#credit cards for people with poor credit
The term annual percentage rate describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate
Compare Poor Credit Rating Cards
Been refused a credit card because of a bad credit rating?
The importance of your credit history
Your credit report is extremely valuable. It contains all your financial history, whether you have or have had any loans or credit cards. It is used by lenders to assess how reliable you are to lend money to. Simply by missing payments you will damage your credit rating. If you have anything less than a perfect credit rating you will struggle to get approved for the product you want.
What is a Poor Credit Rating Credit Card?
Poor credit rating credit cards are designed for those with a bad credit history. If you have been refused elsewhere because of a poor, little or no credit score you are likely to be approved for one of these cards.
What are the benefits?
Not only do these cards give people who have been refused elsewhere the financial freedom that they want but these cards can also be used to help rebuild or establish your credit rating. However, this will only happen if you use the card correctly and bear in mind this can take some time. So long as you are responsible you will rebuild your credit rating which will result in better credit card conditions in the future.
Are there any risks?
The interest rates on these cards can be considerably higher when compared to other credit cards. This is because providers see you to be more of a risk because of your credit history.
You will also find that the credit limits on these cards can be a lot lower. However, correct use of the card will result in higher credit limits and lower interest rates in the future.
Credit cards are notoriously dangerous. If you miss payments you will have to deal with late interest fees and charges which can easily accumulate and you could end up in a debt situation. You need to make sure you make the repayments on time so you don’t damage your credit rating even further.
Finding the right card for you and your finances
It is important that you take the time to research the market. You can use the table above to compare different cards to find the one best suited to you.
When comparing poor rating credit cards make sure you are aware of any fees that are associated with these cards and always read the terms and conditions fully. It is really important that you know what happens if you miss payments because the consequences can be severe.
There may be fees associated with the card that you should look out for including charges for making withdrawals from ATMs, using your card abroad and making transfers. There can also be annual fees.
Selecting the best bad credit rating credit card
Selecting the best bad credit rating credit card is the first step to get your credit score back on track. However, they can have large fees and interest rates associated with them so doing your homework is important before you commit to a particular provider.