A Guide To Credit Cards For Bad Credit
Often, people take credit cards for bad credit to be different from regular cards. This isn’t true by a long shot. However, these cards are always a good option for people with poor or non-existent credit history. Banks are less likely to reject you if you have bad or no credit record.
Cards for poor credit allow you to borrow from the bank like with any other credit card. You buy things on the card. But unlike debit cards, you don’t spend your own money on these purchases. You’re borrowing it from the card issuers. You can then pay off this borrowed amount right away or later. The difference is that you may have to pay interest on top of what you owe if you wait. Normal cards work like this, and the same set up also applies for credit cards for poor credit.
What Is A Bad Credit Score?
Your credit score is the metric used by loan and credit card providers to access your eligibility for credit. Your credit is usually determined based on your debt payment record and paying other bills as well. People with poor credit records usually have a history of making late payments or defaulting to pay altogether.
Granted, having a bad record doesn’t necessarily mean that you have a history of making late payments, mortgage arrears, or bankruptcy. Sometimes, all it means is that you’ve never borrowed before. Therefore, banks and other credit card issuers have no way of deciding whether you will return the credit they lend you or not.
If you have a low credit score but need a credit card, you should consider checking low credit score cards.
Cards You Can Get on Poor Credit
Luckily, there are several credit cards that people with poor credit score can benefit from. These low credit score cards are usually best for people who:
- Are unemployed
- Have previously missed payments
- Don’t have a history of borrowing
- Have been bankrupt before
- Have had county court judgments against them
Credit cards for low credit can be especially useful for people in such situations. You stand a much higher chance of getting these cards than with the normal cards.
Business Credit Card for Bad Credit
Even business owners have their credit history checked before being issued a credit card. Basically, the same principle as that of personal cards apply here. Only that this time, the account is in your company’s name.
Also, you can usually borrow more with business cards as they are based on the business’s income, not your personal income. There are, however, a few minimum requirements that your company must meet to qualify for this credit card.
- There is a minimum amount that the business must earn
- The business must be registered in the UK
- Some credit card issuers only accept specific types of companies
Credit Cards for Bad Credit for Unemployed People
The good news is that even unemployed people can get certain types of credit cards for bad credit to boost their credit scores. There are still several options available that you can use, such as aqua credit card or vanquis credit card, which accept almost all credit card requests. There are several other cards that you might be accepted for, even without income and with bad credit.
The catch is that you may have to pay more interest on your borrowed amounts. Also, your borrowed amount limits will be lower. Often, these cards are called credit building cards since they help you build up your credit profile to qualify you for better credit deals.
How You Can Get Credit Cards for Poor Credit
You’re definitely going to need a lot of research done on the best credit card issuers for bad credit that you can apply for. Remember, the type of credit card issuer you choose can help to determine whether you boost your credit score or not.
Here’s a detailed guide on how you can get a credit card with poor credit:
- Compare the prices of the different credit card issuers
- Filter your list according to your financial needs. You may need to fill out forms requiring that you state if you’re unemployed, have county court judgments against you, or have missed credit payments. It’s critical to ensure that you meet all requirements to qualify for a credit card
- Decide which credit cards for low credit is the best deal for you from the credit card issuers still in your list
- Visit the company’s link to find out more information about them and whether you can get a good credit card deal with bad credit
Compare the Best Credit Card Deals for Bad Credit
After running different price comparisons using the step-by-step guide mentioned above, you should be in a better position to determine the best credit card options for poor credit to consider.
Creditspring is one of the best credit card options on the market today with the best credit card deals for poor credit.
The best advice to take with you when choosing a credit card for poor credit is to hover over the low credit score credit cards. Compare their prices to see which criteria they all require you to meet to qualify for credit. Basically, this should cover things like income requirements and minimum age.
After determining which credit issuers to apply for, consider the ones that have the lowest interest rates. Remember, the higher the interest rate, the more you will have to pay every month.
Eligibility to Qualify for A Credit Card with Poor Credit
Each card issuer has criteria that you must meet to improve your chances of getting your credit approved. As aforementioned, this might refer to requirements such as your income and minimum age.
Always avoid applying for credit cards for poor credit that you know might reject you. Having too many credit searches on your credit report may make it even harder to get approved in the future.
From this excerpt, it’s evident that you can get a credit card even with a low credit score. Yes, these cards fetch higher interest rates and have smaller credit limits. But with time, and after boosting your credit, you will definitely get better credit card deals.