Credit cards for bad credit are made for people who want to improve their credit score. A good credit score is helpful if you want to get a new loan, credit card or a mortgage. Often you might find that your credit score doesn't put you in the best position before applying for a product, and this means you may not have as much choice. A bad credit credit card offers a way of building your credit score over time.
These cards often come with a low credit limit and a high interest rate. Using your card correctly will help to improve your credit report. This means never missing a payment and never going over your agreed credit limit. If you manage your credit card well over time your credit score could improve. Whatever your reasons for wanting to boost your credit score, we’ll explain how a Vanquis credit card can help with building your credit score. We'll explain how. ‘Bad credit’ is a term used to describe a low credit score. This could be because of a credit history that includes missed or late payments on credit products. It could also include if you have defaulted on credit agreements altogether. 'Defaulted' here means a credit agreement that has been broke. In some cases you may have been through bankruptcy or had a County Court Judgement (CCJ). Having bad credit can make it more difficult to get accepted for a loan or credit card. If
you’ve never taken out any form of credit or have managed it badly, then you are more likely to have a low credit score. This also means you might find some lenders may decline your credit application. If this is the case, it might be worth looking at credit cards for bad credit as a way to help rebuild your credit score. Your credit rating is based on several factors. These include your employment status, your previous credit history. As mentioned your credit history may include any missed payments or defaults. It also includes the number of any recent applications you've made and public information such as Electoral Roll and bankruptcy information. It’s also based on the amount of credit you currently have and how well you are managing it. Each lender has a different set of requirements when assessing potential customers for a credit product. There isn’t a specific credit score lenders use to make approval decisions. This means you may be eligible for one credit card but not the other. Lenders will also check the information held on your credit file at one or all of the three main credit reference agencies – Equifax, Experian, and TransUnion. This table gives you an idea of what these agencies consider to be ‘good’ and ‘bad’ credit scores:
Correct as of June 2019 Reasons you could have bad creditThere are a number of reasons why you could have bad credit, for example:
If any of the above applies to you, bad credit credit cards could be an option to help improve your credit rating. Why you should get a bad credit credit cardEven if you find you have a poor credit file, you still have options when looking for a credit card. Some providers offer specific credit card products for bad credit. These cards work in the same way as a standard credit card, but these are some changes. You may find that your credit limit is lower, and these cards come with a higher rate of interest. Using these cards and making your payments on time, will show that you are able to manage a credit agreement. Your credit score should then improve over time. Here are some of the key points to consider when getting a bad credit credit card and some things to be aware of:
Getting a credit card with bad creditYou can apply for a credit card if you have bad credit, but you should make sure it’s the right card for your circumstances. There are many different types of credit cards available, each with different uses. These can include 0% balance transfer cards, interest-free purchase cards, and even cards with cashback. However, these cards are usually only available to people with good or excellent credit scores. If you want to be considered for these cards in the future, you should look at improving your credit score. This is where a credit card for people with a bad credit score could help. Eligibility checking for a credit cardGuaranteed acceptance credit cards are sometimes offered to borrowers with an excellent credit score. If you have a poor credit score, you might find the application process less straightforward.
Applying for a bad credit credit card
View our credit card rangeWe currently offer three cards:
Read our credit cards page to find out more about our card range. Check your eligibility for a Vanquis credit cardNext you can check your eligibility with our quick and simple online application. There are just 4 steps to complete, and we'll be able to provide you with an instant decision. This won't affect your credit score. Check your eligibility Representative 29.5% APR (variable) Complete an applicationIf you're happy, complete and submit your application. You can download your Vanquis Bank App which will help you to easily manage your credit card. Then just wait for you card in the post. FAQsCan I get a credit card with bad credit?Yes. You can apply for a credit card with bad credit, but you should make sure it’s the right card for your circumstances. Although there are many different types of credit cards available, each with different uses. There are cards with 0% balance transfers, to interest-free purchases, and even cashback. These cards are usually only available to people with good or excellent scores. If you want to access these types of cards in the future, you should look at improving your credit score. This is where a credit card for people with poor credit could help. Can I apply for a credit card if I have no credit historyIf you have no credit history, this means you’re essentially ‘invisible’ to lenders and credit referencing agencies. This means they have no way of knowing how you manage your money of how your handle credit. If you want to take out a credit card, you may need to apply for a credit card for bad credit – this can then be used to help build up your credit score. If you have no credit history, using credit correctly might see your score improve more quickly than if you have a bad credit history. Will my eligibility be guaranteed with a credit card check?While it’s unlikely you’ll find any bad credit credit cards with guaranteed approval, many lenders give you the option of an initial eligibility check. This helps you work out your chances of acceptance without any trace of a credit search being left on your credit file. To build your credit rating and be considered for credit limit increases, use your card sensibly, stay within your credit limit and pay your monthly minimum payment on time. Not doing so could harm your credit rating and make obtaining credit more difficult. What is the easiest card to get with bad credit?Petal® 1 “No Annual Fee” Visa® Credit Card. Best Overall. ... . Navy FCU nRewards® Secured Credit Card. ... . Tomo Credit Card. ... . OpenSky® Secured Visa® Credit Card. ... . Discover it® Secured Credit Card. ... . Credit One Bank® Platinum Visa® for Rebuilding Credit. ... . Bank of America® Customized Cash Rewards Secured Credit Card.. What type of credit card is usually given to someone with bad credit?Secured and unsecured credit cards
There are two types of credit card options for bad credit, secured and unsecured. A secured credit card requires a deposit of a certain amount of money into a savings account, and the credit limit is often based on a percentage of the deposited amount.
Can I get approved for a credit card with a score of 500?Having a credit score between 400 and 550 doesn't mean that you are ineligible to get approved for an unsecured credit card. Today, there are plenty of credit cards that you can choose from that will help you improve your credit history, but you must use them responsibly and be aware of high interest rates.
Which is easiest credit card to get?Easiest Credit Cards to Get Approved for in 2022. OpenSky® Secured Visa® Credit Card.. Petal® 2 Visa® Credit Card.. The First Progress Platinum Elite Mastercard® Secured Credit Card.. Bank of America® Customized Cash Rewards Credit Card for Students.. Credit One Bank® Platinum Visa® for Rebuilding Credit.. |