PERSONAL FINANCE BLOG

Money shouldn´t stop making your plans come true. Learn how personal loans can help you!
Rebuild your credit score with credit cards for low credit
23 May 2018

Credit cards for low credit

If you have less than a perfect credit score you might be wondering what, if any, are your options for credit cards for low credit. We provide that information right here.

Options for Credit Cards for Low Credit

We can work with you to find the most suitable credit card for your circumstances based on your credit rating, however low. We work alongside lenders who specialise in offering people with bad credit a credit card. There are many options and here we take a look at the most popular cards that boost your chance of being approved.

Popular Types of Credit Cards for Low Credit

In the past, you might have struggled to get approval for a credit card if your credit rating is low. Thankfully, times have changed and there are lenders offering financial products to people who fall into this category, including credit cards. In regards to credit cards for those with low credit, it has become easier to get approval. Generally, lenders offer credit cards to people with a low rating in the form of:

  • Credit building credit cards
  • Unsecured credit card
  • Secured credit cards

Credit Building Credit Cards

Credit building credit cards are generally offered by lenders as a way of allowing those with a low credit rating the chance to borrow money and at the same time build up a credit rating according to the Nidirect website. This is done by repaying the money borrowed back on time each month.

Credit building credit cards such as these typically come with a minimum and maximum credit limit, generally up to no more than £1,000 but the limit may be as low as £600. While the limit is low it can be one way of obtaining credit particularly when you only need a small amount of cash and you want to build your rating back up. One thing to bear in mind with these types of credit cards is that the APR may be higher than typical cards offered to people with a good credit rating history.

Secured Credit Cards Do Away With a Credit Report

Another option is the secured credit card, although today this is not as popular as it once was. However, if you want to be approved for a credit card without undergoing a credit check, if your credit rating is very poor, this might be an option worth considering.

The secured credit card means you have to put down a deposit to take out a card. The lender then has the security of being able to take your repayments or balance from the security deposit if you should falter on the repayments. When you decided to close the account and give up the credit card, you are typically given the refund back providing you paid the credit off without any issues. This may be a good option if your credit rating is very poor and you wish to rebuild it.

Unsecured Credit Cards for People with a Low Credit Rating

The unsecured credit card is perhaps the most popular choice for people whose credit rating is slightly low. A deposit is not needed to get approval for this type of credit card.

We work with numerous lenders offering different solutions for people who have found themselves turned down by mainstream lenders and may be able to find the most suitable type of credit card for your needs. Generally, all credit cards come with a higher APR as lenders are said to be taking a risk. However, with our help, you have peace of mind of being introduced to lenders who may be more willing to offer you credit than if you went out searching for a lender offering credit cards for low credit alone.