UK Bad Credit Credit Card - How To Get One?

A UK bad credit credit card is basically just a credit card that the UK credit card suppliers offer to the people who have bad credit. Now you might think that the credit card providers would be crazy to give people with bad credit credit cards and you are right. However, there is a catch and it has to do with the restrictions on these types of credit cards.

Bad credit credit cards can be classified into 2 categories:

• The first category of UK bad credit credit cards are those credit cards that are secured (and are also known as secured credit cards). These bad credit credit cards require a security, for instance you have to open and maintain a bank account with the credit card provider. The credit limit on your bad credit credit card is calculated as a percentage of the balance you hold in this bank account you have opened. Generally, this is 50-100% of your bank account balance, depending on your credit rating and history.
  
  So, this bad credit credit card enables you to spend the amount you hold in your bank account. Only the way you spend it changes; instead of spending the cash you can use your credit card to spend it. So this bad credit credit card lets you enjoy the convenience and other benefits that are associated with credit cards, even if you do suffer from bad credit.



• The second category of UK bad credit credit cards are a little different from the secured credit cards. Certain credit card providers might realise that the circumstances of some people with bad credit have changed and will issue them with a normal credit card. The problem is that the APR (or interest rate) will be significantly higher than their average APR. An APR of 25%+ is not unheard of when looking at bad credit credit cards.
  
  It can be very difficult to get a credit card when you have bad credit. Although the criteria will be more relaxed when you approach a bad credit credit card provider, not all people with bad credit will be able to get a credit card.

A few companies specialise in bad credit credit cards and spent a lot of time and effort setting up their rules and criteria to give them the maximum profit for the minimum risk. Although the risk of a bad credit credit card is higher than a normal credit card, the profit it can generate for the provider.