Living with bad credit can be tough and getting a credit card with a poor credit history in today’s economic climate can be a challenge. Fortunately there are still a wide range of credit products available for those who don’t have a perfect credit record, one such option is the Granite Card by Visa, marketed as the “card for people with poor credit.”
Key Features and Benefits of The Granite Card
The Granite Card allows users to start with a credit limit of up to £500 in the UK with further possible increases up to a credit limit of £3,000. As such, the Granite Card offers those with poor credit a realistic first credit limit with the possibility of increasing the limit over time. Once an initial limit has been agreed, this can then be increased from the 4thstatement onwards, while the initial borrowing limit is capped at £500, the card’s issuer will allow users to run up a £150 balance as a minimum.
As with all Visa products, payment is accepted almost universally making this a flexible source of credit both domestically and internationally for those with a poor credit rating. Visa products are also usually accepted by most online stores and financial services such as Paypal.
The Problem With The Granite Card
As with all credit products designed for those with a bad credit history, the key weakness of the product relates to the cost of credit. At the time of publication the Granite Card had a typical interest rate of 34.9%, one of the higher rates seen on credit cards in the market. This is still favourabel in comparison to other cards though such as the Mastercard Aqua Card at 35.9% APR. The interest rate which is charged will however be specific to the borrower with the issuing bank taking into account the specific circumstances of the borrower in each case. Despite the high interest rates charged, if you are simply looking for the chance to repair your credit history by holding a credit card, paying the balance back in full each month will see that costs are minimised.
So if looking for a credit card with real potential for repairing your credit history and the flexibility to use the card in a wide range of national and international settings, the Visa Granite Card may be a good first step. Once your credit rating has begun to improve after the issue and payment of a number of statements, it may then be prudent to shop around for a better deal and a lower interest rate.