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Examining UK Credit Cards for people with bad debt Information

home Getting UK Credit Cards with Bad Credit.

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 Code


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