02 October 2012

All You Need To Know About Poor Credit Rating Cards

Credit cards are extremely useful. Not only are they really easy to use, convenient and have worldwide acceptance but they can give you more financial freedom. When you take out a credit card you are given a credit limit which is essentially borrowing money. Each month you will be sent a statement listing all the transactions you have made and what you owe for borrowing the money which is the interest rate or APR. Credit cards are very usefully so many people will want one. However, if you have a poor credit history you will struggle to get the card that you want. So what are your options?

Poor credit rating cards are especially designed for people who have damaged their credit scores which can easily be done simply by missing payments. They are also designed for people who have no credit history at all and those who have been refused a credit card elsewhere. These cards can help you rebuild or start to build your credit rating. As long as you use the card responsibly you will start to see your rating improve which will help your future chances of borrowing. A better credit rating means you will be able to borrow more with lower interest rates.

The main drawback of these cards is that as providers see you as more of a risk the interest rates can be considerably higher when compared to other types of cards. You will also find that the credit limits can be lower. If you miss payments as the interest rates are so high you can find the charges can easily accumulate. There can also be other charges which can easily spiral out of control. By missing payments you will also damage your credit rating even further which will not help your future chances of borrowing.

Before taking out one of these cards you need to make sure that you understand the risks and dangers of a credit card. It is important that you take the time to research the market and compare different cards against each other, weighing up the pros and cons of each. You can use sites like Which Way To Pay which will help you find the best deal available. Always make sure you read the terms and conditions thoroughly and that you are aware of any fees that are associated with the card.

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