.9%	-	35.9%	Details / Apply
Vanquis Visa Suitable for people new to credit or people with poor credit record	-	-	39.9%	-	39.9%	Details / Apply

The credit crunch has resulted in most banks tightening their lending criteria which has led to an explosion in the number of declined credit card applications. If you know you have missed loan payments, or have struggled with debts in the past, then you are unlikely to be offered the market leading cards. Some people will have a perfectly respectable credit history, but will still fail to get accepted for a card.

Some specialist lending firms offer credit cards which are targeted at borrowers who have a bad credit history and are more likely to accommodate people with a poor credit rating, even if they have already been declined by more well known firms.

One such firm is Provident Financial who revealed in March 2010 it had received an influx of applications with more than 2,700 people applying each day for its Vanquis credit card.

However, an unfortunate side effect of having a blemished credit history, is the likelihood of being charged a higher APR than those with squeaky clean credit history.

While the high interest charges associated with bad credit credit cards make them less than an ideal solution, for many people they provide a valuable lifeline which enables them to meet unexpected bills when they otherwise wouldn't be able to. Furthermore they can help to steer people away from other forms of borrowing such as unscrupulous loan sharks.

If used wisely, these cards can help individuals reform their credit rating and enable them in time to move back into the mainstream of financial products. The key to using these products is to know what the deal is, and to budget to pay back your balances in full each month whenever possible, to negate the effect of the interest rates.

Of course, if you are already struggling under a mountain of debt, adding to it further will only exacerbate the problem. Instead of applying for more credit, it would be better to seek a solution to your underlying debt problem. Consider speaking to an organisation such as the Consumer Credit Counselling Service which is a registered charity assisting people in financial difficulty by providing free, impartial and realistic advice.