Credit Cards for Poor Credit

Credit Cards
Credit scores matter.

If you are struggling with credit issues, finding credit cards for poor credit can be a good way to rebuild your credit.

Features of Credit Cards for Poor Credit

In order to efficiently repair your credit, you will have to work on improving your credit history. Part of this involves applying for credit cards for poor credit so you can develop a history of on-time payments. Credit cards designed for those with imperfect credit may have a higher interest rate or other requirements that standard cards don't have.

Interest Rate

Typically, credit cards designed for those with poor credit will have a higher interest rate compared to other cards, since a lower credit score signifies that you may not pay your bills. Lending money to someone with bad credit is thus riskier for a lender, and the lender charges a higher interest rate as a result of the increased risk they are taking on.

Secured Cards

If your credit is low enough, you may be advised to get a secured credit card. Secured credit cards are credit cards that are guaranteed by collateral. In other words, to get a secured card, you will have to send the credit card company money up front. If you send in $500, you can get a $500 secured card because the $500 acts as security on the line of credit. If you don't pay your bills, the lender can seize the $500 to satisfy the debt.

What if You Have No Credit?

If you have no credit at all, it can be almost as difficult to get a card as if you have poor credit. Your past borrowing behavior determines your credit score, so if you have no record of behavior at all, lenders can have a hard time determining how risky it is to lend money to you. As a result, they may be reluctant to let you borrow money, or may charge you a higher rate.

Getting a secured card, or a student card if you are a student, may be a wise move to begin building your credit. The sooner you get a card, the sooner you can start establishing a strong credit history. This can help you qualify for a mortgage, car payment or student loan at a lower interest rate.

Getting Secured Cards

If you have bad credit, the Internet is a good place to shop around for credit cards and their interest rates. Remember, you may have a not-so-perfect credit history, but never settle for extremely high interest rates. Don't expect a low interest rate either.

Sites that Offer Cards for Poor Credit Customers

  • Credit.com offers links to several different banks with credit cards for poor credit
  • Credit Cards.com offers credit cards and prepaid debit cards. Some are fee based, catering to those with bad credit. You can choose from both secured and unsecured credit card offers on their website.
  • Credit Land offers credit card applications online for bad credit.
  • NC Buy provides online applications for the credit you need. You can review their full listing of credit cards and apply through the site. Also browse through reviews of each card's features, future offerings, and their current rates.
  • Credit Loan claims that they will not only help you get a credit card, but that they will also lead you to credit card grantors that are right for you.
  • Which Way to Pay provides a detailed table which compares the leading providers of credit cards for those with poor credit ratings. The table includes the credit card's advantages and disadvantages, information on APR, credit limits, costs, ability to rebuild your credit rating, fees, and other features.

Using Your New Card Wisely

Getting a card alone is not enough to help rebuild your credit history. You have to pay on time and maintain all your account balances below your credit limit. By doing these, you can start to reshape your financial status.

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Credit Cards for Poor Credit