In this day and age, bad credit scores is nothing out of the ordinary. If you have bad credit, you will probably have a hard time getting a credit card as issuers have raised approval standards. However, this is not a reason to fret because credit card issuers have created credit cards for not so good credit to give you a second chance with building an outstanding credit.
Secured credit cards
Credit cards of this type require a security deposit prior to its release. Usually, cash is the preferred form but you can also pledge anything that has high monetary value. Such security deposited will be the basis of your credit limit, which is typically equal to the amount deposited or the monetary equivalent of the property involved. You can also raise this limit by increasing your security deposit. In some instances, the issuer will reward you with a higher credit limit provided that you pay your bills promptly.
Credit cards for not so good credit — secured credit cards — are available online. They could help if you are in the process of building credit or trying to repair it.
Regular or unsecured credit cards
Despite having bad credit, you can still qualify for a regular credit card but with higher interest rates and fees. Although this may seem unattractive, it actually helps you in a way because you will be obligated to pay the total amount due, thus, avoiding debt. Aside from this, your initial credit limit may also be lower than those who have excellent credit but it will gradually increase depending on your payment performance. This may seem like a downside at first, but then again, it can help you improve your spending habits and consequently enhance your credit.
So when looking for credit cards for not so good credit, do not dismiss regular credit cards for its higher rates and lower limits. Instead, use these restrictions as tools for improving your overall credit standing.
Store credit cards and gas credit cards
Store cards and gas cards are perfect for establishing credit and repairing damaged credit as well. The beauty of having these card types is that you can use them for your everyday needs, such as food and gas. The only drawback is that these cards are made specifically for certain establishments, thus, limiting their usage. In spite of this, store cards and gas cards are still great credit cards for not so good credit because they are available online, subject to qualifications criteria listed in their terms.
Synopsis
Despite the horrors of having bad credit, you can still find a silver lining in the form of credit cards for not so good credit. These credit cards may not compare to the other types, but in reality, they act as a mechanism to help you toward your goal of improving your credit score.
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