Let's face it: in today's world, you need a credit card to buy or sell a lot of things. You could pay cash for many things, but how convenient [or safe] is it to carry around a wad of bills? If you lose the money, you can never get it back. Not so with a credit card, because that small piece of plastic is easy to replace. What should you do if your credit is bad? You may not be able to get a credit card. Happ...
Let's face it: in today's world, you need a credit card to buy or sell a lot of things. You could pay cash for many things, but how convenient [or safe] is it to carry around a wad of bills? If you lose the money, you can never get it back. Not so with a credit card, because that small piece of plastic is easy to replace. What do you do if you have bad credit? You may not be able to get a credit card. The answer is a loud and clear "no." Even if you have bad credit, you have some options that can help you get a new credit card.
What Bad Credit Is
Before we talk about applying for a credit card for people with bad credit, let's look at some of the things that could hurt your credit score:
— Late payments on car loans, rent, mortgage, bills, etc.
— You have medical bills you can't pay.
— You have a court order against you, like child support, a lawsuit, etc.
— Lost job, big drop in money coming in.
Any of these things can hurt your credit score, making it harder for you to get a credit card, but not impossible.
Credit Cards for People with Bad Credit: What They Offer
If you want a credit card for people with bad credit, you should know that the requirements are different from those for people with good credit. Still, if you have bad credit, a credit card can be a good way to help you build it back up. It won't happen overnight, but if you stick to a payment plan, it will happen. Here are a few things you need to know about a credit card for people with bad credit:
Your APR is going to go up. Some have low APRs for the first few months, while other cards have rates that change over time. The APR will be higher as a whole.
Default rate. If you don't pay on time, you might have to pay a much higher default rate.
Cost per year. Expect to pay up to $100 a year for each card. If it's a secured card, the fee will be less.
More costs. Depending on the card you choose, you may have to pay a fee to set up your account, a programme fee, an annual fee, and a participation fee.
When looking for a credit card for people with bad credit, you should only commit to one that fits your budget. Between the fees and the higher APR, you could end up with a card that doesn't work for you. Still, if you use a credit card for people with bad credit and pay it off quickly and on time, you can rebuild your credit.
