Credit Cards for Bad Credit?
Looking for a credit card for bad credit? Try a line of credit instead. Drafty offers a flexible line of credit with a maximum credit limit of £3,000. With no hidden fees and a convenient online application process, Drafty could help you cover your unexpected financial needs.
Representative 96.2%APR (variable)
Representative Example: Assumed credit limit: £1,200. Representative 96.2%APR (variable). Annual interest rate 69.4% (variable).
Not all applications will be approved for credit. An offer of credit is subject to status and affordability checks.
Why choose Drafty over credit cards for bad credit?
Fast
Cash sent to your bank in under 90 seconds, if approved. It may take longer to reach your account depending on your bank’s processes.
Flexible repayment
As long as you repay the monthly payment, how long you borrow for is up to you. No early repayment fees.
Trusted
Rated excellent on Trustpilot with over 10,000 reviews.
Convenient
Secure online application available 24/7. An instant decision.
What is a credit card for bad credit?
Credit cards for bad credit, often called credit builder cards, are designed for people with poor credit scores. They typically have lower credit limits and higher interest rates to reduce the lender’s risk.
If you have bad credit, a bad credit card can show lenders you manage money well and pay on time. If your credit improves, you may qualify for better credit cards and loans with lower rates and higher limits.
Review your finances before applying for a card with bad credit to ensure you can meet the repayment terms. Missing payments could lead to increased interest and payments.
Is Drafty an alternative to credit cards for bad credit?
Drafty doesn’t offer credit cards, but if you’re looking for a flexible way to borrow money, we could help. Our line of credit is an alternative to credit cards for bad credit. We understand that people with a low credit score can struggle to get credit from traditional lenders. That’s why we look at more than just your credit score when reviewing applications.
Unlike managing a credit card account, Drafty provides simple and transparent borrowing. You don’t need to worry about hidden fees or charges.
How to check your eligibility for a Drafty line of credit
To apply online for a Drafty line of credit, you need to meet the following requirements:
- Be at least 18 years old
- Be a UK resident with an active UK bank account and debit card
- Earn at least £1,250 a month
After you’ve provided the required details, we’ll run affordability and credit checks. If approved, we’ll agree on a credit limit and send the cash you request to your bank within 90 seconds. Depending on your bank’s processes, it may take longer to reach your account.
Representative 96.2%APR (variable)
How to apply with Drafty, a credit card for bad credit alternative
Here’s how you can apply for a Drafty line of credit:
Apply
We need a few personal details to help us understand who you are.
Set a credit limit
If approved, you’ll be given a credit limit between £200 and £3000.
Flexible payment
As long as you repay the monthly payment, how long you borrow for is up to you. There are no late fees and no early repayment fees. Also, it’s easy to make payments through our app.
Fast cash transfer
Use Drafty whenever you want, and we’ll send the money to your bank in 90 seconds. It may take longer to reach your account, depending on your bank’s processes.
How is Drafty a better alternative to credit cards for bad credit
Drafty offers a line of credit, which works a bit like a credit card but without the plastic. With credit cards, you get a physical card and an agreed credit limit, which you can swipe and use. A line of credit sends cash to your bank, letting you use your own card instead of another credit card.
Like credit builder cards, a Drafty line of credit has daily interest and a minimum payment requirement. Using Drafty responsibly is recorded on your credit file and may improve your credit rating over time.
If approved, you’ll get a tailored credit limit, and cash sent to your bank in 90 seconds*.
How do credit cards for bad credit work?
A bad credit credit card works like a regular one but is easier to get with a poor credit rating. However, they often have lower credit limits, higher interest rates, and strict terms to manage lenders’ risk. This can make them an expensive option for borrowing money.
Lenders report your repayment history to credit reference agencies. Making on-time monthly payments and staying within your limit can improve your credit rating.
How much can I borrow with Drafty?
With Drafty, you can get a maximum credit limit of £3,000 to meet your needs. Drafty provides a credit limit based on your financial situation, with no hidden or annual fees. You only pay interest on the amount you borrow, helping you manage costs effectively.
Drafty also allows you to repay early without any extra charges, saving you money on interest.
Why do I have a bad credit score?
A bad or low credit score can occur for various reasons. It is often linked to past financial behaviour and your credit history. It can be frustrating, but it’s important to understand why you have a bad credit score:
Missed or late payments
Failing to pay bills, loans, or credit card accounts on time is one of the biggest reasons for poor credit. Even a single missed payment can negatively impact your credit file.
High credit utilisation ratio
Using a large percentage of your available credit signals lenders that you may be relying on borrowing. This can lower your credit rating.
Defaulting on loans
Defaulting on a loan can have a serious negative impact on your credit score.
