Bad credit history and credit cards that help

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Bad credit history and credit cards that help

Bad credit history and credit cards that help


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!