Rebuild Your Credit with Credit CardsCredit cards for bad credit.
Are you looking to establish or rebuild your personal credit? If so, you'll need the right financial tools and the appropriate information to achieve your goal.
Bad personal credit and a low credit score can be extremely problematic when is the time to get a credit card. The great majority of credit cards are off limits, and even most secured credit cards may be hard or impossible to get. An additional side effect of bad credit is that most, if not all, of the initial credit cards will come with a yearly fee and relative high interest rates. With only few options on the plate many people fall into desperation and some card issuers take advantage of it by offering credit cards that are ineffective, expensive and sometime they cross the thin red line of scamming.
Unsecure credit cards:
Very hard or impossible to get with a bad credit, unsecured credit cards are something to look for after the credit picture will improve. The high cost for unsecured lines when have bad credit may not worth the squeeze. Best way to jump on the unsecured line wagon is to join the credit card of a family member that has a good credit. The rules regarding joining account for improving credit purposes changed recently due to high amount of people taking advantage of the system. Being added as an authorized user to a credit card will no longer help you build a credit history, unless, they are an immediate family member and there is a reason for them to be on the card.
Remember ... Unsecure credit cards for individuals with bad credit come with fat fees and huge interest rates, especially if they are easy to obtain.
Secure credit cards:
Secure credit cards are the way to go when starting to build personal credit. They are relatively easy to obtain with bad credit. They have low credit limits that will keep the spending urges under a necessary control for the given situation. Also, the best of them report to the three main credit bureaus. The down side is that the card the applicant must make a deposit equal to the amount provided as credit by the issuing bank. The deposit will be held as collateral until the card is closed.
To raise the credit limit, usually, more funds have to be deposited to increase the guarantee. Some programs will increase the credit limit after establishing a positive payment history, while others will switch the account to an unsecured credit line. Another way to work with the secure credit cards is to close the account once built some positive history, and open a new one with higher limits and better terms.
Remember ... You should use the secure credit cards to build credit and not to use them as long term loans. Pay in full and avoid monthly payments that will accumulate interest. The price for accrued interest can be very costly.
Suggested path: Secured credit cards.
Reasons: Easier to obtain, lower APR rates, lower yearly fees, greater options to choose from, self adjustable credit limits.
KEEP IN MIND ... No matter if you are looking for a secured or unsecured credit card make sure that you double read the terms and conditions. Credit card offers for bad and fair credit are many times flagged as frivolous . The best way to avoid being scammed is to do your homework before signing up and not after. If you do not invest the time in the beginning may cost you way more at the end. ALWAYS read the terms and conditions.
Visit www.costacredit.com to read more on how to boost your credit, repair your credit, use credit cards to rebuild credit, reestablish credit.
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