Having less than
perfect credit can hurt you and your
financial future. One way to get yourself
out of the dark hole of credit is by
responsibly using a credit card. If
you have bad credit and are looking
for a credit card, you may want to stick
with the bad credit credit cards. Bad
credit credit cards are just like regular
credit cards, but they are specifically
for high risk cardholders.
Since your credit score is low, you
are considered high risk to the credit
card companies. Bad credit credit
cards should be used responsibly however
or your situation will just worsen.
If you think there is even a possibility
of you defaulting on the card, simply
don't even apply. Before applying
for bad credit credit cards, be sure
to check out the common terms for
bad credit credit cards.
Credit Limits
Credit limits on bad credit credit
cards are usually relatively low.
The highest limit you will usually
see is around $1000. This is for your
own protection. The lower your limit,
the more likely you are to use the
card and pay off your balance in a
timely manner. It is much more difficult
to pay off higher balances. Therefore,
don't think of the low balance as
a disadvantage.
APR
Most APR rates on bad credit credit
cards are very reasonable. They fall
around 10% which is good for a credit
card. Try to find cards that hold
the lowest interest rate possible.
This will help you repay your charges
quickly while giving your credit score
a positive boost.
Fees
Although typically annual fees on
credit cards should be avoiding, with
bad credit credit cards, they are
standard. Bad credit credit cards
often charge annual fees of up to
$50 or more. This is a protective
act for the credit card company. It
may be something you simply must accept
if your credit score is low and you
need a credit card.
Another fee you may encounter is
an enrollment fee. Again, this is
something no one with good credit
should ever accept. However, with
bad credit credit cards, the enrollment
fee is common.
Credit Bureau Reporting
Make sure than any bad credit credit
card you apply for reports to all
of the major credit bureaus. This
will help you regain good credit.
You don't want to pay diligently on
a card that cannot help your credit.
You may have to call customer support
ahead of time to ask this question,
but it is worth your attention.
Bad credit credit cards can be just
the things that save your credit.
If you want to boost your credit,
then consider getting one of these
unique cards. Just remember to spend
and repay responsibly. In no time
you can have your credit looking 100%
better!
