Credit cards for people with bad credit are often called bad credit credit cards, since they are offered mainly to clients with non-existent, poor credit score.
These cards are available for people who would fail to get a usual credit card. Such cards have been tailored to meet certain needs and requirements of clients, who have had bad experience taking credit in the past. With the help of such options you can re-build and establish a positive credit record.
Making timely payments and keeping the account balance low are the essential points on the way to an improved credit history.
Having a credit line, such cards can influence your credit score. Once you get one of the credit cards, start using it and paying off the balance completely every month.
Such credit cards are available in numerous forms and types, with different fees and interest rates.
While credit cards are beneficial for credit history improvements, the average interest rate will not attract you.
The interest rate will vary depending on the bank and card type, though it typically ranges from 29% APR to 35% APR.
Simple Tips for Fast Application
Striving to fix your credit mistakes of the past, getting a credit card serves one of the best solutions. Nevertheless, you need to consider definite rules before the application process:
- Learn your credit history. To improve the credit score you need to possess detailed information about your credit history as well as be aware of the factors that usually reduce the score;
- Decide on two options: either getting a credit card to enhance the score or receiving a real short-term loan;
If you have fulfilled all three points, applied for the card and have been rejected, it is not a reason to give up. Analyze your mistakes, learn the information about other card companies and apply again.
Using eligibility check you can view the credit card you can apply for.
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Diverse lenders have various conditions of credit card obtaining and requirements for customers.
That is why you need to check multiple options and select the best one with instant approval, low interest rates and other advantages.
Uses and Possible Advantages Credit Cards Have for People with Bad Credit History
Bad credit cards are created for customers who experienced problems with their credits in the past. Additionally, the option suits clients with no credit history.
Belonging to these two categories, you seem to get fewer exclusive offers and considerably higher interest rates.
The category of bad credit includes people with:
- Past credit issues, especially repeated missed payments;
- Non-existent or limited credit history;
- Declination by other card providers, etc.
However, credit cards will help you manage the situation, re-build your ratings, get protection benefits and receive an access to cheaper credits.
Improve Your Credit Score with a Credit Card in a Few Steps
So we know that improving the credit history with a credit card is possible, though practically the process will require some time and effort:
- Start using your card as soon as possible;
- Do not spend more than your credit limit;
- Prepay the balance every month;
- Never miss payments;
- Take as much money as you can pay off.
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As a result, such credit cards for people with bad credit provide an opportunity to obtain better rates and other advantages.