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Bonsai Finance: Getting a Credit Card for Bad Credit

It can be tempting just accepting whatever terms and conditions a credit card issuer provides if you have a poor or a bad credit. While it is true that you may have limited options because of your credit history, you still have other options to get financial help like getting a credit card for a bad credit. It is possible to help rebuild your credit history with the help of a credit card as you pay on time without having to pay exorbitant credit card fees. Just imagine getting approved for a credit card, responsibly using it, paying your bills on time, and in the end you realize that all your efforts are not being reported to the credit bureaus.

Secured credit cards are preferred that prepaid debit cards for individuals who want to rebuild their credit. A good secured credit card requires a cash deposit but it works like a regular credit card, wherein you can borrow money and you are assured that your good payment behaviors are being reported to the credit bureaus to help rebuild your credit score. There are credit card issuers taking advantage of people with poor or bad credit by charging them with excessive fees. When it comes to the most common fees on credit cards for poor credit, they include an annual fee, balance transfer fee, and late fees. There are credit cards without an annual fee, but usually those that charge this fee is charged around $30, and any amount more than this is considered a red flag. For balance transfer fee, it should only be around 3% to 5% of the transferred amount to transfer a balance from one credit card to another. For those people with a good credit, balance transfer fees may not be charged, so rebuilding a good credit may allow you to waive these fees. When it comes to late fees, this can take a hit, but the maximum late fee is $27 for the first offense, and $38 for the succeeding for missing a due date.

In order to help in the improvement of your overall financial health, it pays off choosing a credit card offering tools to help you in monitoring your credit with the help of debt-payment calculators or free financial education programs. What are the important things you can do for your credit card to help you? It is best to find a secured credit card that can help you graduate to an unsecured card as long as you do good in your payment performance for at least a year. Paying an annual fee is just used to keep an older card open but it is not worth it, even if your older accounts can help with your credit score. For millions of people with a bad credit, they usually prefer to eliminate plastic cards, but using a credit card is the fastest and most-effective way to help rebuild your credit, so this is your best option if you have a bad credit.

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