Increasing numbers of Brits are turning to credit building credit cards having been refused credit in 2010, according to new research. The figures come as charity Credit Action reports that the total personal debt in Britain at the end of February 2011 was £1.454 billion, with someone declared insolvent or bankrupt every 4.28 minutes.

Millions turning to poor credit finance having been refused credit in 2010

The research from a leading price comparison website found that almost 4.5 million people were refused credit in 2010. With household debt rising (the average household debt in the UK is now £57,697), more and more people are expected to struggle to pay their credit cards and debts in 2011.

A study by a rival comparison site found that 22 per cent of people will be struggling to pay back the debt they owe on their credit cards in 2011. Late or non-payment will reduce their credit rating, increasing the numbers of people who will have to turn to poor credit card finance in the future.

Credit building credit cards can help you repair your credit rating

If you are one of the 4.5 million people that were refused credit in 2010, or if you have defaults, County Court Judgments (CCJs) or late payments on your credit file, you may find it tough to be approved for a credit card.

This is where poor credit finance can help you. Credit building credit cards are designed for people who have a less than perfect or ‘slim’ credit history. They allow you to use a credit card and make your payments on a regular basis, proving to future lenders that you are capable of managing credit responsibly.

Poor credit cards nearly always carry higher interest rates than standard credit cards (as they are a riskier proposition for the lender) but if you pay on time every month they can help you rebuild your credit and improve your chances of being approved for standard loans or credit cards in future.