Bonsai Finance: Get a Credit Card Even You Have a Bad Credit

If you are one of the millions of people with a bad credit, it is easy to feel like accepting whatever terms and conditions a credit card issuer gives you. People with a bad or poor credit may have limited options because of their credit standing but they can still get financial help from alternative sources. By using a credit card properly and paying your due on time, it is possible to help rebuild your credit history without having to pay significant amount of 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.

The best option for a credit card for those people with a bad credit are secured credit cards because prepaid debit cards cannot help rebuild credit. A secured credit card needs a cash deposit but it works like a regular credit card, wherein you can borrow money and pay it back on time, while you are assured that your good payment behaviors are being reported to the credit bureaus. There are credit card issuers taking advantage of people with poor or bad credit by charging them with excessive fees. The annual fee, balance transfer fee, and late fees are the most common fees on credit cards for poor credit. 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. When it comes to transferring a balance from one credit card to another, the acceptable and reasonable balance transfer fee is between 3% to 5% of the transferred amount. For individuals with a good credit, balance transfer fees are usually not charged. The maximum late fee is $27 for the first offense, and $38 for the succeeding.

Achieve improvement in your financial health by choosing a credit card that offers tools to access and monitor your credit like free financial education programs and debt-payment calculators. What are the best credit card management strategies that can help you financially? If you do well with a secured credit card, a credit card issuer may evaluate your account and switch you to an unsecured card after a year. You can also find an unsecured credit card without annual fee. For people with a bad credit, they usually want to eliminate plastic cards, but this is the fastest way to help rebuild a credit, so this is your best option if you have a bad credit.

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