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Examining UK Credit Cards for people with bad debt
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Getting UK Credit
Cards with Bad Credit. |
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How to Get Credit
Cards with a Bad Credit History Many
people have had trouble making a bill payment or two occasionally.
If you've have had a long history of making late or no
payments, you may have been given a 'bad credit history',
which might make you think that this means you'll be unable
to get a credit card?
While it will almost definitely become harder to obtain
credit with a bad credit history or ccj, it isn't impossible.
What you should know is that creditors will take into
consideration more than just what they see on your credit
report, and there are credit lenders who specialize in
offering credit cards for people with bad debt credit
history.
You will need to be careful however of applying to every
credit card offer you come across as the number of
applications you make may have an adverse affect on your
credit score ranking too!. It's a good idea to look carefully
at the credit
cards that state they will consider bad credit and
choose which cards you may have the best chance of being
accepted before you send out any applications, to limit
the number of applications on your credit report and help
keep your credit score from dropping more.
Typically, cards
for bad credit will carry much higher
interest rates than the prime credit cards available
on the market - but there are benefits associated with
having a credit card despite the higher interest rates
that make obtaining a credit card advantageous even with
a not-so-desirable credit history. Having a credit card
will possibly make it easier for you to rent a flat or
house, as some landlords require their tenants to provide
a credit card as a backup form of payment, incase your
rent payments should get behind. A credit card can also
be used as a second form of identification in many situations.
When you are working to improve your credit history, you
are most likely sending most of the money you earn to
creditors, and keeping your payments up to date. Whenever
possible, you'll be sending more than the minimum amount
due on each of your payments, which usually means you
won't have a lot of money left over each month. Having
a credit card available to you will give you a sense of
security - if an emergency occurs, and you do not have
the cash available to pay to take care of whatever the
emergency might be (your car could break down for example,
or your boiler explodes!).
When credit card lenders are considering a person to provide
credit to, in addition to viewing the individuals. credit
report, the lenders will take into consideration how long
the individual has worked at their current place of employment.
If you've had a steady job and consistent income for several
years, and your current debt to income ratio (the amount
of money you earn versus the amount of money you pay to
your creditors each month) is manageable, many credit
card companies that give cards for bad credit will consider
you for acceptance to receiving one of their cards.
Most cards
for bad credit will be a secured credit card. Secured
credit cards are a good option for people with a marred
credit history because you are limited to the amount of
the deposit you have made on the card. The way a secured
credit card works is that the cardholder will be required
to make a deposit on the card, and than spending that
takes place using the card will be limited to the amount
of the deposit. While it may be difficult to come up with
money to deposit on a secured credit card, it has enough
benefits that you should consider doing so. Secured credit
card deposits earn interest, and in that way they act
as a savings account.
You make your deposit, and when you aren't spending money
off the card, your account balance earns interest. When
you do use the card to make a purchase, and continue to
make payments in full and on time regularly, the bank
that has issued your secured credit cards may increase
your available spending limit above the amount of your
initial deposit, which makes a secured credit card a fantastic
card for bad credit - as it will give you the opportunity
to rebuild your credit history so that it is more favorable.
If you are having problems with credit card debt or are
struggling to meet payments, the government has several
bodies set up to help, it is worth contacting them before
falling to far behind:
Consumer Advice and Help:
consumer
Gateway
Financial Services Authority: FSA
Citizens Advice Credit Bureau: ADVICE
GUIDE
Card Watchdog: CardWatch
Help on Recovering Money from Fraud: Banking
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