Credit cards for poor credit are just like normal credit cards. But they're a good option for people with bad - or non-existent - credit history. They're less likely to reject you because of your bad credit.
As with all credit cards, credit cards for poor credit are a way of borrowing money from a bank. You buy things on a card, like with a debit card. But instead of spending your own money, you're borrowing it. You can pay off what you've spent straight away, or later. If you decide to wait, you might have to pay interest on what you owe. This is how normal credit cards work, and it's exactly the same set up for credit cards for bad credit.
What is a bad credit score?
A credit score is a metric used by loans and credit card providers to judge your eligibility for credit. It is based on your record of paying bills and making debt payments. If you have a bad credit score, it means you may have a history of missing or making late payments.
But having bad credit doesn't necessarily mean you've got a history of late payments, bankruptcy, or mortgage arrears. It could just be that you've never borrowed before, which can make lenders be more cautious in offering you credit.
When you apply for normal credit cards or credit cards for poor credit, the provider gives you a credit score. It's based on your credit report, employment status and how much you earn. The credit score helps them to decide whether to give you a credit card and with what conditions.
If your credit score is low and you need a credit card, you should think about looking at low credit score credit cards, specifically.
What credit card can I get with bad credit?
If you have poor credit, don't panic, as there are lots of credit cards for people with bad credit. Low credit score credit cards are ideal for people who:
haven't borrowed money before
have previously missed payments on their borrowing
have had county court judgments (CCJs) against them
have been bankrupt.
So if, your credit score is low and you need a credit card, you should think about looking at credit cards for low credit.
Business credit cards for bad credit
If you're a business owner and you want to get a credit card with bad credit, your credit history will still be checked. They work just like personal credit cards, but the account's in your company's name.
You can usually borrow more with a business credit card because it's is based on your business income, not just your personal income. There's usually a minimum amount your business will need to earn to qualify. Your business also needs to be registered in the UK. Some cards only accept certain types of company, too.
Credit cards for bad credit and unemployed people
Credit cards for bad credit and unemployed people are not out of the question. You might be surprised to hear that there are still lots of options available to you. The comparison table above shows which cards you might be accepted for, even if you're unemployed with bad credit.
You're likely to pay more interest on credit cards for bad credit and unemployed people, and have a lower credit limit. These cards are sometimes called credit building cards as they help you to build up a credit profile.
How to get credit cards for bad credit
If you're going to apply for credit cards for poor credit, research the best credit cards for bad credit carefully before you choose which to go for.
Here's a step-by-step guide on how to get a credit card with bad credit.
Check the price comparison table at the top of this page, which includes all the best credit cards for people with bad credit.
Filter the table according to your needs. For example, tick to say if you're unemployed, you've missed credit repayments, or you have County Court Judgments (CCJs) against you. It's important to make sure you meet the requirements.
Decide which of the credit cards for low credit looks like the best deal for you.
Click the link on the right-hand side to find out more and get a credit card with bad credit.
Compare the best credit cards for bad credit
When you've run a price comparison by following the step-by-step guide above to find the best credit cards for bad credit, you'll know what your options are. Then it's time to choose which of the credit cards for people with bad credit has the best deal. Here's some advice on choosing a bad credit rating credit card.
Hover over each of the low credit score credit cards in the price comparison to see the criteria you'll need to meet. This covers things like the minimum age and income requirements.
Once you've worked out which credit cards for bad credit you can apply for, look for the one that has the lowest interest rate. The higher the interest rate, the more you'll have to repay each month.
Check your eligibility for a credit card with bad credit
Each credit card has criteria that you need to meet to get approved. This might relate to a minimum age, your income and whether you're a UK resident. There might also be requirements in relation to your history of bankruptcy and CCJs.
You should try to avoid applying for credit cards for poor credit that might reject you. This is because if you have lots of credit searches on your credit report, it can make it even harder to get accepted in the future.
Our eligibility checker can help you find the cards most likely to accept you. You can also use the comparison table of credit cards for bad credit to see if you meet the criteria of each.
Are credit cards for bad credit the same as other credit cards?
Credit cards for low credit are largely the same as other credit cards. But they usually have higher interest rates and smaller credit limits than you'd get if your credit rating was better.