Can I get a credit card with poor credit?
If you’ve been refused credit elsewhere it may be because you have a bad credit rating. Your poor credit rating could be impaired for a variety of different reasons, for example if a few setbacks caused you to miss payments on other debts and a default was registered on your credit history this will have affected your credit score.
However, a poor credit rating today does not mean you can never access credit. It is possible to take steps today towards rebuilding a credit rating with Vanquis Bank. A Vanquis Bank credit card gives people with bad credit access to credit now. If used responsibly, a credit card for bad credit may help with improving your credit rating for the future.
Vanquis Bank is a UK based credit card company that has provided credit card facilities to over 3.5 million people so far. (correct as of September 2017)
Vanquis offers an easy to use credit card that may be available for people with bad credit history.
Why do I have a bad credit rating?
When you apply for credit, your application will typically be checked against the records held by credit reference agencies such as Call Credit, Experian and Equifax.
These checks let a lender know whether a person has missed credit card payments, had county court judgments (CCJs) for non-payment of bills or debts (including credit cards) or been declared bankrupt.
It’s when a person is rejected for credit that they usually realise that they have a bad credit rating.
A person typically has bad credit because:
- They may not have managed credit responsibly in the past, having missed payments or made payments late
- They have gone gone over their limit on credit cards, store cards or other credit accounts
- Missed payments on mortgages or other loans
- Had a CCJ, bankruptcy or Individual Voluntary Arrangement (IVA) against their name in the last six years
In addition to the above factors, it can be difficult to get credit if a person has:
- Low household income
- Moved home often or recently moved to the UK so the lender cannot verify address details
- Not registered on the electoral roll
This may mean that a person’s access to credit is limited. At Vanquis we may be able to help, we provide people with bad credit the opportunity to rebuild their credit rating. Check if you are eligible for a Vanquis credit card today.
The extent of bad credit in the UK
A bad credit rating can be a result of careless financial management but is often a sad consequence of events that are beyond a person’s control such as redundancy, bereavement or divorce.
According to The Money Charity, in July 2017:
- Outstanding unsecured consumer credit amounted to £199.7 billion
- Average UK consumer credit debt per household was £7,370
- The average amount owed by each UK adult (including mortgages) was £29,698, about 113% of average earnings
As Britain’s economy has struggled, the potential for debts to turn into a bad credit history has increased. The Money Charity found that:
- 1,000 people a day reported they had become redundant between February to April 2017.
- 248 people were declared insolvent or bankrupt every day.
- 3,321 Consumer County Court Judgments (CCJs) were issued every day, with an average value of £1,495.
- The Citizens Advice Bureaux in England and Wales dealt with 3,473 new debt problems every working day during April 2017.
Unfortunately, as a result of these developments, more people suffer from bad credit, or a bad credit history. If you are looking to rebuild your credit, Vanquis may be able to help, even if other credit card providers have refused your application in the past.
Apply for a credit card for bad credit online and start rebuilding your credit today.
Main measures to repair your bad credit rating
Unfortunately, many people do not realise the importance of a good credit history until it is too late with the consequence that they are turned down for loans, mortgages and credit cards or not offered better terms.
However, if you have a bad or poor credit history there are steps you can take to start improving the situation.
Steps to take to improve your credit:
- Read the Bad Credit History guide to learn what you can do if you have bad credit history.
- Carrying out a credit check with a Credit Reference Agency to understand your credit position.
- Assess your income and expenditure to understand how you can reduce your costs and see how much money you have available.
- Prepare a budget and carefully manage your expenses.
- Collect all the bills and outgoings that must be paid and diarise when to pay these and/or set up standing orders to be sure not to miss any payment deadlines.