What’s a good credit card to apply for, for people with BAD credit?
by Author on Sunday, July 25th, 2010 | 3 Comments
Do you know any credit card company that someone could apply to if they have bad credit, and would get approved.
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Damaged credit makes it harder to obtain credit cards, but rebuilding credit cards are an excellent way to repair even the worst credit.
There are some good cards for people with bad credit. The best one is from First Premier and has a low APR of 9.9%.
The fact is that there are more than 34 million Americans with poor or "damaged" credit. With cards like the First Millenium you can be approved even if you had credit problems in the past and were rejected by other banks.
There are many reasons people fall behind in paying their bills. For example, 29% percent of low and middle income households claim medical expenses contributed to their current credit card balances. Bankruptcy, illness and unemployment are all possible reasons for someone to lose their good credit rating, but once you start to get back on your feet, then getting your financial house back in order should be an urgent priority.
However there are some things you should look for in a card for bad credit in order to help with rebuilding your credit.
It is no secret that once a person’s credit score drops below the national average FICO score , it can be a slow and expensive process to repair it. Avoid cards where the interest rate is at the highest rate, and just as painful, the late fees, over the limit fees, and all the other associated charges will also usually be at the maximum allowed by law.
You may have to take on some extra costs like a fee of around $40 but it is worth thinking of these extra costs as part of the investment you must make in establishing a good credit reputation again. These expenses will buy back your good name. In other words, it is worth the cost in the long run.
The point is that cards like First Millenium designed for those with damaged credit do put you back on your feet eventually. Every month when you make a payment, a positive report is sent to the credit agencies, steadily repairing your credit history. Additionally, once the card(s) balance is down to zero and you have a track record of using the card responsibly, it is typical to be offered an increased credit limit. This improves your credit to debt ratio and also boosts your FICO score. The two most important things in rebuilding a good credit score are paying on time and having a healthy credit to debt ratio. Ideally you should owe no more than 30-35% of the total credit available to you. It is these two critical things (payment histoy and credit/debt ratio) that make up the largest proportion of your FICO score.
I would try First Premier Bank Gold Master Card
• Low APR on purchases
• Reports monthly to 4 major credit bureaus
• A credit card for those with less than perfect credit
• Quality customer service
• Accepted where you see the Master Card or Visa logo
• Enjoy the benefit of 24-hour phone account access
Major credit card issuers like Discover, American Express and Chase offer a credit card for bad credit holders. A ‘shopping’ card offers you an unsecured line of credit from specific sellers. Use these cards to increase your credit rating, since the credit bureaus will be informed about your timely payments.
Take care to ensure your credit is good by making intelligent credit choices. Keep low balances, do not be extravagant and take care to pay off your balances promptly every month.