A Guide to Getting a High-reward Credit Card for People with Bad Credit in the UK
Even people with poor credit scores have different types of credit cards to choose from. With the right approach, you can rebuild your credit while enjoying the benefits of a high-limit credit card. Learn how to find and get a high-limit credit card that matches your financial situation.
What are high limit credit cards for bad credit?
High limit credit cards for bad credit are specifically designed for individuals with low credit scores who need access to higher credit limits. These cards typically offer credit limits ranging from £500 to £2,000, which is considerably higher than the limits offered by traditional secured credit cards. While the limits may not be as high as those available to individuals with excellent credit, they can still provide valuable financial flexibility for those working to rebuild their credit.
What are the benefits of high limit credit cards for bad credit?
One of the primary benefits of high limit credit cards for bad credit is the increased purchasing power they provide. With a higher credit limit, cardholders can make larger purchases or cover unexpected expenses more easily. Additionally, these cards often report to the major credit bureaus, helping users improve their credit scores over time with responsible use. Some cards may also offer rewards programs, cash back, or other perks typically associated with traditional credit cards.
How can you qualify for a high limit credit card with bad credit?
Qualifying for a high limit credit card with bad credit may require meeting specific criteria set by the card issuer. Generally, applicants will need to demonstrate a steady income and may need to provide collateral or a security deposit. Some issuers may also consider factors such as recent credit history improvements or the length of time since any negative credit events occurred. It’s important to carefully review the eligibility requirements for each card before applying.
What types of high limit credit cards are available for bad credit?
There are several types of high limit credit cards available for individuals with bad credit. Secured credit cards require a security deposit, which often becomes the credit limit. Partially secured cards may offer a credit limit higher than the security deposit. Unsecured cards for bad credit don’t require a deposit but may have higher fees and interest rates. Some issuers also offer credit-builder cards, which are designed to help users establish or rebuild their credit history.
How do you compare high limit credit cards for bad credit?
When comparing high limit credit cards for bad credit, consider factors such as the credit limit offered, annual fees, interest rates, and any additional features or benefits. Look for cards that report to all three major credit bureaus to maximize the potential credit-building benefits. It’s also important to review the card’s terms and conditions carefully, paying attention to any hidden fees or restrictions that may apply.
| Card Name | Credit Limit Range | Annual Fee | APR Range |
|---|---|---|---|
| Capital One Platinum Secured | £200 - £1,000 | £0 | 26.99% Variable |
| Vanquis Bank Chrome | £250 - £1,000 | £0 | 39.9% Variable |
| Aqua Advance | £250 - £1,200 | £0 | 34.9% - 59.9% Variable |
| Tesco Bank Foundation Clubcard | £250 - £1,500 | £0 | 27.5% Variable |
| Ocean Credit Card | £200 - £1,500 | £0 | 39.9% Variable |
When considering high limit credit cards for bad credit, it’s crucial to understand that these cards are tools for rebuilding credit and should be used responsibly. While they offer higher limits than typical bad credit cards, the rates and fees may be higher than those of standard credit cards. It’s essential to make payments on time and keep balances low to maximize the credit-building benefits and minimize costs.
The shared information of this article is up-to-date as of the publishing date. For more up-to-date information, please conduct your own research.
