Like anywhere else in the world there are people living in the United Kingdom with bad credit that need to acquire a new credit card. The same as folks in the USA they end up having to have a bad credit card. The term ‘bad credit card’ is of course a clumsy one and people living in the UK would more correctly refer to it as - a credit card for people with bad credit.
Quite simply anyone considered to have a poor credit history will probably find themselves having to take out a ‘bad credit’ credit card; that will usually have a higher interest rate than a ‘normal’ credit card available to someone with a good credit history. For example, an inventor living in London, UK, that needs to register the patents for an invention might not be able to afford to pay the money for the patents in cash. Being an inventor they’d be reliant on future earnings rather than having any savings to use. If they also had a poor credit history they might, therefore, need to apply for a bad credit card in order to pay for the patents and, indeed, the copyrights to their invention.
It is a fact that anyone in the UK needing to access a bad credit card will, almost certainly, end up paying an interest rate on it higher than they would have to pay on a regular credit card. Whilst competition to provide credit cards in the United Kingdom is high - a company giving a credit card to someone with a poor credit history is taking a risk, as to when any debts on the credit card will be repaid. The credit card companies compensate for that risk by making people with bad credit cards in the UK pay more in interest when they do make a repayment. The same is also true in the UK for anyone needing to access a bad credit loan.