But there are ways around this dilemma should you find yourself in one:

Use small retail outlets
Smaller credit card companies and/or store cards are a good way to build up your credit score once again. You will more likely be approved for a store credit card than a big named one, low APR credit card deal.

Use your current bank
If you are a loyal, long standing customer of a bank, you are more likely to be able to negotiate credit. You can walk into your branch and let the advisor apply for you and talk you through your options.

Secured Credit Cards
People with bad credit often choose to apply for a secured credit card. The mechanism is simple. You open a current account with a bank. They will then match the quantity you deposit in that account with an equal amount of credit limit on your credit card. For example, if there is a £100 in your account, you also have a £100 limit credit card.
The advantage of this method is that the account is interest-bearing and the credit card applicant is forced to make some savings (which if you have a bad credit score, you would not likely do). Secured credit cards report positively to the credit bureaus. Eventually, if there are no defaults, they become normal accounts and help you remove the stigma of a bad credit score. The disadvantage is that you have to tie up funds into an account, and most people use and have credit cards because they actually don’t have that money and need to borrow.

Obtain guarantees for the bank
This is a way to diminish the bank’s fear of your credit score. Ask a family or friend to co-sign a credit card. In the event of a default, the bank will ask your co-signer to pay for you. Of course, not everyone will feel comfortable doing this for you.