Bad Credit Cards-For Good People

creditcardThere are times when our finances can get into trouble and we find ourselves unable to obtain any credit or loans due to a bad credit score.  Lucky for those of us who have been plagued with financial trouble there are bad credit cards designed to help us rebuild our credit and get back on our feet.  Whether it be due to a job loss or layoff, sickness in the family or just getting over our heads with debt, we can begin to rebuild our credit rating and a good place to start is with credit cards who are offered specifically with those customers with past monetary problems in mind.  You don’t have to live with the possibility that you are doomed to never be allowed back in to the “good credit club” if you make some sensible choices regarding the use of the cards.

One way that credit card companies offer credit to those with less than perfect credit is by offering secured credit cards.  By putting down so much of your own money it is thought that you will be least likely to default on the payments and will continue to make them on time.  For example, some card companies may offer you a credit card with a $300 limit but ask that you put down $150 of your own money to use as collateral. You will still be able to use the entire $300 balance but half of that money is yours.  You will pay on it monthly as usual and more money you pay the more available balance you will have to work with on the card.

Another way card companies offer bad credit cards is by charging a few fees and higher interest rates.  Usually these fees, often times called “maintenance fees” are applied straight to the balance of the card which drops the available balance you can use for purchase of goods.  After paying monthly payments on the card for some time, the fees will be dropped, the spending limit will be increased and you will have more freedom with regard to spending on the card.

Often times it is really easy to get stuck in the trap of having multiple cards with high balances which become harder to keep up with when it comes to paying them off.  If you are just starting to re-establish or rebuild your credit it would be wise to start off small in order o teach yourself discipline.  Try having one card first, making purchases with the card and then paying off the entire balance at the end of the month.  If this is not possible to do  then at least try to use the card only for eme4rgencies, that way you won’t be accustomed to spending so much using the card and won’t have the worries above a high balance!

Stuff happens when it comes to finances and in this shaky economy it seems that no one is exempt from financial discord.  But thanks to the forgiving practices of certain lending institutions, there are bad credit cards available to help us rebuild and get back on our feet.

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