If you have poor credit, it can be difficult to get a credit card bad credit. But there are unsecured cards that are designed especially for people with bad credit. Not all of them are created equal, though. Some come with high annual fees, which act like subscription fees for the use of the card. Others may have high account opening fees, which eat away at available credit and raise your credit utilization ratio. Either way, it’s important to understand the benefits of each type of card before you sign up.
Is there a credit card that approves everyone?
If you’ve been refused credit cards for a while, it’s time to try and rebuild your credit rating. To do this, you’ll need to start making your payments on time and deal with any old debt. You can also start actively using credit, but it’s important to do this slowly.
Making your payments on time is the most important way to build a strong credit history. If you miss a payment, the credit card company may decide to charge the account, or attempt to recover the debt through collection efforts. A charge-off will damage your credit score even further. Although a single late payment won’t ruin your credit score, making a series of late payments can knock your credit score down by dozens of points. Plus, late payments stay on your report for seven years.
A credit card with a low interest rate is another way to improve your score. You can apply for a secured card without hurting your score too badly, but you’ll want to make sure you improve your credit score before applying for an unsecured card.