Poor Credit Rating Credit Cards
If you have a bad credit rating it will not be easy to find a bank or other provider willing to issue you with a credit card. However, credit cards can be extremely useful, particularly if you are going abroad or buying items over the internet. One way that you can get around the difficulties of not having a credit card is to apply for a pre-paid credit card. This is an internationally accepted card issued by mainstream providers such as Visa or Master Card. Instead of operating on credit, you have to deposit money into the account in advance. You can then use the card as you would an ordinary credit card and you will find it is widely accepted. It looks just like a credit card, with your name embossed in the card and with chip and PIN capabilities incorporated as well.
As you are not applying for credit, there is no credit check and you should have no problem getting one even if you have a poor credit rating or a CCJ. The only procedures you will need to go through are standard identity checks. You will also have to provide proof of address. You may be able to complete your entire application online and receive instant confirmation that you have been approved for a pre-paid credit card. For convenience, you should also be able to access and manage your account online. Under 18s can also apply for a pre-paid credit card. It is a great alternative to carrying around large sums of cash. If your card is lost or stolen, you can simply cancel it and have your balance transferred over to a new account and be issued with a replacement card.
Pre-paid credit cards are also ideal if you have struggled to manage your finances in the past, as you can only spend the amount you have deposited in advance. There are no interest charges because you are spending your own money, nor are there late-payment fees or penalties for going over the limit. It enables you to shop online, where there are often better deals to be found than on the high street. One pre-paid card issuer in the U.K will also provide the same type of protection you would enjoy with a credit card. If this is important for you to have, then make sure you apply for the card that offers this.
If you want, you can even authorise other people to use your account and they will be issued with their own cards. You can also set up a pay-as-you-go system on some prepaid accounts. While you won't earn interest, it is a good way to create and top up an emergency fund. Pre-paid cards are likely to be a cheaper option for withdrawing money when abroad. They are much cheaper than a normal credit card would be when using an ATM. Pre-paid credit cards can also be issued to businesses, with your chosen business name on the card. This can be a convenient way for you to make purchases for your business, being more convenient that using petty cash or a business cheque.