Obtaining a new credit card can be a challenge if you have poor credit. Do you plan to get a new credit card this New Year? If yes, these tips will likely be helpful:
Look at your credit rating.
Order the most recent copy of your credit report in 2012. All individuals are allowed to receive one free report from each of the three major credit bureaus annually. Checking your report offers you the chance to fix possible errors that may instantly improve your credit rating.
Decide which credit card for bad credit is best.
If you have bad credit, you have several options to choose from. For instance, you can apply for a secured credit card. A secured credit card is a type of a bad credit credit card which can be acquired by anyone, regardless of credit history or score. The only major prerequisite is for you to be able to submit the required security deposit. The amount of security deposit can range from $200 to $500, depending on the issuer and the type of card.
Another kind of bad credit credit card is the unsecured card for bad credit. As the name implies, it does not require any security cash deposit. However, the interest rate is usually higher than the rate of a secured credit card. In addition, the credit limit is often limited and there might be a couple of restrictions.
Aside from secured credit cards and unsecured bad credit credit cards, some prepaid credit cards can also be used for rebuilding bad credit. However, you need to make sure that the prepaid card issuer reports to a major credit bureau. Although prepaid credit cards do not provide credit lines, they can be used to pay bills online and these payments are reported to the bureaus.
Compare the costs.
Just as it is important to choose a credit card with a low interest rate, the same principle applies if you are searching for a bad credit credit card. You can easily compare bad credit credit cards from the internet by visiting reputable credit card review websites.
After checking the APR, don’t forget to check the fees such as the annual fee, over-the-limit fee, and other charges. If you want a prepaid credit card, don’t forget to check the monthly fees, overdraft fee, and per transactions charges. Opt for a bad credit credit card with a minimal set of fees.
Read the fine print.
You might come across instant credit card offers this New Year and the deals can be tempting. However, never sign up or submit application without first reading the complete Terms and Conditions. Take note that some credit cards are exclusively offered for people with good to excellent credit. If you have a low score, your application may get declined and your credit score may drop. The only way you can accurately compare credit cards for bad credit and be sure that you’ve made the right choice is by reading the fine print.