Bad Credit Credit Cards- Re-Establish Yourself

creditcardsreestablishThings happen and times can get financially tough for anyone, unfortunately, it’s your credit that suffers and that can pave the way for more financial hardship alters on.  The good news is you don’t have to suffer in silence anymore thanks to the bad credit cards that are available from a myriad of sources.  Forgiving financial institutions have made it possible for those of us without pristine credit to be able to regain back the good financial standing we once had by slowly rebuilding our credit scores in order to later obtain more significant amounts of money from lenders.

Tough you may not be able to obtain the credit cards with the lowest rate of interest; you don’t have to get raked over the coals in the process.  Many cards offer decent rates for those who are trying to rebuild their credit and may offer even lower if you were to accept the conditions of a secured credit card. Secured credit cards are normally obtained by putting down a small chunk of money of your own which is then used as part of the spending limit.  For instance, a credit card with a spending limit of $300 may require you to put down $150 of your own to be considered as collateral. It shows that you have a financial interest in the card and would be least likely to default on the payment.

Other cards may require membership and account maintenance fees which are applied immediately to the balance to be paid down as you go.  Most companies will increase the spending limit on the cards if you prove to pay faithfully and on time every month.  Each card has its own rules when it comes to the amount of time it takes to build a relationship and allow for the increase, you should check with the lender of your choice to find out what that may be.

Credit cards are a great way to rebuild your credit after a financial fall.  When you start to use a credit card again, it’s best that you only charge up to an amount that you are comfortable paying off completely at the end of the month.  If this is not possible, at least discipline yourself and limit your spending so that you aren’t always relying on the card to pay for things and leaving yourself with no available balance, just a monthly payment to pay at the end of the month.

Keep in mind that most credit card companies have a late fee as well if you do not pay the monthly payment on time.  Normally this fee gets applied to the balance which can further limit your spending allowance on the card. It’s best to make sure that you make your payment on time every time, especially if you are in the process of rebuilding your credit.  Credit card companies report to the major credit bureaus and late payments do affect the score in a negative way.

Bad credit cards are a great way to rebuild your credit when unforeseen problems arise financially. They are a great way to re-establish a relationship with creditors who report to the major credit bureaus and by making monthly payments on time you will show positive results.


Leave a Reply