News

The latest energy, broadband, insurance news, price rises and cost savings

Credit Cards For Bad Credit Rating – A Tool To Improve Your Credit History

May 25, 2016

The credit card industry is leaving no stone unturned to attract customers. Their marketing effort pulls off everything to bring all kinds of people in. Earlier, it was impossible to get a credit card for unemployed people and cards with bad credit but the scenario has changed now. And changed for the good! The credit card providers are more willing to customize services and give a chance to people with unstable income. The cards are now readily available even if you are self-employed or have a fluctuating income.

What are the eligibility criteria for bad credit rating cards?

These cards are open to more number of people than those eligible for standard cards. However, not all applications will reach the results. If approved, you will certainly get the card but, with strings attached. Remember to check the terms and conditions for buying a credit card for bad credit rating. The providers will charge higher interest, APR and would expect you to make full monthly payments.

You can use the soft search option before proceeding with the actual application. With this, you will be able to check the cards you can qualify for. Also, the most important point is that it will not have any impact on your credit history. As the number of rejected applications will create a poor impression in the credit card provider’s mind, it is better to choose a soft search. You can use a smart search tool of FreePriceCompare.com to know the chances of acceptance of each card in percentage.

Advantages of credit cards for bad credits:

  • Best for people who are turned down by standard card lenders. The cards help them improve and rebuild their financial history.
  • These cards are a good option for travelling abroad, especially when you need a card for deposits and for things like booking a holiday, car hire etc.
  • The card gives an opportunity for people to improve their credit rating. With these cards, one can balance their monetary reputation in front of financial organizations. They can regain the trust and show improvement in managing finances.

Disadvantages of credit cards for bad credit ratings:

One flip side is that these cards do not offer you a big credit limit. You will have to manage with the smaller amount and still be regular with repayments.

Looking at your past credit report, the card providers will charge higher interests. This is to ensure that you make full monthly repayments or else the interest will weigh you down.

Who will not be entitled to bad credit rating cards?

People who have been declared bankrupt or have a Country Court judgement against them are not entitled for this card. If you fall into any of these categories then it is advisable to contact a specialist provider to check any option possible.

Things to keep in mind while using credit card for poor credit:

  • Manage your card well. Repayments should be full and on time. Otherwise, this will have a really bad impact on your credit score. As a result, credit card companies would not allow you to get a new card for a long time.
  • Do not overspend. Be regular with repayments.
  • Do not use the card for cash withdrawals as the charges for the transaction will be quite heavy.
  • Some of these cards may charge higher for usage abroad. This will be a bad idea.

With the above mentioned things in mind, you can choose to apply for a credit card for poor ratings. Choose a company that gives best offers with lowest interest. Be honest with the provider and fill in correct information. You must shop around for the most suitable card for yourself. Use smart search tool of FreePriceCompare.com to get the best card. You can also call us on 02034757476.

Compare Credit Cards

What type of credit card are you looking for?