Aqua Classic: rate on top card for bad credit borrowers to increase
The Aqua Classic is a market-leading card for borrowers with bad credit ratings. But time is running out if you want to get it at its cheapest.
One of the best credit cards tailored for borrowers with poor credit records is to be revamped on 4th March to offer a higher APR.%VIRTUAL-SkimlinksPromo%
That leaves just a couple of days for borrowers to snap up the Aqua Classic MasterCard, which boasts no annual fee and comes with a representative APR of 29.7% for now. By next Tuesday that rate will jump to 32.9%
You get an initial credit limit of between £250 and £1,600. That may be increased after four months, if you've shown that you can manage your credit well.
The lowest APR
But it's par for the course for these cards to charge higher rates; it's how the providers cover themselves for taking the risk of lending to people who have a history of not paying back their debts in a timely way.
It's worth bearing in mind that these APRs are only representative – the rate is only offered to 51% of successful applicants. So if your credit record has a fair few black marks on it, you may be offered a higher rate.
Free credit ratings for life
How it compares
You start with a credit limit of up to £1,000. However, what I really like about the Aquis Visa card is that it regularly rewards you for managing your money properly. On your fourth statement you can get a credit limit increase, as you can every subsequent four months, up to a maximum of £3,000.
There's not a huge amount between the cards in my view.
The Barclaycard Initial Visa isn't far behind either, with a rate of 29.9%. This card is more for people with no credit history rather than one with a few black marks, though.
Cards that offer a little more
For example, I really like the idea of the Aqua Advance MasterCard, which gives you the chances to lower your rate by 5% a year for three years.
So you start with an APR of 34.9% and a credit limit of between £250 and £1,600. So long as you show that you can manage the credit responsibly, you can cut that rate down by 5% a year for the next three years, leaving you with a very competitive rate of 24.9%, not that far off what the best cards charge. I think it's a clever way of rewarding people who have struggled with credit in the past to keep on top of their repayments.
Sadly, the 0% and cashback cards have disappeared but I wouldn't bet against them reappearing sometime soon.