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Guide to Credit Cards for Bad Credit
9 Apr 2018

A Guide to Credit Cards for Bad Credit

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In today’s mostly online marketplace, having a credit card is crucial. It allows you to make online purchases, often saving a lot of money in the process. You can also use credit cards to help temporarily cover your needs until you receive your next paycheck. Credit cards are incredibly useful; nearly 70 percent of Americans have at least one. However, if you have bad credit, it can be somewhat daunting to find a credit card with interest and fees you can afford.

What is Bad Credit?

Bad credit is typically used in a very general sense by most borrowers to indicate their own perspective on their credit rating. Technically speaking, credit ratings of 580 to 619 are determined to represent bad credit. Scores like these make your range of options very limited when it comes to finding a credit card. Creditors want to know that you can make the payments as they fall due. As a result, most major creditors reject anyone with those credit scores. Those that do not automatically reject potential borrowers tend to impose high interest rates and annual fees on the card.

It is important to remind yourself that bad credit can happen to anyone, often as a result of unemployment rates, student loans, or medical expenses.If you have bad credit, you can contact us at Bonsai Financial for a non-judgmental consultation about how you can improve your credit score.

Why People Look for Credit Cards for Bad Credit

There are numerous benefits to having a credit card; most of them relating to convenience. Individuals with bad credit can still benefit from these conveniences. When you contact us at Bonsai Finance, we can help match you with a creditor who has terms you can easily live with. In many cases, you do not even need a bank account to apply for a card. Payments can be made with a secondary debit card or money orders instead. Credit cards that are designed for those who have less than ideal credit also have an easier approval process and lower fees than most major companies.

Another big reason to look for one of these types of cards is that it can help you repair your credit. Once you pay your security deposit on the card, you can instantly start repairing your credit. If you use the card often but make all your monthly payments on time and in full, you can often see an improvement in your credit rating within six months. As you continue to use the card, you can expect to see your credit rating steadily increase.

How to Apply for a Credit Card if You Have Bad Credit

While you do not need a bank account, there are a few qualifications and requirements you must meet before you can apply for a card, including:

  • You must be at least 18 years of age
  • You need to be a resident of the United States
  • You have to provide proof of income, showing that you meet the income cut-offs
  • Payment of a security deposit

When you contact Bonsai Finance for credit cards for bad credit, our consultants discuss your specific needs with you to ensure that we pair you with a creditor who can fulfill them. Before you book your appointment or make the call, be sure to have information about your needs, your credit history, and your income nearby to help expedite the process.