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‘No interest until August’ on new Luma credit builder card

Credit card for people with bad credit now comes with 0% interest on purchases until August 2014

The new Luma credit builder credit card is designed to help people with bad or limited credit histories while offering 0% on purchases

The new Luma credit card is designed to help people with bad or limited credit histories while offering 0% on purchases

Luma, the credit card provider aimed at people looking to improve their credit history and score, has launched a new interest-free offer ending August 2014.

The new Luma Purchase Credit Card comes with 3 months 0% on purchases, but is available from April with 0% on purchases until August 2014, meaning some customers may be able to get up to 4 months interest-free.

What is a credit builder credit card?

Bad credit cards, otherwise known as credit builder cards, typically offer a lower than average credit limit to prevent people who are new to credit or have a history of bad credit from getting into further debt.

These credit limits can be as low as £100, but rarely go higher than £1,500.

Credit builder cards also have a higher than average interest-rate or APR, which means, in theory, customers are discouraged from borrowing money for longer than the interest-free period on purchases allow.

Bad credit credit card with purchases

Luma’s new 3 months 0% on purchases offer could be a welcome addition for consumers with bad credit looking to get a bit more breathing space from the fairly high interest rate of 35.9% APR representative variable.

Consumers who have been rejected for credit in the past are more likely to be approved for credit cards in the bad credit category, but they do risk damaging their credit history further if they are rejected again.

Introductory rates and offers, such as the one Luma is offering are not always guaranteed either, and is dependent on each individual application and the credit status of the customer.


  • It seems a tad irresponsible, how would someone who is bad with credit, change habits and not get into further debt, realistically would Luma expect that their customers would clear any outstanding purchases within the honeymoon period. hmmmm–its a trap