When reviewing credit cards for bad credit, UK consumers should not overlook the Granite Visa credit card. With a credit limit of up to £500, this card was designed for people with bad credit.

It features a 34.9 percent representative variable APR and the ability to increase the credit limit as early as the fourth statement. This card also includes a rewards program, a feature not found with many bad credit cards.

Unlike many credit rebuilder cards, the Granite card has no annual fee and consumers with CCJs may qualify. An up to 56-day interest free period makes it easier for cardholders to repay outstanding balances without incurring interest charges.

By staying within their credit limit, making payments on time, and limiting other debt, cardholders may qualify for credit limit increases every four months, to a maximum of £3,000.

Fraud and identity theft have become major concerns in the UK. Granite is one of the bad credit credit cards that features free fraud monitoring and chip and PIN technology. Since it is Visa card, it is accepted throughout the UK and abroad and can be used to make purchases online and over the telephone.

The Granite customers service call center is located in the UK for convenience.

Granite Rewards includes exclusive deals from leading retailers in the UK. Participating retailers offer a percentage or money off discount and cardholders are entitled to unlimited rewards. Though new rewards are added each week, some are only available for a limited time so cardholders should visit the Rewards site frequently.

With many more UK consumers experiencing credit issues, credit cards for bad credit are becoming more popular. With bad credit cards, UK consumers can improve their credit history by spending responsibly.

The Granite card is unique because it features a rewards program commonly only offered with conventional credit cards.

Brits continue to use good and bad credit credit cards to meet financial needs, according to the latest data from the Bank of England. The credit card lending level was unchanged during December 2011 and was 2.4 higher than the December 2010 figure.

Whether their credit is good or bad, Brits seem to consider credit cards to be popular financial management tools.

Credit cards for bad credit can help repair the credit score. By using these responsibly, consumers show prospective lenders that they can manage their finances. Cardholders should slowly build their credit history by spending less than they earn and paying the credit card balance in full each month, reducing the amount of interest charged.

Paying more than the monthly minimum indicates a stable financial situation. Carrying this practice over to outgoings like the mortgage and car payment makes the individual look even better.

In this time of economic uncertainty, many Brits are trying to create a secure financial situation to keep themselves out of debt.

The Bank of England also reported that the UK is still a nation of savers. A study recently commissioned by Lloyds indicates that the proportion of disposable income put toward savings has been dropping during the past ten years.

However, it managed to recover to a level of seven percent during the recent recession. Even with the cost of living increase greater than most savings account interest rates, UK consumers have made savings a priority.

Though this is commendable, UK savings rates are much lower than those of other countries. The typical UK household saves and invests £5,000, on average. German households save more than £8,600 and households in urban China save nearly half of their disposable income, an equivalent of £19,300.

To keep pace, Brits may want to limit their credit card spending and do some more saving.

The level of fraud, including misuse of good and bad credit credit cards, increased during 2011, reaching the highest figure on record. This troubling trend was revealed in the latest report from nonprofit fraud prevention organization CIFAS.

There was a nine percent increase in the overall fraud level and a nearly one-fifth increase in fraudulent use of a credit card, mobile phone, or bank account.

During 2011, CIFAS members reported the most instances of fraud, over 236,500. Identity fraud was involved in more than 48 percent of these cases. Fraudulent use of identifying information increased by 10 percent in the UK between 2010 and 2011.

This trend is not limited to the region, as identity theft is a global issue.

The findings also revealed an 18 percent increase in facility takeover fraud, which occurs when an unauthorized individual accesses a bank or credit card account and uses it fraudulently. In a five-year period, facility takeover fraud has increased by almost 300 percent.

Though some of the activities are committed by organized criminal groups, others are committed by people in dire financial situations.

Experts point to ongoing economic uncertainty as one reason for increasing levels of fraud. As personal financial situations are affected by future austerity measures, economic crimes like these will remain a threat.

CIFAS Communications Manager Richard Hurley warned consumers to protect their personal data. Whether they have good or bad credit cards, UK consumers should guard their account information.

Consumers should not provide credit card details and other financial information to websites when they are using smartphones or public Wi-Fi hotspots. After checking their credit card and bank accounts online, they should log off of the sites.

Credit card holders should also be alert to phishing emails that direct them to a seemingly legitimate website that requests credit card details.

There are many things to think about when moving into a new home. For most UK homebuyers, protecting their credit is not one of them. Sure, they took steps to improve their credit score in order to get a mortgage.

After securing it, most people think the financial headaches are behind them. Little do they know that relocating may have a negative impact on their credit rating.

Shortly after relocating, some consumers find themselves qualifying only for bad credit credit cards and become concerned. The simple act of notifying parties of the address change can prevent their identity from being stolen and subsequent credit damage. Approximately 534,000 UK residents move each year but only half of them have their mail redirected.

