Are you tired of being declined for credit cards due to your poor credit history? Don't worry! You're not alone. In this comprehensive guide, we'll walk you through the best credit cards available in the UK for those with bad credit – and teach you how to make the most of them. Your credit score doesn't have to hold you back any longer!
Credit Cards UK For Bad Credit Table of Contents
The Importance of Credit Cards for Building Credit
Having a poor credit score can greatly impact your financial life, hindering your ability to secure loans, mortgages, and even rent properties. One of the most effective ways to improve your credit score is by using a credit card responsibly.
How Credit Cards Help Improve Credit Score:
- On-time payments: Consistently making payments on time will demonstrate your financial responsibility to lenders and positively impact your credit score.
- Utilisation ratio: Maintaining a low credit utilisation ratio (the percentage of your credit limit that you use) can also boost your credit score.
- Credit mix: Having a mix of different types of credit (such as credit cards, loans, and mortgages) will show lenders that you can manage various kinds of debt responsibly.
But what if you have bad credit? Fear not, there are credit cards available specifically for people with poor credit histories, designed to help you rebuild your credit score.
The Best Credit Cards for Bad Credit in the UK
Though options are limited, there are still several credit card providers that cater to those with bad credit. Here are some of the top credit cards in the UK for people with poor credit histories:
- Aqua Classic Credit Card: Aqua Classic offers a manageable credit limit and the opportunity to increase it after just four months of responsible usage. They also offer free access to your credit score and report.
- Vanquis Bank Chrome Credit Card: Vanquis Bank offers an initial credit limit of up to £1,000 and the chance to increase it after just five months of responsible use. They also provide helpful tools and tips to better manage your finances.
- British Airways Credit Card: While this card is not specifically designed for those with bad credit, they do state that they accept applicants with less than perfect credit scores. This card also comes with the added perk of earning Avios points on your everyday spending, which can be redeemed for flights and travel rewards.
Credit Cards UK For Bad Credit Example:
Let's say John has a poor credit score due to some financial mistakes in his past. He decides to apply for the Aqua Classic Credit Card to start rebuilding his credit score. After being approved, John starts using the card for his everyday expenses, such as groceries and petrol, making sure not to exceed 30% of his credit limit.
Each month, he pays off his balance in full and on time, which improves his payment history and utilisation ratio. After four months of consistent responsible usage, Aqua increases his credit limit, further assisting in his credit improvement journey. John also monitors his monthly credit score update provided by Aqua, ensuring he stays on track.
Now that you've learned about the best credit cards for bad credit in the UK and how to use them responsibly, you're well on your way to rebuild your credit score! Applying for one of these cards and consistently using it with care can open many financial doors for you in the future. Share this guide with friends and family who may also benefit from the information, and don't forget to explore other guides on Flik Eco for more help on managing your personal finances!
