credit card for people with poor credit
Posted by admin on November 18th, 2008 at 12:00am
Question:
Would anybody please recommend a decent credit card for people with poor credit who are on the path to rebuilding it?
Would anybody have first hand good experience with a non-secured or secured credit card company in this respect?
Answers:
If you cannot obtain a credit card due to poor credit, go try a secured credit card. This means your credit will be whatever you have deposited in their account. If you open up an account with 400 dollars, then 400 dollars will be your credit limit on that card. I understand that it is difficult to do when you do not have the money. And yes, I do understand that it does not look like much to work with, but believe me, it’ll help you establish your credit history. Your credit report will not state that it is a secured credit card. Just be sure you keep up with the regular payments. Establish some credit. Soon you’ll have the ability to obtain an account that is not secured. It requires some time, but it will definitely be worth it.
If you have bad credit, it is highly unlikely that you will locate a credit card for people with poor credit that has a decent interest rate. Poor credit means high risk, which means high interest.
Search for a major credit card that doesn’t have an annual fee. You might even need to get a secured card, in which you will deposit a certain amount of money for collateral. Use the card but only purchase what you can pay back in full and on schedule each month. That will provide you with a decent payment history which is the greatest cure for poor credit.
Rebuild credit? What you have to do is find out how to manage your finances correctly. Get on a strict, on-paper budget, and pay in cash for all your purchases. Just as long as you commit to spending less money than you get, you are always going to succeed financially.