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Bad Credit Cards
A bad credit card is one that offers an extortionate rate of interest or APR. Typically, this can be as high as 35 per cent which directly impacts upon those customers who choose to pay their credit card off on a monthly basis. Failing to keep up with payments or missing a single payment can result in an expensive amount of interest, which can be especially painful for people who only pay the minimum amount each month thereby incurring this interest. This type of credit card is issued to people who have a bad credit rating. A bad credit rating can occur due to such reasons as missed or late payments, a county court judgement (CCJ) or bankruptcy.
This is not a desirable state of affairs as it can affect a person's chance of getting a mortgage or a loan, or going self-employed. These cards are also designed for people who are employed on a part time basis or who earn a low income. Steps can be taken to improve a bad credit history, which include using a high interest credit card, ensuring that it is paid off each month, setting a budget and sticking to it, and devising a sensible repayment plan. These high interest credit cards are an extremely costly way of obtaining credit but for many people with a poor credit history they are often the only choice available.