Approvals for Credit Scores That Are Bad
The fact of the matter is that having a low credit score and a history of negative items on your report makes it incredibly difficult to get approved for traditional financing products. The days of stated income without verification and easy approvals for people are long gone, since the credit crisis, and receiving a long stream of declined applications can be really frustrating. More than frustrating it can be disheartening, its hard not to feel that in some way when you are turned away or accepted for a credit offer that it is a reflection of you as a person.
That being said, the truth of the matter is there still exist some very strong credit cards for people with bad credit that are very strong programs. The traditional brand banks might have closed their credit cards to low scores and less than perfect history but other newcomers to the credit card game have stepped up to fill the need.
Comparing bad credit cards is a matter of program details and ease of application approvals. There is no getting around it, as a higher risk program, you can expect to find higher interest rates, more costly fees, and stricter penalties when compared to more restrictive offerings but these cards are meant to be a stepping stone, the first step towards returning to a better credit report.
In most cases, the programs offering easy approval bad credit cards provide monthly reporting to the credit bureaus with the idea of rebuilding your financial reputation through a lengthy relationship of on time payments. Managed wisely, credit cards for bad credit return to you the flexibility of making online purchases, the safety net of a credit line and all the purchase rewards of the program you choose.
What To Know Before You Apply?
It is essential to remember that bad credit cards are a second chance at building a solid financial reputation. They can help you make purchases in an emergency and they provide loans to people typically turned away by traditional financing. That being said, consider carefully your use of these cards as a part of your overall personal finance strategy.
Ask yourself if you have truly righted your finances before you apply for bad credit cards. If you find yourself completely upside down financially with much higher spending that income, then borrowing more is not the answer. Right your financial trajectory before beginning to rebuild your credit or else you will simply be adding another debt. If your finances are upside down, credit cards will only delay the inevitable, and it might be better to consider debt consolidation loans or debt restructuring in order to bring down what you owe from month to month before you apply.
If you have recovered from financial hardship and are ready for the benefits of credit card ownership, then by all means bad credit cards might be right for you. Compare the terms carefully, APR, and fees can vary widely with bad credit credit cards as with good credit cards so take the time to choose a card you will be happy with. We have taken the time to provide our favorites for comparing above, choosing programs that accept bad credit scores with easy approvals and industry leading rates.