Looking For A Credit Card With Bad Credit?

If you have a bad credit history, then looking for a credit card might turn out to be a tough task for you. This is obviously because creditors consider you as a risk and very few creditors would like to bet their money on your bad credit history. But there is no need to get worried and all is not lost for individuals looking for a credit card with bad credit.

Some banks help people with bad credit

Even though it is just the exception and not the rule, there are certain banks that are willing to help people with bad credit who are looking for a credit card. You can easily find out about these banks by either reading consumer forum reviews or conducting a search online. These banks may even accept people with low credit scores like 550.

The interest rates applied to such credit cards are also between regular ranges. If you are wondering about the catch in the story, then here it is: Since these banks take a risk when extending credit to you, they might charge you higher annual fees, more interest rates, and also levy other charges. These charges depend a lot on the extent of your bad credit, which means that you will be charged more if your credit score and history is worse when compared to others.

Explain the reason for your bad credit

Honesty is often rewarded and though it may seem to be unbelievable, stating reasons for your bad credit can actually help you while looking for a credit card after a blemish on your credit reports. I am not sure if you have noticed it yet, but there is a provision to add a note to your credit statements. But make sure that you do not add your entire autobiography here, because you have to get your point across in just 100 words (varies from bureau to bureau).

These notes are supposed to be taken into consideration by those who are reviewing your credit applications when you are looking for a credit card. Everyone understands a genuine reason when they read about one. Whatever you do, please do not bluff about a reason here.

Costly credit cards

If nothing else works, you may have to resort to costly credit when looking for a credit card. As the informal name suggests, these cards will come to you at a higher price. Subprime credit cards are also nicknamed as fee harvesting credit cards. This is because these cards will charge you a hefty upfront fee for processing the application. New regulations, however, do regulate the overall functioning of the industry.

If you are looking for a credit card with bad credit you may have to keep your eyes and ears open. While you may have very limited amount of choices, you can always compare between your available options to choose the cheapest of them.