When not used responsibly, a credit card can put your credit rating in a bad situation. Making bad decisions when it comes to managing your credit or even things out of your immediate control like a sudden life event, such as losing a job, can change your financial circumstances as well. You may already have experienced something like this and you’re eager to get you credit back on the right track. Regardless of your personal situation, this doesn’t necessarily mean that you will not be able to qualify for a credit card.
Many of the top credit cards for people with bad credit can be ideal for you, if you’ve had a history of bad credit or if you have limited credit. They may even be good for you’re simply trying to fix your credit rating.
You may have received promotions in the mail from card issuers, offering you an introductory “teaser” APRs to transfer the balances you’re carrying on other cards. This might be a good choice for you, however these are typically for people with good credit.
If you really don’t have many alternative options, it is a good idea to start from square one, and work on re-establishing your credit rating. Take some time out to read information on the different types of credit cards that are out there for people that have bad credit. These cards are designed specifically for those who need help turning around their poor credit history.
Bad credit, credit cards allow you to lay a foundation to demonstrate good money management skills. Secured credit cards are an excellent way to repair your poor credit rating. Just be sure to remember a few things. First of all, your credit score are not just going to instantly shoot up just because you have the car. You should know how to use it so you will be able to get the most benefits out of it.
Once you receive your secured credit card, make sure that you actually use it regularly. Creditors and lenders usually report every thirty days. One of the factors they report is the last date that you used the card. If you just let the card sit in your wallet, and never even use it, the lender will not have any activity to report. Ultimately, your scores will increase the same way as a someone that actively uses the card.
How much should you charge on your card? A general rule of thumb is, don’t go over half of your credit limit. Maxing out your card is the worse thing you can do to show credit worthiness, outside of delinquent payments. Personally, I would say try to stay under 30% of your limit. On the other hand, if you have the means to pay off your balance in full every month, this doesn’t really apply to you.
For more tips check out Repair Damaged Credit, a free resource guide for people with bad credit. We have listed a variety of the top credit cards for bad credit, including the Vision Prepaid Visa card.