CardsWithRewards : Poor or Bad Credit

Poor or Bad Credit

People who have experienced problems getting a credit card due to a Poor Credit history or no previous credit history. (A poor credit rating can be caused by a number of reasons including CCJs, failure to pay household bills, mortgage or rent arrears, loan defaults and bankruptcy.) Don't dispair some companies are sympathetic to people with a bad credit rating. Most include Reports to the Major Credit Bureaus to help boost your credit rating.

Get A Credit Card Even If You Have Bad Credit

Most credit cards for people with bad credit start you out with a very low credit limit. You will no longer be able to use a credit card to give your budget a substantial cash infusion-the lines of credit you initially will have access to are likely to be too low. Secondly, when taking on people with poor credit, credit issuers protect themselves by offering more stringent terms and charging considerably higher fees.

Does that mean that it’s not worthwhile to get a credit card if your credit score has fallen below average? No, there are still many good reasons to apply.

Apart from convenience, the biggest reason to get a credit card when you have bad credit is that it gives you a tool to increase your financial discipline and planning skills. This in turn will help you to more rapidly rebuild your credit and improve your credit score.

Unsecured Credit Cards — These cards function like a standard credit card, but the typical credit line is much lower and the fees tend to be considerably higher. The main advantage of these cards is that they can function as a bridge card that helps you rebuild your credit faster.

Secured Credit Cards — A secured credit card is backed by a deposit you make into a bank account, which serves as security for the card. If you default on your payments, the credit card company will use the money in the bank account to cover your debt. The advantage of a secured credit card is that it is easier to get approved, since your credit limit will initially be the same as your deposit. To learn more about secured credit cards, click here.

Prepaid Credit Cards — These cards are similar to debit cards, but unlike a debit card, you don’t need to have a bank account to get a card. You load money onto the card, and that is what you have to spend, no more, no less. These cards offer the same flexibility and convenience as standard credit cards, and they allow you to make payments over the phone, online, and in other situations where cash or a check are not convenient. If you think this might be the right card for you, click here to learn more.

Catalog Credit Cards — Also known as merchandise credit cards or shopping cards, these cards offer you a considerably higher credit line than the two other types of cards available to people with bad credit. The catch is that you can only use that credit line to purchase products offered by the issuer of the card, similar to a department store card.
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