Obtaining Credit When You Have Bad Credit

Credit is a hard thing to come by in the last few months because of the current market.  Those who have poor credit scores suffer the most from these issues.  The UK credit reference agencies such as Experian, Equifax, and Call Credit are going to tell you if you have poor credit.  They keep track of the details of your financial life for the companies you borrow from.  The electoral roll and court records are also going to display information of a financial basis. The court records the county court judgements.  The credit agencies will have this information included in one mass report.  The information is then assessed for risk and a score will tell the story.  When your application data doesn’t fit the correct needs it will be rejected.

There are plenty of reasons a credit score may be called poor.  Usually the poor rating is a mix of financial information in which there are missed or late payments on credit cards, loans, APR agreements, or even house hold bills.  The county court judgements will also have a negative effect on your credit score.  If you haven’t enrolled in the electoral roll this could put a damper on your credit score.  If you are sharing with a person that has poor credit, but your credit is good, you can still be affected because of their financial issues and your link to them.

Sometimes the credit reports will have mistakes on them.  This can be for several reasons including the process they use to get the information.  The best way to make sure they are your records and no mistakes have been made is to pay the 2 pounds to one of the UK credit agencies.  They will then give you a complete report on your financial life as well as past addresses you have lived at.  At this point you can check to make sure that the past financial issues you may have had are removed.  When they become a certain age some issues can be removed or if they have been cleared up they can be taken off.  After you amend the report you should check back in six months to make sure it has been cleared.

Applying for credit cards in a short period of time can be a bad thing if you are applying for more than one.  You should only apply for the card you are sure of getting based on your information.  By applying and cancelling cards that you get you can be lowering your score.

There are bad credit credit cards out there for those in need.  The above information tells you why you might need to apply for them, and now we will look at some cards on the market that are available for the poor to bad credit situation.  These cards are going to have a higher interest rate and no annual fee, but they will be awarded to those with poor credit.

The Barclaycard Initial has an APR of 27.9 percent with an interest free period of 56 days when the bill has been paid on time and in full for a certain period of time.  They do not offer a balance transfer option with this card.  It doesn’t have the fancy options that other cards have, but it can be used as a means to improving credit scores.  There is an internet fraud guarantee programme, online account management, and Nectar Points.

The Capital One Classic has an APR of 29.9 percent.  They have a transfer balance rate of 29.94 percent.  This card doesn’t have an annual fee and they have a limit of 2500 pounds on credit.  You can choose the design of the card, get internet fraud guarantee, and online account management.

Citibank Classic Plus card is another one for poor credit.  They offer an APR of 21.9 percent with a zero percent balance transfer option for three months.  It has 56 days of free interest as well with a limit of 3,000 pounds.  You can have cash advances at a rate of 25.4 percent and a 3 percent fee.

These cards can be the best way to help reinstate your credit.  To improve your credit you should use the card once a month and pay that amount off every month.  The interest is high, but if you pay off the balance you create every month you won’t be charged interest.  This allows the card to report that you are a good customer who isn’t avoiding payments.