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3 Facts About Credit Cards For Poor Credit That Will Blow Your Mind | credit cards for poor credit

Credit cards for poor credit usually have a high annual percentage rate (APR). They also come with high and occasionally punitively high fees. For the most part these cards are intended for those who can not get traditional credit because of their poor credit. But the credit card industry is starting to realize that this is a big market and that those people need credit cards as much as those with perfect credit do.

Unlike standard credit cards, secured credit cards require money collateral as collateral when you open an account. Typically, you have to put down at least $ 200 or more as a security deposit, that then determines your credit score. Typically, a cash deposit of this size would qualify you for an average credit card. But if you want the best credit cards you must pay attention to what the annual fee and processing fee costs you.

It's important to remember that most secured credit cards require a security deposit as a condition of application. This deposit is usually equal to 5% of the amount of the credit line. Your credit limit will be determined by the amount of your security deposit. For those with poor credit, this can make securing unsecured credit cards for poor credit individuals very difficult indeed.

One way out of this dilemma is to get a secured credit card for bad credit candidates. These issuers know they may take a risk by issuing unsecured credit cards to those who are inherently high-risk. Therefore, issuers typically offer special “bad credit” cards that carry very high interest rates and fees and few or no perks at all. This approach seems to be working well for them.

Still, some issuers have realized that some people just need more than a basic credit card. If you've suffered financial difficulties in the past, you may not be able to rebuild your credit rating. So issuers realize this as well. Still, many issuers still provide unsecured cards for bad credit candidates.

The type of credit cards for poor credit candidates that these issuers offer typically have different requirements. Some may require a higher savings account, home equity line of credit, or automobile purchase history. Others may require that you meet a higher credit score or have a lower debt-to-income ratio. Each issuer has a different set of requirements, so it's best to shop around to see which ones apply to you.

As mentioned earlier, issuers of unsecured credit cards for poor credit candidates differ in how they determine eligibility for unsecured credit cards. Most issuers use the standard credit score model, so you'll probably be approved unless your score is too low. If your score is too low, you can still get an unsecured credit card if the issuer has a security deposit requirement. If your security deposit requirement is too high, it could be better to go with a secured card, since issuers won't be risking as much on your credit history.

In the end, if you meet all the criteria for approval, there are a few things you can do to improve your credit score. One of those things is to pay off any debts, pay down your balance on time each month, and keep your credit score at about a 650 credit score or above. These things will take time, but they will eventually improve your credit score. So if you're looking for credit cards for poor credit candidates, make sure you're ready to start taking action. If you follow the steps outlined above, you should be able to find secured credit cards for poor credit candidates.

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