More people in the UK are suffering from bad credit than you might think. Regardless of this decade’s economic downturn, which has left many formerly financially responsible and comfortable individuals struggling to make ends meet, it’s actually incredibly easy to slip into a bad credit rating without realising.
With so many services, from department stores to energy services and supermarkets, not to mention banks, offering too-good-to-be-true credit over the last two decades, managing what you owe and what you’ve paid can be difficult. While a bad credit rating can be crippling when it comes to everything from taking out a mortgage to buying broadband internet, there are services available to help you manage your money and help you out of the bad credit whole. These credit cards are aimed precisely at people like you, and could be the answer to your financial prayers.
Vanquis Bank Aquis Visa
With its low repayment terms helping you pay off charges and highest interest debts first, this card, open to applicants with county court judgements (CCJs) and with a minimum income of £4000, is perfect for customers with a bad credit rating. The usual fees apply for late payments and exceeding of limits etc, but with a 29.8% APR this is the leading card for UK citizens trying to rebuild their credit rating.
Barclaycard Initial Visa
Barclaycard’s Initial card, with its minimum income limit of £10,000, is decent for those in low income employment who might otherwise struggle to find credit. It’s not available to those with active CCJs, but is a good starting point for those recently out of debt who are trying to rebuild their credit rating. The APR, at 29.9%, is still one of the lowest around, and charges for cash advances are lower than competitors.
Capital One Classic Visa
Another card with a reasonably low income limit, just £10,000, the Capital One pips the Barclaycard Initial by also being available to applicants with current CCJs. However, at 34.9% the APR is significantly higher than with the first two cards featured. Nevertheless, with its low repayment demands, the Classic is a decent option for those trying to climb out of debt and living on the breadline.
Granite Credit Card Visa
Granite’s Vanquis-equalling £4000 low income threshold immediately makes this card stand out from the crowd. Plus, the Granite Rewards scheme also includes discounts when using the card to shop at major retailers including Sainsbury’s and Debenhams. It’s not open to applicants with CCJs, and 34.9% APR is higher, but it’s not a bad option if you’re the one managing your household’s major outgoings.
The Aqua might have the highest APR of any of the cards here, at 35.9%, but it makes up for it with an income threshold of £0. That makes this the clear leader for those making their first steps out of bad credit, and may even be yet to find employment. Available to those applicants with CCJs, this is a clear winner as an all-comers credit card.
This has been a guest post from Chad. I hope you enjoyed it!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.