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!
