Credit Card Debt Relief

Thursday, March 1, 2012

Credit Cards For Bad Credit History

Credit Cards For Bad Credit History - How to Get One

A Bad credit history credit card can easily provide access to credit for anyone who will not qualify for a standard charge card due to a poor credit history. Most charge card companies do not want to deal with customers who have poor credit because of the risk of future default. However, there is a growing sector of special high risk charge card providers. A bad credit history credit card will work much the same way as traditional cards, but the interest rates and fees will be higher so as to help underwrite the risk. Although, if you pay the card off each month and do not go over the credit limit many of these costs can be avoided.

These Cards Will Help to Repair Bad Credit

There is one thing to keep in mind; a guaranteed acceptance credit card will only offer you a low charge amount. These amounts are usually only in the 200 to 300 dollar range. Remember, if you pay your monthly charges off in a timely and consistent manner you will greatly improve your credit score. Charge card companies and traditional lenders report to the leading credit reporting agencies, such as Experian, Equifax and Trans Union at the end of each month. Bad credit is not a forever condition, so using and paying on a bad credit history credit card to rebuild your poor credit may mean that you can become eligible for traditional charge cards relatively quickly.

Guaranteed Acceptance Card

A prepaid card or a guaranteed acceptance credit card does work differently than cards for poor credit. These ones have no charge limit, because the consumer fills a card with his/her own money to the amount that they desire. It does work in all the same ways as a traditional card, which is very convenient in itself. Another factor to remember is that no interest will be accrued because it is your money you are putting on the card. The down side is that there is usually a fee for using and re-loading the card. These types of cards do not report to the credit agencies as do the ones above because it is your own money you are using.

What are the Benefits of a Bad Credit History Credit Card

A charge card for poor credit provides you with more than just a way to pay for goods and services. They are also an excellent way to repair your score. Yes the annual percentage rate and fees will be higher than a traditional card, but making the payments on the card in a timely manner means that you will become eligible for traditional lower rate cards in as little as six to nine months. These types of cards do report to the credit monitoring agencies, so if you pay on time consistently your credit score greatly improves.

Wendell and Charmayne Vannatter are writers and bloggers who frequently write about the new best credit card offers. You may also want to check out their article on How to Apply for a secured Credit Card.

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