There are credit cards for bad credit that are specifically designed for people looking to improve their score.
If you have bad credit, this does not mean that you don’t have a chance to rebuild your rating over time.
Have a look at these deals, which are updated every day, by clicking on the links below:
Summary of Contents:
- 1 Credit Cards for Bad Credit
- 2 Pros of Credit Cards
- 3 Cons of Credit Cards
- 4 What are credit cards?
- 5 What is the difference between a credit card and a debit card?
- 6 What can you buy with a credit card?
- 7 Who can apply for credit cards?
- 8 What rate is charged on credit cards?
- 9 What are the advantages of using credit cards?
- 10 Find New Credit Card Offers
- 11 What are the Interest Rates?
- 12 Think About Extra Benefits
- 13 Choosing the Right Credit Card Offers Limit
- 14 Searching for Credit Cards With Bad Credit?
- 15 Your credit history matters
- 16 Don’t keep applying!
- 17 What cards are available?
Credit Cards for Bad Credit
It does not matter what might be in your history, these types of cards are easy to qualify for and will help to improve your score over time.
You will not get access to extra benefits from traditional credit cards when you get this type of card however.
This means that rewards programs and low interest rates are not attainable.
However, you can get a new card that allows you to start rebuilding your poor history.
The Black Diamond Visa card is one of our highest converting cards and you can get more details or apply on line for one.
Even though cards for bad credit are reserved for people looking to build their scores, they still work in the same way as traditional charge cards.
This means that you can use your money at any store or location that accepts major cards.
It is even possible to get credit card with bad credit that do not have additional fees attached every time you use this card.
Pros of Credit Cards
The biggest benefit of these type of cards is that you can begin building your score right away.
If you have poor credit, you will not qualify for normal cards, which means that your only option is to apply for a new card that is specifically designed for people with poor credit.
If you have a score that ranges between 350 and 640, you are the perfect candidate for cards of this type.
You can use these cards to rebuild your credit and track your spending habits.
The Yes Card is more like a catalogue card which will give you an instant credit line of 2500 to purchase a whole variety of goods online.
The Yes Card do not take your credit score or credit history into account when applying.
Cons of Credit Cards
Even though there are many benefits to using credit cards for bad credit, there are a few downsides to be aware of.
You will not get access to lower interest rates with these type of cards and you will not earn rewards points.
These type of cards are designed to be basic and don’t have additional features.
There are even some types of credit cards with bad credit that require you to put money down for the full credit limit of the card.
This is designed to protect the lender and makes the credit card more secured.
However, not all cards for bad credit require you to pay upfront and none of the cards we advertise ask for this.
What are credit cards?
A credit card is a plastic card that enables you to electronically make payments for purchases.
It is basically a loan that enables the user to borrow money that is required to be paid back.
What is the difference between a credit card and a debit card?
Although you are able to use both cards in the same way and in the same places there is a difference.
With a debit card it can be used up to the amount of money you are in credit in your bank account.
A credit card however is money that you are borrowing as agreed by a financial provider.
The money borrowed on new charge cards may have interest rates, unlike a debit card that has none.
What can you buy with a credit card?
Like a personal loan you can buy anything you feel fit with credit cards, as long as you stay within the limit that has been agreed with your provider.
This could be items for your home, a holiday, or even a car, depending on how much you have available on your card.
Who can apply for credit cards?
Anyone can apply for a credit card but the limit you have and what interest you are charged will depend on your circumstance and your credit score.
For those that may have bad credit you may be limited on what products are available to you.
Currently there are excellent offers for those that have good credit scores.
What rate is charged on credit cards?
The rate in which you can borrow on a credit card can differ immensely. Depending on your credit score depends how good an offer you will be given.
There are currently excellent offers on the market, some as much as 36 months interest free on purchases.
On the other hand interest rates can be charged as much as 20% interest charged on money borrowed.
What are the advantages of using credit cards?
