subject: Credit Cards For Poor Credit - Don't Screw This Up [print this page] Credit cards for poor credit can sound like an oxymoron at times but these cards do exist. There are banks that are willing to offer a line of credit for those who have the ability to make payments but have had financial difficulty in the past. People who have bad credit have a couple options when it comes to getting a card.
There are unsecured cards for people with poor histories. Unsecured cards do not require any type of collateral. However, these cards will cost the carrier more than a regular card. Unsecured credit cards for poor credit usually carry higher annual fees and interest rates. They also have lower credit limits which may increase as you make timely payments.
The one disadvantage of these cards is that people may get them for the wrong reasons. It's good to get an unsecured card to re-establish credit history by making timely payments and not overspending. If the sole purpose for a card is to make more purchases, you run the risk of maxing out this card and paying late and over the limit fees.
Another option for those with poor credit is secured credit cards. Credit cards are secured with collateral, usually a few hundred dollars deposited into an account. You use the card as you would any other card. You are still responsible for monthly payments and interest. However, if you start missing payments, funds will be withdrawn from the cash you deposited in your account. As you prove that you are responsible with a secured card, you may become eligible for regular credit cards.
Credit cards for poor credit truly do exist but they must be handled with care. If you are given the opportunity to have credit card, you must understand that this could be your last chance at getting any type of card in the future. As you prove that you are a responsible card carrier, your credit score will improve, and major purchases will become easier and cheaper.
