Credit cards available to a bad credit borrowers have become more accessible from certain lenders as there are some consumers who may be in a specific situation related to their bad credit score and, could benefit from an affordable rate on a bad credit credit card as these types of cards, like unsecured or secured bad credit credit cards, can also help consumers reestablish their credit history and a positive credit score. Obviously, there are various lenders which may be able to offer credit cards to consumers who may either have poor credit or bad credit, but advisors have cautioned cardholders to tread the waters of these types of cards carefully and make sure that their motives for acquiring one of these cards are clear.
While there are, again, numerous opportunities for both unsecured and secured bad credit credit cards, many rates on these cards will vary as some cards advertise an APR anywhere between 7.9% or up to 22.9% and higher, and there are obviously various annual fees that may be associated with these types of cards as well. Also, some credit card lenders will allow a bad credit borrower to transfer balances to their card, which can also be helpful in erasing debts, as a consumer who is seeking out a bad credit credit card for the purposes of credit repair must make sure they have erased their debts before beginning the credit repair process.
Yet, once a consumer has been able to rid themselves of debts that were the cause of their bad credit score, looking into these credit card options can be helpful, particularly if consumers may have had to resort to debt settlement, which could have closed out old credit card accounts. However, individuals and a bad credit position who may already have a line of credit open with one or more cards can use these existing lines of credit to repair their bad credit score, but there have been cases where consumers have seen drastic increases in their credit card interest rate on these other cards, which may have led them to seek out a card with a more affordable rate for the purposes of repairing their low credit score in the hopes of seeing interest rate decreases on other cards.
While there are major financial institutions that may be able to offer credit cards to bad credit borrowers, and there are some lenders who may not even require a credit check before a bad credit credit card is offered, consumers must make sure they read the fine print of these offers as there are reports that more financial institutions are beginning to make these lines of credit available to bad credit borrowers, but they could come with high fees, a low introductory rate that will increase after a set period of time, or there may be costs associated with either transferring a balance. Also, if it’s a secured credit card, a deposit must be made by the cardholder which could be lost if the cardholder fails to pay off charges.
However, consumers who are in a position to begin repairing a bad credit score are usually advised to be proactive in their financial life and start the credit repair process as soon as they can gain a stable financial ground which will allow them to either use current cards they may have or qualify for one of these bad credit credit cards and then make affordable purchases each month, promptly pay them off, and simply spend within their financial means so that positive personal financial activity will reflect well on their credit score.