Getting credit cards for poor credit can be a good way to build or rebuild your credit. But it’s important to pick the right card for your situation.
The right credit card for you depends on how much debt you have, your income and how your finances are changing. Whether you’re looking for a card that helps you get out of debt or one that offers perks and rewards, there are many options available to help you make the most of your finances.
Find a card that fits your financial goals by comparing cards based on interest rates, annual fees and sign-up bonuses. The best card for your needs will have low fees, a good rewards program and an easy application process.
How to Build Credit with a Credit Card for Poor Credit
Choose a card that will give you access to your credit report and score. Depending on your credit situation, you may also be able to have automatic payments and credit limit increases.
Credit mistakes are a big contributor to a low credit score. To avoid negative credit history, pay your bills on time and use your credit wisely. Always keep your balance relatively low to help maintain a good credit utilization rate.
Your payment history makes up 35% of your FICO score. That’s why it’s essential to make your monthly payments on time, and keep your balance below 30% of your available credit.
Use a secured credit card to build your credit:
Secured cards offer the same features and benefits as unsecured cards, but they require a security deposit upon approval in place of a credit line. These deposits are refundable if you can prove responsible use of the card.