You have a bad/poor credit and want to have a credit card. Do not worry, because there are more and more companies offer credit cards for poor credit. With a poor credit card, you can get three benefits. What are they?
In the previous post, Info Credit Free introduces people to some of the necessary information that is useful for getting the best student credit cards in the US, to get more information people can read the article Somethings about student credit cards people should note. Now, let find knowledge about credit cards for poor credit in the post today.
CREDIT CARDS FOR POOR CREDIT
Just like a lot of article posts such as instant approval credit cards, low-interest credit cards, pre-approved credit cards, best credit card offers…, this post about credit cards for poor credit also includes some main parts. They are:
1. What is poor credit and credit cards for poor credit?
FICO score “bad credit” is usually below 580 in 300-850, with 850 being the best. With the same scale, a poor VantageScore is usually below 550.
That is bad news. The good news is that it takes a few months to have good consumer behavior to improve your score. But be careful: Once you are on the road to good financial habits, you will want to maintain that, because a mistake can reduce your score quickly, practically faster than counting compared to when you are improving your credit.
Bad credit is determined by how you have handled your credit over the years. If you missed out on payments or didn’t even have much information in your file, your credit may not be good. The two most important components of your FICO score are on-time payments (35% of your points) and the amount you owe compared to the credit you have available (30% of your points).
That means that if you paid slowly, it could be the main cause of your poor credit, but if you have a high balance on the credit card you have, it could be a serious problem masonry.
2. Three ways credit cards for poor credit can benefit you
2.1. Credit cards for poor credit can rebuild your credit
If your credit is broken but you work hard to fix it, guaranteed credit cards can help you rebuild your credit score.
Credit cards are guaranteed for people with bad credit supported by cash deposits – usually for $ 250 or $ 500 – usually equal to the credit limit. This is often used by people with bad credit or no credit to prove their credibility before upgrading to unsecured cards.
After obtaining a secure credit card, be sure to pay the bill on time every month. It is also a great practice to pay off the money every month if you can. When you pay on time, your payment will be reflected in your credit report, proving to the lender that you are the responsible cardholder.
To make the most of your secured credit card, make sure the card issuer reports your payments to all three credit reporting companies – Experian, Equreb and TransUnion – ensuring that your efforts are Your credit good is recorded.
2.2. Move up to an unsecured card
If you have used a secured credit card for a while and have made a timely payment, your credit score may have improved, giving creditors a good reason to accept your credit. no guarantee. Your guaranteed credit card issuer may also start offering you unsecured credit on your card, providing you with more spending power. But be sure to check interest rates in the future, as it may be high.
2.3. Learn to manage your money
Perhaps one reason your credit is less desirable and poor money management can be a major factor. If this is the case, a credit card for people with poor credit can help you learn money management skills. You will be more careful about what you charge with a secured credit card and monthly payments on time.
If you’re determined to rebuild your credit, you’ll also pay off your balance each month to avoid high interest rates that often come with a security card.
3. The best credit cards for poor credit
This table is some type of credit cards that suitable with people having poor credit:
|Best For||Credit Card||Annual Fee||Deposit Requirement|
|Cash back||Discover it Secured||$0||$200|
|No annual fee||Capital One Secured Mastercard||$0||$49, $99, or $200|
|Building credit||Credit One Bank Visa Credit Card||$0 – $99||See Terms|
|Fast response||Total Visa Unsecured Credit Card||$75 the first year, then $48||None|
|Pre-qualification||Credit One Bank Unsecured Visa with Cash Back Rewards||$0 – $99||None|
Before you go further, remember that when you have poor or bad credit, your credit product options are severely limited. Even if you can scan and get a card to get better credit if you have a bad track record with your finances, there are still cards you want to avoid:
- Balance transfer card – If you have a problem with the full bill payment, the balance transfer card will not solve the problem. It can actually aggravate the problem if you switch from a card with a lower APR to a 0% discount with a higher APR after the 0% incentive ends if you have a balance at that time. Instead, handle your budget, pay more than the minimum and don’t add debt to your card.
- Credit cards with high annual fees – Can be as attractive as cards, with annual credit, generous rewards, and other incentives, avoid cards with high annual fees, because if your cash output is limited You won’t be able to make the most of the card’s features. Instead, build your credit with a simpler card.
- High credit card requirements – There is no point in registering a card that requires a high credit score if your score is at the lowest level because all you get is your credit score to honor. Your personal message.
- High initial spending requirements card – It seems that the registration bonus is amazingly 50,000 points, remember that accompanying it is a mandatory expenditure that you may not be able to afford. You certainly don’t want to commit to spending the money you don’t have in your bank for things you don’t need.
This post is about credit cards for poor credit. We provide this information to offer you some of the necessary information that is useful for getting the credit cards for poor credit. Also if you are using credit cards and would like to know how to borrow money, please refer to the personal loans for people with bad credit link we just provided in the previous article.
Hillary (Team Content) – Info Credit Free