There are plenty of credit cards that cater to different audiences and one such cards are the Credit cards for bad credit. These cards are just like any other normal credit cards. They are a good option for someone with a bad credit history or someone who does has no credit history in the country where the user is living.
This article covers everything you need to know about the credit cards for people with bad credit history and answers you some of the most common questions about credit cards for poor credit history.
What is considered as bad credit score ?
A credit score is one of the metric used by various lending providers (loan providers , credit card providers) to make a decision on your application for the credit. Your credit score is based on your bill payments , existing credit payments , employment status , salary etc. If your credit score is bad , it is very likely that you would have got in to a history of missing or late payments , mortgage arrears etc.
There are other reasons why your credit score could be low. This may be because you would have never borrowed earlier or you would have moved in to the country recently. In this case , a simple credit builder card could be a better option of credit cards for you.
What is Credit Cards for Bad Credit ?
Incase you have had a problems with your credit in the past does’t mean that you will not be able to get a credit card. These credit card for bad credit are the credit cards specially for people who have had issues with the credit in the past. These credit poor credit credit cards provides the following advantages
- They help to improve your credit rating provided you repay what you have borrowed each month in full.
- You’re more likely to be accepted.
- Better protection on the purchases that you make with the credit card.
Some of the disadvantages of the poor credit credit card are
- Higher APR or interest rates than the normal credit cards.
- Lower credit limit or spending limit.
Check your eligibility for Credit Cards for Poor Credit
Before you apply for credit cards for poor credit , do an extensive research for various options very carefully before you select one for applying. It is very important that you spply for the right credit card. If your application is rejected for any reasons , it will negatively impact credit score.
Here’s a few points that might guide you to get a credit card for bad credit.
- Use Eligibility checker before applying for a card. This will only do a soft search and lets you to check your eligibility for credit card without impacting your credit rating.
- Use various price comparison websites to check for better deals on credit cards for your financial situation.
- Don’t make too many credit applications in short span of time.
- avoid applying for credit cards for poor credit that might reject you.
- Avoid applying for another credit card if you have recently been rejected.
- Frequently check your credit report (Eg : Experian , Equifax , TransUnion) for any errors and report them back.
What to do if I don’t have any credit history ?
This might be applicable for you especially if you have not borrowed earlier or if you have relocation to the country recently. IN this case , you can use the credit building credit cards to get your first credit card that helps to to build your credit history.