'Bad Credit' Credit Cards

There are credit cards available that can help you repair your credit rating, if you have had problems with managing your finances in the past. YourHomeBills.com can help you choose a 'bad credit' credit card that will help put those worries behind you.

Why should I look for a 'bad credit' credit card?
If you have experienced financial difficulty in the past and are worried about being turned down or have been turned down for credit cards already then it's definitely worth writing to a credit reference agency for a copy of your individual credit report.

Why would I have a bad credit rating?
A credit rating can be categorised as 'bad' after any of the following:

• Failure to pay utility, credit card, home loans or rent to landlords

• Any County Court Judgements (CCJs)

• Not being on the electoral register

• Previous issues with applications/credit cards supplied to your postal address

How can I improve my credit rating with a 'bad credit' credit card?
The most effective way of improving a bad credit rating is not to overstretch your finances. Be certain about what you can afford and don't take on additional payments if you won't be able to pay them. This isn't just in the short term but for however long it will take to pay off the amount in full. By paying your bills consistently and over a long period of time you will be able to build up a better credit history. An important thing to also remember; make sure you register the credit card at the same address that you are registered against on the electoral role to ensure consistency in the records

Are there any disadvantages in having this type of credit card?
Those lenders that offer 'bad credit' credit cards to people with a poor credit rating will charge higher standard interest rates than standard credit card companies. This is to pay for the insurance they take out to protect against any potential bad debt.

But if you meet your monthly repayments you can expect a better reception from credit card lenders in the future. However, you must make sure that you keep up your monthly repayments to keep your credit rating on the right track.

Are there any hidden charges I should be aware of?
The main thing to be aware of is the higher standard interest charges and also any annual fee that may apply for having the card. Though they may not look that good these annual fees may actually reduce your APR (Annual Percentage Rate).