Picking the right credit card for dealing with bad credit history
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Picking the right credit card for dealing with bad credit history

Picking the right credit card for dealing with bad credit history

Updated: December 26, 2012

Add to Favorites:
The only way of dealing with bad credit history is to improve your credit score and come out of it. Most negative events on your credit file stay there for years thus raising question marks over your creditworthiness every time you apply for a credit card, insurance or loan. Delinquencies, bankruptcy and mortgage foreclosure stay on your credit file for longer periods. The best way is to pick the right credit card that will help you rebuild your credit history from scratch and push your credit score beyond 500 and preferably 600 at some point of time. Here are some of the aspects of a bad credit history credit card that could help you. Low interest rate When you are rebuilding credit history, you need to forget about credit card rewards completely as greed will only worsen the situation. When you give up on card rewards, you could opt for low interest credit cards which are ideal for rebuilding credit history. With low interest credit cards you can save on the interest you pay month after month on your outstanding debt and instead use the money to repay the debt itself. Higher credit line If your credit limit is higher, the ratio of outstanding balance to credit limit stays low thus helping your credit score move up. If the ratio of credit used to credit available is high, then the credit score suffers. Fee waiver Several creditors are willing to offer credit cards without the usual high penalties and fees that accompany cards for bad credit history. A bad credit history credit card without excessive late fees or overdraft fees, cash advance fees or issuance and application fees, would help you check your debt and keep your finances in control. Thus it is a great idea to look for credit cards with fee waivers including cards which don’t levy any annual fees. Debt consolidation and financial expertise Some credit cards for bad credit history will bring to you the benefits of a polite customer service representative who will offer expertise on managing your finances better. Debt consolidation is a great option for those with several outstanding debts. Such credit cards will allow you to pay off the debts on other credit cards that you own, thereby ending up with just one credit card debt with a reasonable interest rate. This arrangement will also benefit you as you will be able to arrive at a minimum payment option, according to the latest credit card reforms. So, you will have a target date and a target payment amount every month that helps you cut down on your debt and improve your credit history. In fact, you can make payments in excess of the minimum amount too, in order to make your credit file look impressive to future creditors. Financial tools Bad credit history credit cards that offer tools and resources like credit score monitoring, payment alerts, reminders and 24 X 7 expertise, will help you stay focused and improve your credit score very quickly.

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

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading