Don’t let bad credit stop you from getting a credit card. Even if your credit ranking has gone bad the last few months and you badly need a credit card, there are still companies that are ready to extend credit card offers to you. Below are the kinds of credit cards you can choose even if you had a bad credit:
Unsecured Credit Card
This is a card referred to as the ‘bad credit card’, because of the fact that it is only issued to people with bad credit. An unsecured bad credit card will still allow you to negotiate as usual, but there is a downside to it.
Bad credit cards, thanks to your less-than-perfect credit score, will certainly charge higher fees compared to other kinds of credit cards. This is probably the only credit card that will certainly charge you as much as $150 in yearly fees alone. Interest rates are also higher, sometimes up to 20%. Banks and credit card companies also charge higher application fees. If you want this card, make sure you can manage the payments. Otherwise, you’ll remain in danger of obtaining yourself deeper into bad credit.
Catalog Credit Card
These are cards that are offered by several online shops and stores to encourage you to purchase from them. Usually, a catalog credit card may just be used in a certain merchant shop. All your payments will be reported to a credit bureau and you’ll also be offered a credit line, the amount of which will depend on the issuing company and also on just how well you can meet their requirements.
These companies will certainly not charge you an interest rate on any of the purchases you make. Nonetheless, they will require that you pay a higher installation or minimum regular monthly balance.
Prepaid Credit Card
This kind of credit card is perfect for your bad credit, in that it can help you limit your spending. It is also easy to apply and get approval for, providing you enough funds for the application and processing and maintenance fees. These cards will not help you rebuild your credit however they will help you live within your ways. Choose one that has the lowest charges and fees.
Secured Credit Card
Because you will need to make a deposit with the financial companies or banks that provide it in order to obtain one, a secured credit rating card is called that way. Depending on the company or bank, you can sometimes get a credit line worth as much as 100% of your transferred funds. This type of credit card is effective for limiting your purchases. Even better, you’ll be using your very own money and your deposit will earn a rate of interest.
You may think that a secured credit card completely defeats the purpose of a credit card and you’re possibly right. Do not cross them out. Secured credit cards are a great method to rebuild your credit and also still allow you to participate in cashless transactions. You don’t remain to continue to be in bad credit permanently, right?
So which credit card should you choose when you have bad credit? That relies on what you want to do. If you wish to rebuild your credit, obtain an unsecured credit card that offers a great interest rate, low yearly fees, and also no application costs. It’s also essential that it reports to a major credit bureau. All your payments will certainly be recorded and also if you’re never overdue, you can progressively rebuild your credit gradually.
If you only want a credit card that will tide you over for some short-lived need, go with catalog credit cards for bad credit or a secured credit card. As long as you can handle the monthly payments, these credit cards must help you get back on your feet once more.