Adverse credit or bad credit is caused by missed or late payments on credit agreements, including loan default. Those with bad credit, as well as the self-employed, are able to get traditional credit cards (subject to status) and pre-paid credit cards.
The Bad Credit Capital One Classic Visa Credit Card
The Capital One Visa credit card is suitable for students, the self-employed, people with a minimal credit history or those with bad credit. The maximum credit limit is currently £2,500. The Capital One card currently charges 34.9% APR, although this is the lowest of the main adverse credit card providers. If the credit card is managed prudently, the credit limit may be increased after just 4 months.
Aqua Visa Credit Card
The Aqua visa credit card has a credit limit of up to £2,200 for bad credit customers, but charges a high APR of 35.9% on any outstanding balance. The Aqua Visa credit card imposes no annual management fee. Those that pay off the balance in-full each month can benefit from up to 51 days interest-free credit.
Vanquis Credit Card
The Vanquis credit card charges 39.9% APR to bad credit customers, but doesn't charge an annual fee. The credit limit provided is based on affordability. The high APR is only an issue for those that make the minimum monthly payment. A generous 56 days interest-free credit is provided, which can be particularly helpful for the self-employed who have inconsistent revenue streams.
Prevent Financial Difficulties with a Pre-Paid Credit Card
A pre-paid credit card looks and performs the exact same way as a conventional one. The main difference is that there is no credit limit as the user loads the card with their own money. The absence of a credit limit means that a pre-paid credit card is suitable for those with a bad credit rating, people with a minimal credit history, as well as the self-employed.
The pre-paid credit card provider makes money from an annual fee and/or from taking a modest percentage of the money loaded on to the credit card. The T&C's need to be checked in order to identify the most suitable pre-paid credit card as they all have different charges.
Those that have a tendency to make only the minimum monthly payment on credit card debt can benefit substantially from a pre-paid credit card. Using a pre-paid credit card helps a user to avoid credit card debt, financial difficulties and high levels of personal debt.
Bad credit will place a restriction on the range of credit cards available, but it isn't an insurmountable obstacle. A pre-paid credit card is most suitable for people that find budgeting difficult and struggle with financial difficulties. A bad credit traditional credit card is suitable for those seeking to re-build their credit rating who intend to pay-off their credit card balance in full each month.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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