If you have a poor credit rating, you know how difficult it is to find a bank that is willing to offer you a credit card account. You may have found they accept you only for a credit card with sky high interest rates. However, there are companies out there that provide affordable cards for people with a poor rating. Read more at payday loans very bad credit
Poor credit credit cards typically make borrowing expensive with extortionate rates; this is due to the fact the customer’s credit history shows they have been late for repayments in the past, and may have even been declared bankrupt. Therefore, the company has no sure guarantee they are going to get the money back. The high rates charged counteract this risk factor.
But with some research, you will find there are card companies that specialise in serving customers with bad ratings. They give out cards with low interest rates, taking the view that a person can reform their behaviour given the chance — and if they don’t, the interest rates will once again rise and there will be additional charges. Often they initially give only a low credit limit, which can be increased if minimum payments are consistently made on time. This method of receiving credit is affordable; you aren’t being charged high rates that are impossible to keep up with.
Another option is to sign up for a card that has a high starting rate (as most bad credit credit cards do) which is reduced over time if you stay within your credit limit and keep up with repayments. Although it seems like a bad deal at first, in the long run it may work out cheaper if used sensibly.
You could opt to take out a secured card. In this scenario, on opening the account a paid deposit is required. This protects the company financially if you were to default on your payments. It is vital to remember the deposit is not part of the regular monthly payments; these will need to be maintained.
It is important to find a poor credit credit card with a low interest rate, as this way you will be able to keep up with repayments and avoid getting into debt. In addition to this, by making payments on time you are building your credit rating back up for the future.