Top 4 Credit Cards for Bad Credit Ratings
Your credit rating is used by banks and other lenders to determine whether or not they should lend you money. A low credit rating can drastically reduce the number of borrowing opportunities available to you, while a good credit rating will make it much easier to enjoy a wider range of options when it comes to mortgages, credit cards and other loans. Those who have never borrowed money before will also start out with low credit ratings, and will have fewer options than those who have spent a few years improving their financial reputations. If you have ever had trouble paying back loans or bills on time, then your credit rating will fall, and it can take some time to build it back up again. Fortunately, there are a number of options which might be able to help you. The following takes a look at four of the best credit cards for bad credit ratings.
1 – The Barclaycard Initial Card
The Barclaycard Initial Card is one of the easiest credit cards to obtain, making it an ideal solution for younger people who have not borrowed before or those who need to rebuild their credit ratings. It comes with a credit limit of up to £1,200 and a variable APR of 34.9%. The bank also offers a mobile app for managing your bank account, and they will review your account after a full year. If you have managed to pay off your bills on time and stayed within your credit limit throughout the previous twelve months, they will reduce your interest rate. Another bonus offered by this card is that you don't have to pay any interest on purchases for the first three months. To be eligible to apply for the card, you will need to by 18 years old or over, in full-time employment and have been resident at the same address for at least three months. You can find out more about the Barclaycard Initial Card at barclaycard.co.uk.
2 – Capital One Classic
Unlike the Barclaycard Initial Card, the Capital One Classic credit card is specifically aimed towards those with poor credit ratings rather than those who do not have any credit history at all. If you have a bad credit rating, this card is one of the best options to go for, since it is a relatively risk-free investment. You will typically start out with a very small credit limit of only £200, but this may be increased to a maximum of £1,500 if you pay off your bills on time. The APR is a variable rate of 34.9%. In order to be eligible for this card, you will need to be over 18, on the electoral roll, and usually, have some history of managing credit. If you have never borrowed any money before, it is not likely that you will be accepted, hence this card not being suitable to those building up a credit rating from scratch. See more at capitalone.co.uk.
3 – The Vanquis Visa Card
Vanquis is a bank which specializes specifically in helping people to recover their credit ratings. The Vanquis Visa Card is also an easy credit card to obtain, and it is suitable for most people with poor credit ratings. It also offers more long-term potential than most of the other options. It starts out with a credit limit between £150 and £1,000. The exact amount will depend on various factors including your current credit score. Your credit limit can extend to as much as £3,000 if you continue to pay the bills on time. Another welcome feature of this card is that your limit will be reviewed every four months. The APR is higher than most at 39.9%, so you certainly won't want to be running up much of a debt on it. You can find out more about this credit card and view further advice on improving your credit score at vanquis.co.uk.
4 – Granite Credit Card
Another option for those with poor credit scores is the Granite Card, and unlike the other options mentioned above, this one comes with a twist. It is also a reward card, meaning that you can take advantage of thousands of discounts through the Granite Rewards program. Credit limits range from £150 to £1,000, and further increases, up to a maximum of £3,000 may be granted every four months provided that you haven't defaulted on any payments. The APR is a fairly competitive 34.9%, which is typical for credit cards of this kind. The rewards program applies at numerous stores across the UK, including Debenhams, Sainsbury's, The Body Shop, Play.com, B&Q and Pizza Express. You can apply at granitecard.co.uk, and they will get back to you within two weeks to let you know if you have been accepted.