Credit card company Aqua has made things easier by releasing a graphic that helps relocators understand how a move can affect their credit rating.

It also provides steps that home movers can take to limit credit damage. Included in the information is a reminder to notify the DVLA, utility companies, and insurance providers and other financial contacts of the address change.

Aqua also provides instructions on requesting postal mail redirection with Royal Mail for a minimum of one year, an important step in reducing the risk of identity fraud.

This service costs £40.85 for a year and takes just five days to go into effect. Relocators can apply for mail redirection through Royal Mail online or over the telephone.

The more times an individual moves within a short period, the greater the impact on the credit rating. Lenders look at number of relocations when making credit approval decisions.

By making sure they appear on the electoral roll for each address of residence, consumers decrease the likelihood of having to resort to credit cards for bad credit for needed financing.

If your credit is squeaky clean, friends or family members may ask you to serve as cosigner on their credit card application. Think twice before entering this arrangement. The credit rating of the other person may improve, while yours is negatively affected.

There are alternatives to serving as a cosigner and these should be explored.

By cosigning a credit card application, a person agrees to share responsibility for balance repayment. Cosigners help others with bad credit or no credit get a card they cannot get on their own. The cosigner takes on the most risk in this arrangement.

If the other person defaults on repayment, creditors go after the cosigner. The debt becomes his or hers and will appear on the credit report.

Cosigners have little control in this situation because they cannot limit the amount of spending the person does. They also cannot close the credit card account if spending gets out of control. Before agreeing to cosign, a person should have a serious conversation with the primary applicant.

Both parties should agree on the credit limit. This amount should be affordable for the cosigner to repay in the event of default.

Debt accumulated by the primary cardholder impacts the cosigner. If a high credit limit is chosen, this could affect the credit utilization ratio and lower the credit score of the cosigner. Once a reasonable credit limit is agreed upon, a contract should be drafted and signed by both parties.

Though this document is not legally binding, it outlines what happens following default.

This whole situation can get very uncomfortable so luckily, there are alternatives. The individual may qualify for credit cards for bad credit without needing a cosigner. Bad credit credit cards feature high interest rates and limited lines of credit but their responsible use helps credit-impaired individuals improve their credit score.

When applying for a credit card, bad credit can be a nail in the coffin. Cardholders can expect to pay sky-high interest rates, if they are even approved. Those with the worst credit rating will only qualify for credit cards for bad credit. These feature even higher APRs and very low credit limits.

The Barclaycard Initial is trying to separate itself from this category by offering a lower rate.

Variable representative APR for this card is currently 29.9 percent for both purchases and cash advances. Other bad credit cards UK consumers will find feature an APR of 34.9 percent or higher. Barclaycard Initial makes a great first credit card or credit rebuilder card.

Consumers who have lived in the UK for at least two years can apply online.

Credit limit ranges from £250 to £1,000 so people with credit issues can control their spending. People with an IVA or CCJ within the last five years or have been declared bankrupt will not qualify. Those who are on the electoral roll at their current address, earn over £10,000 annually, are 18 years old, and are new Barclaycard customers stand a good chance of being approved, even if their credit history is limited or blemished.

Paperless statements are an automatic feature of this card, allowing cardholders to manage their account online. Free text reminders can be established as an alert five days before a payment is due. Purchases of £15 or less can be made with contactless payments, the latest in credit card payment technology.

Barclaycard Initial even has benefits, which most bad credit credit cards do not offer. With the Barclaycard Freedom program, cardholders earn Reward Money equivalent to 0.5 or one percent of the value of their purchases from participating retailers.

Access to concert tickets, live music sessions, reviews, and news is delivered by Barclaycard Unwind.

If recent credit card applications have been rejected due to blemished credit history, consider bad credit credit cards. Card issuers rely heavily on the credit report when making their approval decision. Any negative marks are likely to result in rejection.

The good news is that UK consumers can qualify for bad credit cards and use these to repair their credit rating.

Before jumping into this arrangement, there are several things to understand. Credit cards for bad credit usually feature a high interest rate. Lenders want to be compensated for the chance they are taking when offering the card to a high-risk individual.

Some issuers also require an initial deposit. Like other credit cards, additional charges apply when payments are late.

Through responsible use of bad credit cards, UK consumers can improve their credit score. This requires taking a realistic view of how much can be afforded each month. The card should be used only when necessary and monthly charges should not exceed what can be repaid within that period.

The billing address should be the same as the voting registry address to ensure the credit rating benefits are realized.

