“Bad credit card” used to refer to a card that would most likely get cut in half if it was used again. However, as the credit industry has grown, a bad credit card can now refer to a card issued to a person who has a history of bad credit. The introduction of these cards has proven to be a much-needed second chance for many people who thought they would be saddled with bad credit for the rest of their lives.
“There Has to Be a Catch…?”
It would be naïve to think that issuing cards to people with bad credit is a completely altruistic act on the part of the credit card companies. Most of these cards feature high interest rates and very low spending limits. Many also require a substantial annual fee to be paid. Some people believe that companies are simply preying on those with bad credit by taking money from people who, in all truth, should not have a credit card. However, there are a few cards that are truly designed to help people reestablish good credit.
Finding a Low APR Bad Credit Card
A credit card with a low fixed rate makes it much easier for a person to pay the bill on time. It also allows a card member to actually pay off principal as opposed to simply paying off interest each month. Many of these low APR bad credit cards have low spending limits, as well, so no matter what happens, a person cannot add up too many purchases on the card. The 1st Premier Bank Gold Visa is one of the most popular cards for people with bad or no credit. Its low rates and bonus features are designed to help people rebuild their credit. The Continental Visa and the Orchard Bank Master Card are two of the few other cards that people with bad credit can be approved for.
Steps to Take:
- Take time to fully assess the extent of your debt–you may wish to consult with a professional.
- Make a firm commitment to mending your credit. Communicate to your family that spending patterns will be changing.
- Consider whether a “bad credit card” or debt consolidation will serve you better.
- Take time to find the right card or consolidation resource–a company that can offer multiple options will be your best bet.
Read about Bad Credit Basics in the Banklady Credit Library
- Free Online Credit Reports
- Credit Card Tips
- Eliminate Credit Card Debt
- Bad Credit Debt Consolidation
- Subprime Mortgage Loans