Credit cards for bad credit are very much in demand nowadays. The biggest reason for this is that anyone who has never used credit cards in the past suffers from some kind of financial problems. In general, if you are good at using your credit cards and are careful enough when paying your credit card bills at the end of the month, your credit is good enough. You will have better options when you are choosing a new credit card or applying for a home loan or similar service. This means that you do not have to build your credit from scratch or get into a complicated credit cards comparison to be able to qualify for any other credit card or loan.
If you have a strong credit and good credit score, you will easily qualify for better credit cards that have more rewards and offers such as airport lounge access, free miles, discount coupons and much more. As you begin using your credit card more frequently, you will be able to understand their uses and benefits. You can therefore, develop a strategy while using several types of credit cards simultaneously to maximize your benefits and rewards. However, it is advised never to apply for numerous credit cards all at once. You can for sure apply for a few good and useful cards over a period of time for maximum benefit and also to avoid any hard enquiry on your credit.
All the major banks and financial institutions operating in the market are going to report your credit card account activity to three major credit bureaus. These are TransUnion, Vantage Score and FICO Score. Remember, banks are not actually required to report to the credit bureaus but most credit card issuers would do that if you want to apply for a new credit card or are looking for a loan.
Applying For A Specific Credit Card
If you have established some credit history over a period of time, you will be able to find a credit card with rewards and travel miles that will be a perfect fit for you and your lifestyle. But there will be plenty of options to choose from in the market. If you don't have any credit established, picking a credit card might be a bit easier for you. All you have to do is keep a check on your expenses and look for rewards that suit your monthly spending.
Checking For Pre-Qualified Offers On Credit Cards For Bad Credit
Now this is going to definitely entail a long credit cards comparison. But if you are sure of what kind of credit card rewards you are seeking, applying for a pre-approved or pre-qualified credit card will become a breeze. If you have received any offer in your mail regarding the same, chances are that the company / bank has already screened you for those credit card applications. They already have a fair idea about your credit report and credit score. So, most probably you are fit for these credit card offers.
However, there is a catch here. The credit card offers that you have received might also be for a generic pre-approved credit card. This means that a lot of other individuals just like you have received the same offers. This means that there hasn't been any enquiry on your credit yet. In both the cases, it is not a guarantee that you will get a credit card but you are a little more likely to get approved for it. Several major credit card companies in the market will allow you to check for credit card options to find out which one fits your needs the best. You can do that on their official website as well. Sometimes they will also offer you bigger signup bonus and much better terms than the individuals who apply for a credit card without getting pre-screened.
Do You Have Poor Or Limited Credit?
A lot of people have this problem. They have poor or limited credit. There are several types of credit cards for this purpose. They are also financial instruments for people who are new to the whole credit card thing. If you have made any financial mistakes in the past, there are several starter cards to pick from.
• They are also suitable for you if you have never taken out a credit card before
• These are also called “first time cards”
• Primarily aimed at new credit users
• Come with very less stringent application requirements
• Have a low credit limit on them
Your credit card issuer is going to report your credit card behavior to the credit bureaus on a regular basis. You will be required to pay your credit card bill at the end of each month and this is going to help you build good credit as time goes by. These credit cards also come with $0 annual fee and this makes them even more lucrative for first time credit card applicants.
