Credit Cards for People with Bad Credit UK
Various financial institutions out there will offer credit cards to people with not-so-good credit histories. So, if you have poor or no credit history at all, you still have options available so that you can repair them by re-building your credibility in the form of credit cards. There are 2 options for those who do not have good credit ratings.
Unsecured Credit Cards
Your first option will be to apply for an unsecured credit card. The application process is not complicated but the credit limit that you will be issued; upon acceptance, will be dependant on how good your credit rating is. Generally, these cards offer quite a high interest and more than often, a slightly lower limit; especially to those with poorer credit scores than others. The financial institutions that offer these cards will do a credit check on your credit history, either from Equifax or Experian, and make their decision on whether to approve your application. Even though your initial credit limit may increase, it does take a few months before your credit is put up for review. Advantages:
- Allows you to repair your credit history by making on-time monthly payments
- Ability to access funds in times of emergencies or when the use of regular debit cards as form of payment is not accepted
Disadvantages:
- Low initial credit limits
- High interest rates
- Usually, most cards have an annual fee that you cannot escape from
Prepaid Credit Cards
Unlike unsecured credit cards, prepaid credit cards do not give you access to funds that you do not possess, that is, let you go in debt. You also do not need an excellent credit history for your application to get accepted. This is simply because these cards are exactly like debit cards. You fill them up with value and the credit limit is equivalent to the amount that you have stored them with. Most of these cards are refillable even though some may not be. Advantages:
- Accepted as form of payment when a debit card is not accepted such as booking hotels and hiring cars whilst on holiday
- It does not allow you to get in debt since you load the card with your own funds
Disadvantages:
- Does not report to the credit bureaus thus not helpful if you are trying to rebuild your credit in quest of a better score
Bad Credit Credit Cards Online
If you need to solve your credit problems then you need to go to a reputable place. One such place is http://www.bettercredit.co.uk where you can find the best Bad credit credit cards Credit cards news
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