What to do if you have bad credit history?

15 Sep

Fortunately, there are credit card providers who won€™t just reject you on the basis of past financial difficulties. If you have been rejected for a standard credit card, you still have options. Bad credit credit cards are aimed at people with a bad credit history who have been refused elsewhere. They are also for people who have little or no credit. You are more likely to get accepted for one of these cards in comparison to standard credit cards and you can use them as you would any credit card as they have all the same features and advantages.

A great thing about these cards is that they are designed to help you improve and rebuild your credit history as many of them have credit rebuilding facilities. They can also be suitable for those who want to build a credit history from scratch. So long as the card is used sensibly it will help you to repair some damage but please remember that this will take some time. Ultimately however, this will put you in a better footing when apply for financial products in the future.

The main drawback are the high interest rates which are likely to be significantly higher than other credit cards. This is because you are presumed to be more of a risk by the card provider due to your credit history, or lack of it. For this reason the credit limit you are given is likely to be lower. As with any credit card you have to make sure you don€™t miss payments which will help you avoid potentially heavy interest charges.