How to get a credit card with bad credit

While getting a credit card with bad credit can be challenging, it’s not impossible with the right strategy and understanding of credit card options available to you. 

Bad credit can build up as a result of missed payments on bills or loans, bankruptcy, or even making frequent credit applications within a short space of time. Many credit companies will view people with a poor credit history as “high-risk” borrowers, so will either limit the credit cards that they’re willing to offer or reject applications. That can make it difficult for those with bad credit – or no credit history at all – to pull themselves out of a hole and start piecing together a better credit score.

Here we’ll explore ways to break this loop of bad credit, and not only get a credit card but start to climb the credit score ladder towards financial stability. 

1. Get your credit report

The first step towards getting a credit card with bad credit is to understand your current credit rating. You can get a free copy of your credit report from major credit rating agencies in the UK like Experian, TransUnion or Equifax. They’ll tell you your credit rating score, typically between 0 and 999 in the UK.

Anything below 560 is generally viewed by lenders as being a bad credit score, although a credit rating in the 560-700 range may also see your credit options limited by those companies.

2. Look into credit builder cards

If you’ve got bad credit but need a credit card, your options are limited but not nonexistent. There are specialist credit builder cards designed for people with low credit scores. By getting one and using it regularly – and paying off your bills in a timely manner – your credit score will automatically start to improve.

Be aware that credit builder cards typically have low credit limits and high APR when you first take them out. But by meeting repayments on time and staying under your credit limit, your credit rating will rise and you may find that you can get approved for a higher credit limit within six months.

3. Get Curve Flex 

Curve Flex is a virtual credit line that exists within your Curve digital wallet. With a high acceptance rate, it's a great option for people with bad credit looking to build their credit score. You can start with a low £250 credit limit to help you responsibly build up credit while mitigating the risk of ending up in debt. Download the Curve Wallet app and apply for Curve Flex with no risk to your credit score. 

4. Improve your credit score

As we’ve seen, the lower your credit score, the harder it is to get credit. But while you can explore options like Credit Builder cards, there are a few things you can do right away that will all contribute to boosting your credit score and making it easier to get a credit card. 

• Get on the electoral roll: registering to vote provides proof of your address and is one of the things that lenders check when determining your credit score. It’s free and easy through the Government’s site.

• Check that your credit report is accurate: double-check the credit report you requested from Experian, TransUnion or Equifax. Is there an unsettled bill on there that you know you paid in full and on time? Let the company know as soon as possible and your credit score will get a boost.

• Pay your bills on time: paying off bills like gas, electricity and water in a timely fashion is one of the top ways to improve your credit score.

• Avoid making multiple applications: lots of credit card applications in a short space of time can give credit card companies reason to believe that you’re a risky borrower, and 

5. Pre-apply for credit cards

Some credit card providers, along with independent financial advice websites, offer eligibility checkers to see if you’re likely to be accepted for one of those cards. By filling in just a few details you’ll be told the likelihood of acceptance, without going through a formal application process.

Because you’re “pre-applying”, these soft searches don’t affect your credit score in the way that making multiple credit applications would. While the results are not guaranteed to reflect what a card provider may offer you, they do provide a great guide and can help you eliminate needless applications for cards for which you are highly unlikely to be accepted.

6. Clear your existing debt

Already struggling with credit card debt? A balance transfer card allows you to transfer outstanding balances from high-interest credit cards to a new card with a lower introductory interest rate—often even 0% APR for a set period. This means that while you work on paying down your principal balance, less of your money is going toward interest payments. The key is to use the introductory period wisely and pay off as much of the debt as possible before the rate resets. Bad credit doesn’t mean you can’t get a credit card

Bad credit doesn’t mean you can’t get a credit card

Bad credit limits your credit card options, but doesn’t mean you’re out of the running. By understanding and building towards a better credit rating, as well as making use of credit builder cards, you too can receive the benefits of having a credit card. With every step up the credit rating ladder, you’ll open up the possibility of further credit options and financial products, opening up new opportunities to manage your money more efficiently.

Download the Curve Wallet app and apply for a Flex credit card with no risk to your credit score. Even with a bad credit score, you are likely to be accepted for a small credit limit, which you can use to improve your score and you can increase your credit limit over time.