Getting a credit card with poor credit is no easy task. Credit card debt is easily wiped away in bankruptcy. Furthermore, because most credit cards are unsecured, banks and card issuers have little recourse to collect the unpaid balance other than reporting negative information to the credit bureaus. People with poor credit aren’t as likely to see that as a motivation to pay up.
Be sure to monitor your credit score on an ongoing basis so you know if it is getting better or worse. Residents of the U.S. can use online credit score reporting services like Credit Karma to monitor credit scores free. Check out the CreditKarma review here on Finance Gourmet for more details.
Granite Card Review
The granite Credit Card is available to residents of the UK who are not legally restricted from obtaining credit. The card is issued by Vanquis Bank, which bills itself as a financial institution that can help with credit repair. It is a Visa card which ensures wide acceptance at most retailers that take credit cards.
As you might expect from a credit card for people with low credit scores, the Granite Card is not cheap. The variable interest rate is currently a whopping 34.9 percent. The good news is that despite the hefty interest rate, there is no annual fee. While technically not a rewards credit card, there is a granite Rewards program that offers discounts from several leading retailers when you use the card to make purchases.
Unlike many credit cards for low credit scores, the granite Card is not a secured credit card. However, the card comes with a low limit that can grow over time with consistent payments and no over-limit issues. The credit card limit is just £150 to start. That amount can increase to up to £500 after your account is reviewed, depending upon just how bad (and how recently bad) your credit is.
The credit limit can potentially be raised every four months, assuming everything is going well. These increases are optional and solely at the discretion of the card issuer, so they are not something that can be relied upon. Over time, the card’s limit may grow to up to £3,000.
Beware, the monstrous interest rate on this credit card can quickly eat up both your credit limit and your ability to pay off the credit card. This card is strictly for those with the ability and the discipline to pay the full balance each month.