Having debt problems is difficult enough but being constantly refused credit makes it even more challenging to rebuild your credit rating. Have you considered the Vanquis card, as this may suit your situation?
If you have experienced debt problems then being accepted for credit facilities is very difficult, although there are a number of credit cards available specifically aimed at those with debt issues. The Vanquis card is one of them.
Credit cards like Vanquis can help you repair your credit history because if you are responsible with your spending and make sure that you always meet the monthly repayments, you are showing that you can be trusted with credit and are starting to overcome the issues that forced you into debt in the first place.
Over time and with continued determination to be careful with your credit card, your credit rating will improve.
Vanquis Bank, who run the card, claim that they have accepted over one million people so the chances of being accepted by them are quite high.
We note, however, that Vanquis do not say what debt issues will be accepted or declined on the website. So if you have been declared bankrupt, is this acceptable to them? We don’t know.
We were going to phone Vanquis to ask them, then we noticed that they charge 7p per minute for phone calls for their existing customers. This does seem harsh, particularly as they charge their customers 39.9% representative APR if they borrow on the card.
As the Vanquis card is designed for people who have poor credit histories, this interest rate is not too bad, in our opinion, though we do urge users to pay off as much as possible every month to minimise interest payments.
Your credit limit will be closely controlled and will start at a low level, however Vanquis will review the credit limit every four months and will raise your limit to a maximum of £3000 if they approve of the way in which you are using the card and making regular repayments.
Low credit limits are a good thing for those who maybe need to change their spending behaviour and this is seen with other bad credit credit cards too.
So what is our overall impression of the Vanquis card?
For those who need to rebuild their credit rating, and yet can take responsibility for their budgeting and spending, credit cards such as the Vanquis are a good thing, even if the interest rates are high.
There are other options such as the Capital One Classic credit card that you should consider, although we feel that you should approach Vanquis to see how acceptable your own particular circumstances are too.