Credit can very easily go bad. Using poor judgment, simply mismanaging your credit or maybe a sudden life change like a job switch or an abrupt change in your financial circumstances. Regardless of your personal situation, this doesn't necessarily mean that you cannot qualify and obtain a credit card.
Many of the best credit cards for bad credit available are listed below for all people who've had either a history of bad credit, have limited credit or even for those who are currently trying to fix their credit.
Depending on your circumstance, consolidating your debt or even the use of introductory "teaser" APRs on balance transfer credit cards might be your best choice.
Tuesday, July 13, 2010
Reward Credit Cards
Reward credit cards that offer the best rewards programs provide cardholders with the opportunity to earn cash back, gasoline rebates, frequent flyer points and entertainment and store discounts based on their purchase activities with these cards. When deciding amongst the best reward credit card offers available, you first need to properly qualify yourself for these type of credit cards.
It is usually recommended that a reward credit card is most suitable for individuals who pay off their monthly card balances every month. If you typically carry a monthly credit card balance, the interest charges that you'll likely incur on that balance will, more than likely, offset the rewards that you can earn with the credit card, negating any net benefit. These type of credit cards can actually be very costly for those carrying monthly card balances, depending on the size of the balance that you carry. This is the "house bet" that the card issuers are typically making with credit cards of this sort. So if you're planning on carrying a monthly balance, you'll probably be better off financially finding a low interest credit card instead.
Cardholders that do pay off their monthly card balances can really benefit from these type of credit cards though. Rewards cards can provide cash rebates, frequent flyer points, rebates on automobiles, groceries, movie tickets, video rentals, home appliances, theme parks or just about anything else you can think of.
Some examples of really solid cards in this category include the Starwood Preferred Guest® Credit Card from American Express and Discover® Open Road Card (be sure to see the card issuer's application page below for details about each of the cards offered.)
There are numerous affinity credit cards with similar rewards programs, such as the Hilton HHonors® Platinum Rewards card and the American Express Preferred Rewards Gold Card, to name just a few. But these credit card rewards programs tend to be pretty costly for the credit card issuers. Some of these rewards cards might require an annual fee, varying roughly $50 to $100. Be sure to check the credit card grid on the page below for any annual fees that might be required.
It is usually recommended that a reward credit card is most suitable for individuals who pay off their monthly card balances every month. If you typically carry a monthly credit card balance, the interest charges that you'll likely incur on that balance will, more than likely, offset the rewards that you can earn with the credit card, negating any net benefit. These type of credit cards can actually be very costly for those carrying monthly card balances, depending on the size of the balance that you carry. This is the "house bet" that the card issuers are typically making with credit cards of this sort. So if you're planning on carrying a monthly balance, you'll probably be better off financially finding a low interest credit card instead.
Cardholders that do pay off their monthly card balances can really benefit from these type of credit cards though. Rewards cards can provide cash rebates, frequent flyer points, rebates on automobiles, groceries, movie tickets, video rentals, home appliances, theme parks or just about anything else you can think of.
Some examples of really solid cards in this category include the Starwood Preferred Guest® Credit Card from American Express and Discover® Open Road Card (be sure to see the card issuer's application page below for details about each of the cards offered.)
There are numerous affinity credit cards with similar rewards programs, such as the Hilton HHonors® Platinum Rewards card and the American Express Preferred Rewards Gold Card, to name just a few. But these credit card rewards programs tend to be pretty costly for the credit card issuers. Some of these rewards cards might require an annual fee, varying roughly $50 to $100. Be sure to check the credit card grid on the page below for any annual fees that might be required.
Low Interest Credit Cards
For those in search of the very best 0 APR and introductory no interest credit cards, you should first start by comparing interest rates or APR’s on cards. If you tend to carry a monthly card balance, several cards outlined below are considered to be among the top low APR credit cards available. While the introductory rate on 0 APR credit cards tends to be short term (6 to 12 months), they are undoubtedly a great way to save money right away.
When choosing to apply for one of these low rate credit cards, the interest rate or APR on the card should obviously be one of the deciding factors in your card application choice. Because of the comparably lower finance charges, many of these 0 interest credit cards are relatively inexpensive alternatives for consumers. The lower the interest rate or APR, the cheaper the card is to carry and the more money you'll save. Typically, your credit has to be excellent to qualify for one of these introductory zero interest credit cards, however. So if you carry a large monthly card balance, a low APR can save you significantly, and in some instances can save cardholders thousands of dollars, depending on the life of the card balance.
