If you need a credit card but have a poor credit history, don’t despair. Bad credit credit cards are available that can meet most needs. This is not common knowledge. No doubt become a credit card processing agent you have had people tell you that if you have bad credit, no lender will touch you. This is not the case for most people. As long as you have the income to repay the debt, lenders will usually be prepared to loan to you. Depending on your personal circumstances and the credit card provider, you may have additional criteria attached to your card. However, this is not automatically the case. Every lender is different and there are a variety of credit cards available to clients with poor credit histories.
There are different types of bad credit credit cards to choose from. These include both secured and unsecured credit cards. Secured credit cards require a deposit to cover the limit on the card. If you do not make your monthly payments, the credit card provider can take the security deposit to cover your debt. However, this will still affect your credit score so if you are planning on using a secured credit card it is important to make the payments on time. Unsecured credit cards are most common, even for borrowers with bad credit. Lenders may charge a higher interest rate as well as higher annual fees and charges to compensate for a higher risk. However, there are many credit cards available for people with a poor credit history which still offer reasonable terms.
If you need to rebuild your credit score, bad credit credit cards can help you do so. As long as you don’t borrow more than you can afford to repay and make your payments by the due date every month, you will be able to gradually improve your credit score. In fact, some credit cards specifically designed for bad credit offer a special service of notifying the credit reporting agencies of your good payment history every three months. These services can actually fast track your credit repair.
There is a wide range of bad credit credit cards to choose from but you need to know where to find them. You also need to have the capacity to identify the best options for your needs. The lower the annual interest charges the better. Ongoing fees and charges also need to be competitive. The lower all of these charges are, the better. The higher the interest rate, the higher the monthly charges you will have to face. Therefore, even if the fees and charges are a little higher, opt for the lowest interest rate. If they are substantially higher you will need to do the math.
The best way to find, research and apply for bad credit credit cards is online. Specialist credit card sites have usually done the initial research for you, leaving you with a selection of the best deals to choose from. They often provide tables comparing different aspects of the cards so you can see in a single glance the similarities and differences between cards. Once you decide on the best credit card, you can then apply online. You can do everything from beginning to end from the comfort and privacy of your own home. All you have to do, is do it.