Bad credit credit cards help people to rebuild their credit so that they are able to attain better credit card rates and deals. Bad cards also open new possibilities since a credit card is frequently necessary as a second type of identification or for hiring a vehicle.
When you try to get bad cards, it is necessary for you to know that majority of the credit card companies require more details than just the payment history. So do not presume that if you attain bad credit credit cards, it will prevent the companies from giving you a credit card.
If you have a low debt ratio, long-term residency and a steady job, then there are good chances that a company will give you a credit card even if you try to attain bad credit cards.
Types of Bad Credit Credit Cards:
Unsecured And Secured Credit Cards:
An unsecured credit card does not need any form of deposit. Credit card companies generally issue a card to a person along with a spending limit. There will also be a fixed percentage rate so that an individual’s credit limit increases gradually.
However, if you are attempting to get a bad credit credit card, you will find that secured credit cards are excellent alternatives. A person can provide a deposit, which places a savings account in that person’s name with the help of a secured credit card.
That amount and occasionally more is fixed as the credit line for the bad cards. Thus, though making use of your own money appears to be a drawback, there are several advantages of attaining a secured credit card having a bad credit.
Following are the benefits of secured credit cards:
1. A person’s deposit ascertains the credit boundary and hence, it can be as high as possible.
2. An individual’s deposit results in an interest, which is comparable to a usual savings account.
3. You own the deposit so long as you update your account, thus, it acts as a usual savings account for the future.
4. Your excellent payment history leads the bank to increase the credit limit ahead of your deposit and even give the deposit back to you after a specific time-period.
Several pre-screened companies offer bad credit credit cards to people with bad credit. These companies provide competitive interest rates so that a person can have the advantages of a credit card.
Method of Issuing Bad Credit Credit Cards:
Majority of credit card lenders first issues a preset credit limit depending on their risk estimation. A person need not apply for every card offer. This is because there is an examination of every enquiry and if a person has a huge enquiry load with only a few credit grants, potential lenders may assume that something is wrong.
People can obtain bad credit credit cards by researching cards and available deals. An extensive variety of card options, ranging from secured to unsecured cards, are available for marginal, dismal and bad credit ratings.