Q: I have a bad credit rating but would like a credit card that rewards on purchases. What are my options?
Answer: If you’re keen to reap rewards when you spend but are restricted by a bad or non-existent credit rating, the good news is that there are still cashback cards available to you.
These aren’t nearly as rewarding as others on the market though, so your priority should be to rebuild your credit rating to make yourself eligible for these more competitive cards in the future.
Rebuild your credit score
To rebuild your score you’ll need to use your credit card regularly, never missing a payment and always staying within the limit.
For tips on how to rebuild your credit rating take a look at our improve credit rating guide.
In the meantime, you can use these cashback cards to get a small reward for repaying in full every month while you work towards rebuilding your credit rating.
Added extras are also available with these cards to give you a pat on the back for paying your balance off in time.
It’s also important to note that to minimise the risk the bank is taking by lending to those with a bad credit rating, it maximises the interest rate. The golden rule here is to only get these cards if you can pay the balance off in full EVERY month.
If you don’t – not only will you wipe out any cashback gains you might have made, but you could also risk landing yourself deeper in debt and damage your credit rating further.
• Refused credit? What to do – Find out what your next steps are if you’ve been refused credit
• How to get a credit card when you have bad credit – Learn how here
• Get the right credit card for your credit rating – Find out which card is the right match for you