If you’re struggling to access credit, Drafty is an alternative to credit cards for people with bad credit.
How do I check my credit score?
Checking your credit score is an essential step in understanding your financial health. You can access your credit report in the UK through the three main credit reference agencies. These are Experian, Equifax, and TransUnion. These agencies provide insights into your credit history. This includes payment records, outstanding debts, and any missed payments.
Each of the three credit reference agencies in the UK offers a free copy of your credit report every 12 months.
To check your score, sign up with a credit reference agency. Once registered, you’ll have access to your credit record, and you will be able to review the information lenders see when assessing your loan application.
How can I improve my credit score?
A bad or low credit score can occur for various reasons. It is often linked to past financial behaviour and your credit history. It can be frustrating, but it’s important to understand why you have a bad credit score:
Pay your bills on time
Paying your bills on time is one of the simplest ways to improve your credit score. Late or missed payments are recorded on your credit file and can significantly harm your credit rating.
Keep your credit utilisation low
Your credit utilisation ratio is the percentage of your available credit that you use. Keeping this low, ideally below 30%, shows lenders that you are not over-reliant on credit.
Avoid applying for too many credit cards
Every time you apply for a credit card, lenders perform a credit check, which is recorded on your credit file. Too many applications in a short time can reduce your credit score.
Review your credit report
Reviewing your credit report from the credit reference agencies helps ensure all information is accurate. Mistakes such as incorrect missed payments or outdated addresses can negatively affect your credit score.
What other types of credit cards can I use with bad credit?
If you have bad credit, different types of cards are available to help rebuild your credit rating. When comparing credit cards, consider options like credit builder, secured, or prepaid cards to find the best fit for your needs.
Secured credit cards
Secured credit cards require an upfront deposit, which is collateral for the lender. The deposit reduces the lender’s risk, making secured cards accessible to people with poor credit records. Responsible usage, such as paying the balance on time and staying within the limit, can improve your credit score. However, secured cards often have an annual fee and high interest rates, so using them carefully is essential.
Credit builder cards
Credit builder cards are specifically designed to help individuals with poor credit history or limited credit history improve their credit rating. These cards usually have low borrowing limits and high interest rates compared to standard credit cards.
By making on-time monthly repayments and keeping your balance low, you can demonstrate financial responsibility to lenders. Over time, this may improve your credit score and increase your eligibility for better financial products.
Prepaid credit cards
Prepaid credit cards work differently from traditional credit cards, as they require you to load money onto the card before use. They are a useful option for managing expenses if you have a poor credit score or want to avoid debt.
Prepaid cards do not directly affect your credit score because they are not linked to a credit agreement or reported to any credit reference agency.
FAQs – Credit Cards for Bad Credit
What is the easiest card to get with bad credit?
The easiest card to get with bad credit is usually a credit builder or secured credit card. These cards are specifically designed for people with lower credit scores. They typically have lower credit limits and higher interest rates but are easier to qualify for.
Does Drafty offer loans?
Yes. Drafty offer personal loans ranging from £1000 to £3000. Making it a suitable option for those needing loans instead of a line of credit. You can apply for Drafty loans, as we consider people with bad credit too and offer bad credit loans.
Can I get a credit card with really bad credit?
Yes. It’s possible to get a credit card for really bad credit. But it often comes with restrictions like low credit limits, high interest rates, and annual fees. These cards require consistent, on-time monthly repayments to avoid additional fees and improve your credit score over time.
Can I open a credit card with poor credit?
Yes. You can open a credit card with poor credit, but you may only qualify for specific options like secured credit cards or credit builder cards. These cards typically come with a lower credit limit, higher fee, and stricter terms to manage the risk for lenders.
Can I get guaranteed approval for a bad credit credit card?
No lender offers guaranteed approval for a bad credit credit card. Applications are subject to credit checks, and every lender has different acceptance criteria. However, some providers specialise in credit builder cards or secured credit cards. These are easier to obtain for people with poor credit.
What credit card can I get with a 500 credit score?
With a credit score of 500, your options may include secured credit cards or credit builder cards.
Can I apply for a credit card if I have no credit history?
Yes. You can apply for a credit card even if you have no credit history. But your options may be limited to credit builder cards, secured credit cards, or prepaid credit cards. These options are designed for individuals with a bad credit history. They often come with stricter terms like lower credit limits and higher interest rates.
Can a credit card for bad credit improve my credit score?
Yes. A credit card for bad credit can improve your credit score if used responsibly. By making on-time monthly repayments, staying within your credit limit, and avoiding missed payments, you can build a positive credit rating. Over time, this helps improve your credit score and makes you eligible for financial products with better terms.