Bad Credit Won’t Stop You From Getting a Credit Card
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02:14:10 am on July 11, 2009 | # |
In case you’re confused regarding whether or not you can get a credit card with a bad credit history, the answer is yes. It is possible for many customers to get credit cards even if their previous history was bad. If you’ve missed payments, had a credit card cancelled or if your FICO score is below 600 it’s going to be difficult for you to obtain a new credit card.
Before applying for any new loan and that includes credit cards check your credit report for any errors or mistakes. It’s possible you could bring your score up enough to qualify for lower interest rate even if it’s a secured credit card.
The best way to go about it would be to apply for a secured credit card. Secured credit cards can be found online but also check with your local bank as well. In a secure credit card you make a deposit which will be equal to the credit on the card with the issuing bank. Banks are comfortable issuing this card since the payment for future purchases have already been made and they cannot incur any losses. The deposit is kept for at least 12 months of on time payments and may be returned at that time. Many credit card companies keep the deposit for the life of the credit card
The interest rates on these secured cards are higher than an unsecured card. The reason is that most individuals who opt for secured cards will pay the higher interest rate because they realize it’s the only kind of credit card they qualify for. In addition the bank knows that as soon as the customer can get an unsecured credit card they will and transfer the balance to the new card.
Secure credit cards also have higher other fees associated with them. Banks make a pretty hefty profit from consumers who are desperate to apply for these credit cards. There can be annual membership fees, processing charges, and greater penalties for late charges. Interest can be earned from the day a purchase was made on the credit card rather than the last day of the billing cycle.
In spite of the high fees, many people who use these secure credit cards use them to fight their way back to a strong credit report. A secured credit card may be their only option to rebuild their credit for the future. Credit cards have almost become a daily necessity.
If you’re someone who is looking to find another credit card due to your previous poor credit card history, the best advice would be to take some time out to look into different cards and determine which the right one would be for you. Even with secured credit cards there can be differences in interest rates, application fees, and annual fees. Find out when or if you can request your deposit back and if there are any pre-penalty fees if you close the account before a certain amount of time has elapsed.
As long as you’re responsible with your new card, your credit card history will be on the right track.
FREE report Credit Card Debt Management Need help on how to get out of debt? Corey Landis contributes to several websites on debt consolidation, credit, and loans.Related posts:
- Bad Credit Won’t Stop You From Getting a Credit Card
- Have Poor Credit? You Can Still Get a Credit Card
- Secured Credit Credit Card Fees
- Secured Credit Cards For Students
- Get Rid of Credit Card Debt.