So What Is A Bad Credit Credit Card

Category: Finance, Financial Planning.

When your credit is bad, card issuers don t want to give you a credit card.

It s a catch- 22- you need a way to show that you can pay your bills, and unless you show that you can pay your bills, no one is going to trust you. When you can t get credit, it s hard to rebuild that all- important credit history. It s a shameful situation, but bad credit isn t something to be ashamed of. If you ve had trouble with credit in the past and want to repair your history, bad credit credit cards are one of the tools that can help you put your things back on the road to recovery. It s something to be fixed. It can help you rebuild your payment history upon which much of your credit rating is based.

There are many reasons that you might have bad credit. So what is a bad credit credit card? If you ve had trouble paying off accounts before, the record of your late and missed payments ends up on your credit record. When you have bad credit card issuers are understandably wary of granting you further credit. When you apply for finance, the card issuers check your credit record to see if you re the type of person who typically pays bills( as well as finding out many other things, like if you have enough income, and where you live) . At the same time, there s money to be made in extending you finance, and these companies aren t well known for shying away from an opportunity to make money.

How do bad credit cards help you repair your credit? It presents them with a dilemma, and the solution to that dilemma put less emphasis on the risk with high interest rates on the repayments which offsets the risks of lending money to people who don t have excellent credit. Generally, when people look for a credit card, they re looking for low interest rates. In fact, usually reserved for, the best offers those folks who ve never missed or been late with a payment, sport APRs in the single digits these days. Most applicants wouldn t even think about taking a card with an APR above 12- 15% . Most people would consider options with APRs above 17% to be bad credit cards. Most won t offer you cards at all.

When you ve been in debt and are trying to recover your good credit, issuers aren, though t going to offer you their best rates. When no one will let you borrow money, it s a little difficult to prove that you can pay it back, yes? Despite higher interest rates averaging 39% if you borrow a little each month, but pay it off completely each month you ll re- establish yourself as a reliable borrower and your credit rating will improve. When you re in that situation the solution is bad credit credit cards. Of course, the key to using cards as tools that get your credit back on track is in the way that you use them. Pay off the entire account each month. These are the basic rules to repair your credit: Only charge what you can afford to repay within a month.

Pay the account as soon as it comes in each month so your payments are never late. Needless to say, some bad credit cards are better than others. Be sure that your payments are being reported to the credit reporting agencies. Before you apply, take the time to compare rates and fees and choose the option that is the best for your needs.

Read more...

This Is How You Can Find The Best Estate- Planning Attorney For Your Family - Finance and Financial Planning:

Finding a good estate- planning attorney is vital for the success of your estate plan.

Even If The Underlying Index Goes Up 10% , Your Return Will Be Lower - Finance and Financial Planning Articles:

Equity Indexed Annuities( EIAs) have become the hot product of late. I ll discuss these alternatives in the next two articles.

Many People Fail To Understand The Importance Of Estate Planning - Finance and Financial Planning Articles:

Many people fail to understand the importance of estate planning.