Poor Rating Credit Cards Compared and Considered

02 July 2009 - Xenia Rainey (Which Way To Pay)


Poor Rating Credit Cards Compared and Considered

It can be a time consuming activity trying to find a credit card that will suit your needs, let alone accept your application.  If, like thousands of other regular citizens, you have had a few problems with your credit rating it can be even harder to find a card.  Most providers have strict criteria for applicants, and sometimes leave customers waiting until the last moment to say that in fact their credit history is not suitable.

Luckily, there is now a good range of credit cards available aimed specifically at people with poor credit ratings, or who may have had CCJs or arrears.  The issuers on these types of cards have more flexible assessment processes when considering applicants and many cards even carry the ability to build up a credit rating.  But which one to choose?  There are many factors you should consider, including the APR rate.  This will always be slightly higher than some other credit card types so do expect this, but shop around some cards have higher rates than others.

So let us compare two of these to see what is on offer.

Capital One Classic Poor Rating Credit Card

Capital One is a well known name among credit card issuers.  Their poor rating credit card is one of a range on their product list, so what are the basics here? 

1. The card is available for students and even those with no credit rating (new migrants)
2. The card allows you to build up your credit rating
3. Of the poor rating credit cards on Which Way To Pay, it has the highest credit limit at 2,500
4. You can build up this limit if you are timely with payments
5. The APR rate is 34.9%

So what do we think?  This card would probably be a good place to start for 'first timers' because of its credit building feature and because it will consider even those who simply have no rating as yet.  It has a clear system and criteria so you know where you stand and the APR, although high, is as to be expected for this type of card.  Moreover, compared to some other poor rating credit cards, this APR rate is actually very reasonable.  This is definitely a card to put in the 'yes' pile.  Now let us look at another poor rating card:

Provident Financial Poor Rating Card

Provident Financial specialise in finding solutions for people who have tricky credit ratings and need to get access to borrowed funds.  This card is in actual fact more a debit than a credit card.  So let us look at the basics:

1. This card is more a loan than a credit card
2. The card limit is 300
3. You cannot go over your limit
4. Ability to build credit rating
5. Rate is 189.2%

Looking at this list, it is easy to note that the APR rate is pretty steep, so worth bearing in mind.  This card works cleverly, allowing the holder to spend as much or as little as they want and at their own pace.  An example card would be 300 paid over 57 weeks.  A weekly repayment of 9 and the total repayable amount would be 513.

The Provident Financial card is unique but essentially it is a loan packaged within a card.  Of the two cards, both have good features worth considering.  While Capital One is a classic credit card with the added bonus of being able to be considered despite a weak (or no) rating and being able to build this up.

If you have had issues with your credit rating, it might still be worth looking at Prepaid Cards as these are easier to control than a regular credit card.

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