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The Credit Card That's a Bit More Friendly

Try the Credit Card That Likes to Say ‘YES’

Luma card. 35.9% APR Representative (variable)
Luma card
35.9% APRRepresentative (variable)
  • Know if you‘ll be accepted before you apply with QuickCheck
  • Good for credit building* and no annual fee
  • Get a response in 60 seconds

* Manage your Luma card sensibly, make payments on time and stay within your credit limit and you could improve your credit rating in time. However, failing to manage your card sensibly could harm your credit rating.

Credit is increasingly important in our lives, but given the economy, it’s also become increasingly common to have a bad credit history. If your credit score has suffered because of difficulties paying your bills if you’ve got CCJs on your record, you’re not alone. Start rebuilding your credit with these tips from Luma.

Avoid the Rejection Spiral – Know Your Score

When you’re in financial trouble, it’s natural to try and apply for as many credit lifelines as possible. The thing is you shouldn’t. Every time you apply for a credit card and have your application rejected, your credit rating is negatively impacted, making it even harder for you to get the credit you need.

The first thing you need to do is take a look at your credit report. Leading credit agencies like Equifaxopens in a new window and TransUnionopens in a new window provide you with your credit report so you can see the activities in your file and determine if there are any errors in your credit report. If there are errors in your credit file, you can get the information updated. It isn’t instant. It takes time and some documentation, but it’s worth it. If your credit report is accurate and you do have bad credit, at least you’re getting clear knowledge about the baseline you have to build from.

Explore Your Options – Learn What’s Right for You

Just because you have bad credit doesn’t mean there aren’t cards out there for you. Many credit card companies offer cards to those with bad credit.

Generally, if you have bad credit, your credit card will have a lower credit limit and higher interest rates at the outset because you’re more of a risk than someone with a more stable credit history. However, using a credit card responsibly can help you rebuild your credit score.

Consolidate Balances – Transfer High Interest to Low

Many credit cards for people with bad credit have balance transfer offers. Balance transfer offers can be a good way to consolidate high interest balances (like those that often come with the credit cards you get from a store) to a lower interest card. Some credit cards offer a 0% interest charge on balance transfers for a certain amount of time, meaning you can spend money paying down your debt rather than paying interest.

When you do transfer balances, be sure to close the account with the previous credit provider. Having fewer active lines of credit associated with your credit history can help boost your credit score. Transferring your balances also helps you streamline your finances, so you’re less likely to forget a payment and further damage your credit history.

Rebuild Your History – Use Your Credit Card Responsibly

When you have bad credit, it’s really important to use your credit card responsibly. If you can’t pay your balance in full every month, be sure to make your monthly payment on time. Also, you should always try to pay more than your minimum payment. You’ll pay off your balance faster and for less interest than if you pay only the minimum payment amount.

Stay Informed

When you have bad credit, it’s easy and understandable to try to avoid the problem. However, by staying informed about how to improve your credit and taking action to do so, you can rebuild your credit rating and benefit from better access to uk financial products like mortgages, loans, and credit cards.