Do you often find yourself struggling to get approved for a credit card due to poor credit history? Fear not, as there are credit cards specifically designed for those in this very predicament. In this article, we will explore the world of credit cards for poor credit in the UK, and show you how you can still enjoy the perks and benefits of a credit card whilst rebuilding your credit score.
Credit Cards For Poor Credit UK Table of Contents
Why Credit Cards for Poor Credit Exist
Why Credit Cards for Poor Credit Exist
There are credit cards designed specifically for people with poor credit history for a multitude of reasons:
- Provide access to credit for those who may not qualify for traditional cards
- Help individuals rebuild their credit score with responsible usage
- Allow users to enjoy the benefits and convenience of a credit card
Features of Credit Cards for Poor Credit
Although credit cards for poor credit may not offer the same rewards and perks as other cards, they do come with a unique set of features tailored to individuals with less-than-perfect credit scores:
Lower Credit Limits:
To minimize risk for both the card issuer and user, credit cards for poor credit often come with lower credit limits. As you demonstrate responsible usage over time, your credit limit may be increased.
Higher Interest Rates:
Due to the increased risk involved, these cards generally have higher interest rates than traditional credit cards. Make sure to pay off your balance in full each month to avoid hefty interest charges.
Credit Building Features:
Some credit cards for poor credit offer additional features to help you rebuild your credit score such as free credit reports and personalized guidance through your rebuilding journey.
How to Choose the Best Credit Card for Poor Credit
When choosing the best credit card for poor credit, consider the following factors:
Interest Rates:
Compare different cards and their interest rates to find the best possible option for you.
Fees:
Be aware of any annual fees or charges that come with the card. Look for cards with minimal fees or none at all.
Reporting to Credit Bureaus:
Make sure the card issuer reports your activity to the major credit bureaus, as this will ensure your responsible behaviour contributes positively to your credit score.
Credit-Building Tools:
Some cards may offer additional tools and resources to help you rebuild your credit score. Consider these when making your decision.
Credit Cards For Poor Credit UK Example:
Example: Jane's Journey to a Better Credit Score
Jane, a 28-year-old working professional, recently checked her credit score and discovered it was much lower than she expected due to previous poor financial choices. Determined to rebuild her credit, she researched credit cards for poor credit in the UK and found one with favourable terms, a manageable interest rate, and no annual fee.
After six months of using her new card responsibly, including paying off her balance in full each month and staying well below her credit limit, Jane's credit score began to improve. After a year, her responsible card usage, combined with keeping her other financial obligations in check, contributed to a significant increase in her credit score. Jane eventually transitioned to a credit card with better rewards and a lower interest rate, all thanks to her diligent credit rebuilding journey.
Rebuilding your credit score may seem daunting, but with the help of credit cards for poor credit in the UK, you can begin your journey to financial success. Armed with knowledge and a commitment to responsible card usage, you can overcome past financial setbacks and regain control of your financial future.
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