Good Credit Cards for less than perfect credit ratings
For those of us who are having problems getting credit, there are a range of credit cards in the financial market place, designed specifically for people with less than perfect credit ratings.
If your credit is not too bad, in that, you may have gotten behind on a few utility payments or missed a couple of loan repayments, there are a selection of cards that are ideal to help you repair your credit rating and get back on track.
Barclaycard Initial (APR 29.9%) have quite a strict acceptance criteria, they will not accept anyone who has had a CCJ or an IVA within the last 5 years or who have had a history of bankruptcy. Capitol One Progress (APR 29.9%) also employ a tough acceptance code but will reduce your APR if used responsibly and have a higher credit limit of £2,500.
If you have a moderately bad credit rating then have a look at the following credit cards; these tend to accept people who have had previous credit cards applications refused.
The most accepted card by those who have moderately bad credit is the Capital One Classic with an APR of 34.9% and a credit limit of up to £1,500. Apparently it is easier to get one of these cards than a Capitol One Progress card. Also available is the Granite Card (APR 34.9%) which has a rewards system for its customers but a credit limit of only £500.
For the more seriously affected in the bad credit rated amongst us there really is only one card available on the market. Specifically designed for very poor credit scores, the Vanquis Card has a much higher APR of 39.9% but offers a higher credit limit too of up to £1000. Be wary though, if you miss any payments the penalties are high. £20 for a late payment and an extra £20 for going over your arranged credit limit. The acceptance criteria is wider however, with Vanquis considering applicants who have cleared CCJ’s.
And for those whom even Vanquis do not accept, do not despair, you can always apply for a prepaid credit card where you add funds from your bank account. Cards that apply in this category include the Kalixa Prepaid Mastercard with a set up fee of £4.95 but no monthly fee and the Cash Plus Gold, same set up fee but a monthly fee of £4.95.
One way to increase your credit rating once you have acquired one of these cards is to always pay off your balance in full and never miss a repayment. All the cards mentioned have relatively high APRs. This is because the credit card companies need to weigh up the risk of lending to people with poorer credit ratings. And with the economy as it stands, banks are becoming increasingly hesitant to process credit cards application from people with less than perfect credit scores. Good luck!