These things can be painful to apply for. When you look at the terms you may be quick to realize just how much a good credit score really means.
To start with, these credit cards can often come with high fees for just about everything you do. There's the annual fee. That one is at least not unheard of in better credit situations, but painful to deal with nonetheless.
What you want to watch out for are the other fees. Some cards charge fees right and left, more or less just for the privilege of having the card. Read up on the terms you will be agreeing to, and find the card that will be kindest to your finances as well as help you rebuild your credit score.
The interest rate can also be a killer. Sometimes you'll see rates higher than 20%. Interest can quickly add up, so make sure you look for the lowest possible rate. And once you have something of a history with the company, call and see about getting a lower rate.
The grace period is very important. How long will you have until you have to pay back the credit company? Try for a grace period of at least 20-25 days so that you have the time to get your payments in on time. No need to incur late penalties when you're trying to improve your score.
Even with poor credit, you will have the opportunity to consider getting a rewards card. However, you need to consider how you will be using the card. No matter your credit score, a rewards card will typically charge more than a plain credit card. If you know you'll be carrying a balance, it probably won't be worth the rewards. On the other hand, if you are 100% certain you'll be paying off the balance each and every month, the rewards could be a good idea.
Getting out from under bad credit is tough. You have to be very determined and work hard at it. You can see the benefits of making a serious effort towards gaining a better credit rating.
If no credit history is standing in the way of you getting a major credit card, consider applying with small retail stores or obtaining a gas card. Unless you are a student, most credit card companies do not willing approve those with no credit history. However, store accounts are easier to qualify for. After approval, use the card responsibly. This will help build or improve your credit score, which makes getting approved for a major credit card effortless.
Get a Credit Card through Your Bank or Credit Union
The majority of banking institutions offer major credit cards. If you are a customer, the credit approval department may be willing to issue you a credit card with a small limit. With this said, it is important to maintain a good relationship with your bank. For example, avoid bouncing checks or incurring overdraft fees. If poor money management skills are displayed, the bank is less willing to assist you. Furthermore, attempt to build a cash reserve. This could possibly improve your odds of approval.
Apply for a Secured Bad Credit Credit Card
Many credit card companies advertise bad credit credit cards. To get approved, this usually entails opening a savings account with the company. In this case, the credit card is secured. Although secured credit cards require upfront cash, and usually involve several start-up fees, this is the easiest method for quickly improving or building a solid credit history.
The credit limit on secured credit cards varies. For the most part, the limit is equivalent to the amount placed into the savings account. As credit score improves, the company may gradually increase your limit.
Both Stephanie Foster & Jack Chevalier are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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