Having a bad credit history hanging over you can feel like the Sword of Damocles waiting to fall on your neck: you never know when the chop is going to come! CCJ’s, overdue credit payments, even not having a mortgage can have a massive effect on your credit rating.
The ‘credit cards for people with bad credit’ thing has been doing the rounds for some time now. Sadly, it’s getting to the point where having any kind of loan is fast becoming a privilege that is open only to a small minority. Is that fair? Can anything be done about it? Yes, yes, yes!
You shop, I shop, we all shop. We all like to take advantage of easy credit in order to get our hands on the latest hot deals. That doesn’t mean we need to have a credit card limit that runs into many thousands of pounds. In fact, if you’re careful, a low limit card might be just up your street.
Before we delve into the top credit cards for anyone with a bad credit history, we’re going to look at your credit rating and how it can be repaired. It’s time to pop the lid off the biscuit tin, grab a coffee and take a look at the 5 best deals on credit cards that are suitable for anyone with bad credit.
There’s Credit Rating Cowboys In Them Hills!
Credit repair services have been around for some time but are there ways you do the work yourself. More importantly, can you do it for less money? In answer the second question: No! Well, unless you have all the information you need at your fingertips you’re better off paying for someone else to do the leg work.
That said, there are a number of simple tips that can pay dividends in returning your credit rating to a semblance of health.
1. Pay your bills. Failing to pay bills such as your mortgage or general loans will have a negative impact on your credit rating.
2. Make sure your home address is correct on all documentation. A mismatch between your address and the the details on your credit file can affect your credit rating.
3. Get more cards. Odd as it may sound, having store cards and credit cards can help boost your credit rating (but only if you pay them off regularly). Caution: don’t throw caution to the wind and go on a mad spending spree!
4. Can’t vote, won’t vote! Even if you have no intention of every voting you still need to be on the electoral roll. This needs to match the home address you’ve updated in tip 2.
Credit Rating Fixed: Show Me The Credit Cards
Ok, it might take a little longer to fix your credit rating so, whilst you wait, here’s our list of the current top 5 credit cards for bad credit and unemployed applicants:
Capital One Classic. Currently the top rated card on the market. You get a credit limit of up £1500 and, whilst not the largest offering, the APR is one of the lowest (34.9%). In addition, card holders get an exclusive 0% interest on new purchases for three months.
Granite. Details of this card dropped into my mailbox as I was writing this post. The credit limit is a little on the low side (£500) but, like the Capital One Classic the 34.9% APR is one of the most competitive interest rates available. There is a minimum income requirement of £4000 for applicants.
Barclay Card Initial. On the surface, the 29.9% APR looks very tempting but, sadly, you won’t get one if you earn less than £10,000. This card has been designed specifically for newcomers for anyone that has a limited credit history.
Vanquis. In addition to the Granite, Vanquis have an additional card available. Like the Granite, you need to have a minimum income of £4,000 but the credit limit is higher: up to £1,000. Sadly, you’re going to pay for this privilege – 39.9% APR! On the plus side, Vanquis will consider applicants with cleared CCJ’s.
Aqua Card. If you’ve been turned down by other lenders then this may be answer. With a credit limit of £1,600 and 35.9% APR, the Aqua Card is competitive. There is one negative: if you’ve had a CCJ in the last 12 months you can’t apply.
Time To Take The Leap
You’re here because you have bad credit and you want a loan. There’s nothing wrong with that. Why should you be denied what others have?
Now you have an idea of what’s available all you have to do is take the pick of the crop.