There are many advantages of using a credit card when making purchases. Using a credit card is convenient to use and is welcomed in many places.
These days they can be a cheaper way to borrow money.
When used correctly using a credit card can provide you with a strong credit rating, but only if you pay on time and are able to pay off what you owe.
A great advantage to using a credit card on purchases is for purchase protection.
Why not click on some of the links and banners on this page to get more details of credit card offers.
Credit Card Offers – credit scores are essential for almost every major purchase that you will be making in your lifetime.
Whether you’re buying a car, a home, or an engagement ring you’ll need a credit score.
Find New Credit Card Offers
This is where credit cards come into play as they give you a simple way to build your score without having to worry about putting yourself in an insurmountable amount of debt.
When you begin looking at credit cards it’s important that you consider the following factors in order to make sure that you’re getting the best card for your needs.
What are the Interest Rates?
The first thing that you should consider when you’re choosing from different credit card offers are the interest rates that they have to offer.
You will want to make sure that if you don’t intend on paying your card in full every month, you’ll be responsible for interest.
These varying amounts of money will be added on top of the principal amount that you owe which makes it more difficult to pay your card off on a regular basis.
You’ll want to make sure that you choose a credit card that has the lowest interest rate.
Also, don’t be drawn in by promotions that offer 0% interest for X amount of months.
Generally your interest rates will be incredibly high after the promotional period is finished.
Think About Extra Benefits
Every credit card offers the user some type of benefit that they can take advantage of, whether it’s frequent flyer points or points that can be used to help you save money on your groceries.
If you’re going to be regularly using your credit card you’ll want to make sure that you get benefits that you’ll actually be able to take advantage of.
This can help you to get free items by buying things that you would normally buy but using your credit card instead of using cash.
Choosing the Right Credit Card Offers Limit
Another important factor to take into consideration is the amount of money that you’ll be responsible for paying back when you choose your limit.
This is when you’ll need to consider the expenses that you’ll be putting on the card such as monthly bills or shopping sprees.
You’ll want to choose a limit that you can comfortably pay down in a short period of time instead of simply making monthly payments that mostly cover the interest instead of the principal.
Credit Cards With Bad Credit – have you got bad credit and are you in need of a credit card?
Searching for Credit Cards With Bad Credit?
There are many reasons why you can find yourself in the position of having a bad history and reasons for needing credit cards with bad credit.
By not making loan or card payments, or even making late payments, it can have a detrimental affect on your rating.
Your credit history matters
If you have been declared bankrupt, have entered into an Individual Voluntary Arrangement (IVA) or have had a County Court Judgment (CCJ) taken out against you, these can all lead to your history being bad.
When applying for a new card lenders look at an individual’s history to decide on whether they will be accepted or declined.
If you have checked your rating or have history of late payments or CCJ’s etc it is likely you will be declined for a standard card.
Don’t keep applying!
Each time you apply for credit it will show up on your file.
It is always a good idea to regularly check your file and be aware of the information providers see based on your history.
It is also a great way for those wanting credit cards with bad credit to see how they can improve on their rating and to correct any details that are incorrect.
What cards are available?
Being aware of this information and dealing with your bad credit there are many credit card offers available on the market that will accept you.
These cards are designed to help individuals to improve their rating from bad to good, sometimes within 6 months, if used correctly.
When applying for new cards with bad credit it is unlikely that you will receive the introductory offers that may be offered to those with a good rating.
However, if used correctly you may be given a better interest rate over time.
A good way of using cards with bad credit and to help build a good rating is to use the card frequently, stay below your limit and ensure you pay your balance each month on time.
A bad idea when using your card is borrowing more than you know you are unable to pay back.
Regardless of how you have come to having a bad rating don’t despair, there are suitable cards with bad credit out there on the market that will meet your needs.
If used correctly you can use bad credit rating credit cards to work on building a better credit rating for your future.
See also Express Finance.