We live in an age of cards. We’re not yet in a cashless society, but we’re getting closer to one with every passing year. And the inconvenience of living from day to day without a credit card is only going to continue to increase.
But what if your credit is bad? Can you still get a good credit card? The fact is, bad credit cards are easily obtained by the large majority of those who apply for them. Bad credit doesn’t have to hold you back!
Why Would Card Companies Offer Bad Credit Cards?
A bad credit credit card may seem like something that card companies would not offer, that is, you might be tempted to think that “bad” or “poor” credit scores would be the death knell for finding a decent credit card offer, but in reality, there are a wide variety of bad credit cards to choose from. And approval is almost universal.
But try to think about this from the card company’s point of view for a minute. Nearly one in three American adults have bad credit, many of them due to financial problems beyond their control that happened many years ago. Why ignore such a huge market and let your competitors take all your business away from you?
Most companies advertising online will accept bad credit applicants. They might adjust the APR and other terms somewhat, and they might even required a secured card. But it is seldom difficult to find an offer.
Secured Versus Unsecured Credit Cards
Some card companies will require you pay a security deposit to get approved for a bad credit credit card, but many others give you the option of a secured versus an unsecured card. A secured card may have the credit limit equal to the deposit OR be two or three times the deposit. It will also typically disallow you going even a dollar over your limit. But it may sometimes have a lower APR.
Unsecured cards give you more freedom and may have a higher spending limit. The limit may still be lower than with a non-bad credit card, but if you find the right company, they will let you increase your credit limit (and lower your APR) gradually as you make all your payments on time.
What Kind Of “Perks” Can I Get With A Bad Credit Card?
After you’ve found your secured or unsecured card deal, as desired, an acceptable interest rate, reasonable fees, and a workable credit limit, what next? A card with a future, as mentioned above, is also key since you want to work your way off of any limitations bad credit may impose at first.
But there’s more. Don’t assume you have to miss out on all the “perks” and privileges of other credit cards. Many bad credit credit cards still include cashback rewards, travel points, low or no foreign transaction fees, low or no annual fees, and other benefits, much sought after card features.
Build Back Your Lost Credit!
But aside from the ability to make daily purchases without carrying around lost of cash, paper checks, or always counting the pennies accessible by a debit card, getting a new credit card also offers an opportunity to rebuild your damaged credit history.
It’s a fact that the fastest way to repair a credit score is to make regular payments always on time on a credit card. Paying other bills on time is important too, of course, but credit cards tend to have a particularly big impact on the credit bureaus.
Bonsai Finance understands the position you are in if you have bad credit. We have the tools to help you find, apply, and get approved for the best bad credit cards to rebuild your credit and life!