Picking the right credit card for dealing with bad credit history


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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: September 27, 2018

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

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.
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