Bad Credit - Credit Cards

Bad Credit? Take out a Bad Credit Card!

According to the most recent government statistics released, one in four people in the UK have or have had a bad credit history. It can be extremely difficult to get a credit card or any type of loan for that matter, if you have experienced the following:

1. You are recently self employed or have no credit history whatsoever.

2. You have CCJ’s against your name.

3. Have or have had arrears or defaults on your mortgage, utility bills or credit cards.

4. You have experienced insolvency or bankruptcy.

5. You have changed addresses frequently in the past few years.

This is because when you apply for a standard credit card; credit card issuers will conduct what is known as a credit check. This credit check is normally conducted with credit scoring companies such as Equifax or Experian. These companies keep records of your financial history, including the items outlined above. From this history, they will develop a credit score. If you credit score is below the criteria set by the credit card company, they will decline your application.

All is not lost!

There are plenty of companies out there that specialise in offering credit cards to people with a bad credit history or no credit history, even if you have been refused credit cards elsewhere. These bad credit credit cards will have higher APR % than most other cards, but that is because the credit card provider is taking an increased risk by offering someone with a bad or non existent credit history a card.

The most important thing to note is that taking out a bad credit card will not affect your credit score even further. If you either pay your balance in full every month, or make sure you make regular monthly payments, you will begin to repair your credit history or build your credit history if you do not have one. Before you know it you will be able to apply for any of the myriad of credit cards on offer with much lower interest rates.