Poor credit credit cards are designed to help you if you have a bad, or non-existent, credit record. These cards accept people who would be rejected for a mainstream credit card. They are an excellent way of building up a good credit record if you get one, use it sensibly, and pay your balance off in full each month. However, they have very high interest rates – 29%APR – 35%APR typically – so NEVER spend more than you can afford to pay back.
Stop the Cycle of Credit Card Rejection Today
If you’ve applied and been rejected for a credit card, read this before applying again.
Blindly reapplying for other cards can make the problem even worse as failed applications can damage your credit rating, making it even harder to obtain credit creating a vicious circle of rejection.
So, stop and assess why you’ve been turned down and then find the card most likely to accept you. Every card company has their own criteria for lending, so if one rejected you that doesn’t mean they all will.
Before you apply again, find out which cards match your profile using our tool, our advanced credit matching technology®, this clever service will tell you which credit cards you are most likely to be accepted for, without leaving a footprint on your credit record – so using it won’t affect your credit rating.
Don’t assume you’ll only get a “bad credit” card, you may be pleasantly surprised. But whatever result you get, use your new credit card to improve your credit rating.
How Does TotallyMoney's Advanced Credit Matching Technology® Improve my Chances of Being Accepted?
Every lender has different acceptance criteria, so it’s hard to know which card to apply for. Enter a few details and our advanced credit matching technology; shows you the cards you’re more likely to be approved for – and those that might reject you.
Acceptance still isn’t guaranteed, but by applying for cards that our advanced credit matching technology® recommends, you are over 250% more likely to be accepted than people not using the tool. Being rejected is not only a waste of time, it can damage your credit rating, so simply by using our advanced credit matching technology; you are taking a step towards a better credit rating.
What is a “Bad Credit” Credit Card?
Bad credit credit cards are designed for people who have had credit problems in the past or have little history of borrowing at all. If you fall into either category you represent an above-average risk to the lender, so you pay for that risk with higher interest rates and fewer special offers. As these cards are expensive, with the exception of strict use of the odd 0% introductory offer, they’re not great for new borrowing. But, if used sensibly – that means paying the balance off in full each month - they can help you build up a good credit score.
You’re likely to fall into the poor credit category if you have...
- A limited or nonexistent credit history
- Past issues like repeated missed payments
- Prior County Court Judgements
- Been declined by several other credit card providers
What are Bad Credit Credit Cards Good For?
- They’re a great way to build or rebuild your credit rating
- In some circumstances they can be a cheaper alternative to other forms of borrowing, such as pay-day loans or unauthorised overdrafts
- Some poor credit cards feature 0% introductory rates and can be used carefully for low-cost, short-term borrowing
- Many bad credit cards come with useful free purchase protection insurance and all come with Section 75 benefits
How to Improve Your Credit Score
Using a credit card the right way is one of the best means of improving your credit score and, over time, gaining access to better rates and products. Here’s how:
- Repay your balance in full every month. Setting up a direct debit is a fool-proof way to make sure that happens
- Stay within your credit limit
- Use the card. An unused card sitting in a drawer won’t help your credit score, you need to flex the plastic, even if it is only to spend a few pounds each month
- Miss your monthly payments
- Accumulate debt you can’t afford to pay off in full. Bad credit credit cards tend to have high APRs so it will work out as expensive, and could lead to you missing a payment and further damaging your credit score
If Our advanced credit matching technology; suggests you don’t qualify for any bad credit credit cards, don’t despair. There are some alternatives which our advanced credit matching technology® will automatically suggest:
Pre-paid cards offer some of the benefits of credit cards including, in some cases, the ability to build your credit rating. But you can never spend money you can’t afford as these cards have to be pre-loaded with cash. The drawback to them is that their fees can be expensive.
A secured card works like a normal credit card except that, if your application is accepted, you have to put down a security deposit before you receive your card. These cards are a last resort for anyone who can’t get a normal credit card. They do offer some of the benefits of a standard card including building credit history and access to some credit. When you close the account, provided you haven’t missed any payments and there is no outstanding balance, you should get your deposit back in full.
These cards are about building your credit rating. You need to show that you can play by the rules in order for this ‘good behaviour’ to end up on your credit file – you may even be offered an upgrade to a normal credit card.
Occasionally, for very short term borrowing, a pay-day loan can be an alternative if you haven’t already got a credit card – they’re expensive, even in the short term, and only compare favourably to unauthorised borrowing on an overdraft.
Frequently Asked Questions
How We Rank Cards
We only grade credit cards by their merits. They’re ranked independently of whether we’re paid by the lender to promote them. If you use our advanced credit matching technology®, your results table will simply be ordered by your likelihood of acceptance and we’ll only show cards you have a good chance of getting (5 out of 10 or better).
Otherwise cards are ranked by the most appropriate variable – the length of the 0% period in balance transfer or purchase cards for example. In the case of bad credit credit cards we take account of features (0% introductory offers or rewards), average acceptance rate and APR, since our experience shows that’s the priority order of our typical user.
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If I’m declined will it damage my credit rating?
Applying and being declined for a credit card could damage your credit rating, but applying and being accepted could save you a lot of money on the cost of borrowing.
Our advanced credit matching technology® will check to see which cards you’re likely to qualify for before you apply which means you’ll see your likelihood of acceptance without damaging your credit rating. Even if you’re not likely to qualify for a top 0% balance transfer card, Our personalised credit comparision tool® will be able to identify the cards most suited to you and most likely to accept your application.