Credit Cards for Bad Credit
Looking for a credit card for bad credit? If you have poor credit, a bad credit card may help you. At Lending Stream, we offer short term loans that may be a better alternative credit solution.
Representative Example: Given a Representative APR of 1271%, if you borrow £300 over 6 months at , you would owe 6 equal repayments of £96.39. You will repay £578.36 in total.
Not all applications will be approved for a loan. An offer of credit is subject to status and affordability checks.
Representative Example: Given a Representative APR of 1271%, if you borrow £300 over 6 months at , you would owe 6 equal repayments of £96.39. You will repay £578.36 in total.
Not all applications will be approved for a loan. An offer of credit is subject to status and affordability checks.
Why choose Lending Stream?
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Lending Stream is FCA Authorised
Lending Stream has been helping customers in the UK since 2008. Since then, we have helped over half a million people with their financial needs by lending over 2.5 million loans. We’re an FCA-authorised and regulated direct lender, with authorisation number 689378. Responsible lending is our biggest priority, and we want to ensure our customers’ experience is great.
We believe in ensuring that you are fully informed about the costs, fees, and repayment terms of our loans. To achieve this, we have taken great care to present all charges, including interest rates and fees, upfront. There are no hidden costs or unwelcome surprises – everything is clear and easy to understand.
What are credit cards for bad credit?
Credit cards for bad credit are aimed at people with a poor credit history. Sometimes known as credit builder cards, credit cards for bad credit often have low borrowing limits and high interest rates. These credit cards can provide an opportunity for those with poor credit scores or limited credit history to build their credit score over time. You could then qualify for better deals in future.
While it might be difficult to get a traditional credit card with a bad credit score, these specialised cards can be a good alternative.
Why do I have bad credit?
Having a bad or low credit score can be frustrating, but it’s important to understand why you have a bad credit score:
- Missed or late payments: Payment history plays a significant role in determining your credit score. If you have a history of missed repayments or late repayments on loans, credit cards, or any other debts, it can make your credit score worse.
- High credit utilisation ratio: Your credit utilisation rate is the percentage of available credit that you’re using on your credit cards and other lines of credit. To keep it at a ‘good’ level, you should be trying to keep it under 30%.
- Defaulting on loans: Defaulting on loans can have a negative effect on your credit report. It can give the main credit reference agencies a view that you are not a responsible borrower.
- Bankruptcies: Filing for bankruptcy can have a severe impact on your credit score. It is a legal process that declares your inability to repay debts.
There may be more reasons due to which your credit score might have gone down and understanding those reasons can help you to take corrective measures and improve your credit score.
Who needs a bad credit credit card?
If you’ve had trouble obtaining credit in the past or are learning to manage credit responsibly, a bad credit credit card could be an option. Getting a traditional credit card with bad credit can be challenging, and in some cases, a bad credit credit card can help you establish a credit profile.
It can also help you improve your credit history and boost your credit rating, putting you in a position to be considered for better deals like credit limit increases or lower interest rate, etc., in the future.
If you have struggled with financial setbacks such as missed payments, owning too many credit cards, or breaching a credit agreement, this type of credit card could help you prove to lenders that you can manage money responsibly. As long as you meet the monthly repayments.
How do credit cards for bad credit work?
Understanding how credit cards work can help you make informed decisions when comparing different types of credit cards to see your options. These cards are designed for people who may have faced financial difficulties or have limited credit history. They can be a helpful tool for rebuilding your credit rating.
When you apply for a bad credit credit card, the lender reviews your application, conducts credit and affordability checks, and makes a decision. Depending on your chosen lender, the decision might be made in minutes or take longer. If approved, you’ll receive an agreed credit limit.
Your credit limit will depend on your income level and affordability. A good credit score means you have a greater chance of being offered credit. Due to the high risk involved, bad credit credit cards usually come with higher interest rates than traditional credit cards.
Is Lending Stream an alternative to credit cards for bad credit?
Lending Stream doesn’t offer credit cards, but if you need to borrow money short term, we may be able to help you. We offer short term loans that you pay back over 6 months. We understand that traditional lenders often reject loan applications from those with bad credit histories, which is why we even consider lending loans for bad credit. We consider every application and don’t reject your application just based on your credit score.
Plus, unlike some credit card providers, we don’t charge transaction or early repayment fees. Don’t let your bad credit score stop you from applying. We look at more than just your credit score.
How do I check my eligibility for a credit card for bad credit?
To check your eligibility for a credit card for bad credit, start by assessing your credit score, as it gives an overview of your creditworthiness. Then research different lenders and compare offers to find one best suited to you.
It’s important to carefully review the acceptance criteria provided by the credit card issuer. The criteria often include details about income requirements, employment status, and existing debt levels.
To be eligible to apply for a loan with Lending Stream, you must:
- Have a valid bank account in the UK
- Have a valid debit card
- Be at least 18 years old
- Be a UK resident
- Be in regular employment with a monthly income of at least £400
As a direct lender, we’ll look at all your information rather than just your credit report. We believe people are more than just their credit file, which is why we consider people with bad credit too.
How to apply for a credit card with bad credit?
Our online application takes a few minutes to complete. To apply for a loan with us, you need to fill in our online application form, and give us the following information:
- Research your options: Start by exploring different credit cards that cater to individuals with bad credit. Compare their features, interest rates, and lender’s criteria.
- Check eligibility: Use the lender’s online eligibility checker to perform a soft check on your eligibility. This will not affect your credit score and will give you an idea of whether you meet the basic requirements.
