A credit card is widely used as spending channel as it allows to make purchases without having funds in saving the account. At present, 32.5 million British people use a credit card for making purchases and also withdrawing cash. The credit card usage for unaffordable expenses is climbing up fast since 1993. Following the trend, the total credit card debt reached up to £70.8 in February 2018. As per the latest figures available, each British household has £2,604 as debt from a credit card. The record spending from credit cards was seen in November 2017 when it was of £17.3 billion. Lending is on the rise; repayments are coming down. Therefore, the gap between credit card usage and repayment is widening fast. Still, people are trying all the possible ways to get credit cards despite having a bad credit score.
Is it so easy? Numbers of people fail to get a credit card because of a poor credit score, but it is a common need. Before going ahead; let’s have a look upon its advantage and disadvantage in brief.
Advantages of Credit Card:
- A user can withdraw the cash also as an immediate loan that too interest rate free for a certain period.
- If used wisely, you can save extra a lot.
- You can buy without cash in pocket or funds in an account.
- Credit card payment is safer than another mode of payment.
- Section 75 of the Consumer Credit Act protects all your rights.
- The 0% interest rate period is a great facility.
Disadvantages of Credit Card:
- The interest rate is too high after the interest-free period.
- The mounting due harms the credit score.
- The financially tight user pays the interest more than the purchase worth.
- More than 50% of usage limit harms the credit score.
- Advanced cash fee makes the cash withdrawals costlier.
- Overspending generates financial problems for a more extended period.
- Hefty annual fee often comes as a hidden financial burden.
How to Get Credit Card While Having Bad Credit Score:
Credit card write-offs touched the £2.1 billion figure in 2010. £1.6 billion credit card debt was written off in 2017. The numbers of people in the British community with limited or low income are facing problem in managing the funds and expenses; in such a situation, willing to have a bad credit score is not uncommon. Getting a credit card may help you in many ways, but the primary goal is to get it while having a poor credit score. Can you hit this goal? Yes, indeed!
Poor credit score does not disqualify to get a credit card. Many companies issue credit- cards to help the users improve credit rating. Credit cards designed for bad credit score holders have smaller credit limit at the start, but this limit can be increased by managing the credit card wisely as a disciplined buyer. Not all the credit cards are meant for bad credit holders so you should apply only for the specific credit cards suitable to your credibility.
Here is the list of some credit cards famed widely among the bad credit score holders:
It is available at 29.3% variable APR representative. The offered APR is low for poor credit record people. The initial credit limit is £250 that can be expanded up to £1,000. If used correctly and all the payments are made on time, you can get credit limit even up to £4,000 after few years.
It is available at 29.7% variable APR representative even for no credit record holders. A maximum credit limit is £1,200. As it is a highly rated card, so don’t carry forward the balances over this card.
Aqua Classic 27.4:
It is available at 29.4% variable APR representative for low credit record holders with maximum credit limit £1,200. As it is a highly rated card, so don’t carry forward the balances over this card. It is liked because of its 60 seconds application response.
118 – 118 Credit Card:
It is available at 29.9% variable APR representative. Low credit record holders are also considered. The maximum credit limit is £1,200. The high APR rate is the bad element of this card, but it is suitable for the short-term instant finance need. Applications are approved within minutes. A user has to pay one simple monthly fee. It comes with no interest or fees but with monthly subscription fees.
Capital One Classic Purchase Card:
It is available at 34.9 % variable APR representative. Low credit record holders or no credit report holders too can apply. The maximum credit limit is £1,500. The high APR rate is the bad element of this card. It is good to make immediate purchases without having funds. 0% interest on purchases for 3 months is the best feature.
Ocean Finance Credit Card:
It is specially designed for people with bad or no credit. The maximum credit limit is £1,500. It is available at 34.9 % variable APR representative. Free text alert and online account facility help to monitor the spending. It is liked because of contactless payment up to £30. The credit limit can be increased if used correctly.
Fluid 9 Month Balance Transfer:
It is designed for people with no credit or bad credit history. The maximum credit limit is £2,000. It is available at 29.9 % variable APR representative. The 0% on balance transfers for nine months is the best feature. It is good if you need to make big purchases immediately. Fixed 4% fee applies to each transaction.
Free text alert, online account facility, customer support, online processing, prompt delivery, etc. have become the standard features of most of the credit cards that are advertised. It is essential to use the card responsibly and paying the dues within the interest-free period. The impression upon the credit card issuing agency helps you get additional privileges like additional cash limit. The selection of a credit card depends upon several factors. The can use the credit cards that come with 0% deals to pay the debt and to save the interest for 0% period. You might be having numerous high rated short-term loans or pending dues, you can use the previous fee credit card to pay the dues and save at least for a couple of months.