Credit Cards for Bad
Credit - Understanding The Options
If folks have
Credit, how can they
distinguish which Credit Cards
to select when there are so many possibilities?
The information below will break down a few types
of cards to give you a useful understanding
of the advantages of each:
Cash Back - With a Cash Back
card, customers get a refund that is the same as
a fraction of their purchases. For example,
if there is a Cash Back
solution that awards 5% cash back
on food, fuel, and pharmacy
items, as the rewards accumulate they can be redeemed. If you
spend a hundred fifty dollars in petro, groceries,
and drug store items each week, at
the conclusion of a year, $390
in rebates would be available.
Rewards Points - In lieu
of rewarding customers with money back, some companies
offer points programs. Customers get
rewards every time the card is used. Every time the card is used, the points
accumulate. After a certain amount of points add up they can be redeemed for great stuff, such as
free rental cars, gift cards, subscriptions, and so on.
It is smart to be aware of whether or not the Credit Cards
for Bad Credit you are considering offers
a points program.
Gasoline Rewards - Card Issuers
can be sensitive to the price
of fuel and will reward
their customers for using their cards by rewarding them with a prepaid
gas card. As the credit card is utilized, reward points add up. After a specified amount of points are accumulated they can be turned in for a
prepaid fuel card. The funny thing is, with some cards fuel points can be earned
while you are getting gas.
Points Toward Free Hotel Stays, Rental Cars or Frequent Air Travel Miles - When this kind of card is utilized, customers can earn frequent traveler's points that can be redeemed for free travel. Once a specified number of points are earned, they can be applied toward all kinds of travel arrangements including free air travel. These programs are great for frequent travelers.
0% Introductory Rates - Finance charges are not applied on these cards for a specified amount of time.
This time period typically varies from six months up to a year.
Smart customers take advantage of this interest-free period
to move outstanding balances from their current Credit Cards
to one of these and pay the balances off within the promotional period. Paying the bill on or before the due date is very important.
When the first payment becomes past due, most times
0% APR rates are changed to another
rate. Individuals that are offered
Credit Cards for Bad
Credit, and have the opportunity to sign up for a zero percent promotion
should think about this great opportunity.
Secured Cards - Customers that have one of these
would put a certain amount of money in an account that can earn interest while it is there.
This "is what makes it a "" secured card"" ." At that point a card is
issued with a spending limit equal to
the amount that has been deposited in the account. When purchases are made the credit limit decreases, affordable
regularly scheduled payments are determined, and payment plan
is is mailed or emailed if you choose paperless billing. If the card is active low monthly payments will become due. Secured Cards
are perfect because they operate the same as
conventional credit cards allowing people
to do things that debit cards may not, like making travel accommodations like airline tickets
that commonly do not take standard bank account
cards. Individuals with bad credit should apply because approval is generally
guaranteed whether you have good credit or not. This can help in the rebuilding process because many
secured card issuers submit whether or not the bill is paid on time
to be added to your credit profile. This is a remarkable
technique to prove you are creditworthy by showing regular
payments no matter if you have Bad
credit or not. After paying
a certain number of consecutive timely payments, many times the limit can be increased without
requiring additional collateral.
Reloadable Prepaid Credit Cards - With
a Reloadable Prepaid card, purchases can be made without interest, fees, or finance charges. Similar to
a checking account, a deposit is made into an account and this becomes
your spending limit. As the prepaid credit card
balance has been exhausted, simply put more cash into the prepaid account and your card will be ready for use once again. Reloadable prepaid cards
are terrific for students, they offer the kind of flexibility that debit cards have, and they work well for individuals that are unable to
acquire a typical banking account.
Quick approval is generally granted despite
your FICO profile and there is
no need for the issuer to deal with Experian, Equifax, and TransUnion.
With all of the many types
of Credit Cards
for Bad credit and
benefits that they have, it is easy to identify the best solution for your situation. Look for
Credit Cards that make sense for your situation that will allow you to control your spending habits. No matter which card you choose, be sure to
make wise purchases and timely payments. Super credit is fantastic
thing to have.
To make sure that you keep developing an awesome credit score, obey these simple directions:
1. Always have your outstanding balance at a percentage of the
credit limit. Another way of saying it is, it is not smart to
"over spend". It is important to maintain
an account that is somewhere around forty to fifty percent
of the available balance on any
Credit Cards for Bad Credit.
2. It is important to pay the bill when it is due. Even if you cannot make more than the minimum payment due, be sure to pay the bill on time. If you miss a payment, that information could be told to Experian, Equifax, and Trans Union. This is not good for the consumer's FICO profile. As a result, you may also have a rising interest rate as a result of just one late payment. Hence it is advised that you pay on time.
3. Pay the balance completely every quarter.
When you make purchases, try to
pay the balance back down to zero at least one time per year. Afterward, it is okay to
begin creating transaction activity (like buying gas, shopping online, or making purchases) then pay it back down to zero again after a few months, and make this your repayment pattern.
This pattern illustrates to the issuers
that you can be a great customer. Some of the other benefits of this approach are
low rates, more of a limit, and a higher FICO score.
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for Bad credit
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to get approved for a card that suits