Credit cards are a way of life. They are the easiest way to pay for things that we need, and the most convenient way to finance things that we must have. Unfortunately, if you have bad credit, you probably think that owning a credit card is a luxury that you may never have. That is not necessarily true.

There are many banks and lending institutions that specialize in helping people just like you that have less than perfect credit histories in obtaining the credit card that best suits their needs.

Unsecured Credit Cards

An unsecured credit card is a line of credit that is available without any deposit on your part. An unsecured credit card for bad credit is generally a small credit line (initially) that is usually less than a thousand dollars, and serves as a way for the bank or lending institution to judge if you are a good steward of your credit availability.

When you receive an unsecured credit card, be sure to use it wisely and with the utmost care. Avoid the urge to indulge in purchases that you would not buy if you did not have the card available. A good rule of thumb is to use only one-third of your available line of credit each month, and to pay it off in full when your monthly statement arrives. You might want to consider using your unsecured credit card only for purchases that you have to make – for instance, gasoline, groceries, or utility bills. Put only the essentials that you would normally be paying cash for onto the card – and save the cash for making your monthly payments.

Another plus to paying in full is that most cards will charge no interest on balances that are paid with a certain number of days following the end of the billing cycle. The practice of paying in full each month will show the credit card issuer that you are a responsible borrower, which will most likely lead to credit line increases and/or lower interest rates on future offers that they may send to great customers like you.

Secured Credit Card

Another great option for those with damaged credit is the secured credit card. A secured credit card is a line of credit that is “backed up” by a deposit that you make with the lending institution or bank. The secured credit card is an excellent way to rebuild your credit history.

You will deposit an amount of money that is equal to the credit line that you wish to have, but usually no more than a couple of thousand dollars. After a period (sometimes as short as a few months) of successful use of your secured card, you may be able to receive your entire deposit back and be issued an unsecured card with better terms. It is important to treat your secured credit line just as if it were an unsecured line of credit, even though your money is guaranteeing payment to the lender.

This will not only help to build up your credit file, it will also serve as savings for you – which always looks good when you apply for a loan. The same caution should be used as you would with an unsecured card – use no more of your available credit that you can afford to repay when you get your statement (generally one-third of your balance or less).

Online Credit Card Issuers

The best way to receive either an unsecured or secured credit card is online via the Internet. This is the most convenient and fastest way to get approved. You will fill out an online application, and usually you can be approved in less than a minute after submitting your information.

Author Bio: Devora Witts is a Bad Credit Loan consultant and has more than thirty years of experience in finances. She has helped a lot of people to obtain Bankruptcy Loans, home loans, car loans, personal loans and many other products regardless of their credit situation. Learn more about Personal Loans at http://www.badcreditloanservices.com

Category: Finances
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