Poor Credit Credit Card

Written by Jessica Duquette
Bookmark and Share

A poor credit credit card may allow you to spend unearned money, but you will pay dearly with outrageous interest rates and low credit limits. Many companies are willing to issue cards to people who cannot afford to make luxurious purchases. Spending beyond your means will compromise your financial stability for years to come.

Building Credit

Managing your credit score and history can be very tricky because in order to gain credit you usually need to have credit. To open credit accounts you should have a solid credit history; you can see the vicious cycle this creates. Opening a poor credit credit card account will allow you to create a solid history for yourself that can allow you to get past prior mistakes.

Types of Poor Credit Credit Card

Credit cards for people who have poor credit scores come in two kinds, secured and unsecured. Unsecured cards are typically credit cards that require monthly payments to be made for any account balance. A secured card requires some form of deposit to be used should you not make your monthly payment. Secured cards can be a better choice because they may offer lower rates and fewer fees. Some institutions may convert this card to an unsecured account following several months of timely payments. Both cards report to credit bureaus on a regular basis which will increase your credit scores.

These cards are the answer if you have a lower credit score and believe that you will never be issued a credit card. There is no better way to increase your credit score and build a solid history than by keeping a credit card open and making payments on a monthly basis. Instead of waiting a long time for older items to clear from your report you have the power to boost your credit score by opening one of these accounts.

Bookmark and Share