Bad credit history and credit cards that help
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Bad credit history and credit cards that help

Bad credit history and credit cards that help

Updated: December 26, 2012

Add to Favorites:
Credit cards have many advantages when it comes to financial freedom. They have a readily available credit limit, and the advantage of spending the money in whichever part of the world. But credit cards are the most common reason for people to end up in debt, and get into the books of bad credit history. Credit history contains every single financial detail of the individual and the credit scores change depending on a number of details that the credit history contains. Credit scores depend on a number of things and can fluctuate from high to low, depending on the kind of financial activity. Some of the things that affect the credit scores are listed below:
  • Credit scores can suffer if the outstanding balance is not cleared off within the due dates, whether they are credit card bills, or installments of loans.
  • Credit scores can go to the lower end of the scale when the credit card user crosses the set credit limit. Even when the outstanding balance in more than 50% of the credit limit, credit scores may take a hit, if not cleared within the due date.
  • Credit scores are affected when the individual applies for more credit cards and the applications are denied. Credit card applications should be sent out only when the individual is sure to get approved.
  • Sometimes, irregularities in the credit history can lead to low credit scores. The individuals having credit history can review their histories at least once every year. This should be used as an opportunity to set right all the irregularities in the credit history entries.
There are many options for people in the bad credit history zone to improve their credit scores. Applying for new credit cards ironically is one of the methods to swing back to good credit history zone. But before applying for new credit cards, the old outstanding balance must be cleared off by some means. Balance transfer scheme can help in this regard, as the outstanding balance that has been transferred from the old card to the new card does not have interest rates charged. The outstanding balance can be cleared off gradually within a year, and a new credit card can be chosen to rebuild the credit history. Some credit cards that may help in strengthening the credit scores are listed below:
  • Secured credit cards: These cards are available in any bank, when the individual keeps a balance in the account as a security. The credit limit is set according to the balance that the individual keeps in the account.
  • Department store cards: There are some department store credit cards that are accounted for in the credit history. It helps to sign up for such cards, since they are free. They have high interest rates if there is a payment missed, so exercising caution when spending with those cards is necessary.
  • High interest credit cards: Some credit card companies offer high interest credit cards without credit checks. But it is easier to land in debt again with high interest cards if they are not used with care.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading