As the double dip recession bites, more and more people are looking to get a credit card, to help them with their monthly bills, food expenditures, or simply to fund a long awaited break. Trouble is, once you get into debt and your credit rating is less than perfect, banks and financial companies are less likely to take a chance on you, and you are in a catch 22 situation. You need the credit, but you cannot get it because of your poor credit.
Luckily, there are some companies who recognise that people can have very different situations; some temporary, and some not of their own making, such as a redundancy. And it is these companies that aim to help people with less than perfect credit, get back on their feet again, and restore their credit history, by owning a credit card and managing it sensibly.
Luma – The Credit Card Company
One such company is Luma, who have launched their new credit card today. Luma is underwritten by Media Ingenuity, one of the UK’s leading online financial services companies, and Capital One, one of the world’s leading credit card issuers. Will Becker, chief executive of Media Ingenuity, Luma’s corporate parent, said: “We are thrilled to launch Luma for customers who up until now have had very few products to choose from in the credit card market.
Working with Capital One, we have crafted a card which allows people building credit, and others with limited credit history to enter into the credit card space and take control of their finances.” The APR on a Luma Credit Card is 35.9% on purchases and withdrawals, but currently there is no interest payable on purchases until December 2012.
Benefits of a Luma Credit Card
There are many ways in which you can benefit from a Luma credit card:
- The Luma Credit Card is more flexible
- Luma card eligibility requirements may help you get a credit card—even if you’re new to credit, have CCJs or other issues with your credit rating.
- The Luma Credit Card is more convenient
- Hassle-free online and mobile account management means that you can access your account anywhere, anytime. Luma makes it easy to add additional cardholders – streamline your household’s finances and keep an eye on your overall expenditure
- The Luma Credit Card is more manageable
- Easy to manage credit limits– up to £1,500– help you avoid taking on too much debt
- Exclusive, limited time only offers and Luma Rewards help you keep money in your pocket, and there is no annual fee.
- The Luma Credit Card is more responsible
- Automated fraud alerts and free identity theft support help you ensure that your account stays safe and that you have help when you need it most.
- You get free purchase protection insurance means that you get extra help when things you buy with your Luma card don’t work out.
Applying for Luma Credit Card
So, if you are thinking of applying for a Luma Credit Card, remember that:
You’re more likely to be accepted for a Luma credit card if:
- You’re over 18
- You have experience managing credit– even if you’ve had CCJs or defaults in the past
- You’re on the electoral roll
You’re less likely to get accepted for a Luma credit card if:
- You have no credit history in the UK
- You’ve been declared bankrupt in the last 12 months
Remember that, even if you meet these requirements, you might still not be accepted. Luma will check your credit report to evaluate your application. If you don’t know what’s on your credit report, it’s a good idea to take a look before you apply for a Luma credit card or any credit card.