Introduction
One in every five Americans has a poor credit history, and this can largely be attributed to credit cards. Sadly, any payment you miss on your mortgage, credit card and other loans is reflected on your credit report. Generally, a score of 700 points and above is considered good. Poor scores are those which fall below 600 points, but gain this depends on the lender. A poor score is bound to affect various areas in your life, for instance getting auto insurance can prove to be a nightmare. However, this is not the end of the world as there are bad credit card credit lenders who offer cards to people who are struggling with poor scores. Card companies offering bad credit card credit are not keen on scores and this is a great opportunity to rebuild your credit ratings.
History
To avoid plunging yourself into more debt, it is wise to use bad credit card credit cards with the utmost caution. When applying for these cards, it is best to get secured cards. This way you can avoid getting into more debt. Normally, you will be required to open an account and make a deposit which will be equal to your credit limit. In case you default, the card provider will retain the amount in the account. This also helps you to cub your bad spending habits since you can only spend what you have. These cards should be looked at as a life line and a rare opportunity to regain financial control. Strive to make prompt payments so as to gain the trust of lenders. A lot of patience is needed; it can be equated to losing weight. It can’t happen overnight.
Features
Having a poor score makes you a high risk borrower; this is why bad credit card credit cards often have a higher APR rate when compared to normal cards. To get the best deals in the market it is wise to compare rates from different providers. Look into factors such as APR and discounts. Ensure that you read the terms, especially the fine print, check to ensure that there are no hidden charges which may crop up later. Reading reviews is also a great way to get the best card providers, since the information is posted by people who have previously used these cards.
Tips and comments
It is always wise to pay off your monthly payments well in advance. If possible, try to pay more than the minimum amount. Never wait till it’s too late to make payments, try by all means to avoid interest charges and late fees. This will only worsen your debt situation and defeat the whole purpose of getting bad credit card credit. Check to ensure that your credit issuer makes reports to the credit bureaus agencies. If your regular payments do not get recognized by the relevant authorities, then your hard work will be meaningless and you scores will remain poor. Credit cards should be used with a lot of discipline in order for you to be considered credit worthy in future.
