Those with bad credit know just how hard it can be to get a new credit card or take advantage of all the big and small financial perks that a good credit standing brings. However, there are certain kinds of credit cards you can get that will help you not just pay down debts, but also improve a bad score.
A bad financial history prevents you from getting a mortgage for your house, applying for a lease, and often getting a car loan – all of which can put a significant strain on everyday life. This is exactly why informing yourself about the best options to get you out of a difficult situation is a crucial initial step to your financial recovery.
To that end, we present some of the best credit cards that bad credit holders in the UK can use to improve their credit history and get out of debt. Below you’ll find cards that come with a number of different perks and terms that should cover most peoples’ needs.
1. Barclaycard Forward Credit Card
If you want to get your very first credit card or just improve your financial history, then Barclaycard Forward might be the best option for you. What’s crucial is that you pay attention to your account and manage it so that your payments are always on time. Those, who use this card for a couple of years, can expect to get their interest rates reduced by as much as 3%. What else do you get from Barclaycard? There’s a credit limit that you can personalize that ranges from £50 to £1,200. Moreover, customers get a zero-percent interest rate for their purchases for the first three months after signing-up. (1)
2. Ocean Finance Credit Card
Anyone who wants to improve a credit card score will do good to sign up for this card. The credit is limited to £1,500 and holders can pay for their purchases quickly and securely, but with a limit of £30. There are some requirements if you want to apply, though: you have to be 18 or older with a history of managing credit and on an electoral roll. But if you are eligible, you’ll find that Ocean Finance has some nice extras. For example, you can manage your account online and not have to go to a bank. Moreover, there’s just one interest rate applied to all your transactions. Finally, you can attach three other cardholders to this account. (2)
3. Marbles Credit Card
Those that need to stay on top of their spending, should consider the Marbles credit card. This company gives you alerts to help you keep your expenses in check. You can also adjust your credit limit between £250 and £1,200. When it comes to costs, if you spend £1,200 right away with a 29.75% variable purchase rate, your variable APR will be 29.7%. What’s more, every three months the bank will review your credit limit and offer you an increase if you need it on your following statement. Another perk of this card is the ability to view all your transactions on the internet and set automatic payment dates. If you wish to apply, you can check whether you qualify quite quickly and easily. (3)
4. Aqua Classic Credit Card
Managing your money with an Aqua Classic credit card is easy and you never run the risk of carrying paper currency around on you. Set the credit limit between £250 and £1,200 and you will be eligible for an increase on your 4th statement. When a credit limit of £1,200 is set, interest and purchases run on a 29.75% variable rate and a variable APR of 29.7%. Holders of the Aqua card have unlimited and free access to credit reports, besides having SMS reminders for payments, and various promotional offers from time to time. Interest-free periods, lasting 48 days, are available as well for standard purchases. (4)
5. Vanquis Classic Credit Card
Finding out whether you qualify for the Vanquis Classic credit card takes just a few minutes of your time and carries no risk with it whatsoever. While you can exceed the £1000 monthly limit, the minimum is set to £150, and when borrowing £1000, you can expect a variable APR of 39.9%. It is possible to increase the limit on your Vanquis Classic credit card only after the 5th statement, but there’s a £4000 maximum upper limit. (5)