The easiest credit cards to obtain are rarely the best available on the market, but for most people, some credit is better than no credit at all. As you might imagine, the worse terms that a card offers, the higher the interest rate, the more punitive the fees, the fewer rewards offered and the lower the credit line, the easier it is to get. For many people with bad credit problems or a recent bankruptcy, these low-quality credit cards are all that they can get.
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The only real reason to apply for a low-end credit card is if you have significant existing problems with your credit score or have other issues such as a criminal record. Cards that are marketed to people with bad credit tend to have substantial sign-up fees that often approach a full third of the total offered line of credit. In most cases, the cards offer £162 lines of credit at most and charge interest rates above 10 per cent at the beginning of the contract period.
The easiest credit cards to obtain are secured credit cards. These require the cardholder to send a security deposit to the lender for the same amount as the total line of credit. Essentially, you borrow against your own loan to the lender. This allows people to rebuild their credit in a relatively safe fashion and also gain access to the convenience of a credit card. While it is similar in function to a charge card, the borrower's behaviour affects their credit score, so it can be very helpful for people attempting to repair their credit.
Merely because you need a credit card and don't have good credit does not mean that you have to accept excessive fees. Many of these bottom-tier cards charge significant monthly "insurance" fees that can be as expensive as 20 per cent of the total line of credit in addition to sign-up fees and monthly payments. Luckily, there is still enough competition for low-credit-score customers that this is not completely necessary when getting such a card. Pay close attention to all contracts before even applying for these cards.
People with no credit can frequently qualify for credit cards on reasonably good terms, particularly if they are young. As people get older, however, and have still not built up a credit history, they are less likely to get good offers. Credit card companies can generally count on young people being still connected to their parents financially, so it is often a safe bet for companies to provide better credit to them than they would be able to qualify for otherwise.
If you own a small business, it may be easier to get a higher-quality small business credit card. These tend to have relatively large lines of credit and low interest rates relative to personal credit cards and are often easier to get. Just starting a limited liability company is often enough to start getting promotional offers from small business credit card providers almost regardless of your personal credit rating.
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