Choosing Options to Get a Credit Card with Bad Credit
Many are now rushing to get credit because of financial concerns and it might be time for you to get a credit card that accepts low FICO scores too. Many credit card companies nowadays are willing to give credit cards to almost anybody, even to people with bad scores. The companies reason that they will make money whether you pay their bills on time or not, since late payers tend to pay higher interest rates and late fees. It is rare for people to simply not pay off their balances and attempt to disappear. So from the card lenders standpoint there is little risk of extending credit to people with no credit.
Use caution before you get a new credit account. It might be tempting to sign up if there is absolutely no rejection, but if you do not use the card or cannot pay off your bills, your credit line might end up costing you more in the long run. Be selective when choosing which offer you wish to obtain and think carefully before signing up.
Which Programs Will Work With Bad Credit?
"There are amazing advantages to having a good credit rating..."
There are many different types of card programs on the market these days, including:
- Cards for People with Good Credit
- Cards for People with Bad Ratings
- Cards for People with No Credit
- Smart cards
- Reward cards
- Credit cards for minors
There are still advantages to good credit, significant benefits, and better rates. Many companies offer premium gold or platinum visa or mastercards with no annual fees, 0% APR and a higher credit limit but this should not stop you from being able to able to get a card with bad scores.
More than ever, card issuing companies are offering credit lines to high risk borrowers making it possible for you to get a charge card with bad credit. They are willing to take this risk in exchange for an annual fee and a low APR. Some companies will check your job history, but many more nowadays will rely on the fee rather than past records. Rather than avoiding plastic altogether it is a good idea for those with a less than perfect credit history to apply for these card programs, to make modest, regular purchases with their cards, and to make payments on time. This will help repair their credit, which is a gradual process and takes time.
Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. With identity theft occurring more frequently, smart credit cards are becoming more popular among security conscious consumers. These smart chips hold information to prevent cloning and fraud. If your chip is disabled or begins to malfunction, the company is automatically notified so that they can give the needed attention.
What About Membership Rewards?
Another popular program available are rewards cards. Further information on avoiding credit card fraud and choosing wisely is provided by the FTC. Many consumers enjoy accumulating points for these items as they make their ordinary purchases and they can be a great value. It usually takes some time before you will be able to receive free items, and it is not such a good idea to make extraneous purchases just to earn more points, but many feel that with a little planning and responsibility they can use these credit lines for their regular shopping and earn additional bonuses.