credit cards for bad credit

The Best Credit Cards For Bad Credit Scores

Credit cards for bad credit are definitely a relief for you if you are suffering from a less than perfect credit history. Bad credit is such a problem that can really impact your life in many different and frustrating ways. Employers will often use it as a hiring decision making it hard to get the job. In many states, poor credit could also determine how much you pay per month for auto insurance.

Finding cards for bad credit is the easiest way to start getting back on track. There are so many companies out there competing for your business you have to be careful to choose wisely. Knowing what to look for when you apply makes it that much easier to get approved and make an informed decision.

One thing to avoid when looking for credit cards for bad credit is APR’s or annual percentage rates. APR’s are what your monthly payment amount will be based on a set schedule. Having an APR that is too high will raise your monthly payments while having an APR that is too low will decrease your monthly payment amount. These companies know people who have had horrible credit histories so they try to offer sub prime rates to make a profit. Be aware of APR’s and shop around for the best option.

Two credit cards that are great to have and will help you to discover new ways of spending and improving your credit are secured credit cards and cash back credit cards. A secured credit card is one that requires you to deposit money into a savings account which is often backed up with collateral. The interest rate on this type of card is usually lower then most other credit cards because it is secured by something real. Most cash back credit cards are simply issued by a merchant and you do not get to cash back the items that you purchase.

You also want to know about fair credit card laws. There are many credit cards for bad credit score holders out there who continue to use their card despite their history. These people are hurting their own financial situation even more by continuing to charge unwise expenses. If a merchant allows these types of consumers to charge unwise spending because of “buy now, pay later” deals, the consumer could be in big trouble.

Before you apply for any credit cards you should have a budget established to figure out how much money you have coming in each month. When applying for secured credit cards you should also have a fixed deposit that you will use to cover at least the first year of the credit limit if you are unable to make the full deposit. By using the deposit from the first year to cover the full credit limit you are actually building your credit history.

Another thing you should consider is the terms and conditions associated with credit cards for bad credit history holders. Many companies offer reward programs that can help build your credit history. Other credit cards may offer special offers that will give you perks such as airline miles or cash back. While the benefits of these perks are nice, they should not be used as an alternative to good credit history.

Credit cards for bad credit histories should only be used in situations that will actually improve your scores. There are many options available to improve your scores. If you use the information that is provided here you will be able to find the best credit cards for bad credit histories. It is important to understand that not all cards are created equal and the information that is provided here may help you to select the right type of card to meet your needs.