A credit cards for bad credit uk can make it difficult to find the financial products and services you need. It can also negatively impact your finances if you default on loans, miss credit card payments or are the victim of identity theft.
Thankfully, there are credit cards for people with low credit scores that can help you start building credit. These cards offer access to a credit line so you can build your credit history with on-time payments and responsible use.
These cards typically lack rewards like cash back and travel points, but they often include a host of credit-building tools such as free access to your credit report, free credit score monitoring or a credit line increase after you show positive financial behavior. They also have introductory APRs that are much lower than those on the typical credit card.
5 Common Mistakes to Avoid When Applying for a Credit Card with a Low Credit Score
One of the most important steps you can take to improve your credit is to avoid carrying a balance on any credit card. This will not only help you avoid interest charges, but it can prevent your credit limit from getting reduced and your credit utilization ratio from getting higher.
If you do get a credit card, it’s very important to pay it off every month. If you don’t pay it off, you’ll end up paying a lot of money in interest charges.
There are many different credit cards out there, but you should always shop around before applying. At WalletHub, our editors have compared the approval requirements and fees for over 1,500 credit cards, making it easy to find the best card for you.