Credit cards for people with a bad credit rating

16 September2010

Find a credit card

Credit cards can be a very useful thing to have - but what can you do if your credit rating is poor? In the current economic climate, lenders are often reluctant to lend to anyone who doesn`t have a good credit rating.

However, that`s not to say you can`t get a credit card with a bad credit rating. There are lenders who are willing to lend to people who have struggled in the past - although these cards may be subject to higher interest rates and more restrictions than the credit cards available to people with a better credit rating.

Review our latest credit card best-buys

Product	Transfer rate & period	New Purchases rate & period	Representative APR
Aquis Visa Card	- - -	- -	29.8% (variable)
	Representative example: With this credit card the representative APR is 29.8% (variable) based on an interest rate of 29.8% (variable), and a credit limit of £1000.
Barclaycard Initial	- - 2.5% Fee	0% 3 mths	29.9% (variable)
	Representative example: With this credit card the representative APR is 29.9% (variable) based on an interest rate of 29.9% (variable), transfer fees of 2.5% and a credit limit of £1200.
Capital One Classic	- - 3% Fee	- -	34.9% (variable)
	Representative example: With this credit card the representative APR is 34.9% (variable) based on an interest rate of 34.94% (variable), transfer fees of 3% and a credit limit of £1200.
Aqua Credit Card	- - 3% Fee	- -	35.9% (variable)
	Representative example: With this credit card the representative APR is 35.9% (variable) based on an interest rate of 35.95% (variable), transfer fees of 3% and a credit limit of £1200.
Vanquis Bank Credit Card	- - -	- -	39.9% (variable)
	Representative example: With this credit card the representative APR is 39.9% (variable) based on an interest rate of 39.94% (variable), and a credit limit of £1000.
We provide a representative range of products on competitive terms and do not act exclusively for any credit provider. Credit limits may vary depending on your circumstances.

Credit cards for bad credit

Many `regular` credit cards today offer a whole range of attractive offers: from 0% balance transfer and 0% purchase deals to rewards and cashback. These can make using a credit card not only convenient, but also a beneficial way of spending money.

Unfortunately, if you`ve had trouble with credit in the past and it still appears on your credit history (records remain there for six years), the credit cards you`re likely to qualify for probably won`t offer benefits like these. Most credit cards for bad credit will also come with a lower credit limit than you might be offered if your credit rating was better.

However, your credit card can still be very useful, as long as you`re careful not to fall behind on your repayments. Ideally, you should be repaying your balance in full every month - that way you`ll never pay any interest, regardless of the interest rate.

Is a bad credit credit card a good idea?

This all depends on how easily you can make your repayments. You should only ever borrow money if you`re certain you can pay it back in good time. Don`t spend money on a credit card if you are in any doubt as to how or when you will be able to repay what you owe (e.g. if your income is unstable).

But if you are financially comfortable and you`re sure you can repay everything on time, then a credit card for bad credit could also be a good way of demonstrating that you are a responsible borrower, enabling you to build your credit rating back up again.

Compare the best credit card deals for bad credit using our free credit card comparison table.

Tags: credit cards, bad credit credit cards, bad credit, credit cards for bad credit