It used to be the case that people without good credit had a good choice of cards as lenders had a large amount of money that they wanted to lend. Since the credit crunch this has become less frequent as card providers are trying to reduce the risk of lending to people who may not pay.
If a person has a poor credit record or no credit record then they will find that many credit card offers are now no longer open to them. This group is growing as people are becoming redundant, businesses are struggling and overtime is being cut. More credit repayments are being missed and the credit card providers are being more careful about who they offer credit to.
People with poor or no credit will not get the best deals; these are reserved for those with good or excellent credit. It is still the case that there is credit available and there is the opportunity to rebuild a credit record.
The first thing that a person should do is look for credit card accounts that advertise for people with bad credit. These are designed to allow for either poor or no credit and they are highly unlikely to refuse credit. The interest rates do tend to be higher and the terms more stringent than standard credit cards.
Many of the credit cards that are aimed at those with poor credit will have low credit limits. This is actually a good way to build up a good credit rating as the repayments will tend to be more affordable.
One way for a borrower to get a credit card with less than perfect credit is to go with a bank that the borrower already has a relationship with. If there is a good relationship with the bank then it is possible that the bank will overlook the poor credit rating. This approach works well with smaller banks and credit unions where there is more room allowed for management decisions.
Secured cards are another way for people with poor credit to get a credit card. This card is backed up by a sum of money in a savings account.
Prepaid cards are also popular for those who have poor credit. The balance has to be paid in advance but the cards can be used to pay where credit cards are accepted and in some cases can be used to improve credit ratings.
