The Need For Credit Cards For People With Bad Credit

With a little research you can get an idea of what types of credit cards for people with bad credit that are available today. It will also show you the price you might ultimately have to pay to regain your credit worthiness.

Are you one of many people that needs to find a company that is offering credit cards for bad credit? There are many reasons your credit rating may fail. Unexpected loss of a job, illness, mismanagement of your credit all can lower your rating. Even if it’s just a month or two of delays, it’s a delinquency that will bring your credit rating down. Even something that is not of your doing like identity theft, can make a mess of your credit. It is a period of time that you might have to look a bit harder to find a company that is willing to help you re-establish your credit. They normally will do this by offering you a credit with higher rates and fees.By researching, you will can an idea of the types of credit cards for people with bad credit that are available in the market today. It will also show you the price you may ultimately have to pay to restore your credit worthiness. That price is called interest (APR). Most of the companies that offer these types of credit cards charge a 25 to 30 percent annual percentage rate or (APR). Companies such as Orchard Bank, Providian Financial, Citibank and Capital One all have plans for those with less than perfect credit. Because of this price you will need to manage your money and credit much wiser than before as there wouldn’t be many other choices after these.A plus by doing business with one of the above mentioned companies is they do report to the 3 major credit bureaus. What this will do is start you back on an upward track with your credit score. Of course that is conditional on you making your payments on time each and every month and staying under your limit. The extra interest you pay by using a credit card for people with bad credit is a small price to get your credit back in good standing.

Another way for a person with tarnished credit to secure a credit card is with what is called a Secured Credit Card. This is a very helpful way to regain a credit card and proceed in restoring your credit. How this works is some companies request a savings deposit that equals the credit limit on the card. It looks and works the same as any other credit card. Now some institutions that offer this type of credit card might increase the credit limit by doubling or tripling the savings deposit amount. These cards also report to the credit bureaus so you will be improving your credit rating with these types of credit cards. This type of program can over time become regular credit cards and the deposit plus interest credited back to your account.

Melissa Clark

Melissa Clark is a personal finance reporter at Creditmergency. She has earned a master’s degree in business and economic reporting from New York University. Clark has a bachelor’s degree in journalism from Syracuse University and grew up in Miami, Fl.