There are credit cards for bad credit that are specifically designed for people looking to improve their credit score. If you have bad credit, this does not mean that you don’t have a chance to rebuild your credit rating over time.
Credit Cards for Bad Credit
It does not matter what might be in your credit history, these types of credit card are easy to qualify for and will help to improve your credit 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 credit card that allows you to start rebuilding your poor credit. The Black Diamond Visa card is one of our highest converting cards for credit 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 credit, they still work in the same way as traditional credit cards.
This means that you can use your credit at any store or location that accepts major credit cards. It is even possible to get credit cards with bad credit that do not have additional fees attached every time you use this card.
Pros of These Credit Cards
The biggest benefit of these type of cards is that you can begin building your credit 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 credit card that is specifically designed for people with poor credit.
If you have a credit score that ranges between 350 and 640, you are the perfect candidate for credit cards of this type. You can use these credit 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 These 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 credit 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 credit 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.
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