Top Credit Card Choices for Bad Credit 2014
The credit card scene changes almost weekly, each competitor trying to outdo the other. But for those with poor credit, the choices have to be different. Most banks and credit unions will not give out credit cards to those with bad credit and often don’t even offer secured credit cards. There is no profit in it. However, it is crucial that those with bad credit go out and get a new credit card and use it every month!
And there is a whole industry of merchants and specialty banks that do offer credit cards to help consumers rebuild credit.
BUYER BEWARE – NOT ALL CREDIT CARD OFFERS ARE EQUAL
If you are looking to rebuild your credit quickly, a new credit card will go a long way. But there are important issues to be aware of. Credit cards designed for bad credit usually will not have any of the perks, like cash back. They will also have lower limits, sometimes less than $500. The interest rates will definitely be higher and they are likely to have a higher annual fee. Not always, so do your homework. And remember, your goal is to rebuild your credit and credit score.
WHAT YOU NEED TO KNOW ABOUT CREDIT CARDS FOR BAD CREDIT
Getting and using your new credit card can account for 50% of your credit score, which covers, getting new credit, paying your bill on time and adding new positive credit history each month. The key is that these banks report your history to the credit bureaus each month. And that is the reason to apply for one of these.
BALANCE OR NO BALANCE
If you pay the balance off each month then the interest rate won’t matter, so look for cards with the lowest rate (combined with the lowest annual fee). On the other hand, if you carry a balance, a lower interest rate is your top priority.
Always remember to keep your balance less than 33% of your available credit limit (this will give you the highest possible score) and to make your payments on time.