Saturday, April 19, 2008

What are Bad Credit Credit Cards?

Credit cards have often served a purpose in our society today of buying now, but paying later. The result of this is bad credit for many people. In a society where we buy now and pay later we are often finding that we still can’t pay later. With the credit scores declining many credit card companies have begun to offer bad credit credit cards. Bad credit credit cards allow a person with poor to bad credit to obtain a credit card. There are a few reasons for this lucrative business to be put in play. First the banks and credit card companies are still going to be able to make money off of the individuals who have bad credit, but if you know how to play the game then you can actually use the bad credit credit cards to your advantage. Bad credit credit cards enable a person to rent a car, book a hotel, or purchase plane tickets. Most companies will not take cheques any more and if you use your debit card they will hold twice the amount for the rental or hotel until a few days after you’ve checked out. This article is designed to help you find the bad credit credit cards to help you.

When you are considering a bad credit credit card you need to look at a few aspects of the cards available. When you have bad credit one thing you want to do is use the credit card to increase your credit score. A bad credit credit card can help you do this. First the bad credit credit card will allow you to re-establish a consistent payment. As long as you pay the credit card’s minimum payment on time you will be increasing your credit score over time. You will also want to use the bad credit credit card only once a month. For an example, if you use the credit card for a $2.00 purchase, then go home and immediately pay off the balance you are increasing your credit score. You are also finding that if you pay the bad credit credit card off right away you are never paying interest. Often individuals are hesitant to get a bad credit credit card because of the high interest, but if you know the system and only purchase what you can afford to pay bad credit loans before the statement arrives you will never have to pay that interest, as long as you pay the amount in full. Instead you are allowing the credit card to work for you.

1 comment:

Jurex said...

Thanks for the tip!

Bad credit cards can also be used to help rebuild a good credit profile and rating.