Bad Credit? Need a Credit Card?
Let's face it. A credit card is a necessity nowadays. Whether you need to rent a car, book plane tickets, or simply make a purchase online, without a credit card these otherwise trivial tasks become much more difficult. So is there such a thing as a bad credit credit card? And what do you need to do to get one?
Bad credit credit cards are useful for a variety of reasons. In addition to the benefits mentioned above, someone with bad credit can reap rewards in the form of better credit scores and credit ratings by showing they are able to make payments on a bad credit credit card on a regular basis.
There is one fact about bad credit credit cards that you are going to have to face. That is, you will be paying a very high interest rate. But as long you make payments and don't run the card up too high, the effects of this rate can be minimal and the benefits can be great.
When you apply for a bad credit credit card, the credit card company will look at more than just your credit score and credit rating. If you have steady employment and can show you make enough to take on another bill, companies will often overlook bad or very bad credit. The line of credit (how much you spend on your card) will be determined by your current income and debt.
Secured credit cards can also be perfect for people with bad credit. With a secured credit card, you deposit money up front that can be used in conjuction with your card. This amount can be as much as you want and after time the bank can even decide to lift the deposit requirement.