Frequently Asked Questions About Bad Credit Credit Cards

Frequently Asked Questions About Bad Credit Credit Cards
Bad credit is a big, and growing problem in the US. In this
article, we will be answering questions regarding bad
credit. If you are currently having problems with your
credit score, check out these questions and find out what
you can do about improving your credit rating.

If you have bad credit, does that mean you can never apply
for a credit card?

No. Even with bad credit, you can still apply and be
approved for a credit card. Although standard credit cards
generally require excellent credit or high credit scores
from their applicants, there are credit card companies that
have special programs designed especially for people with
bad credit. Bad credit credit cards were created to cater
those who will not qualify for a standard credit card due
to a low credit score.

What are bad credit credit cards?

Bad credit credit cards have specific requirements that are
suitable for people with bad credit. Some bad credit credit
cards are secured, which means the card holder would need
put it in a certain amount in his savings account as
deposit or as security for his debts. Therefore, the credit
card company is assured that in case he fails to keep up
with his credit card bills, the money he deposited can be
used to pay off his dues. Some are unsecured meaning you
are given a credit line much like a regular credit card.
The only difference is that most unsecured bad credit cards
have small credit lines and higher than normal interest
rates. The good thing about both of these cards is that
they are easy to get approved for, report to the credit
bureaus, and with a good payment history the credit
companies will increase the lines of credit that you are
approved for.

Are they really worth taking?

Bad credit credit cards can be used as a tool in rebuilding
credit or improving one's credit score. The important thing
to remember is to be aware of the charges and to be
consistent in submitting your payments. With this in mind,
it is important for your, the card holder to remember to
charge only the amount that you know you can pay back in
full by the end of the month. This way, paying the interest
is avoided and your credit history is protected as well.

Can you really improve your credit score with a bad credit
credit card?

Yes you can, but you need to make sure your credit card has
a few choice features. It is important to find a credit
card company that reports your payments to the three major
credit bureaus regularly. It is important to note that not
all credit cards companies provide this feature. Look for
one that reports to the credit bureaus and that offers and
instant upgrade on the credit card you use. This means,
after a year or so of keeping up with your payments, you
should be eligible to own a standard credit card with
better rates.

Are there other ways to improve your credit report?

Getting a credit card for people with bad credit is just
one way to rebuild your credit report. There are other
steps you can do to improve your credit. For instance, you
must be aware of all your debts to all your other
creditors. You will need self-control and determination to
exercise control over bad spending habits. Nevertheless,
your hard work will pay off once you have started down the
road to improving your credit.

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Melanie Mathis is a credit analyst and a writer for 8
years. She has been participating in the programs of NHBS,
Inc such as their continuous effort in giving out Free
Credit Repair and Building Ebook. NHBS also has a list of
recommended bad credit credit cards.
http://www.newhorizon.org/Info/unsecured.htm
Copyright 2008.