How do I know if I have bad credit?
There are a few easy ways to check your credit standing. First, you can pay to check your three major credit scores (a score between 300-619 is considered bad). Alternatively, you can use a free credit estimator that will give you an accurate approximation of your credit standing. Finally, if you are late on any kind of bill, your credit usage consistently approaches your limit, you have declared bankruptcy in the last three years and/or you have been more than 60 days late on a bill in the last nine years, you most likely have bad credit and should consider getting one of the best credit cards for bad credit.
How do I build credit?
Credit building is all about diluting negative information with positive information. Credit cards are great for this purpose because information about their use is reported to the major credit bureaus on a monthly basis. Therefore, by using a credit card responsibly, you are increasingly surrounding past mistakes with information about responsible use, thereby devaluing its importance. Interestingly, you don't even need to make purchases in order to build credit. It's considered responsible use to simply maintain a card at zero balance and in good standing. This is why when our editors look for the best credit cards for bad credit, they focus on identifying the credit card offers that report to all three credit bureaus and have the lowest fees rather than those with the lowest interest rates.
What's the difference between a secured credit card and an unsecured credit card?
Secured credit cards require you to place a refundable security deposit in opening them, but have lower fee structures than unsecured credit cards as a result. They are generally regarded as the best bad credit credit cards because they are fairly cheap and they make it impossible to spend beyond your means.an important feature for people who have made mistakes using credit in the past. Unsecured credit cards do not require security deposits and have high fees but provide revolving lines of credit, making them the best credit cards for people with bad credit who need access to credit because of an emergency.