So you have messed up your credit score by being late on some bills and even missing some paymentsâ¦not good. The past is the past and now you have learned your lesson and are ready to get a new card. Now the question is which one should you choose? Below are some easy to get credit cards for people with bad credit.
- Department store credit card: Easy
to get store cards are very popular because almost everyone qualifies. The reason
for this is that the issuing store thinks that you will shop at their establishment
more often if and that the increased sales will be a hedge against their risk
of default. For most store cards you will need to have a credit score of at
least 500, which is not a problem for most people. With a store card you need
to make sure you never carry a balance or else you will get slammed with
interest rates between 22 and 24 percent. Once you have been able to pay the
card's balance each month for about a year, it is time to apply for a MasterCard
or Visa. You will be stuck with a low spending limit for a while, but you can
raise this over time by paying down the balance each month. You need to show
your creditor that you don't need the credit, that is the only way to get more
- Secure credit card: Another easy to get credit card is a secured card. A secured credit card is secured by your own cash. You have to put a certain amount of money in a savings account that is equal to 125% of your credit limit. This way, if you don't repay your card balance the bank is not out any money. After a year of paying your card balance each month it may be time to ask your bank for an unsecured card. The advantage to an unsecured card is that you can place your savings into a higher yield account such as a certificate of deposit.
- Prepaid Mastercard or Visa: The advantage of a prepaid card is that it is impossible to go over the limit, thus saving you over the limit fees. If your card runs out of money you can reload it either online or by phone. This card is great for people who just cannot seem to control their spending. You are confined to the cash that you actually have so it is impossible to spend more than you have. This will keep you out of debt!