Bad Credit Credit Cards
Posted January 23rd, 2009 There are many people who have suffered setbacks recently and whose credit might have suffered. Naturally, they’d like to repair their credit but aren’t sure where to start. The best way to build up your credit and gain a good reputation again is to prove you can pay your bills on time and the easiest way to do that is to have a credit card.
Even if you have bad credit you may be able to get a credit card. You probably won’t be able to get a large line of credit but in time you can build that up, too.
The first type of card you may be able to get is a secured card. This card is backed up by your own money to insure that the payments are made. The credit card company will determine how much your credit line is depending on how much money you are able to put up front. If you want a five hundred dollar line of credit, you will send them a check for that much and they will keep it. If you miss a payment it will be used to make that payment and your line of credit will be reduced. Some card issuers even have a clause that forces you to forfeit your collateral if you miss a payment so be sure to read everything carefully before you sign up for such a card.
Another type of bad credit credit card, and much more common, is a high interest card. Whereas a typical credit card charges anywhere from 12 to 18 percent on unpaid balances, a credit card for someone with poor credit may have a rate as high as 28%. Of course, if you pay your balance in full each month you won’t be affected by the interest rate, no matter what it is. A high interest credit card is an excellent way to rebuild your credit if pay the entire balance each month.
You may also be interested in a credit card that works more like a debit card that you can re-load any time you like. The company reports your activity to the credit report agencies, improving your score while you avoid going into debt.
When you are researching bad credit credit cards you will need to be wary of people that will try to take advantage of you. Never, ever pay a fee up front for a credit card; reputable companies don’t operate that way. This is a common scam usually done by telephone and the best thing you can do is just hang up.
Try to avoid paying application fees. There are a number of legitimate credit card issuers that charge an application fee but you should probably put these at the back of the line. Remember that each time you apply for a card, that activity is reflected in your credit history so choose carefully and try to keep your applications to a minimum.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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