If you’ve got a poor credit history as the result of missed payments, defaults or CCJs, you’ll have a tough job getting access to credit. Bad credit history cards are among the best places to start if you want to put things right.
Bad credit history cards can help you build (or rebuild) your credit rating by giving you the opportunity to prove that you can handle credit responsibly.
Every time you make the required monthly payment on time, your credit score will improve. If you continue to do this over a period of time, you’ll boost your chances of being accepted for a wider range of cheaper credit products in the future.
How Can I Check My Credit Rating?
You can check the progress of your credit rating by requesting your report from one of the main credit reference agencies, who have to provide this for a small charge.
Lenders judge each application on a case-by-case basis, as they have different acceptance criteria based on risk.
How Can I Improve My Chances of Acceptance?
So, if you’ve missed payments before, have defaulted on your debts, or you have a CCJ to your name, you’ll need to identify a lender that is prepared to accept you given these circumstances.
You’re never 100% guaranteed to be accepted, but you can help your cause by doing a little bit of research before you apply.
Why are the Interest Rates Higher on these Cards?
Poor credit history cards have a much higher interest rate than standard credit cards. This reflects the risk that lenders are taking by offering credit to someone with defaults, CCJs, or with no prior record of repayments.
So if you have a chequered credit history or if you’ve been rejected by other card companies, these cards should offer the best chance of being accepted.
Which is the Best Poor Credit History Card?
This is difficult to say, as it will largely depend on your circumstances. But two card certainly worth considering are the Aqua Advance card, which rewards you for handling your credit responsibly by reducing the rate 5% per year for up to three years, and the Capital One Classic Extra, which offers cashback of 0.5% on your spending.