If your credit is worse than most, you may feel like cutting up your credit cards and avoiding payment cards like the plague. While giving up credit cards may seem like a good bet, there are still conveniences you will miss, like shopping online, renting cars and hotel rooms, and so forth. That’s not your only option, though.
The good news is you can find a number of credit cards specifically offered for folks with poor credit. The bad news is, these cards often promise great things with a darker side that includes poor terms and conditions, astronomical interest rates, and sometimes even annual fees. If you can get past the negatives of these “bad credit” payment cards, you’ll find that, when used properly, these cards can often help you get your credit score back on its feet while providing you all the conveniences of a modern credit card.
Choosing a new credit card when you have bad credit can be a daunting task. Most people with poor credit or no credit history may turn to secured credit cards to get back on their feet financially. Secured credit cards often impose a number of costs or fees, including application fees, annual fees, and processing fees. Other important things to consider and understand about a secured card include the deposit and how it is used, the credit limit youÃÂ¢ÃÂÃÂll receive, and the APR you’ll have to pay if your balance goes beyond the grace period. To be safe, you should also find out how often your credit card payments are reported to the credit bureaus that determine your credit score.
Once you are able to establish good credit again, your credit score should also improve. Once you’ve improved your credit score, many other credit card options should become available to you, such as gas rewards cards, travel rewards, and more. Stay focused and remember to always pay your balance on time to speed up the process!