There are many credit transfer cards available with lengthy credit free periods to help those in debt to pay off their borrowing.
However, many consumers with a bad credit rating may not qualify for the best of the balance transfer cards, but help is at hand with credit repair cards.
Credit repair cards can seem an expensive option, as they often charge higher interest rates than other credit cards, but they can make a real, beneficial difference to those consumers who need to build up their credit score, as long as they are used appropriately.
The cards normally have a low credit limit at first, which increases as the holder shows that they are using the card properly. This should help consumers to resist overspending and the higher interest rates will make borrowers more inclined to pay off debt as soon as possible, whilst simultaneously showing responsibility and therefore improving their credit rating.
As with all credit cards it pays to shop around for the best deal for you, as credit repair cards can vary.
The best variable interest rate seems to be offered by Metro Bank at 13 per cent APR, however Barclaycard offer the best of both worlds with a credit repair card that also allows an 18-month interest-free period for balance transfers and also 3-month interest-free period for purchases before the normal 24.9 per cent APR rate kicks in.
Tesco’s credit repair card has a slightly higher interest rate of 27.5 per cent APR, but Tesco Clubcard points can be earned on all spending.
The Aqua Advance credit repair card sees the interest rate reduced and credit limit raised as borrowers prove their ability to repay on time.
There is also the option of a prepaid card for those who feel they cannot trust themselves with a credit card. A prepaid Mastercard available from Pockit pays up to 10% cashback on a small 99p issue fee. It also enables the holder to set up a limit on the amount of cash that can be debited from the account.
With more consumers struggling with debt in the UK it seems that credit repair cards are a credible option that is here to stay.