For those who have credit that is less than perfect, there are bad credit credit cards available. These cards have many purposes regarding credit. The primary reason to get one is to rebuild poor credit or to build nonexistent credit. Another reason is simply convenience, now pay bills online.
Many places run a check on credit now, including employers. It is important to improve it as much as possible. If it is not, then getting a home, renting an apartment or buying a car will be difficult in direct proportion to how poor your credit is.
More than one type of card is available as an option for those with poor credit. The options are secured or unsecured cards. A secured card comes in more than one form. Both types will have cash to back any purchases made. It may be linked to a savings account and the amount of credit available to you will be percentage of what is deposited.
The other type of secure card is a prepaid card. This is used as a credit card but there is no actual credit or monthly payments. This is one where the total amount is equal to what is loaded on the card. It is more for the convenience of online and phone purchases or anywhere else cash cannot be used.
The unsecured cards will typically have a small starting balance of $250 depending on how bad the credit is. If the minimum monthly payments are made on time, then the balance increases over time. It is with the secured card that credit can be rebuilt. They will report to all of the consumer reporting agencies all timely payments.
The bad credit credit cards are useful for rebuilding credit or to keep in case of an emergency. All of them do not offer the same terms, so a careful reading of all fees and terms is necessary. Some may require you to pay a fee if payment is late or if over the limit. Interest rates may change after several months or there may be an annual fee. Choose the one that is best for you.
Many places run a check on credit now, including employers. It is important to improve it as much as possible. If it is not, then getting a home, renting an apartment or buying a car will be difficult in direct proportion to how poor your credit is.
More than one type of card is available as an option for those with poor credit. The options are secured or unsecured cards. A secured card comes in more than one form. Both types will have cash to back any purchases made. It may be linked to a savings account and the amount of credit available to you will be percentage of what is deposited.
The other type of secure card is a prepaid card. This is used as a credit card but there is no actual credit or monthly payments. This is one where the total amount is equal to what is loaded on the card. It is more for the convenience of online and phone purchases or anywhere else cash cannot be used.
The unsecured cards will typically have a small starting balance of $250 depending on how bad the credit is. If the minimum monthly payments are made on time, then the balance increases over time. It is with the secured card that credit can be rebuilt. They will report to all of the consumer reporting agencies all timely payments.
The bad credit credit cards are useful for rebuilding credit or to keep in case of an emergency. All of them do not offer the same terms, so a careful reading of all fees and terms is necessary. Some may require you to pay a fee if payment is late or if over the limit. Interest rates may change after several months or there may be an annual fee. Choose the one that is best for you.
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