Which is the best credit card if you have a poor credit rating
A poor credit rating does not prevent you from having a credit card, but it can make it a little more difficult to find the right one. Not all cards are the same and it may take some time to find the right one for your situation. There are cards that are specifically made for those with less than stellar credit scores and these usually have several benefits over more traditional credit cards. Here are a few things to look for.
Secured Credit Cards
A secured credit card allows a person to build up their credit score with less risk to the lender. The applicant puts a certain amount of money on the credit card to secure it. This amount can be anywhere from a couple of hundred dollars to a few thousand. From there, the credit card can be used and the money will come from the balance. There are fairly large interest rates associated with this type of card, but if you are ready to cancel the card, you should be able to get back any money you left on the card.
To get the most out of a card helping you to repair your credit score, make sure that you choose a lender that reports to all three of the major credit reporting agencies. If the goal is to increase your credit score, it is important that all three companies be aware of your progress and improvement. Regardless of the improvements that you make, if one or more of the credit reporting agencies does not know, the improvements will not show up in your scores.
Check to see how much the credit card is going to cost you each year. While there are various annual fees to choose from, you don`t have to settle for the largest one. Shop around and find the best deal. Most of the time the annual fee is just added to your balance on the card.
Even if you find the best credit card for a person with a poor credit rating, it still helps to maintain a low balance on the card and pay it off responsibly. Don`t let the balance get too high and don`t wait until a payment is late. The fees can add up quickly and they are often very expensive. Just like any other card, it is possible to get buried underneath the debt and the fees. Be very cautious as you make charges.
As you continue to use the bad credit credit card, keep an eye on your credit rating. While checking it every week or even every month is probably unnecessary, it is still important to keep an eye on things and watch for the improvement. Make sure that all of the information on the report is accurate and that the latest changes are showing up. It will take time and lots of hard work, but the results will show up and start to pay off. This is just one step to take in order to rebuild your credit score and get you back on track financially. You may want to check out <a href=”http://www.nationaldebtrelief.com/“>nationaldebtrelief.com</a> to see what other things you can do to shrink the amount of your debt and pay off lenders.