Bad Credit Cards

Escaping the Catch-22 of Bad Credit!

Bad credit cards have given a number of people a bit of hope. For years, those who had bad credit felt like there was no way out for them. They were stuck in the proverbial catch-22–they couldn’t reestablish good credit without a credit card or loan, but they couldn’t get a credit card or loan if they didn’t have good credit.

In recent years, however, more cards have become available to those who have poor credit histories. Cards designed for people to rebuild good credit come withmany of the same benefits that standard cards come with. Several even offer rewards programs that allow people to gain points for travel or receive discounts at certain restaurants and hotels throughout the country. A lot of cards come with low APRs, and some do not even have an annual fee. It is not likely that someone with bad credit will receive a high spending limit, but if payments are made consistently, credit limits can be raised.

Specifics of Bad Credit Cards

Applications for most credit cards take into account a person’s payment history. Often, if there is even the slightest hint of late payments, a person’s application will be rejected. Cards that cater to those with bad credit are more lenient on this matter. If a person has struggled in the past he could still very well be approved. However, that does not mean that anyone who applies will receive a card. There are a few cards on the market that do not take into account a person’s salary. While this is most beneficial for students looking to establish credit, it can also be a benefit for people who have had trouble securing other cards.

Like with all credit cards, there is an amount of risk involved in taking on a card for bad credit. In fact, it can be even more detrimental to get behind on payments, because a bad credit card is truly the last resort. If a person struggles to keep up with bills it can become virtually impossible to get approved for another card in the future.

“And if I manage a bad credit card well?”

For consumers who handle their bad credit cards with prudence, it becomes easier to build better credit. In this way, one of these “bad credit” cards can help people to redeem themselves financially. We have all had periods in which our circumstances have overtaken us, leading to dire financial straits. Building credit back up to a respectable level doesn’t have to be impossible, given some of today’s tools, such as the bad credit card.