Credit cards for bad credit

Whilst it's still possible to get a credit card if you're unemployed, you may find that your options are limited and you may face higher interest rates and lower credit limits. Usually, a lender will look at your past borrowing history, as well as other factors, such as your individual circumstances when deciding whether to lend to you.

It's always recommended that you consider whether a credit card is the right financial decision for you and your situation before you apply.

Yes. Although a CCJ can have a big impact on how likely you are to be accepted for credit, there are lenders like Ocean Finance who specialise in credit cards for those who have struggled to access credit in the past.

The APR you're offered will depend on your individual circumstances. The APR Representative for the Ocean Credit Card is 39.9%, which means at least 51% of our customers get that rate or lower.

It's important that you only borrow what you can afford, as failure to meet future payments could have a serious impact on your credit history. To be able to get the most competitive interest rates, you may wish to build up your credit history before applying for a credit card. Read more about how to get a credit card with a CCJ.

You can check your credit score online with the three main credit reference agencies in the UK: Equifax, Experian and TransUnion. This won’t cost you a penny. Different lenders report to different agencies, so always make sure to check your details with all three.

Your credit score is a figure used by these credit reference agencies to understand how you have managed credit accounts and bills: this can include loans, other credit cards, and even your mobile phone deal.

You can also check your Equifax report for free (for life) with our member-only platform, CredAbility.

You can check your eligibility with us before you start your application. This will show you whether you're eligible, without impacting your credit score.

An eligibility checker can give you a very strong indication of your acceptance chances, so you can rely on this, assuming all the details you've provided are accurate.

You can check your eligibility without a credit check - so you can see if it's a yes with no impact on your score.

However, as with any type of credit, a hard check is carried out when you apply for a credit card. This should only leave a temporary knock on your score. You will easily recover this with responsible use of your new card - this means paying on time, every month.

Negative markers stay on your credit record for 6 years - and the impact on your score should lessen over that period if you use your credit responsibly. This even includes serious knocks like a default account or CCJ. In the meantime, you can work on improving your score by always paying on time, registering on the electoral roll and limiting any credit applications.

Being declared bankrupt is likely to have a significant impact on your ability to get a credit card, but it isn't impossible. There may still be options available to you.

If you're looking to borrow less than £500, then you don't need to inform the lender of your bankruptcy, however any amount over this will need to be declared. This is likely to impact your chances of being accepted as you'll be deemed as more high risk by lenders.

Opting for a lender who specialises in poor credit can help your chances of being accepted. It's important that you repay your credit card in full each month to rebuild your credit score over time.

Credit cards for bad credit are functionally no different from conventional credit cards. They’re plastic, contactless, and have an account number, sort code, and 16-digit card number. They also come with Section 75 protection and can be used to spend just the same.

The key differences are with their eligibility, APR and credit limit. Unlike standard cards, many credit cards for bad credit offer more flexible eligibility criteria. You are likely to face higher interest rates and be restricted to lower credit limits, but you are less likely to be rejected if your credit history isn’t perfect.

Get on the electoral roll - Registering to vote is one of the easiest ways to boost your score. It provides proof of address to credit reference agencies, making you seem like a more reliable candidate.

Limit your applications - Each time you apply for credit, this leaves a mark on your report. If you do this too much in a short space of time, it can knock your rating and make you look risky to lenders - meaning they’re less likely to accept you.

Don’t miss any payments - This shows the credit reference agencies - and therefore lenders - that you have a track record of being a reliable borrower. You can set up Direct Debits as an easy way to make sure you stay on track of your payments.

Check for mistakes - Having incorrect details on your credit report could have an unfair impact on your credit score. You can stay on top of any discrepancies by checking your report regularly.

The Ocean Credit Card has an initial minimum credit limit of £200 which can go up to £1,500. This amount varies by customer depending on their credit history and financial situation. Our credit limit is lower as it is intended to help you build credit by avoiding unmanageable debt.

If you use your card responsibly, you may become eligible for credit limit increases over time. Keep in mind, a larger balance could take longer to pay off and may increase the interest you're paying.