The Capital One® Platinum Prestige(SM) card and the Capital One® VentureOne(SM) Rewards Credit Card are two of CreditCardAssist.com's top introductory zero interest offers. With 0% introductory APR (for extended periods) and a low ongoing APR on purchases and balance transfers, low interest rate credit card offers are an ideal choice for cardholders looking for competitively low interest rates online. Another great low interest credit card to consider is the Citi® Platinum Select® MasterCard®, offering both a low ongoing APR as well as a 0% introductory APR for up to 15 months on all purchases and balance transfers.
Other compelling low interest credit card offers include the Discover® More(SM) Card as well as the Discover® More(SM) American Flag Card. All of these cards offer low introductory APR's, low ongoing interest rates as well as reward programs with reward points or cash back.
When choosing to apply for one of these low rate credit cards, the interest rate or APR on the card should obviously be one of the deciding factors in your card application choice. Because of the comparably lower finance charges, many of these 0 interest credit cards are relatively inexpensive alternatives for consumers. The lower the interest rate or APR, the cheaper the card is to carry and the more money you'll save. Typically, your credit has to be excellent to qualify for one of these introductory zero interest credit cards, however. So if you carry a large monthly card balance, a low APR can save you significantly, and in some instances can save cardholders thousands of dollars, depending on the life of the card balance.
The Capital One® Platinum Prestige(SM) card and the Capital One® VentureOne(SM) Rewards Credit Card are two of CreditCardAssist.com's top introductory zero interest offers. With 0% introductory APR (for extended periods) and a low ongoing APR on purchases and balance transfers, low interest rate credit card offers are an ideal choice for cardholders looking for competitively low interest rates online. Another great low interest credit card to consider is the Citi® Platinum Select® MasterCard®, offering both a low ongoing APR as well as a 0% introductory APR for up to 15 months on all purchases and balance transfers.
Other compelling low interest credit card offers include the Discover® More(SM) Card as well as the Discover® More(SM) American Flag Card. All of these cards offer low introductory APR's, low ongoing interest rates as well as reward programs with reward points or cash back.
Cash Back Credit Cards
Cash back credit cards provide cardholders with cash rebates or rewards to cardholders for making purchases with their credit cards. A cardholder has the ability to accumulate significant rebates over time based on the dollar amount of purchases made with the top card offers.
Normally, a cash back credit card will have a rebate of around 1%, which is the industry standard. While you search and compare for the best cashback credit cards, you might be wondering how all the credit card companies can afford to do that. The retailers and merchants that you shop at are charged a fee for every purchase that you make with the card. So in essence, you are taking back a portion of that fee as your cashback rebate reward.
However, since rebate programs still end up being pretty costly to the credit card companies, some rebate credit cards will have an annual fee, which can range from around $25 to as much as $100, which will be incurred after you apply and are approved for the credit card.
Some cards will offer a higher rebate percentage with increased card usage and still other cards will offer you a higher cashback percentage at select merchants, such as gas stations, supermarkets and select retailers. Be mindful, however, that most cash back cards typically only offer cash back on purchases, not on balance transfers or cash advances.
At CreditCardAssist.com, we strongly recommend that cashback credit cards are most suitable for cardholders who do not carry monthly balances. Cash back cards typically have higher APR's (roughly 1% higher) compared to standard platinum cards. If you carry a monthly balance, the higher interest rate on these credit cards will more than offset the rebate that you'll receive and you'll end up paying back the rebate in the form of higher interest charges to the card issuer.
Normally, a cash back credit card will have a rebate of around 1%, which is the industry standard. While you search and compare for the best cashback credit cards, you might be wondering how all the credit card companies can afford to do that. The retailers and merchants that you shop at are charged a fee for every purchase that you make with the card. So in essence, you are taking back a portion of that fee as your cashback rebate reward.
However, since rebate programs still end up being pretty costly to the credit card companies, some rebate credit cards will have an annual fee, which can range from around $25 to as much as $100, which will be incurred after you apply and are approved for the credit card.
Some cards will offer a higher rebate percentage with increased card usage and still other cards will offer you a higher cashback percentage at select merchants, such as gas stations, supermarkets and select retailers. Be mindful, however, that most cash back cards typically only offer cash back on purchases, not on balance transfers or cash advances.
