Credit cards for bad credit | poor credit card

Your Credit Connection

Bad credit
Adverse Credit Credit CardsInterest Free PeriodMax Credit LimitTypeAPR representative (variable)More Info
Capital One Classic
56 Days £1,500 34.9%
Get hold of your finances. Great for people who want to build or rebuild their credit rating. Even those who have had County Court Judgements against them in the past, or who have defaulted on previous credit arrangements will be considered for the card, provided you can demonstrate some history of managing your credit. Capital One Main office: Trent House, Station Street, Nottingham, NG2 3HX.
Representative Example: Assuming a credit limit of £1,200 and an interest rate on purchases of 34.94% p.a. variable, you will receive a 34.9% APR representative variable.
Black Diamond Visa
56 days interest free on purchases only £1,000 59.9%
A great way to build your credit if you're new to credit or want to rebuild your credit.The Black Diamond Visa is a Visa credit card that has an initial credit limit from £150 to £1,000. With Black Diamond Visa you could get a credit limit increase on your fourth statement and further increases every four months up to £3,000 subject to terms and conditions. There are no annual or monthly fees with the Black Diamond Visa. You stay in control of your money with Black Diamond.
  • No Annual Fee
  • A manageable credit limit assigned to help you stay in control
  • Free additional cardholder
  • Free fraud monitoring to warn you of any suspicious activity on your account.
  • Credit is provided by Vanquis Bank Limited.
Representative Example: Purchase annual interest rate 59.94% (variable); Amount of credit £250; Representative 59.9% APR (variable).
Aqua card
51 Days £1,200 29.7%
This card is suitable for people with poor credit history, those that are self-employed or work part-time, or those that hold CCJ's. With the Aqua Credit Card, no interest will be charged on purchases if every statement balance is paid in full by the payment date. There is no annual fee with this card and you have a sensible credit limit of up to £2,200. The card offers flexible payment dates, so you can make your repayments at the time of the month that is most convenient to you. You can change your payment date up to three times a year. You must make at least the minimum payment each month which is an amount equal to the total of any interest, default charges plus 1% of the balance shown on your statement (minimum £5). If your balance is less than £5 then you must repay the full amount. Free aqua Credit Checker, worth up to £80.
Representative Example: 34.9% Representative APR variable, based on assumed borrowing of £1200, with a rate of interest on card purchases of 32.9% p.a. (variable)

Bad Credit Credit Cards

If you are having difficulty obtaining a credit card due to a poor credit history, or even very bad credit, there are still a variety of options on offer. Many companies specialise in credit cards for people in this situation.

Although the interest payable on these may be higher than with other credit cards, once you have been successfully accepted for a credit card, it could help you to rebuild your credit rating so that you can obtain credit more easily in the future.

Initially you may be given a low credit limit, but if you consistently make the required repayments on time, your credit limit will gradually be increased.

As well as higher interest credit cards there are a variety of other cards available to people with bad credit history, as follows:

Secured credit cards

To take out a secured credit card you will need to make a deposit payment. This is to protect the credit card company if you default on your payments. It is important to remember that the deposit payment cannot be used in lieu of a monthly payment, and you will still have to maintain regular monthly payments at the required amount.

  • Positives: the same as for high-interest, low-limit credit cards. Bad credit history can also be dispelled as you can rebuild your credit rating with a real credit card that offers classic credit-card convenience.
  • Negatives: the same as for high-interest, low-limit credit cards, plus the security deposit. You have to remember that the deposit is just a deposit, not an advance payment. If you miss a payment, the consequences are the same as with any other card. In addition, you need to have the money for the security deposit to apply for a secured credit card in the first place.

Credit cards with guarantor

Some companies may ask for a guarantor when you apply for a credit card if you have a poor credit rating or no credit rating, for example, if you haven't previously applied for credit. The guarantor will usually be someone who has an above average credit rating. However, two important factors to consider are:

  1. If you default on your credit card payments, the guarantor's credit rating could be affected as well as your own.
  2. The guarantor may be asked to repay the debt if you are unable to meet monthly payments.

Department store credit cards

Department store groups issue this type of card to be used when making purchases at certain specified stores. Interest rates are usually high on store cards, but they can be easier to obtain than lower interest rate credit cards. Stores often give discounts to their cardholders or operate a points system, whereby the cardholder can exchange the points for discounts against future purchases.

Charge cards

With a charge card you have to make payment in full each time you receive an account statement. However, companies offer reward systems with this type of card, such as discounts, cash back schemes, reward points and free services.

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Contact Us | June 14th, 2021