The harsh economic times have hit all of us, some harder than others. If you have a bad credit rating you may think there is no option for you when it comes to borrowing more money or getting a credit card.
Well, it seems to be a fairly common misconception that if you have bad credit you can’t get approval for a credit card.
Credit card companies these days seem to be pretty picky about their customers, and lenders will almost always carry out a financial background check.
If you do have bad credit you are unlikely to get the best deals out there but there are ways you can get credit with some suppliers.
Bad Credit Credit Cards
Amongst those who are likely to have bad credit are the self-employed, part time workers or those on a low income.
However, these are also the kinds of people who need credit the most and this is where bad credit credit cards can help. If you have been rejected by a number of mainstream credit card companies then this could be for you.
These kinds of cards are aimed at people who wouldn’t normally be able to get a credit card and they offer credit to a much wider range of borrowers
Pay them off monthly
You won’t get a bad credit card with a particularly low interest rate, so you can say goodbye to those 0% offers often advertised.
But, if you pay off your debt each month then you won’t pay any interest at all. If you manage your finances properly and use your card wisely, you can actually use a bad credit credit card to improve your credit rating, making it a stepping stone to the lower interest rate credit cards offered by most lenders.
With proper usage you could boost your credit score in as little as six months.
Credit Card Protection
Although credit cards can be dangerous in the wrong hands they do actually have many benefits and can be a sensible choice when it comes to ways of paying for products.
For example, many credit cards offer the safest way of paying for goods over the Internet or if you purchase something for over £100, then you will be covered by the Consumer Credit Act if there is an issue. This is comforting to know in times where finances are so tight.
Of course when considering loaning money or borrowing credit it is important to consider the pros and cons.
Although you can avoid paying interest by paying off your debt each month, if for some reason you cannot pay off your debt you will pay much higher rates of interest than with a regular mainstream credit card. So it is important to consider if you are able to make the monthly repayments before you dive in a get yourself a bad credit credit card.
So, things don’t appear to be as bad as originally thought when it comes to getting credit. By looking for the right deal for you and making sure you are able to keep up with your monthly payments, even those with bad credit can get credit.