Poor Credit Rating Cards Information Library

POOR CREDIT RATING CARDS

The credit card for all financial backgrounds – find out more below.

What is a Poor Credit Rating Card?

Getting a credit card seems to be harder every day. With lenders becoming stricter than ever and turning away customers or hiking their interest rates, the options seem to be running out.

But there is a special credit card designed specially for people with a weak credit rating – the poor credit rating card! Whether you have a low income, financial problems or even no credit history, a poor credit rating card can come to the rescue!

Where can I get one?

You'll find plenty of poor credit rating cards on our site – just look through the dedicated comparison page.

You'll see names you might recognize such as Capital One, and ones you may not have heard of too. Take some time to compare what each company offers – what rate is charged, and are there any special features?

What's the Difference to a Normal Credit Card?

Poor credit rating cards and regular credit cards are very similar – they are issued with Visa® or MasterCard®, have the same security features and the functions are the same:

• Receive a credit limit
• Pay interest on your borrowing
• Pay monthly bills to cover your purchases
• Balance transfer/purchase periods offered

The main difference with a poor credit rating card is that the lender might start you off on a lower credit limit – this is because they want to make sure you can meet your monthly payments. If you are good at keeping up with your payments the limit might increase.

The interest (or APR) might be a bit higher than on some regular or exclusive credit cards, but this is because the lender is accounting for a higher risk factor. Unfortunately, people with a weak credit rating are seen as a higher risk to the lender.

What are the Benefits?

A poor rating credit cards gives people who may be refused for 'regular' credit products a chance to get what they want. It can be tiresome being seen as 'unsuitable' for credit cards and with a poor rating credit card a weak credit sore needn't stand in the way.

Many cards carry special features which are worth checking out – such as a credit building facility. This allows the cardholder to improve their credit rating based on their repayment history on this card. In other words, if you keep up with your repayments you can improve your future chances of borrowing.

Some cards will raise your credit limit if you are on time with repayments.

What are the Risks?

Before you take any type of credit card or loan, it is worth considering some of the risks. Think about whether you can really afford to take on a credit card. Will you be able to pay the monthly card bill? Will you spend more than you can actually pay for?

Remember that if you fail to meet your payments, you will only accrue more interest and fall into debt. This could weigh heavy on your credit rating and damage your hope of borrowing in the future.

If you already have a poor credit rating, it is especially wise to consider all the options before taking a loan or credit product.