Bad Credit-Credit Cards Tips
Read these 6 Bad Credit-Credit Cards Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Credit-Cards tips and hundreds of other topics.
Credit limit increases with a credit card for bad credit
Periodically increase your credit limit with your bad credit credit card. Many of these credit cards for bad credit closely monitor your payment and spending behaviour and offer more credit accordingly. Having more available credit that you are using responsibly will be a signal to other lenders and credit card companies that you are a good borrower.
When to get a secured line of credit
If you have bad credit, a secured credit card may be your best option for establishing credit. Most credit cards are unsecured, meaning that they don't have limits or restrictions attached to them. A minority of credit cards for bad credit consumers are secured, meaning that they are directly attached to your bank account. This drastically lowers the risk for the credit card company because whatever you borrow is backed up by your real money.
Although secured credit cards for bad credit usually have higher fees associated with them, the rates vary from card to card. Shop around for a better deal and use your secured credit card to build a better credit rating.
Rebuild less than perfect credit with the right credit card for you
If you have bad credit or no credit, look into a bad credit credit card. These credit cards for bad credit offer higher interest rates than other credit cards, but if you pay the balance off each month, this doesn't have to affect you. The risk associated with a higher interest rate can be worth it if you're able to boost your credit rating.
Quickly boost a low credit score with a credit card for bad credit
By opening an account with a bad credit credit card, you can start improving your credit rating each month. Because credit card companies report to the four major credit bureaus on a monthly basis, every month that you responsibly use your credit card will positively affect your rating. Your on-time payments to your bad credit credit card will prove to other lenders that you are a responsible credit user. Just be sure that you pay the balance on your bad credit credit card each month as non-payment will negatively affect your credit score.
User fees with bad credit credit cards
Be sure to read all of the fine print when applying for a bad credit credit card. Credit cards for bad credit often charge fees that will be applied to your account as soon as you open it. Fees can include annual fees, setup fees, and monthly fees, making bad credit credit cards expensive. Shop around for the bad credit credit card that will cost you the least.
Free online access and bill pay
When comparing credit cards for bad credit, pay attention to whether a fee is charged for managing your account online. Many bad credit credit card companies will offer this service free, so if you find one that charges a fee you may want to look elsewhere. By managing your bad credit credit card account online, you can more frequently and easily keep track of your expenditures, make transactions and pay bills. The convenience of online access to your bad credit credit card account can help you get a stronger hold on your finances.
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| Jolyn Wells-Moran |
