The content is accurate at the time of publication and is subject to change.
Life without a credit card may be hard to imagine, having a bad credit history, can take a toll on your life. If you are in need of a credit card you might not be qualified for one due to your poor credit history. Most of the credit card lenders ignore customers with poor credit due to the possible risk of default, which may arise in future. However, if you do not score for a standard charge credit card, you do have. Some card providers are now showing interest in providing special high-risk charge credit cards, and customers like you no doubt can take the advantage of this.
According to the functionality, a credit card for bad credit history is more or less same as the traditional cards of standard charges. The only differences are the rate of interests and the fees. A card for poor credit history has much higher charges than the standard ones. In the interim however, if you continue to pay your bills off each month and do not spend beyond your credit limit, you will be able to avoid these easily. If used wisely, these cards can even be used to repair your poor credit. Usually, at the end of each month, different charge card companies and traditional lenders need to report to the leading credit reporting agencies, such as Experian, Equifax and Trans Union. So, by remaining consistent in paying off your fees, you will raise your credit score.
A guaranteed acceptance credit card or prepaid credit card is slightly different from a bad credit history credit card. It comes with some great advantages like no charge limit, works like a standard card etc. No interest is be added with your money as these cards are based on the principle that you are putting your own money on your own card. These are excellent features for an individual with bad credit, these cards does however have a drawback. A fee is charged for using or re-loading these guaranteed acceptance credit cards.
Generally we use our credit cards for paying prices for the goods and services we are using. It is true that these cards bear higher interest rates and fees than the normal credit cards with comparatively lower interest rates. To make the most of your special card, you need to be confident enough to pay your monthly charges in a timely manner. This is the only possible way to raise your credit score with the help of your credit card for poor credit. The fact that these card providers directly report to the credit agencies adds extra advantage to this. It gives you the opportunity to improve your credit history within six to nine months. Just grab the best one for you, and restore your credit rating.