A good news for people with poor credit is that there are increasing number of companies in UK who offer a not so stringent (rather flexible) assessment process which helps them to consider all applications fairly, irrespective of the credit history. Infact there are companies who offer credit cards to people with a poor credit and who have been refused a card in past. Such cards are issued sympathetically by companies to help people improving and rebuilding their credit history.

Credit Limit and Various Charges
The normal credit limit of credit cards issued to people with poor credit varies between £200 and £2,500, with no annual fee. In this case APR (annual percentage rate) remains high but is reduced when card holder starts maintaining a consistent payment history. However, a major disadvantage of credit card for poor credit is the money it costs. The best credit card deals are only open to people who meet the credit scoring requirements set down by the main lenders. People with a poor score are charged a little higher interest rate. Another fact is, even if the card is issued free of cost, there are few charges which are always associated with credit card, which are as follows:

Annual Credit Card Fee: This is a one time payment annually which is charged for proving the service. Usually, most companies issuing credit cards waive off the first year’s charge to attract customers in the competitive credit card business. However, card holder has to pay this fixed annual charge, starting from the second year.

Rate of Interest: This is the most important and significant factor in availing credit card of any company. Rate of Interest is applied on revolving basis which means that if 2 % is the interest levied on your card, on the outstanding balance due each month, the actual rate of interest annually is close to 24% per annum. This means if you pay merely the minimum due each month, you’d be paying an annual interest of almost 25% on the total amount you have spent that year. You can see how it can skyrocket.

APR (Annual Percentage Rate): There are two different schemes on credit cards-variable or fixed. Therefore, before taking card, you must clarify and know the APR on your credit card to make sure you know what plan you are on. This can also help you avail lower interest rates on your card.

Credit card with poor credit: An easy way to improve credit rating
If you have poor credit, you must take it as a warning sign and should immediately start working on improving your credit rating. Because, even if you get credit card or any loan inspite of poor credit, in the long run you remain in loss due to payment of higher interest rate. A credit card with poor credit rating provides you a good chance to improve your credit record. This can be done, if you ensure you repay each month so there is no charge, after a year you will have built sufficient credit history to enable you to move to a card with a more competitive rate of interest. If used sensibly a credit card can help you strengthen or rebuild your credit rating.

If you have a poor credit you are not going to get the best credit card rates compared to the options available to someone with good credit. However, now a poor credit does not stop companies offering credit cards to people with poor credit. Once, a card is issued to you despite a poor credit, you must take is as a chance to improve your credit record, which can be done my maintaining consistent payments.