aqua Credit Cards

aqua Credit Cards

aqua credit cards are aimed at people who have a low credit rating or are having difficulty obtaining credit from mainstream lenders. The card came onto the market in 2002 and the firm has already signed up more than 250,000 customers.

People often have difficulty obtaining credit. The self employed, for example, cannot always prove they have a regular income – the same is true of people who stay at home to bring up a family. What if you have a low income, perhaps because you work part time? Or you are not on the electoral roll. Then there are people who might have a low credit score because they have suffered financial problems in the past, or even because they have never before applied for credit and so have no track record.

aqua does not guarantee to issue a credit card to every applicant, but it does promise to take a closer look at your individual circumstances and financial situation.

The aqua card works just like any other credit card, but the interest rates are much higher than the market average, reflecting the greater risk to the lender. You will pay interest of either 35.9%, 37.9% or 39.9%, although the company claims that two thirds of customers are offered the lowest rate.

The interest rates are the same if you want to transfer a balance from another card, perhaps because you are paying an even higher rate of interest elsewhere.

But you don’t have to pay over the odds for your credit. If you pay your balance in full and on time every month, you will not pay any interest at all. In fact, the aqua card is an ideal way to build up or repair your credit rating. As long as you keep up with your payments you could boost your rating in just six months. You could then apply for a mainstream card with a lower rate of interest.

aqua cards are not for everyone. The credit limits are comparatively low at about £2,000. But if you are already struggling with debts, taking on more credit at a high rate of interest will only make matters worse. You should contact your local Citizens Advice or the Consumer Credit Counselling Service for free advice on dealing with debt.

If you have a poor credit score, it is also worth checking your credit file. When you apply for credit, the lender contacts one or all of three credit reference agencies - Callcredit, Equifax and Experian - to take a look at your history. But the information on your credit report can sometimes be out of date, or plain wrong, which could mean that you are unfairly refused credit. You can request a copy of your file from an agency for £2 to make sure the information is accurate.

It doesn’t cost a penny to compare credit cards at MoneySupermarket, so you can find the best deal, even if you do have a poor credit rating.