How To Successfully Get A Credit Card With Bad Credit

Jonathan Halloway

Written by Jonathan Halloway on February 27, 2019

Updated February 27, 2019

man using credit card online

Once your credit report has been analysed, it’ll determine whether you can access credit from most institutions, including credit card companies. While applying for a credit card, the providers usually take into account a person’s credit score, which is determined by different factors.

The decision for your application will largely come from your credit report that lays bare your borrowing history and bank accounts, whether you’re employed, self-employed or working on a part-time basis and the amount of money you make from basic take-home salary to other incomes.

If lenders only look at this credit record and deny you the funding you need, you are likely to have bad credit. Even when funding is provided, prepare yourself for limited credit, including a high-interest rate.

Why do you have bad credit?

There are a number of reasons that you may have bad credit. This includes late payments or missing credit repayments altogether. Others include arrears in your mortgage, defaulting on loans, bankruptcy and exceeding overdraft. CCJs (County Court Judgements) can also contribute to bad credit, including previous credit application rejections and exceeding the credit limit.

Don’t just wait for lending institutions to inform you about your credit record. Take a conscious step to know how the credit application is determined and work out the areas where you need to improve.

What about getting a credit card even with a bad credit record?

credit cards for poor credit applicants

Once you’ve determined you’re definitely a member of the bad credit club chances are you might be wondering whether you can still get a credit card. The answer isn’t outright but determined by your financial realities and circumstances.

In fact, some lenders actually have bad credit cards aimed at individuals around the UK with a bad credit history. These are worth aiming for because even when they work like other cards chances of being rejected due to bad credit are almost nil.

Stop applying for credit cards once you get rejected the first time; it’ll hurt your credit score. Rather, start looking for credit cards provided explicitly to those with bad credit. Take a look at the way a card provider determines whether you qualify for a card before you complete the paperwork to stop wasting time and harming your credit score with multiple rejections.

What’s the difference between credit cards for bad credit and other cards?

Once you find credit cards for those with bad credit, you might notice a few differences from other cards. They’re provided with different terms, such as very high interest rates, at times not less than 30%. The credit limit is also low, and the amount you’re allowed to borrow from the card is set all the time.

Also, the credit card for those with bad credit also comes with very few perks if any; you might not enjoy rewards, cash back, 0% balance transfers, among others.

Once you get the card, ensure the cost is lowered by working hard to make sure balance is paid in full each month to avoid paying interest.

Apply for a credit card that guarantees acceptance

Compare credit cards

To avoid deteriorating your credit record further and to ensure you don’t waste any time, only apply for cards you’re most likely to be accepted. Check the conditions set out clearly on the application such as minimum age, type of employment and income among others.

Only apply for cards that you are sure that you won’t be turned down by comparing the credit cards and their terms. If applying online, most lenders have eligibility checkers to help you find the card that will accept you fast.

Mind the cost

Having a bad credit blot in your credit history means you must ensure costs are kept down, even in your credit cards. After searching and comparing the best card for you, select the best with affordable interest rate; it has a direct influence on the amount of money you need to repay every month.

Use online checkers on the lender’s site or elsewhere to see clearly what you’ll be repaying every month. Mind the APR and calculate how much you’ll be required to part with every time payments are due to select the best card.

Use online tools first

To successful get a credit card with bad credit feels good. However, as mentioned, too many applications and rejections could actually hurt your credit. To be on the safe side, check for online tools from lenders that you want to approach to gauge your acceptability without denting your credit record.

Most lender websites offering credit cards with bad credit allow you to find out whether you’ll be accepted before actually completing the application. You can actually get feedback in minutes. Utilise the facility as the first step before making an application.

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