By Dr. Kavita
Having to live with bad credit is equal to go through life branded as a person with a bad character. At least that is what the current attitudes of banks, credit card companies and almost every financial institution says.
People who are faced with bad credit are often at a huge loss when it comes to obtaining credit cards. But do not worry as there are still some loopholes for consumers like you and today’s post is all about those loopholes that anyone with bad credit can use to get credit cards.
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Secured credit cards save the day
Secured credit cars are simply awesome when it comes to getting a credit card with bad credit. The way these secured credit cards work is that you deposit some amount of money in to a bank account. The lender will then extend a credit for either the same amount that you deposited or an amount that is slightly higher than it, via a secured credit card.
So, basically you are being given the option to use your own money on credit and in case you do not pay the credit card bills, the company can always confiscate the deposit that you have placed in the bank. Remember that you are not using a secured credit card for credit benefit. You are using it merely to establish a blemish free credit report and build your credit score, so that after about six months to one year, you can apply for regular credit cards and get approved too.
Apply for a sub-prime credit card
Sub-prime credit cards are not recommended except as a last resort for the reason that they charge interest through the roof. But if you look at the situation from the point of view of the credit card company, they are taking a huge risk by lending credit to a person who has a history of not managing his/her finances properly. In other words, the chances of you not being able to pay back their dues are very high. That justifies the high interest rates that sub-prime credit cards charge consumers.
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Search for credit cards for bad credit
Certain banks and credit card companies have come out with credit cards that are specifically meant for people with a poor credit score. These credit cards may not come with any frills and advantages, but at least you can obtain a credit card for your necessities. Be warned that these cards will have a much higher rate of interest than the regular credit cards
The best thing you can do when you have a bad credit score, is to take immediate measures to improve your score. Otherwise you will be stuck for life without any chance of obtaining good credit card offers.
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