The Best Credit Card If You Have Bad Credit

Finding great credit cards for people with bad credit can be difficult. But cards for folks with bad credit aren’t impossible to obtain; the process just takes a little more work. And as you do your homework, be aware that these cards come with more restrictions — such as lower credit limits — and often charge high fees in addition to having high interest rates. What you’ll find is that not all cards for people with poor credit are bad. Some cards, like the Secured MasterCard from Capital One, can be a good tool to build or rebuild your credit.

The easiest credit cards to get if you have poor credit are so-called secured cards, which require consumers to put up money upfront as a security deposit. That security deposit is generally your credit limit, or at least helps determine your charging limit. But be careful: If a card issuer tells someone with bad credit that there’s no deposit needed, it’s probably a marketing hook.

Carefully read the fine print on any unsecured credit cards for bad credit; they are likely to carry very high fees in addition to having high interest rates. Provided you pay on time and keep your account in good standing, you will eventually get your deposit back when you close the card or switch to an unsecured card once you qualify. While secured credit cards for bad credit may seem restrictive, they can be a good way for people with no credit history or past problems to help build or repair their credit.

Better issuers of credit cards for poor credit will let you know in advance how you can get a higher limit or transition to an unsecured card — for instance, by making a certain number of consecutive on-time monthly payments. Why It’s a Winner: Among credit cards for people with bad credit, this Capital One card stands out as the best available. It charges no annual fee and comes with some helpful features aimed at getting people with poor credit back on their financial feet.

For instance, a good card for people with bad credit will report their activity to at least one of the three major credit bureaus, which will help them build or reestablish good credit. Capital One Secured MasterCard will report your activity to all three of the major credit bureaus. Moreover, Capital One offers incentives for cardholders to act responsibly.

You can obtain access to a higher credit line, for example, by making your first five monthly payments on time — and without having to increase the amount of your deposit. In addition, this card will help you keep track of your credit score by giving you access to Capital One’s CreditWise suite of credit-management tools. The Catch: This card offers no rewards or cash back. By contrast, rival Discover it Secured offers 2% cash back for spending at restaurants or gas stations and 1% on other purchases.

Debt settlements differ slightly from debt consolidation. It is important to build or repair your credit rating, since nowadays you practically need perfect credit in order to get a home, car, personal loan, and so on. If your credit has any record of negligence, most companies will turn you down. If you need help with credit repair, you might want to hire an expert who can get results; otherwise, if you have skills, then it is important that you take care of your credit issues immediately. Putting things off only add up more trouble.

On the other hand, getting things done now brings forth results, since the effort you put in will be obvious. Debt settlement solutions work to reduce your monthly installments, as well as reducing the balance you owe. Some debt settlement organizations will work to reduce your bills up to 70% and claim to help you do this in less than two years.

The companies will also help you rebuild your credit and avoid bankruptcy. Although few debt settlement agencies and debt consolidation companies will claim to help you get out of debt fast, you must remember that none of us has the potential of being free from debt entirely. We all pay utilities, rent, mortgages, insurance, and so forth, so if you believe that you will be debt free in as little as two years, then you are misleading yourself.

The debt settlement and debt consolidation agencies may help relieve you of pending debts, but they will never be able to help you free your life of debt entirely. Finally, the advantage of debt settlement versus debt consolidation is that you will reduce your bills, instead of paying off your regular amount owed. Debt consolidation is merely the act of combining all your bills, rolling them into one, and paying one monthly installment. Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice.

Here at Credit help USA we are committed to making your credit restoration as easy as possible. From our transparent process which keeps you informed as to the status of your account to our flexible and affordable pricing we do everything we can to make things as easy as possible for our clients. On the left you will find links that will tell you a little about us, what we do, and how we are committed to helping you achieve your dreams. If you would rather talk to someone about your situation don’t hesitate to contact us!

Improving your score takes perseverance, but it can pay off. A higher score (especially above 760) can give you more options — and better rates — if you ever need a car loan, mortgage, or home equity line of credit. Keep track of your progress. As you make changes, it will take time for your score to adjust. Scores update on a monthly basis so be sure to track them regularly. Always pay bills on time.

It may seem obvious, but a history of consistent on-time payments is one of the biggest factors in building a good score. This means making at least your minimum payment each month, on or before your due date. Keep balances low. How much credit you have available is another important scoring factor, so keep balances as far below your credit limit as possible. Keeping your balances below 30% of your total available credit may improve your credit score.

Keep unused accounts open. Open accounts with no balances mean you have more available credit, so it can help your score to keep them open even if you don’t plan to use them. Or plan on using them sparingly to keep them active. Be careful about opening new accounts. If you need a new credit account and can comfortably manage the additional payments, great.