A credit cards for bad credit uk is designed for people with a low score and a bad credit history. These cards tend to have a higher interest rate and lower borrowing limits than traditional credit cards. This is to help you build up a good credit rating, while also limiting your risk to the lender.
What is the lowest credit card score?
Getting a credit card for bad credit can be a great way to start rebuilding your credit. However, you need to make sure you use the card responsibly. You should always keep your balance below your credit limit, and make your payments on time each month. Doing so can help improve your credit rating, while avoiding late payment fees.
Bad credit can affect your ability to get approved for new credit, including conventional credit cards. You may find it difficult to apply for a mobile phone contract or broadband. Using a credit card for bad credit can help you repair your credit, but you need to keep track of your credit score to ensure you are taking the right steps.
The Financial Conduct Authority (FCA) has introduced measures to help struggling cardholders. For example, it allows you to freeze your repayments if you are affected. It is important to note that freezing your repayments will not harm your credit history, but will give you more time to think about your situation.
When comparing credit cards for bad credit, it is important to pay attention to annual fees. If you are able to find a card without an annual fee, you may want to consider it.