Good credit is the key to the promise land if you desire to live a progressive life. Buying a home, an automobile or getting a loan to open a small business requires that you have a history of maintaining good credit.
However, for millions of us Americans, our credit score has been shot to pieces (usually by our own irresponsible choices) that we are in jeopardy of becoming economically stagnant. Perhaps the last time you checked your credit score, it was beyond poor.
If this sounds like you, don’t worry. This has happened to me. It took a great deal of sacrifice to rebuild my credit.
Nevertheless, poor credit doesn’t have to be a permanent state. You can begin rebuilding your credit to an optimal score in a matter of months if you make the right choices with one of many cards for people with poor credit. These credit cards for bad credit can provide several opportunities for getting back on track.
Top Ten Right Credit Cards for People with Bad Credit
- Capital One secured MasterCard: APR 25.24%
- Discover Secured Card: Cash back on any purchase, requires a refundable security deposit, APR-24.24%
- Credit One Bank Visa Credit Card: flexible payment date, case back, APR-25.24%
- Total Value Unsecured Credit Card: must pay a processing fee to receive available credit
- Indigo credit card: annual fee $99, APR-23.9%
- Milestone Gold MasterCard: quick free qualification despite bad credit, Annual fee, $99, APR-23.9%
- Fingerhut Credit Account: can only be used to buy Fingerhut items
- First Access: onetime fee of $89, Annual fee-$29, APR-29.99%
- Open Sky Secured Visa Credit Card: APR-18.64%, Annual fee-$35
- First Progress Platinum Select, Secured Master Card: Annual Fee-$39, APR-13.99%
The above credit cards for bad credit may be less than perfect but they offer a strong opportunity to rebuild the necessary credit for living a quality lifestyle.
Although the interest may be high on the above cards, the advantages of using credit cards for bad credit responsibly are vast. For example,
- They help rebuild your credit score
- Some have no annual fee
- Some offer unsecured credit after the initial evaluation period
- Several allow you to choose your own payment plan
- Many provide you with a free, quarterly FICO score from the 3 Credit Bureaus
- Some bad credit cards require no processing or application fee
- Many allow discounts on car and hotel rentals
You must choose the right card for you. If you can’t get the one you want, make a second choice. Just because one turns you down, doesn’t mean that you are out of luck. One of the above issuers is guaranteed to take a chance on you.
The Art of Using Your Credit Card Responsibly
Once you receive your card, you must make a priority to use it responsibly. But what does it mean to use your credit card responsibly? First of all, pay on time. The mistake of not making timely payments is what get people in the bad credit trap in the first place.
Next, don’t make large charges. Make small, manageable charges that you can pay back immediately. Paying back in full has its special effect of quickly raising your credit score.
Each time you use your card, a good idea is to pay it back in full immediately, and this helps you catch the time that your issuer may be reporting your activity to the credit bureaus.
Check your credit constantly. Identity theft isn’t a joke. Dishonest people don’t care about racking up charges on your behalf. Wise monitoring of your credit will give you an advantage over any identity thief that may have chosen to rain on your credit rebuilding parade.
Don’t Fall Back into the Bad Credit Trap
Once you see an improvement in your credit score, commit to keeping and further increasing your credit score. By this time, you may have an unsecured credit card with all the benefits and privilege which come with good credit cards. Issuers are always looking to provide you with the best credit experience.
But making repayment mistakes will result in late fees, higher interest or repossession of your credit card privileges. The problems just keep getting worse for irresponsible card usage.
The Bottom line on Credit Cards for Bad Credit
Credit cards for bad credit can be an opportunity to get your financial life back on track or another disaster waiting to happen. The choice is up to you. No one holds another person’s hand and leads them into the bad credit trap. People are always confronted with the opportunity to make the right choice regarding their personal finance management.
To have good credit or not to have good credit? That is the question. Your journey starts with the credit card you choose.