Getting a Personal
Cash Advance in Spite
of Poor Credit

Repairing Your Credit Rating
With a Credit Repair Credit Card

Like any form of credit, a new credit card can be very difficult to get hold of if you have a bad credit rating. Even if your finances have improved significantly since your credit rating was damaged, you may still find it hard to borrow money.

How do you rebuild your credit rating? One way is by using credit. But if you can't get credit, how can you use it? It might seem like a Catch-22 situation, but that doesn't mean that there aren't any options available.

'Credit repair' credit cards, also known as bad credit credit cards, are credit cards designed for people who have a bad credit rating. So if you've struggled with debt repayments in the past, this type of card could be the one for you.

How can a credit card repair my credit rating?

Basically, the more you use credit without any problems, the more you'll be proving to potential lenders that you can handle credit responsibly. The way you handle debt can be recorded on your credit history for six years, so when lenders carry out a credit check they will be able to see how you've managed your finances over that time.

Bad credit credit cards can be much easier to obtain than most other credit cards, so you may be able to get one even if you've had serious debt problems in the past. From there, you just need to make sure you use your new card responsibly (by keeping up with repayments and never exceeding your credit limit) in order to start rebuilding your credit rating.

Are there any downsides to credit cards for bad credit?

Bad credit credit cards tend to be more expensive than the average deal. With average credit card rates currently standing at around 17% in the UK, you can often expect to pay more like 29% or higher on a bad credit credit card.

However, this isn't necessarily a problem. If you repay your credit card balance in full every month, you'll never pay any interest at all, because interest is charged on the remaining balance at the end of each month. But if you can't do this, you may end up paying a lot of interest in the long run.

Source: www.thinkmoney.com -- You can find some examples of bad credit cards in their comparison table.

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