If you have outstanding debts and are not managing to make the payments on them then you are still unlikely to get a bad credit card to help you out.  You really need to be at a point where your debts are paid and you are ready to rebuild your standing with the financial world.  No-one will offer you more credit if you have yet to pay off any old debts.

The idea of getting the bad credit card is to rebuild, and when you get it you’ll realise that it isn’t like any other credit card you’ve had before; you know the ones that got you into this position in the first place!  The bad credit card will not allow you to spend over your means and will insist upon you paying each month by simply putting an interest rate on your balance that would scare anyone into paying on time, every time.  Should you mess it up, you’ll mess it up early and something can be done to stop the problem getting any worse since your credit limit will be very low.  As you pay off more and more of your credit card the higher up your credit rating will go, and perhaps even your available credit limit.

You must however remember to be very careful with this credit card, just as you would if it were any other.

I hear you all say “well that’s easier said than done!”  And right you may well be, but if you are at this point already then you may not be able to save yourself a lot of heartache and headaches in the not too distant future.  The point is that if you are paying only the minimum payment amount on your credit card bill because you can’t afford any more, then you are never going to be able to pay off your balance.  You might think that changing it to another credit card might help, and you’re right, it would, but not enough to pay it off.

The thing you need to do as soon as you get a credit card is only ever spend what you know you will be able to pay at the end of the month when you get paid.  If you’re salary allows you to spend £100 on a shirt then fine, use your credit card, get any loyalty points and whatever from the card, and then pay it back at the end of the month before you have to pay a load of interest!  This way you make your credit card work for you instead of the other way around.

This also serves to improve your credit rating and automatically upgrade you to a larger credit limit!  Be careful of the larger limits though, you might be tempted to spend more than you can afford (this is what they want remember!)

You can get a credit card, even if you’ve had CCJ’s and other nasty things happening to you.  The main difference of course will be the interest rate on these things.  This is primarily to prevent you spending too much again and getting yourself into heavy debt.  You maximum spending limits will be substantially lower and the payments will be made frequently without fail.

Capital one for example will offer you a credit card, and these are quite big players in the credit card business.  You will typically have to meet certain requirements but it won’t be too severe and they often judge each application on an individual basis.  You will need to be 18 or over, be a none bankrupt, be on the electoral roll, have a bank or building society account, and have at least some income; after all, who is going to give you a credit card if you have no income at all.

These cards are designed to give you the opportunity to rebuild your credit rating, and hopefully if they are used correctly they can help enormously.  But again, as with anything on this website, it’s important to compare credit cards first.