Credit cards for bad credit

Some  credit cards are designed for people with poor or no credit history. They allow them the convenience of buying things on credit, and the opportunity to improve their credit score.

If you have a patchy credit history – perhaps having missed credit repayments in the past – you may be unlikely to be accepted for a standard credit card, or one with perks such as interest free periods or rewards.

When you apply for a credit card, the lender will run a credit check to view your credit history; assessing if you would be a credit risk – that is a person likely to default on, or miss, repayments.

Similarly, if you have no credit history, are not registered on the electoral roll, have a low income, or are not in full time employment, you could also be considered a credit risk.

Credit cards for bad credit are designed for people who don’t qualify for conventional credit cards.

How do they work?

Credit cards for those with bad credit ratings carry higher interest rates to reflect the greater risk to the lender. But, if used correctly – by paying the balance in full at the end of each month, in line with your statement date – you won’t incur any late payment  charges, or extra interest charges.

If you’ve had a standard credit card application declined, you might consider a credit card for people with low credit scores in order to rebuild your credit history. For this reason, they’re often referred to as credit-builder cards.

Make sure that you only ever spend as much as you will be able to pay back at the end of each month, so that your debt doesn’t spiral out of control.

What are the benefits?

If you use your card regularly and make minimum or full repayments on time every month, you could see an improved credit score within six months.

This could result in an increased credit limit on the card, a reduced interest rate and acceptance for standard credit cards with introductory offers and perks.

Credit cards offer a convenient way to pay, and often offer consumer protection too. This means that if you were to purchase faulty goods, items that weren’t delivered, or if the company you bought from was to go bust, then your credit card issuer is jointly liable for any claim you make under Section 75 of the 1974 Consumer Credit Act.

How is a Satsuma loan different?

If your credit card application is declined, or if a loan is more suited to your personal circumstances, Satsuma offers a convenient and secure loan application process that may interest you.

We have no hidden fees or charges, so you’ll only pay back the amount you agree to upfront. Choose the type of loan that’s right for you then use our loan calculator to work out how much you’d like to borrow, over a time period that suits you.

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How do I apply for a Satsuma Loan?

Before you get started, make sure you have the following:

  •         Email address and mobile phone number.
  •         Address history from the last three years.
  •         Details for your income and outgoings.
  •         Bank account and debit card details.

You must also meet the following criteria:

  •         Aged 18-74.
  •         UK resident.
  •         Not be bankrupt.
  •         Agree to a Satsuma Loans credit check.

What happens after I apply for a Satsuma Loan?

After you’ve decided how much you want to borrow, all you need to do is fill in on the application form and pass an affordability and credit check. A decision will be made instantly and, if approved, your money will be transferred to your account within the hour, as long as you’ve been accepted between the hours of 6am and 11pm.

From there, your monthly or weekly repayments will be automatically deducted from your debit card, by a quick and easy Continuous Payment Authority. We’ll only take payment on the day of the week or month you’ve agreed, and there’s no need to worry about unexpected charges to your account.

If you have any concerns about missing a payment or if a change in circumstances requires you to change your repayment date, it’s no problem. Just get in touch with our friendly Customer Care Team who are happy to help. We’ll be able to talk you through your options, and we’ll never charge you for a late or missed payment.