Credit Cards For People with Moderately Bad Credit
If you are looking for credit cards for people with Moderately bad credit, there are several options that you will want to consider. Just because you have moderately bad credit does not mean that you cannot get access to a credit card when you need one. Here are a few things to consider about credit cards for people with bad credit.
Secured Credit Cards
One of the best options that you have when you have bad credit is to go after a secured credit card. This is a credit card that is secured by some type of collateral that you put up. Based upon the collateral, you will be given a credit line to work with on your card.
If you charge things on your card and then do not pay off the balance, the credit card company has the legal right to foreclose on the collateral. They can then take the collateral and sell it to recoup the money that they lent you.
This strategy typically works well because it significantly lowers the amount of risk that the credit card company is taking on. They know that they will be able to get their money back if you do not pay. Therefore, they do not have to worry about your credit history as much.
Prepaid Credit Cards
Another option that you might want to take a look at is the prepaid credit card. Prepaid credit cards are offered by many different credit card companies in the market. With this type of card, you will have to send money to the company before you can make any purchases with your card.
You will be able to spend only up to the amount that you have already paid to the credit card company.
This option will provide you with a way to make purchases anywhere that credit cards are accepted. This can be beneficial if you need to make purchases online or through some other venue that accepts credit cards only.
Unsecured Credit Cards
You may also be able to qualify for certain unsecured credit cards designed for those with bad credit. With this type of card, you will be able to charge purchases up to a certain amount. You should expect the credit limit to be relatively low for this type of card.
You should also expect to pay a higher interest rate on your card balance. Companies like to keep the limits low and the interest rates high when they are dealing with individuals who have bad credit histories.
Improving Your Credit
If you have bad credit, using these credit cards can potentially improve your credit in the future. Credit card companies are going to report your payments to the credit bureaus.
This means that if you can get in the habit of making your monthly payment, you could substantially improve your credit score over a given period of time. This is why many people with bad credit use these cards as a tool to help rebuild their credit. Read More