- Gather the necessary information: Prepare your financial details, including income, employment status, and monthly expenses, as these will be required during the application process.
- Apply online: Once you’ve chosen a card that matches your needs, go to the lender’s website to complete the credit application. Ensure you fill out all sections accurately to avoid delays.
- Submit and wait: After submitting your application, await the lender’s response.
- Decision: If approved, you’ll receive further instructions from the lender on how to proceed. If declined, consider reviewing your credit report for areas to improve before applying again.
By following these steps, you can apply for a credit card with bad credit online. Remember to choose a card that suits your needs and aligns with your financial goals.
If you are looking to apply for a loan with Lending Stream, you need to fill out our online application form by giving us the following details:
- A few personal details
- The amount which you want to borrow with us
- Provide us with your employment, salary, expenses, and banking details
Once we receive your loan application, we’ll run an affordability and credit check. As a responsible lender, we do this to ensure that you can afford the repayments of your loan agreement. If you’re approved, we’ll send the approved loan amount to your bank in 90 seconds.
What should you look for when choosing a bad credit credit card?
- Interest rates: Look for a card with a lower interest rate to save money on interest. However, keep in mind that many credit cards for bad credit may have higher interest rates.
- Annual fees: Be aware of annual fees, late payment fees, and other charges. Some cards for individuals with bad credit may have higher fees, so compare options to find one with reasonable costs.
- Credit limit: Look for a card with a credit limit that suits your needs. A higher credit limit can help with credit utilisation, an important factor in your credit score, but be cautious not to overspend.
- Reporting to credit bureaus: Ensure the card reports to the major credit bureaus. Regular reporting of your credit activity can help improve your credit score over time. You can ask the lender if they report to the major credit bureaus.
- Repayment method: Choose a card that offers a convenient repayment method. Flexible repayment methods, such as online payment, direct debit, or bank transfer, can help ensure you never miss a payment.
Are credit cards for bad credit different from normal credit cards?
Credit cards for bad credit differ from normal credit cards in several key aspects.
One notable characteristic is the higher interest rates associated with these cards, reflecting the increased risk for lenders. Additionally, credit cards for bad credit often come with higher fees, including annual fees and late payment fees.
It’s crucial for individuals with bad credit to carefully review the terms and conditions of these cards to make informed decisions about their financial management and credit-building strategies.
What other types of credit cards could I use?
- Secured credit cards: A secured credit card requires you to make a security deposit to gain access to credit.
- Student credit cards: These cards are designed specifically for students, making it possible for them to apply for a credit card even with lower credit scores. Also, these cards may offer features like rewards or cashback tailored to their needs.
- Balance transfer cards: If you have existing credit card debt, balance transfer cards allow you to transfer balances from high-interest cards to a new card with a lower interest rate. This can help you consolidate your debt and save on interest.
Advantages of credit cards for bad credit
- Rebuild credit history: These cards offer an opportunity to rebuild your credit history. By using the card responsibly and making timely payments, you can improve your credit score over time.
- Perks and rewards: Some bad credit credit cards come with perks and rewards, such as cashback or discounts. These additional benefits can save you money if you use the card responsibly.
- Financial management: These credit cards can help individuals develop good financial habits. Cardholders can learn about financial management by managing their spending, making regular payments, and staying within their credit limit.
- Emergency fund: A bad credit credit card can serve as a backup emergency fund when you need it the most. It provides access to funds in times of unexpected expenses or emergencies, offering a financial safety net to those with low credit scores.
Disadvantages of credit cards for bad credit
- Higher interest rates: These cards often have higher interest rates than traditional credit cards for individuals with good credit files. Carrying a balance can result in significant interest charges, and if not repaid on time, it can lead to more financial trouble.
- Annual fees: Some lenders may add an annual fee to the cards, reducing the amount of credit available or increasing the overall cost of using the card.
- Lower credit limits: Credit cards for bad credit typically have lower credit limits, which may not be enough to meet your unexpected financial needs.
Contact us
If you already have an account with us, you can log in and chat with us through there. Otherwise, you can get in touch on our contact us page.
If you prefer you can give us a call on 0203 808 4440#. We’re open from 9am to 6pm Monday to Fridays, and 9am to 1pm Saturdays.
FAQs – Credit cards for bad credit
Can I get a credit card with really bad credit?
Yes, it is possible to get a credit card with really bad credit if you meet the lenders criteria and checks. However, your options may be limited, and the cards available to you may have higher interest rates and lower credit limits. It’s important to carefully consider your options.
What’s the easiest credit card to get with bad credit UK?
The easiest credit cards to get with bad credit in the UK are credit builder cards. These are designed for individuals with a less-than-perfect credit history. These cards might come with higher interest rates and lower limits but can help in rebuilding your credit score.
Can I get guaranteed approval for a bad credit credit card?
Guaranteed approval for a bad credit credit card cannot be promised. Every application is assessed on an individual basis. Every lender has their own approval criteria. Factors like income, how many unused credit accounts you have, employment, etc., are considered when considering your application.
Can I get a credit card without a credit check?
You can’t get credit cards with no credit check in the UK. Reputed and authorised lenders will always carry out a credit check as a part of their application process. This helps them to assess whether or not the card is right for you.
What are the best credit cards for bad credit in the UK?
You have some good choices when it comes to best credit cards for bad credit in the UK. The choices include the Capital One Classic Credit Card, Aqua Classic Credit Card, etc. These cards are known for being more accessible to individuals with bad credit, offering an opportunity to build or rebuild a good credit score.