Credit cards for people with bad credit can help you improve your score and rebuild your credit. The best credit cards for credit problems have minimum qualification requirements or are secured cards (which require an initial deposit), making them accessible to almost anyone.
It is possible to increase a bad credit score (in the 300 to 579 range) by paying on time and keeping a low balance by using them.
Credit card benefits for bad credit
· Fast credit score increase
· Easy approval process
· Access to educational and financial tools
How to choose a credit card for bad credit?
People who have experienced financial setbacks may have difficulty qualifying for a fair credit card. If this is your case, these cards are easy to approve and designed for you to demonstrate responsible use, such as payments on time or low use of credit. Before applying, keep in mind the following:
1. Fees or Fees – These cards often have high fees, such as late payments or foreign transaction fees.
2. APR – Bad credit cards often come with high-interest rates and, in unfortunate situations, penalty APRs.
3. Security Deposit – If the card requires a deposit, check the range and whether you can pay that amount.
4. Credit Limit – Make sure the card offers a high enough limit to allow you to keep your credit utilization down.
Can I apply for a card after filing for bankruptcy?
Yes. Not only is it possible to find a credit card after bankruptcy, but it is also a great way to rebuild your credit. To save time and protect your credit score, applying for credit cards that explicitly state previous bankruptcy is acceptable is best.
Can I be "blacklisted" by a credit card company?
While there is no such thing as a "blacklist," if you have an adverse history with a credit card company, it is unlikely that you will be approved for a new card for years to come.
What happens if they deny my application?
If your application is unsuccessful, issuers are legally required to send you a notice of adverse action explaining why the card was denied; possible causes could be: current high debt, low income, too many card applications, or a low score.
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