Anyone with a poor credit history should consider applying for credit cards for bad credit. Taking out additional credit can actually boost the credit rating because responsible use of the card is reported to the credit agencies. When searching for bad credit cards, UK residents should consider the highly recommended Capital One Classic Card.
Capital One is one of the top ten credit card providers in the UK. This lender offers various credit card products compatible with different consumer situations and needs. The Classic Card is intended for people with damaged credit and a low credit score. To keep cardholders from adding to their debt issues, the credit limit is relatively low.
Typical APR for this card is 34.9 percent, which is the price to pay for having bad credit. However, repaying the balance in full each month avoids interest payments, making the APR irrelevant. After several months of on-time repayment, cardholders should begin to see their credit score improve. Once the score is considered good, the individual should qualify for lower-rate credit cards.
To be eligible for a Capital One Classic Card, the applicant must be on the electoral role and at least 18 years old. The person should have some type of credit history, even if this only includes negative events like County Court Judgments and defaults. Someone with no credit history or who has been declared bankrupt within the last 12 month will probably not qualify for this card.
Even bad credit credit cards like this one include benefits. Free purchase protection insurance covers many purchases for loss, theft, or damage for up to 100 days. Also free is Identity Alert from Capital One and Equifax, which provides cardholders with identity protection. In addition, a cardholder can sign up for online account management and add up to three other people to the account.