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

If you have a poor or a bad credit, it can be tempting just merely accepting whatever terms a credit card issuer offers. While it is true that you may have limited options because of your credit history, you still have other options to get financial help like getting a credit card for a bad credit. With the help of a credit card, you can establish a good credit history by paying on time without having to pay exorbitant credit card fees. Just imagine getting approved for a credit card, responsibly using it, paying your bills on time, and in the end you realize that all your efforts are not being reported to the credit bureaus.

Secured credit cards are preferred that prepaid debit cards for individuals who want to rebuild their credit. 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. Beware of credit card issuers taking advantage of those with a poor or bad credit by charging them with huge amount of fees. The annual fee, balance transfer fee, and late fees are the most common fees on credit cards for poor credit. There are credit cards without an annual fee, but usually those that charge this fee is charged around $30, and any amount more than this is considered a red flag. When transferring a balance from one credit card to another, the balance transfer fee should only be 3% to 5% of the transferred amount. Balance transfer fee is not usually charged for people with good credit. When it comes to late fees, this can take a hit, but the maximum late fee is $27 for the first offense, and $38 for the succeeding for missing a due date.

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 best credit card management strategies that can help you financially? Provided that you pay on time for at least a year, a credit card issuer can help you switch from secured credit card to unsecured credit card, so work with a trusted and reliable credit card issuer to help you achieve this. Even if your older accounts can help with your credit score, it is not worth it paying an annual fee, so it best to find an unsecured credit card without annual fee. For people with a bad credit, they usually want to eliminate plastic cards, but this is the fastest way to help rebuild a credit, so this is your best option if you have a bad credit.

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