If you are among those with bad credit and want a credit card, there are a few options available. read their blog post to know more about credit. There are a lot of funding options for bad credits, as mentioned in www.entrepreneur.com/article/166076. Although the options are few, it is not entirely a hopeless situation as there are a few companies which offer credit cards despite having a bad credit but there are a few things they consider.
Your credit score
If you have a bad credit and do not know your credit score as yet, get the first task to do is to find out your score to see where you are. If you have already applied for a credit card despite having bad credit, your application will get rejected with an email containing your credit score. There are many other ways to find your score; one way is to contact the credit bureaus or any other free websites available on the internet. Ensure you do not enter your credit card details in free sites like this may be a trap to get a subscription or for any credit monitoring service. Do not sign up for such services as you will be charged if you do not cancel.
Where to get a credit card with bad credit
There are many companies which provide cards for such people who have a bad credit report and with very low credit scores. There are many retail stores which approve such applications, but the usage purpose will be limited and can be used only in their retail stores and is not backed by the leading credit authorities like Mastercard and Visa. Also, beware they may charge very high interest for a low limit of credit. Some even charge an annual fee which you can get it waived. Managing such cards is crucial as the debt mounts quickly if the payment is not made full every month.
Security deposit: Many credit card companies offer cards with a security deposit. Ensure that the company offers a secured credit card and is part of the card bureaus. It is beneficial to have a secured card, and once you make on-time payments, it can be converted into unsecured cards. Many people opt out of secured credit cards as they ask for a security deposit, the other option is to start saving a small amount of money every month in your savings account and use it towards the credit card balance. Though the credit limit will be low when you use this option, you will not be paying the security deposit to the card company. The security deposit, as well as the credit limit balance, depends on your credit score, the lower the score, the higher the amount you have to pay a deposit. Also make payments regularly and on time to improve your credit score.
Things to lookout: Some credit card companies charge very high fees upfront which can be equal to the credit limit. Note that there are laws which state that the fees should be only 25% of the credit limit. These are companies you should not consider applying as they charge high fees. Beware of opting for Prepaid credit cards as they do not improve your credit score and you will have to deposit cash to use it.