Bad Credit Credit Cards
Not everyone has the excellent credit score and some of us are not qualified for 0% APR credit cards due to some financial mistakes we have made in the past. If you have poor or bad credit, does that mean you have to give up the privilege of own a credit card and the convenience of shopping without using cash? No. There are credit cards specifically designed for people with bad credit. These types of credit cards will help you repair your credit history and improve your credit score.
Unlike other cards with no annual fees, bad credit credit cards usually require you to pay anywhere from $30 to $60 a month to keep the account active. Some card issuers may ask you to deposit a certain amount of money to the credit account before you can use the credit line. If you deposit $200 you will be able to charge the card for up to $200. If you have less than bad credit the credit card companies may be able to increase the credit line by 2 times the deposit amount. You can't really complain this kind of practice. Poor credit is considered risky by credit card companies. It's normal to be asked to provide collateral before you are issued a new credit card.
What should you do after you receive the bad credit credit card? Use is just you would with a regular credit card. Due to the low credit line you will be able to buy big items like large screen HDTV, washers and dryers. Do use it on grocery, gas, or any everyday purchase.
The more often I use the poor credit credit card the faster I can repair my credit? It's not entirely true. Pay off the entire balance at every billing cycle. Never pay the minimum balance. Your credit card issuers will report your statements to 3 major credit bureaus every month. If your balance keep accumulating it's a not sign of good financial management. Your payment pattern will determine how risky you will be to the credit card company. By submitting payments on time and in full all the time your credit score should go up. As your credit improves you will be able to apply for cash back credit cards online and not have to pay any annual fee. With low interest rate you can even manage your finance better and can take advantage of credit cards with reward programs too.
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- A good credit card for people who are looking to re-establish their credit
- Starting credit line between $300 and $1,500
- Reports to all 3 credit bureaus each month, which can help improve your credit score.
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Rating |
Intro APR |
Intro Period |
Annual Fee |
APR |
Grace Period |
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3.9% |
6 Months |
0 |
20.15% |
25 Days |
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