![]() ![]() Where earning cash back for spending seems like a good idea, you may want to skip cards with rewards to focus on credit-building instead. Rewards: You can also pick a credit card that offers rewards, but only if you want to.Cardholder benefits: Check whether cards offer any benefits, such as a free credit score each month or the ability to pick your own payment due date.No hidden fees: Watch out for not-so-obvious fees like application fees and foreign transaction fees.If you decide on a card with an annual fee, make sure you’re getting some perks or rewards in return. No annual fee or a low annual fee: Some credit cards for bad credit charge an annual fee, but not all do.Here’s what you should look for as you decide which card is best for you and your credit-building goals: That said, some credit cards in this category are better than others. Where the best rewards credit cards and travel cards are for people with good to excellent credit, credit cards for bad credit come with more fees, higher interest rates and hardly any perks. If you want to get a credit card of your own and your credit score is at 580 or below, you’ll need to keep your expectations in check. What to look for in a credit card for ‘bad’ credit If you’re willing to pay a fee, these cards can be a good option if you don’t want to fund your credit line upfront. There are also unsecured credit cards for bad credit, which don’t require a security deposit, though some charge annual fees. Consider paying an annual fee for an unsecured credit card for bad credit.Some of the best secured credit cards offer rewards for spending with no annual fee - but your initial credit limit will be on the low end. If you’re willing to put down at least $200 as collateral, you may be able to get approved for a secured credit card. Be willing to put down a cash deposit for a secured credit card. ![]() This can help you get a better credit card than you can get on your own, although you’ll want to make sure you only charge purchases you can afford to pay off and that you treat your credit card - and the relationship with the primary cardholder - with respect. If you have a family member or trusted friend with good credit, see if they’re willing to add you to their account as an authorized user. Consider taking the following steps to get a credit card of your own. In order to get a credit card for poor credit, you have to be willing to make a few trade-offs. How to get a credit card with a low credit score Here’s an overview of the credit score ranges with each scoring model: FICO score ranges Credit rating The FICO scoring model considers scores of 580 and below to be “poor credit,” whereas the VantageScore scoring model considers scores between 300 and 600 to be poor or very poor. There are two major credit scoring models, FICO and VantageScore. No matter which type of credit score we’re talking about, if you have a credit score under 580, lenders will see you as a riskier borrower, and may be less likely to approve you for credit. N/A Is a credit score under 580 considered bad credit?
0 Comments
Leave a Reply. |