If there’s one thing good about having bad credit, it’s the fact you can still do something about it. An effective way is to apply for a credit card and pay it on time to improve your credit history and score. But how do you exactly find the right credit card that fits your situation? See more information here:
1. Decide whether to have an unsecured or secured credit card.
For those with bad credit, it’s possible to have a secured or an unsecured credit card. If you have poor credit, the lender may offer you the unsecured type. In this process, you need to pay a cash deposit, which will be your or the basis of the credit limit. For example, if you have $1,000 in your card, you can spend up to that amount only.
It may sound as if you’re using a debit card, but it’s not. It’s common among lenders to increase your credit limit even without an additional deposit if you prove you’re a responsible borrower. It is something you cannot do with a credit card. It’s also not unusual to have a secured credit card that offers rewards to encourage you to make purchases.
If you don’t want the hassle of having a cash deposit, you can see more information about an unsecured credit card. It works the same way as the other types of cards. But it’s not uncommon to pay higher interest rates and payment fees.
2. See to it the lender reports your repayments.
Keep in mind the goal of getting these credit cards is to help repair your bad credit, not just to have an extra source of money in case you’re money strapped. Thus, ensure the lender reports all of your repayments promptly to the three credit bureaus. These are TransUnion, Experian, and Equifax. The lender should not choose one over the other. Moreover, the report must be complete.
As a side note, don’t forget to get your free credit report annually. It is a good way to monitor your repayments, as well as credit history and score.
3. Watch out for those fees.
Even when you’re using a secured credit card, you still need to pay fees. You can’t escape them as that’s how these cards work and earn money. However, it’s your duty to do due diligence and know how much these fees are. If you’re on a secured credit card, these charges can quickly consume your deposit. In the end, there’s none left to spend and build your credit. You should also keep track of these fees as some lenders use them to exploit your situation. As a precaution, be careful of those that ask for application fees.
To see more details about these bad credit, credit cards quickly, use reputable comparison websites. In less than a minute, you can already know which lenders can offer you a good deal based on their interest, fees, and the add-on benefits of these cards. You can also send your application online.
Want credit card tips? See more at www.creditcardforbad.credit.
When you have bad credit, you don’t have a ton of choices when it comes to credit cards. But this does not mean that you should settle for the worse ones. See more about what you should do at www.creditcardforbad.credit.