Bad Credit Unsecured Credit Cards Review

The Latest Credit Card Offers From Bad Credit Lenders

Sep 2, 2009

Bad Credit Unsecured Credit Cards, U.S. Government

Do you have an adverse credit history? Looking for a new credit card for poor credit? Read the latest review of bad credit unsecured credit cards.

A bad credit unsecured credit card helps to address the problem of exclusion from mainstream financial products. Whilst the credit limit and APR will reflect the risk posed to a bad credit lender, punctual monthly repayment will help a customer to re-build their credit.

How Does an Adverse Credit History Arise?

A bad credit unsecured credit card is necessary when one or more of the following circumstances apply:

Missed or late payments on a mortgage, credit card, loan and utility bill.
When a creditor takes out a County Court Judgment (CCJ) against the debtor's name.
Not being on the electoral register. Although relatively easy to address, an uncertain address will lead to rejection by the majority of mainstream lenders.
Living at an address where the rate of default is very high.

Capital One Bank Classic Visa

This bad credit unsecured credit card accrues interest at 34.9% APR. The balance will start to accrue interest 56 days after a purchase has been made. However, if the balance is not cleared in-full each month, interest will start to accrue from the date of purchase. A cash advance accrues interest on a daily basis.

The minimum monthly payment is 1% of the outstanding balance or £5, which ever is the greater. Exceeding the credit limit or failing to make payment punctually each month will both incur a charge of £12. This will be added to the outstanding balance.

It is recommended that a bad credit card customer pays back more than the bare minimum each month. Failing to do so will mean that interest payments will accrue quickly; the monthly rate of APR is 2.53%. Pay in full and on-time each month and it is possible to avoid interest payments and re-build credit.

Vanquis Visa Credit Card

This is a suitable credit card for poor credit, charging the customer an average APR of 39.9%. Interest will accrue 56 days after a purchase has been made. Provided that repayment is made in-full each month, no interest will be paid.

Customers of this bad credit lender will be given an affordable credit limit, although the typical rate that the majority of customers are offered is £250. Provided a bad credit card account is managed properly, an increase is possible.

Whilst the Vanquis bad credit unsecured credit card will help to improve a credit rating, it is important to remember than any previous indiscretions will show on a credit report for a period of six years.

A credit card for poor credit will help someone who doesn't have access to traditional lines of credit. Bad credit lenders may be willing to help when others won't. A bad credit lender gives people the opportunity to re-build their credit rating and improve eligibility for mainstream financial products.

Readers who found this article useful may also be interested in bad credit history unsecured loans.

Disclaimer: This article in no way attempts to give legal or tax advice. One should consult a licensed attorney, tax advisor, or other qualified professional before proceeding.

The copyright of the article Bad Credit Unsecured Credit Cards Review in Personal Debt Management is owned by Asa Ghaffar. Permission to republish Bad Credit Unsecured Credit Cards Review in print or online must be granted by the author in writing.