Those that have a good credit rating are spoilt choice when it comes to credit cards. For low interest, you have the likes of the Sainsbury’s Low Rate credit card that boasts an impressive 6.9% APR figure. You will tend to find though that the most popular UK credit cards stand between 15% and 19% APR. These rates may be higher, but these specific cards come with 0% on balances transfers and 0% on purchases over an introductory period (there are usually fees attached with 0% balance transfers though). When it comes to bad credit credit cards, those of us fitting this subprime criteria are provided with less perks and high interest rates. There are three main players in this market, being Aqua, Capital One and Vanquis. I noted above the 15-19% rates for the popular credit cards. These credit cards for bad credit are around double that rate in the mid to late 30s.

Compare Credit Card Rates…
Capital One Classic (VISA) | 34.9% APR
Aqua Credit Card (MasterCard) | 35.9% APR
Vanquis Bank Credit Card (Visa) | 39.9% APR

Other Bad Credit Credit Cards…
Non to note, just the main three. Not too sure what happened with Monument.

The Capital One Classic credit card is the cheapest, although there isn’t a huge difference between the three. I have always been a little put off by Aqua, as I remember applying with them and months later I received a letter of decline. They provide a credit limit up to £1600. The Capital One Classic card max is a little less at £1500. Vanquis start off up to £1000, but incredibly stretch to a £3000 credit limit when you pay on time. All three provide online account management, with Capital One having the smoothest design there. Despite this, alongside having the lowest rate of the bunch, my personal recommendation shifts to Vanquis. There are many reasons for this, such as them being the less strict of the bunch, providing the highest credit limit, you can choose between fantastic custom designed credit cards and various other neat touches as noted below. Just remember that these cards are designed to rebuild poor credit, so prove yourself and it will also help for you to pay off balances when you can to skip those hefty interest charges.

Recommendation: Vanquis Bank (8 Reasons)…


Application: Speedy 5 minute application. They aim to provide a decision in just a minute.
Awards: Consistent winner of the “Credit Card Provider of the Year” Credit Today Awards (09/10/11).
Bad Credit: Larger acceptance rates for bad/poor credit than the alternatives.
Company: Provident Financial is one of the leading names in subprime lending.
Credit Limit: Pay on time and you can receive an impressive £3000 credit limit.
Credit Rating: Earned “Good for building your credit rating” headline at Money Supermarket, whilst the other two didn’t.
Designs: Unique card designs to choose from, such as Blueberry and St. George.
Product: All focus goes to one such credit card product. Capital One run four. Aqua also has one, but I haven’t been overly impressed with their reviews/service.

Note: If lower interest rates are important, then Capital One takes the recommendation.

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