Credit Card Guides

Steps to take if you have bad credit

Steps to take if you have bad credit or do not meet application requirements:

If you are considering your credit card options and have a low credit score, there are some sensible steps you can take to improve your chances of success. It’s important to note that credit card issuers have varying requirements depending on the deal offered.

Some cards have very good deals for certain cards, such as 0% purchase cards, which will be only available to those that have a good credit score. There are other options with deals that have higher interest rates or stricter terms and conditions, and while these might not be as appealing as the better cards, they can be a useful stopgap or stepping-stone to accessing better credit card options in the future.

You should also bear in mind that it is not only dependent on your credit score, there are also other factors that could negatively affect your chances:

  • Bankruptcy or County Court Judgements against your name.
  • Too many recent credit applications.
  • Too much available credit.
  • Too little credit history.
  • A recent change of job or house.
  • Being self-employed or having low income.
  • Not being registered to vote.

There are steps you can take to improve your credit score, as well as prudent steps to follow when applying that could increase your chances.

If these measures don’t increase your chances of applying for one of the better cards sufficiently, you can always opt to go for a credit card for bad credit. These have higher interest rates as mentioned, but the main thing to keep in mind is that if you make the repayments on time then you will have an extra source of funds with no increasing debt and also have a way of increasing your credit score steadily. Furthermore, they still avail of the extensive payment protection offered with all credit cards.

There are even credit cards for bad credit that have some of the perks of the better cards, like interest free periods on purchases and sometimes even rewards for spending. The main thing to bear in mind is that there is a market for every customer with regards to credit cards; your credit score and circumstances will be the determinants of what you are offered, but even a less-than-ideal credit card offer can be a stepping stone to better offers in future. And there is always the option of holding off on applying until you can improve your score sufficiently.

With the broad range of offerings on the market these days there will always be options, and as long as you manage your applications properly and follow best practices your options will improve.