Poor Credit? How To Get The Best Credit Card
When your credit score is less than perfect, you’ll be shut out from the top credit card deals. But it’s still possible to get a credit card if your score is under-par. In fact, having one can be useful, both as a tool to rebuild your credit rating and for consumer protection on what you spend.
Cards for bad credit carry much higher representative APRs (annual percentage rates) and should be treated with caution. But, by paying off your balance in full every month, you will avoid paying any interest while restoring your credit rating back to a more convenient level.
Our pick of the best credit cards for bad credit
So what are the best credit cards for bad credit out there? Based on our research (August 2024) this is what we found.
Bear in mind you might not always get the advertised APR. Depending on the severity of your credit problems, the one you are offered could be higher and you may even be turned down altogether.
How have we ranked the cards?
We’ve reviewed cards designed for those with poor credit histories.
In our view, the most important characteristic of these cards is the interest rate charged in the event you are unable to clear your balance. So we have ranked them primarily in that order, putting the card with the lowest representative APRs at the top.
We’ve also considered other factors, such as its eligibility criteria and credit limits.
Bear in mind that some credit-builder cards at the softer end of the spectrum come with initial 0% spending periods which we have not included.
What is a credit builder card?
A credit builder card is another name for a credit card for bad credit. The deals are designed to help people with lower credit scores, who make timely repayments, rebuild their credibility as a borrower.
You can use a credit builder card for everyday spending. But it’s especially important to clear your balance each month if you want to improve your credit score and avoid expensive interest.
While the average representative APR on more competitive credit cards is around 25% (variable) the rates on the cards in our credit builder rankings range from around 30% APR (variable) to almost 35% APR (variable).
And remember you may also be offered a higher APR than the one you see advertised. The rate you’re offered by a lender will depend on your own credit score and your personal financial situation and affordability.
Any interest you accrue is added to your balance. You’ll then pay interest on the original borrowing plus the interest that’s been added. So, repayments can quickly spiral out of control.
What is a bad or poor credit score?
A bad or poor credit score is a red flag for lenders that you’ve either mishandled credit in the past – either by missing payments or exceeding your credit limits – or that you’ve never borrowed money and don’t have a record of how reliable you are as a borrower.
But exactly what constitutes a bad or poor credit score depends on who you ask. Lenders use credit reference agencies, like Experian, Equifax and Transunion, to see how you’ve handled borrowing in the past and each of them use a different points system.
Card providers themselves also have different criteria for various cards and terms depending on your application.
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