Credit card options for bad credit
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Bad credit history is a result of mishandled finances i.e. defaults, missed payments etc..
The effects of it is that no one will want to give you credit, that includes most credit card companies. Credit cards are important to most people as they supplement day to day income.
If you need a credit card but your bad credit rating is stopping you from getting one, one of the following options might help you:
Get a specialist credit card:
There are credit cards for people with bad credit; these would have a high interest rate because of the risk, they also have a very low credit limit. But they will help you rebuild your credit rating.
Secured credit card
These are cards where you deposit a certain amount of money in an account, this money acts as security and you can only spend an amount equivalent or near the amount in your security deposit.
Pre pay cards
If you're not concerned with getting a credit card but want a card to shop with, then a pre pay credit card is the right option; these are cards to which you add money before using it to shop. You don't get charged any interest on these cards, however, other charges for usage would apply.
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If you've got bad credit, more than likely you have more than a few collection accounts holding your credit scores hostage. Find out how to get rid of those, so you don't have to deal with getting a secured credit card and paying high fees.
socialhook 3 years ago
I used an unsecured mastercard with a 500.00 limit and it worked out pretty good for me.