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Bonsai Finance: Get a Credit Card Even You Have a Bad Credit

It can be tempting just accepting whatever terms and conditions a credit card issuer provides if you have a poor or a bad credit. While people with a poor or bad credit might be limited to get financial help from traditional sources like banks, there are other alternatives you can choose from such as credit cards for bad credit. It is possible to help rebuild your credit history with the help of a credit card as you pay on time without having to pay exorbitant credit card fees. Just imagine getting approved for a credit card, responsibly using it, and paying your dues on time, but in the end you just realize that all your good efforts are not being reported to the credit bureaus, thus working with a credit card company reporting to credit bureaus such as TransUnion, Experian, and Equifax is important.

Secured credit cards can help rebuild your credit unlike prepaid debit cards, so these are the most preferred option. A good secured credit card requires a cash deposit but it works like a regular credit card, wherein you can borrow money and you are assured that your good payment behaviors are being reported to the credit bureaus to help rebuild your credit score. There are credit card issuers taking advantage of people with poor or bad credit by charging them with excessive fees. The most common fees on credit cards for poor credit include annual fee, balance transfer fee, and late fees. The acceptable annual fee for credit cards for bad credit is $30, and you need to consider it a red flag for any amount more than this. When transferring a balance from one credit card to another, the balance transfer fee should only be 3% to 5% of the transferred amount. For individuals with a good credit, balance transfer fees are usually not charged. The maximum late fee is $27 for the first offense, and $38 for the succeeding.

It is worth it choosing a credit card offering tools to help you in monitoring your credit using debt-payment calculators or free financial education programs for improving your overall financial health. What are the good credit card management strategies you can do to your advantage? It is best to find a secured credit card that can help you graduate to an unsecured card as long as you do good in your payment performance for at least a year. Paying an annual fee is just used to keep an older card open but it is not worth it, even if your older accounts can help with your credit score. For millions of people with a bad credit, they usually prefer to eliminate plastic cards, but using a credit card is the fastest and most-effective way to help rebuild your credit, so this is your best option if you have a bad credit.

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