Poor Credit History Credit Cards
These cards are designed for people with a chequered past when it comes to borrowing – for example, if you have missed or made late payments in the past, or if you have a County Court Judgment (CCJ) against you.
They are also useful for people who have not borrowed money before, and who want to build a credit history from scratch. This type of card is also known as a ‘Credit Builder’.
Because you will be considered a high borrowing risk, these cards come with low credit limits and sky-high rates of interest (up to 40% APR) so should be treated with extreme caution. They are also unlikely to have any perks.
Good for: People who want to demonstrate they can use credit cards responsibly, and clear the balance on the card every month. If you operate your card in this way, you may eventually become eligible for a more competitive credit card deal.
Bad for: Everyone else. There is no benefit to having one unless your borrowing history leaves you with no alternative. And even then, if you can’t be 100% sure that you can clear the balance every month, these cards should be avoided like the plague. Paying nearly 40% interest on another debt will only make your credit problems worse.
