There are credit cards using which one can cash in on excellent credit. There are credit cards which one can use as a lifejacket, to come out of bad credit history. Using the right credit card depending upon your financial condition is critical. Here are some of the credit cards, you can check out to help you out of bad credit history.
Balance transfer cards
Balance transfer cards come with a primary caveat. Too many balance transfers does not augur well for your credit history. However, when a good card comes along, you can transfer your balance from your existing credit card to the new one. Most balance transfer credit cards
offer an introductory rate which is extremely low and sometimes even 0%. So, you are virtually freed from the obligation of paying interest on your debt. This allows you to concentrate on repaying the principal debt as soon as possible and repair your bad credit history significantly. Lower the credit card debt, better it is for your credit rating. It will also give you the added motivation, as you are constantly racing against the introductory period which lasts between 6 – 18 months on an average. Make sure, you are perfect in your calculations though, because balance transfer cards are known to have higher interest rates after the introductory period expires.
Low interest rate cards
If your credit history is in a mess, low interest rate credit cards are something you can always turn to. These are useful because they are absolutely without any sort of risk. There isn’t the temptation of lot of rewards which can lead you to bigger expenses. The interest is not building up on top of the principal all the time. This lowers the pressure on the card holder significantly. It is the ideal credit card for those whose bad credit score is primarily due to a huge rotating debt as opposed to inconsistent payments. Low interest credit cards will go a long way in knocking off some part of the debt very quickly.
The post credit crunch era saw the emergence of several prepaid cards
. A lot of customers bought into the idea of prepaid cards too because these cards will not allow you to spend more than a particular limit. You literally buy these cards with some cash and then the card at best, is worth the price you paid. It is ideal for those who would like to stick to their budget every month. In other words, if you are one of those who gives in to the temptation of swiping your credit card, at every possible place, prepaid cards will help you avoid that habit. There are a few caveats with prepaid cards though. The processing fee on some of these cards is very high. Similarly, not all prepaid cards, give you full value for the money you have paid up front. In most cases, you get only 75 – 80% of the cash you paid to get the prepaid card.