Tag: interest rates

How to Get Approved for a Credit Card Even with Bad Credit

Just because you have bad credit doesn’t mean you can’t apply for a credit card. If you’re applying for a credit card with the chief reason of boosting your credit score then there are bad credit credit cards available for you to apply for. To get approved fast and without hassles, below are some tips to keep in mind when filling out your application form:

Check eligibility criteria

One of the first things you need to do when applying for a credit card with bad credit is to check the eligibility criteria. Many providers in the UK today offer credit cards that are specific for consumers like you. Your job is to ensure that you’re applying for the right type of card. There are cards that are ideal for people with poor credit rating and there are cards that are more suitable for people with little to no credit history. Make sure you’re eligible for the credit card type so you can move on to the next step.

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Compare credit limits

When choosing between credit card offers for people with bad credit, one way to narrow down your options is to look at the credit limits. Most providers will offer you max credit limits between £1,000 and £1,500. There are options to increase the credit limit up to £3,500 if you’re eligible. There are also options with even more modest credit limits. Some deals offer a low credit limit of £100 to £300 to make it easier for users to manage their credit cards. Low credit limit cards are perfect if you’re just starting out trying to improve your credit score.

Compare representative APRs

Credit cards, in most cases, already have steep interest rates. But bad credit credit cards may come with even steeper rates because of the market it caters to. The typical representative APR for this type of credit cards is at around 29.7 to 30%. Other offers are more expensive with rep APR of 35% to 50% or even higher. Because of the high cost, you’d be better off taking extra caution when applying for a credit card for people with bad credit.  Obviously, you’ll have to look for a deal with the lowest representative APR that you’re eligible for to keep the cost within a manageable rate.