John S Kiernan, Managing Editor
@John
The kinds of credit cards you can get with bad credit are secured credit cards and unsecured credit cards for bad credit. Secured cards require a refundable security deposit, the amount of which serves as your credit limit and prevents overspending, while unsecured cards for bad credit have higher fees but no deposit.
A secured card credit card is the best kind of credit card you can get with bad credit. The security deposit allows credit card companies to charge fairly low fees and interest rates on secured credit cards. Secured cards are a lot easier to get, too. In contrast, unsecured cards for poor credit offset the risk of nonpayment by charging high interest rates, annual fees, and sometimes even monthly fees. They have low credit limits as well.
Popular Credit Cards You Can Get with Bad Credit
Finally, it’s worth noting that credit cards for people with bad credit are only beneficial if you use them responsibly. Secured credit cards and unsecured credit cards for bad credit report your account information to the credit bureaus every month, so you will want to maintain a history of on-time payments and keep your balance well below your credit limit. Over time, your credit will improve to the point where you may be eligible for credit cards with higher credit limits and more favorable terms.
You can sign up for a free WalletHub account to track your credit score and get personalized card recommendations.
Guy Baker, CFP MBA MSFS
@GuyBaker
If you have a bad credit score, you probably don't have that option. I would cut up the credit cards, put some cash in the bank and get a debit card. Then set a budget. Figure out how to manage the debt to pay it off, and start saving for retirement. If you think your credit cards are a problem, do the math on saving money for retirement, and see how much you have to save so you can have half your income. You will be shocked.
Hope you can get in alignment with this issue. Because your financial health is dependent up on it.
Christopher Gething, Founder and Portfolio Manager
@ChristopherGething
The short answer is that you could obtain a secured card and start to re-establish your credit by making payments on time. More importantly however, the underlying cash flow and budgeting issues which have resulted in the low credit score and the high amounts of debt must be addressed. Do an analysis of all your income and expenditures and aggressively cut expenses. Consider consulting a financial adviser for assistance.
Jason Neely, Member
@jasonneely
Most cards for bad credit are secured cards, where you have to pay a security deposit. There are a few unsecured, but they're not as good imo.
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