If you have a poor credit score, you may feel your credit card options are limited. Unfortunately, you may have to wait until you improve your credit score before you can apply for the best cards. In order to get the best credit card, you need to research your options carefully. You should avoid any credit card with predatory terms or excessive out-of-pocket costs.
Whats is a good credit score?
There are many different unsecured cards for people with apply for credit card with bad credit, but not all of them are the same. Some come with annual fees that act like subscription charges for using the card. Some also have high account opening fees that eat away at your available credit and raise your credit utilization rate. These high fees will negatively impact your credit score, and penalize you for carrying a balance.
Cash advances are another option that you might want to avoid, but you should know the terms of these loans. Most cash advance cards will require a lower credit limit than a credit card for people with poor credit. In addition, you will never get a grace period for this type of credit. Many of these cards also charge a higher interest rate than a regular credit card. A typical cash advance APR is 29.9%, which can be quite high.
The key is to make timely payments. Making late payments will negatively impact your credit score. You should be making payments on time every month. A late payment will appear as a derogatory note on your credit report, making it difficult to secure future financing.