Funny Cards to Use for Bad Parkers
The main challenge many people with bad credit face when applying for a credit card is having a limited number of good options. Establishing a positive payment history on a new credit card account is one of the best ways to start improving your credit score. Fortunately, you don't have to give up hope of qualifying for a credit card after having credit problems in the past.
After all, a poor credit history can happen to anyone for a number of reasons. Many unexpected financial challenges can result in missed payments and a bad credit score. It takes some effort, but it's possible to start rebuilding positive credit with a new credit card specifically designed for consumers with bad credit.
Unsecured Credit Cards with No Deposit Required
Unsecured credit cards are generally the most desired option for people with bad credit who want to start rebuilding positive credit histories. These credit cards don't require security deposits, which is appealing for consumers who don't want to tie up chunks of their own money. However, unsecured credit cards for bad credit often charge high fees and have high interest rates to compensate for the financial risk involved in issuing the credit. Nonetheless, if these cards are used responsibly, they provide an effective way for individuals to improve their credit scores and eventually gain access to unsecured cards with better terms.
A secured credit card is just like a regular credit card, but it requires a cash security deposit that acts as collateral for the credit limit. Although most borrowers don't want to tie up large blocks of cash to get secured credit cards, it's important to note that a secured card paid on time is better than no credit card at all. Obviously, the required security deposit is the major turnoff with these cards, but if you focus on saving a small amount every month, you will eventually reach your security deposit goal.
Reputable secured credit card options include Capital One Secured Mastercard, Discover it Secured and OpenSky Secured Visa. A good secured card reports to all three major credit bureaus and improves your credit score after a year of timely payments.
Avoid Subprime or Prepaid Credit Cards
If you have bad credit, you may be tempted to apply for subprime or prepaid credit cards. Ads with offers for these cards are displayed everywhere, but you should avoid these types of cards. These cards don't improve your credit score and often don't report to the major credit bureaus. Instead, they charge outrageously high upfront fees that usually take up most of your credit limit. If a creditor does actually report to bureaus, that ultimately hurts your credit score due to high credit card utilization. Some examples of credit card issuers who offer these types of cards include First Premier and Credit One.
Improving Your Credit Score
The only lasting solution to bad credit is to improve your credit score by getting your credit back in good shape. One practice to keep in mind when improving your credit is to think of your credit card as a tool to build your credit, not as a tool for spending money you don't have. There are various techniques you can use to improve your credit score significantly, and it starts with limiting credit card spending. Make sure you never miss a payment and always pay your balance in full. Finally, if you have multiple cards, spend very little on credit cards with low credit limits to avoid high card utilization percentages.
Best Credit Card for Bad Credit
When it comes to traditional credit cards, they aren't all exclusively for consumers with high credit scores. Some creditors consider individuals with bad credit, but they are few in number and harder to find. It's also important to make sure the bank you choose reports to the credit agencies as soon as you start making on-time payments to improve your score.
The Capital One Platinum card approves applicants with credit scores as low as 560 and has a variable APR that hovers around 26.99% with no annual fee — a definite perk for an unsecured credit card for bad credit. This credit card is issued by a reputable bank in the industry and is a good choice for those with poor credit scores who need to rebuild credit.
Source: https://www.bloglines.com/article/how-to-get-a-credit-card-with-bad-credit?utm_content=params%3Ao%3D740010%26ad%3DdirN%26qo%3DserpIndex