Applying for a Credit Card: Bad Credit

Bad credit is becoming a major problem with Britons and as a result this is affecting the way that many of us live. It has been recently reported that the estimated level of debt is around £2 billion which is mainly a result of credit card related debt.

A large majority of “plastic” holders are finding they simply cannot afford to keep the repayments and this explains the large increase of recent bankruptcy and insolvency filings.

Can I apply for a Credit Card with a poor rating?

It has been brought up in the past that people with poor credit ratings should not be penalised just because they represent a percentage of the country that experience monetary problems and therefore it was agreed that a certain number of lenders should be available for people with bad credit who can apply for a credit card.

Unfortunately, a poor credit rating is going to ruin your chances of being able to be choosy with the rate of APR because despite lenders being available for poor rating individuals, the rate of APR will increase as you are seen as a “high risk” customer in terms of keeping up the repayments.

Upon applying for a credit card, it is completely up to you whether or not to accept a higher rate but such a position does leave limited options however, it is not a permanent feature.

If you keep up the repayments for a particular period of time then this will not only boost your credit rate (which will prove essential) but it could also lead to a lower APR rate being offered.

What is the average APR rate?

If you have bad credit and want to apply for a credit card then this will vary but you can expect to pay an average of 27 – 29% APR but this will entirely depend on the lender in question.

Over time this will possibly reduce but you need to be prepared for higher rates, once you keep up to date then the lenders may amend this accordingly based on one’s individual scenario.

Across the internet, you will find several companies which deal specifically with bad credit individuals and more information can be found on this website.