Compare Credit Cards For Bad Credit

This will depend on your overall financial situation and the individual credit card company.

The more competitive credit card deals, including 0% interest cards and rewards cards, will be reserved for those with the best credit scores, so if you have poor credit you may struggle to get approved. Even if you are eligible for one of these cards, they are likely to come with higher interest rates and lower credit limits if you have a poor credit history.

However, if you don’t qualify for some credit card deals, there are providers that offer specialist credit cards for bad credit.

For example, credit builder credit cards could be an option. These aim to help you improve your credit score if you have had problems in the past or if you haven’t built up a credit history.

» MORE: What credit card can I get with bad credit?

No, all credit card companies have to run a credit check before deciding whether to approve your application. This is to make sure that you can afford to have a credit card.

However, you can check your eligibility for a card without a hard credit check.

It may be possible to get a credit card if you’re unemployed, but your choices are likely to be more limited.

Some credit card companies will only accept applications if your income is above a certain level, but other providers will consider applications from people with a low income or who have reliable income from sources other than employment. The decision will rest with individual providers and your personal situation, so it’s important to look at the criteria and check your eligibility before applying for a card.

If you’re paying off a CCJ or IVA, you’re likely to find it much more difficult to take out a credit card. For example, during an IVA, you need to ask permission from your insolvency practitioner if you want to borrow more than £500.

CCJs and IVAs stay on your credit history for six years and will have a negative effect on your score. However, over time and as you start to rebuild your credit history, your score and your ability to access credit should start to improve.

There are credit card companies that will consider applications from people with a CCJ or IVA on their credit history, but the final decision will depend on your individual situation.

» MORE: How long does a CCJ stay on your credit file?

No, you won’t find any credit cards with guaranteed approval. All credit card companies have to conduct financial checks and credit checks to make sure you can afford to take on a credit card. Only after looking at this information will a provider decide whether to approve your application for a credit card.

You can check your eligibility for a credit card to see how likely you are to be accepted for it. However, even if this preliminary check indicates that you can get a card, you are still not 100% guaranteed to get it if you apply as the approval is subject to final checks.

If all the information you provided to check your eligibility is accurate, it is very likely that your application will be approved.

A credit builder card is a type of credit card that aims to help people with low or limited credit histories to build up their score. They are available from some mainstream providers as well as some more specialist ones, and they can be an option if you don’t qualify for a standard credit card.

Credit builder cards will normally have a lower credit limit and higher interest rates, but as you make repayments on the card your credit score should improve. This should help you to access credit cards with higher limits and better rates of interest.

» MORE: What are credit builder cards?

This depends on your individual circumstances and the credit card company. Typically, credit cards for people with bad credit come with higher interest rates, so can cost more than a typical credit card.

You can compare the annual percentage rate (APR) of credit cards to see how much a credit card could cost you in total over the course of a year, taking into account interest charges and fees.

If your application is rejected, don’t immediately try to apply for another card. Credit card applications involve a hard credit check, which will leave a mark on your credit history, so multiple applications in a short space of time could affect your credit score even further.

Instead, try to work out why your application was declined. If it’s because of your credit history, you can try to work on improving your credit score as this will help any future applications. You can check your credit history for free to see where there is room for improvement and to keep track of your score.

When you’re ready to apply again, make sure you apply for a card that’s suitable for your circumstances to reduce your chances of rejection. For example, you could consider a credit builder card if your credit score is too low for other types of cards.

Before applying for a card, you may be able to check your eligibility to see how likely you are to be approved.

There are a number of reasons that could explain why you have a bad credit score. Firstly, if you’ve never had any kind of credit agreement, your limited credit history could mean your credit score is low. Similarly, if you’ve recently moved to the UK, you may not have had time to build up your credit history.

If you have taken out credit and you’ve made late payments or missed payments altogether on any kind of credit agreement, this could harm your credit score. If this escalated so you defaulted on an agreement, received an IVA or CCJ, or were declared bankrupt, your credit history will reflect this.

Even if you’ve made payments on time, being close to your credit limit, or going over your limit, can affect your score.

Multiple applications for credit within a short space of time can also drag your score down. Even having multiple addresses in a short space of time could affect your score.

Yes. When you apply for a credit card, the credit card company will run a hard credit check. This will leave a mark on your credit history and could temporarily affect your credit score.

However, if you make your payments on time and manage your credit card responsibly, your credit score should begin to reflect this.

A credit card could help to rebuild your credit history, as long as you stay within the terms of your credit agreement, make your payments on time, and stay well within your credit limit, for example. If you show you can manage your repayments and your credit card responsibly, your credit history should start to reflect this.

To see an improvement in your credit score, you will also need to stay on top of your other credit commitments and make all your payments on time.

If you miss payments on your credit card (or other payments), or start to build up a significant amount of debt, this could harm your credit score rather than improving it.

Your credit profile is also affected by other factors. Be clear what these are if you wish to improve it as, while a well managed credit card can contribute to your score, it is not the only consideration.

You can improve your credit score in a number of ways. A simple way to improve it is to make any existing loan or credit repayments on time and tackle any debts you may have. Repaying more than the minimum amount each month can also help to build up your score.

Even something as simple as registering to vote, if you haven’t already, can improve your credit record. Looking at your profile and working out which area needs improvement is a good starting point.

No, you’re unlikely to get a credit card if you don’t have much of a credit history. You won’t have much evidence, if any, to prove you can make repayments on time and manage your finances, so you will find it difficult to get approved for a credit card.

There are cards that are designed for people with little credit history, such as credit builder cards. These can help you to build up your credit history, although they are likely to come with higher interest rates and lower credit limits than credit cards for people with a better credit score.

The most competitive balance transfer credit cards will be reserved for those with good credit scores. However, if you are paying interest on an existing credit card, it’s worth seeing if you can move the debt on to a balance transfer card with a lower interest rate.

Bear in mind that, if you have a poor credit history, a balance transfer card is likely to come with stricter terms than it would for someone with a better credit score. For example, it could have a lower credit limit, a higher interest rate, and more limited promotional offers (such as a shorter 0% interest period).

You can check your eligibility for balance transfer credit cards before applying to see if they are an option for you.