Bad Credit Credit Cards

What is a bad credit credit card?

Bad credit credit cards are aimed at those who have a bad or damaged credit history, and are unsuccessful in standard credit card applications. Bad credit credit cards are specifically designed to help improve your credit scores and will often be available to those who have been turned down for standard credit cards in the past.

What are the benefits?

Although bad credit credit cards are designed for those with credit problems they can also be a great choice for students and those who have never had any credit and therefore have no credit rating at all. These credit cards can help you rebuild your credit rating and improve your credit score.

It is best to use a bad credit credit card to simply to build a credit score and pay the full balance off monthly. This is because they tend to have much higher interest rates than standard cards and additional interest could, over time, greatly increase the amount you owe.

By paying off your balance in full each month and using your card responsibly, you will show that you can manage your credit cards in a sensible manner. Over time you will rebuild your credit rating and be able to successfully apply for a standard credit card, enjoying the benefit of a lower rate of interest.

What are the negatives?

The primary disadvantage of bad credit credit cards is the high interest rates, typically around 30% APR. If you miss a payment, or only repay the minimum amount each month, then this will result in you paying huge amounts of interest.