Credit Cards for Bad Credit
Posted January 9th, 2009 and last modified March 11th, 2009If you’ve got a bad credit rating and you need a credit card, more than likely you’re in a bit of a fix. There are, however a few options.
Option 1 – Prepaid Credit Cards
Prepaid credit cards are great if you’re worried about limiting your spending. Prepaid cards need money to be transferred on to them before they can be used. One of the best prepaid cards on the market at the moment is the cashplus prepaid gold MasterCard,which offers comparable to a standard credit card, but with the benefit of being prepaid. One of the key benefits of the cashplus card is its feature called ‘CreditBuilder’ which allows you to improve your credit rating by using the card. Prepaid credit cards have a pretty low standard for acceptance, because there is no risk of debt defaulting. The negative aspect to a prepaid credit card is that they don’t provide any credit.
Pros
- No risk
- Decent features
- High chance of approval
Cons
- No credit
Option 2 – Credit Cards for Bad Credit
With either option, you have a good opportunity to rebuild your credit rating. Just make sure you keep your payments on schedule, and over time, your credit rating will improve. Credit cards for bad credit usually have very high interest rates, as the risk for providing credit to people with bad credit ratings is much higher.
Pros
- Credit (!)
- Opportunity to rebuild your credit rating
Cons
- High interest rate
Below is a list of two of the Credit Cards for Bad Credit that we recommend:
| Credit
Card |
Card
Details |
Interest Rate | Cash Advance Rate | Balance
Transfer Rate |
Annual
fee |
Interest
free days |
|
|---|---|---|---|---|---|---|---|
|
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 | |
|
Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. | 39.9% APR variable | 39.9% | 39.9% | No Annual Fee | 56 days | |
|
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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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 |
 |
|
 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
|
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 |
|
|
 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 |
|
|
|
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. |
39.9% APR variable | 39.9% | 39.9% | No Annual Fee | Up to 56 days on card purchases only |
|
|
|
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 |
|
