Bad Credit Rating? You Can Still Get a Credit Card

A lot of people wrongly think that if you have CCJs issued against you, or you have a bad credit rating you can never get a credit card. But this isn't the case.

There are some companies who offer a bad credit-credit card. Even if you have a poor credit record history you can still apply for this type of card and using it correctly can help repair your poor credit ratings.

Be Responsible

There are some things to consider when you get your card. Firstly you shouldn't just go out and spend wildly on it. You should think of this type of card mainly as a way to increase your credit score and you should at least pay the minimum monthly requirements on time as doing so will help increase your credit rating. If you can afford to you should consider paying off your card in full every month before your statement arrives as this will also help improve your credit score, and will also mean you are not paying the high interest charges. By paying off your card regularly every month you gain reliability and credibility in the eyes of the lender and it's likely that through time your lender may increase your credit limit or reduce the rates on your card.

Higher Rates

A bad credit-credit card does have some disadvantages over other cards on the market however. Because someone with a poor credit score is deemed higher risk the card will have higher rates than others and the credit limit on this type of card is usually lower. You may also have to pay an initial joining fee or an annual fee, and some lenders stipulate that you must be in full-time employment and have an active UK bank account before they will issue you with a card. But despite these limitations you should always remember that they are a good way to improve your credit ratings.

Shop Around

Like any other type of credit card the rates and benefits of a bad credit-credit card varies between lenders, so it pays to shop round to get the best deal available. Some cards that are available do offer 0% on purchases but compare the interest rates with other types of cards before rushing into a decision.

Like any other type of credit card it's always important to use the credit available to you wisely, but even more so if you are trying to repair your credit rating. If you don't pay off your credit card each month then the interest you are being charged can soon accumulate and if you can't make your payments on time, or miss payments then your credit rating will get worse instead of better.