Credit Cards For People With Bad Credit – Quickly Increase A Low Credit Score

By Carrie Reeder

Because bad credit credit cards include various fees and higherinterest rates, some people are hesitant to open a bad creditcredit card account. However, there are certain advantages tousing these sorts of credit cards.

For starters, if you have no credit history, bad credit creditcards are easier to qualify for. Similarly, these credit cardsare perfect for raising a low credit score.

Disadvantages of Having a Low Credit Score

There are no advantages to having a low credit score. Becausemany large purchases such as homes and cars are financed,maintaining a good credit history is essential for getting thebest rates. Credit scores are a big deal to lenders. Beforeissuing a line of credit, potential lenders carefully assess aborrower’s income and credit to judge their creditworthiness.Having a low credit score closes the door on many financingopportunities.

Reasons to Maintain a Good Credit History

If you have a good credit history, your credit options arenumerous. Because interest rates greatly affect monthlypayments, obtaining a low rate on a home loan or auto loan mayactually decrease your payments by a few hundred dollars. Inthis case, having good credit increases your purchasing power,allowing buyers to afford more for their money.

Having good credit also makes obtaining a loan approval mucheasier. Many people apply for credit with prime lenders.However, these lenders favor borrowers with a good credithistory. This consists of making regular payments, keeping lowdebts, etc. If a credit report does not meet a prime lender’scriteria, these applicants must seek alternative lenders.

Benefits of a Bad Credit Credit Card

Before applying for a home or auto loan, individuals with badcredit should strongly consider boosting their credit ratingfirst. With a car loan, bad credit persons may obtain rates ashigh as 20%. To improve the odds of obtaining a lower rate,apply for a credit card designed for people with poor credit.

Bad credit credit cards are very useful, and can help you boostyour FICO score by several points. The key to a higher creditrating involves using the credit card responsibly. With thissaid, avoid acquiring too much debt, pay bills on time, andnever skip a payment.

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