There are many individuals in the process of repairing their credit. The catch is that you need credit accounts to build credit. A credit card can be an excellent catalyst for credit repair. The approval process, however, often requires fair credit to be considered for a card. There are, fortunately, many credit companies that focus on credit repair. Opportunities for poor credit situations are more readily available than you may realize.
These opportunities are indispensable for people who need a little boost, and here at Bonsai Finance, we can help you find credit cards for poor credit!
Poor Credit Credit Cards
Poor credit credit cards are often secured while you build trust. Bonsai Finance can supply several legitimate options for you to choose from.
A secured card limits the risk for banking institutions. After a credit evaluation, you are asked for a specific amount of money to be used for collateral. This is usually anywhere from $99 to $300.
When using poor credit credit cards, you are basically spending your own money. They help with credit repair, however, because a credit card company is backing you and monitoring your activity. Use these cards to practice making monthly payments and using a card responsibly. Your deposit may be the entire spending amount or a percentage of the available credit, depending on your credit score.
Interest Rates on a Credit Card for Poor Credit
Interest rates are often a touchy subject for credit card owners. It can be difficult to settle for a card with a rate upwards of 20%. Remember that this is only temporary and can be remedied once your credit improves. Shop around to find the best offers. A high interest rate, however, is not a death sentence. You are only charged the rate on the balance you keep. You can avoid paying large amounts of interest by simply making regular payments. You do, however, need to pay more than the minimum due.
The minimum amount only covers enough to keep you in good standing. If your goal is to avoid interest on your credit card for poor credit, payments need to cover the majority of the balance. Charge the same amount to your card each month. Add the payment to your monthly budget so that you make it a habit.
Credit Limits on Credit Cards for Poor Credit
Your credit limit is likely to be low when you gain your first credit card with poor credit. You have to prove that you can act responsibly before this can change. Unsecured cards may start out with a limit as low as $300. You may, however, may be able to get approval for more than one from different companies.
Most cards offer a credit-line increase after six months to a year of regular payments. These increases can be initiated at regular increments, so you can eventually reach a high limit without having to apply for several cards. Regular increases on credit cards for poor credit raises your available credit, lowering the percentage used on your credit report. It has the same effect as making a payment. One late payment can changes the time frame on increases. Sign up for email reminders or automatic payments to make sure you can take advantage of this opportunity.
Using your Card
A common mistake with new credit card owners is that they do not use the card enough. Many people think that having a credit card is enough to build credit. You have to use credit to earn credit, however. Credit cards for poor credit users do not have high limits that can get you into trouble. Unpaid balances, though, can lead to added fees. Future creditors want to see that you can be accountable for your responsibilities.
To accomplish this, there must be revolving credit. This means that your card needs to have charges on it each month, and timely payments must follow. The easiest way to accomplish this is to set up a small recurring bill through your new credit card. This should be a bill you normally pay every month so you are not adding a new expense to your budget. It can also help to delegate a regular purchase, like gasoline, to your card. Pay a large portion of the balance as soon as you get the bill. Creditors like to see credit usage at around 30% or less. These actions cause your credit card company to report positive activity to the credit bureaus. You are likely to see a score increase on a monthly basis if all of your other issues are in order, as well.
Staying Out of Debt
Approval for a new credit card can be an exciting accomplishment. It is pertinent, however, that you refrain from overspending. A card with a small limit can still do damage to your credit score when used improperly. A credit card should never be seen as an additional source of monthly income. It is easy to fall into the trap of maxing out your credit cards each month to pay regular bills. This cycle is unlikely to end once it starts. While you are establishing your credit, use your cards only for purchases that you would normally make. If you don’t usually go out for a fancy dinner, don’t do it just because you have a credit card. Keep in mind that your budget has not increased with a credit card, but you have the potential to go back onto debt. Spend wisely to ensure that your credit score continues to rise.
The search for a credit card while repairing credit can be overwhelming, but Bonsai Finance is here to help. It is important to focus on one thing at a time. Credit repair happens in steps. Secured cards help you to improve drastically in a short period of time. Research the fees on each card before committing. Decide on fees or interest rates that you can live with, as well. These extra costs are likely to be temporary. You can earn better offers by acting responsible with the first card. Your journey to good credit starts with getting creditors to trust you again.
Why an Online Payday Loan Can Help
If you are trying to find a credit card for poor credit, you could spend hours of your time finding one that approves you. An online payday loan is quick and easy. We know how difficult it is to have financial stress. That’s why we make payday loans easy and confidential with our online request form.
Online payday loans are different than traditional loans. We use direct lenders only and they are available for any expense you need. Our online loans come with fixed interest rates that can be extended up to 18 months. You are not locked in for years like with other loans. When you reuqest a payday loan and become approved with us, your money is sent to your bank account immediately. If you need to pay bills fast, this is a quick way to get money with poor credit.
All you need to request is to fill out our online request form. We ask for your income to be verified and then you need a cell phone, a debit or credit card, and a bank account for your funds to be deposited into. We process your loan in just a few hours and then you have the cash you need.