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Luma - new credit card for people who are unemployed with bad credit

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Applying for a credit card can be a confusing process, and many have strict entry criteria that must be fulfilled. There are also a wide number of cards currently available, and all are tailored towards a specific group of customers. Many people are unaware of the fact that if they apply for a credit card and receive a rejection, it can lead to a black mark on their credit rating, and ultimately will affect their ability to borrow money in the future. In order to avoid this, it is important to fully research the exact type of card you require for your situation, and are fully aware of exactly what criteria have to be fulfilled. If you are currently unemployed or have bad credit, you may not be eligible for the top credit cards available on the market, but there are many card providers that are willing to take on customers with poor credit histories. A new credit card provided by Luma is aimed at those in financial difficulty, and offers all the benefits of a regular card to customers with bad credit.

The Luma card has been brought to the market by a company named Media Ingenuity, and they have developed the card alongside established credit provider, Capitol One. The card is available to those who have poor credit ratings, CCJs, or other financial issues, and allows them to repair their credit profile through repeated use of the card. It offers a credit limit of up to £1500, and in the past it has been offered with 3 months interest free credit. The card is available for no annual fee, and offers a huge number of rewards including special discounts in high street shops. Customers can manage their card online or through mobile banking, and even have the option of setting an alarm on their account which will alert them when they are near their spending limit. The interest rate offered by the Luma card is slightly higher than other cards, currently 35.9%, due to the fact that the entry criteria are extremely flexible. They also offer guides on how to stay debt free, and tips on how to use the card responsibly.

The Luma card is known as a credit building card, and is designed to help customers repair a poor credit rating. When using this type of card, it is advisable to clear the entire balance in full every month to avoid the interest charges, and responsible use of the card may lead to the card provider offering a much cheaper card in the future. In order to prove to credit lenders that you can manage your borrowing without falling into debt, continue using the card for a total of 6 months before applying for one of the more popular cards available on the market. Once credit companies can see that you have made regular payments on a card, they will be far more likely to offer you larger amounts of credit. Many credit card companies do not offer any of their products to the unemployed or those with bad credit, so it is important to take steps to prove that you are reliable.

If you are planning to use the Luma card to rebuild your credit rating, it is important to remember that, as with all credit cards, failure to control your spending will result in further damage to your credit profile. There is a £12 charge for late payment of your credit card bill, and also for spending over the agreed credit limit. Using the card abroad will incur a further 2.75% charge, and the balance transfer fee is currently 3%. In order to be accepted for the card you must be over 18 years of age, and a permanent UK resident. You must also receive a minimum income of £10,000, and the provider states that they accept applicants with a poor credit rating, CCJs, and other credit issues. There are many other credit building cards available on the market, and all offer similar benefits to the Luma card. As long as you keep in mind that the card is simply a way of repairing a damaged credit rating, and not a long term borrowing solution, you will avoid falling into further debt, and will start to see your credit score improve in no time.