Credit Cards For Bad Credit

Introduction

Finding credit cards for bad credit is not an easy task. Obtaining credit cards for bad credit is especially difficult these days. With so many defaulting on loans, mortgages and credit card payments due to the poor economy, lenders are being more careful than ever. For those with bad credit, finding credit cards for bad credit is often the only way to improve their credit. It is a vicious circle, you need credit cards for bad credit in order to improve credit, yet without improving your credit, you cannot find a credit card. Luckily, there are a few credit cards for bad credit that can be found.

Step 1

There are a few companies that offer major credit cards for bad credit. You can obtain a Visa or MasterCard by applying with one of these companies. These types of companies take a chance and issue credit cards for bad credit. In return you will be paying high interest rates and the card will most likely have high fees that go along with it. It is important to read the terms and conditions before accepting a card. You may determine that it is not worth it to get  card with such high fees associated with it.

Step 2

Apply for credit for catalog shopping companies. These companies often issue credit cards for bad credit. Again you should read terms and conditions to be sure you understand any fees that you will be charged. Some of these companies work by allowing you to apply for credit when you place an order. Often you will have to pay a deposit before your order is shipped. The amount of the deposit will depend on the company. Some may only require a 10 percent deposit, while others ask for a deposit of 50 percent of the purchase price. These companies do report to the credit reporting agencies, so keeping up with payments and being on time is a good way to boost your credit rating.

Step 3

Another option for those wanting a credit card for bad credit is a secured card. These cards work by allowing you to place money in an account, you can then only use the card to spend that amount that is in the account. This way you can never spend more than you have. In order for one of these cards to be helpful to your credit rating, only choose one that specifies it reports to the credit bureaus. If you are unsure, ask before applying for the card.

Step 4

Another option for those seeking credit cards for bad credit is waiting. This is especially true if credit debt is the reason that you have bad credit. Take some time to pay down the debt that you already have. As you pay off the debt, your credit score will go up and then you may no longer need credit cards for bad credit.

Step 5

If your debt is so steep that you are using credit to pay bills, or falling behind on bills, a credit card for bad credit may not be what you need. Perhaps some credit counseling would be helpful. Learning to live within your means and becoming debt free is the best way.

Tips and comments

• Do your best to always make credit card and loan payments on time.
• Work to pay off more than the minimum balance on all payments. This will help you to pay down your debt faster.

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