How to get a credit card with bad credit

bad creditIt is a common misconception that the only people who have problems getting a credit card are those with a bad record of repayments on finance deals. This is untrue. People who do not have a record for using credit will not show up in the search record of credit card companies therefore they will be unable to make a positive assessment. They will not find anything detrimental against that person but credit companies are unwilling to take risks on unknown quantities.

What is a Credit Card?

Everybody has an idea of what a credit card is; a plastic card that you can use to pay for things in a shop or online. Where a credit card differs from a debit card is that a debit card draws the money directly from your bank account and a credit card allows you a credit limit up to which you can borrow. At the due date you must pay off an amount of between the minimum payment and the full balance. If the full balance is not paid off then interest is charged.

How to Get a Credit Card with Bad Credit (or No Credit History)

Credit cards for people with a bad (or no) credit history are becoming more widely available, although they do as a rule charge higher rates of interest than standard cards (some as much as 60%), but many look at individual circumstances.

As you build up a credit history with these cards both the interest rate and your credit limit can alter to your benefit. Many cards are operated by the more mainstream companies who, when you have a sufficiently good record, will allow you to switch to their standard cards.

As with every card issuer you need to look at the terms offered and find the one that suits your needs and circumstances best.

Building your score often relies on you doing what you’ve agreed to – paying your account by at least the minimum by the agreed date. Many cards have various restrictions on who they will issue a card to but these vary between issuers. A common requirement is that you have not had a County Court Judgement (CCJ) recorded against you in the past 12 months or been declared bankrupt. These cards are a great way to rebuild (or build for the first time) your credit score if you follow the rules. For example, make sure that you make your payments.

What’s the best card for bad credit?

Pre paid credit card

Here at we’ve done the hard work for you and found the ideal card for people with bad credit.

The CashPlus Card is a prepaid cash card that puts you in complete control of your money and boasts a 100% acceptance guarantee (terms and conditions apply). It’s a great option for those who want to better manage their money and improve their credit history along the way.

Find out more and apply for the CashPlus Card here.