Getting To The Point – Finances

What Credit Cards can People with Bad Credit Get?

Banks and credit card companies only offer credit cards to people with good credit score. Your credit card application will not be approved by banks or credit card companies if you have a bad credit history. The good news is that people with bad credit can still apply for a credit card from some companies.

Credit card companies will see you as having a high risk for borrowing money if you have a low credit score. If you want to apply for an unsecured card then this would mean an very high interest rate to compensate for the likelihood that you will not be able to meet some payment. You credit card limit will also be lower. The perks that people with good credit standing enjoy will not be given to you. Some credit companies give cash back or air miles to their clients.

Another option for people with bad credit score is to get a secured credit card. There should be some kind of security against the amount that you are going to borrow. The credit limit of the credit card is determined by the balance on a savings or current account. If you saving account has a few hundred dollars in it, then your credit will be slightly lower than this amount. However, it may be different terns for different lenders so make sure to check their terms and conditions.

IF you make further deposits to your savings account, then you may be able to increase your credit limit. IF you have been making regular payments, the card issuer may grant you an increase without requesting further secured funds. But this is according to the discretion of the lender.

One last option if you have a bad credit history is to apply for a joint account, often with a family member with a good credit rating. The rate on this type of credit card is the same as a normal credit card. Make sure that you don’t miss out on your monthly payments. If you fail, the co-signatory will need to make the payments on your behalf. If he also fails to make payments then both credit scores will be affected.

You need to shop around for the best credit card for bad credit. There are some lenders that charge an application fee and most lenders charge an annual fee on a secured credit card. If you are having trouble obtaining a credit card with bad credit there are credit card provider who will approve a credit card but will take advantage of you by charging you a very high application fee; make sure to beware of these companies.

Paying your monthly dues will help you improve your credit score with your credit card for bad credit.

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