Many companies offer bad credit credit cards but not all are reputable. Some take advantage of desperate people who do not qualify for other cards. Consumers should do in-depth research regarding the issuing company. They should also compare different cards in terms of interest rates and cash advance, late payment, and balance transfer fees.

With this type of credit card, bad credit means paying a higher interest rate. However, it can also mean starting on the road to an improved credit score. Selecting a reputable card with reasonable interest and fees and repaying balances on time are the keys to success with this approach.

After six months to a year, cards with lower interest rates may become an option.

Santander Credit Cards recently reported that average UK credit card spending declined four percent during 2011. Though the number of transactions increased by one percent, the monetary value of these transactions declined. The current economy affected luxury spending in particular, with airline charges down nine percent and travel agency purchases experiencing a 13 percent decline.

Toy and sporting goods stores witnessed the largest decline in credit card spending, a 24 percent decrease. Spending at department stores dropped by 11 percent. During the same period, some retailers and service providers experienced an increase in credit card spending.

Purchases made with credit increased by four percent at bars and restaurants. Mail order businesses saw a 22 percent increase in transactions, representing an eight percent increase in spending.

Santander Cards managing director Callum Gibson said the results were not surprising. Reductions in spending on non-essentials are typical during a struggling economy. What was unexpected was the increase in number of transactions. During 2011, consumers used good and bad credit credit cards more frequently.

This may be an indicator of just how cash-strapped many UK consumers are during these financially difficult times.

Annie Shaw, editor at CashQuestions, recently commented that credit cards are effective tools for financial management. As long as cardholders can afford to pay the balances in full each month, that is. Some consumers with poor credit scores use credit cards for bad credit to correct their situation, charging small amounts each month and repaying the balance before interest is imposed.

The Post Office predicts that tightened budgets will lead to a significant increase in credit card use during January. It expects over one-third of UK cardholders to pay for everyday expenses with their cards. Over two million Brits report they will charge more on good and bad credit cards this January than last.

Even most credit cards for bad credit come with some restrictions. People with poor credit scores may qualify, but those who have credit blemishes like defaults or CCJs are often rejected.

These consumers can now get the credit they need with the Granite Visa card from Vanquis Bank. This card helps people with past CCJs begin rebuilding their credit score.

The Granite card offers an initial credit limit of up to £500, helping cardholders to control their spending. Consumers who use the card responsibly may receive credit limit increases every four months until their limit reaches £3,000.

After completing an online application, an instant decision is provided. No waiting for an answer means no need to apply for other cards.

Granite currently features a 34.9 percent variable representative APR. For someone whose credit history contains a CCJ, this is a reasonable rate to pay until the credit rating improves.

Granite offers a benefit that many bad credit cards do not- a rewards program that features thousands of excellent discounts with top retailers.

This card carries no annual fee and one additional cardholder is permitted. An interest-free period of up to 56 days is provided for purchases and free fraud monitoring is included to warn of suspicious use.

Cardholders make themselves eligible for the credit limit increase by making payments on time, staying within their credit limit, and limiting other forms of debt.

Granite Visa is a convenient card to use for telephone and online purchases. It features PIN and chip technology as an added security measure.

As a Visa card, it is widely accepted both within the UK and abroad. With this type of credit card, bad credit is not a restricting factor.

Using the Granite card wisely may help improve the credit score within as short as one year.

In 2011, UK consumers used their debit and credit cards, while check and cash payments declined. Use of good and bad credit credit cards remained steady in number and value of purchases.

During the third quarter of 2011, both the value and number of debit card purchases increased by more than 12 percent compared to third quarter 2010.

Experts predict little change in the use of bad credit cards during 2012 because consumers will try to avoid amassing large debts.

Those with good credit are not expected to increase charges either and both groups will make an effort to repay balances quicker.

If a recession does resurface during 2012, cardholders are expected to reduce their spending and take additional steps to decrease their debt.

With their attention set on risk, credit card issuers will continue to increase interest rates. Throughout the financial crisis, average interest rates on credit cards increased, reaching over 19 percent by May 2011.

During the second half of the year, rates plateaued and then slightly decreased. If unemployment levels continue to increase during 2012, providers are expected to increase interest rates due to the threat of additional account defaults.

Consumers with good credit have benefited from stiff competition, being offered longer interest-free periods for balance transfers. Both Halifax and Barclays are currently offering 22 months free of interest for transferred balances.

However, experts predict that some of the most competitive offers may become history in 2012 as providers attempt to recoup costs.

More UK consumers with both good and bad credit cards are expected to use their cell phones to make contactless payments.

According to the UK Cards Association, card providers and operators of mobile networks will provide smartphone apps for making payments directly from a credit or debit account.

Soon, cell phones will eliminate the need for an actual credit card, said the association.