At CreditCardAssist.com, we strongly recommend that cashback credit cards are most suitable for cardholders who do not carry monthly balances. Cash back cards typically have higher APR's (roughly 1% higher) compared to standard platinum cards. If you carry a monthly balance, the higher interest rate on these credit cards will more than offset the rebate that you'll receive and you'll end up paying back the rebate in the form of higher interest charges to the card issuer.
Credit Card Basics
Credit card companies are in the business of making money. Obviously, they do not offer loans and lines of credit to consumers out of the goodness of their heart. They expect you to use their cards and to keep balances on them over a period of time, thereby providing them cash in the form of finance charges. Luckily, it is possible to outsmart the credit card companies at their own game by taking advantage of the best credit card offers, such as cash back rewards and balance transfer options. Credit card companies are in the business of luring customers in to applying for their cards. Common hooks include low interest offers and promises of instant approval. While there is nothing inherently wrong with these easy and cheap credit cards, consumers need to weigh their options carefully. For example, those cardholders that spend regularly on their credit card but are unable to pay the debt off each month should choose a credit card with a low interest rate. It is best to look through the many options available to find the one with the lowest APR for purchases. At the same time, the cautious consumer sets a goal for when the balance will ultimately be paid in full in order to avoid becoming overrun by debt. Credit card companies are counting on consumers to use only their card to make all of their purchases. Consumers that dedicate all of their purchases to just one card can be making a mistake - while making the credit card company very happy. For example, when a consumer uses a balance transfer card to make purchases, they are playing right into the credit card company's hand. When the consumer pays back these loans, the payments are purposely directed by the credit card company toward the interest-free or low interest loans. In this way, the high-interest loan remains on the card longer - building additional finance charges the entire time. Therefore, a consumer utilizing a balance transfer card should use it for just that - balance transfers, and nothing else. The same concept is true with low-interest cards. A card with a special low interest rate on purchases should be used when making purchases. Similarly, a card with a 0.00% APR can actually be used to make money for the consumer. Consider this: what if a consumer withdrew all of the money from his or her credit card with a 0.00% APR introductory offer and placed the money in the bank? While in the bank, that money collects interest. When it comes time to pay off the balance (which is when the introductory period ends), the necessary money can be sent to pay off the credit card and the rest of the money can be kept as profit. Choosing the right card for the right purpose will ensure more money is saved. And, if executed properly, can even make money for the credit cardholder. Credit cards are vying for consumers to use their card. After all, the more people out their spending money on their cards, the more finance charges they collect. In order to persuade new customers to switch to their card, many offer special introductory balance transfer offers. There hope is that consumers will transfer their balances and get rid of the old card altogether. Smart consumers can take advantage of this battle. Those carrying balances on other credit cards can transfer their balances to those with special introductory APRs on balance transfers. Ideally, the balance transfer card should not charge fees for balance transfers. In addition, the longer the balance transfer lasts, the better the card. By transferring balances from cards with higher interest rates to those with 0.00% interest rates, the consumer is essentially making the new credit card company pay off the debt owned to the other card. Once again, this balance transfer card should never be used for purchases, unless the introductory rate also applies to purchases. For those that do pay their entire balance in full at the end of each billing cycle, it is important to look at the other features offered by the credit cards. Many offer special rewards programs, which include access to gift certificates to restaurants, theaters, and retailers. Yet others offer free or reduced travel, with many working in conjunction with airline miles rewards. Still others provide cold, hard cash rewards to cardholders. Rewards credit cards tend to have higher interest rates than those without a special program. Therefore, the smart consumer will only use these cards if he or she can pay the balance in full each month. In this case, the consumer can make money off his or her credit card. It is best for consumers to stick with only major credit cards rather than store cards. Store cards offer attractive instant approval programs, making it tempting for consumers to apply for a card and spend, spend, spend at the store - all on the same day. This type of impulse spending is exactly what the stores are hoping for. To make it even worse, store credit cards have higher interest rates than major credit cards. The only time these cards should be used is when they offer special discounts at the store when applying for the card and the consumer had already planned to make a large purchase there. The balance needs to then be paid off immediately in order to avoid high finance charges. Once again, this forces the credit card to work for the consumer rather than the consumer working to pay off large debts. |
Choosing the Right Credit Card for you
If you are shopping around for a new credit card, you may be wondering how do I pick one that is right for me. After all, there are so many options available that it can be overwhelming. There are however, a few basic things to consider before making your choice. Mainly you have to consider what your needs and spending habits will be with your new card.
The first question you need to ask yourself is how do I plan to use the credit card? This question is important, because certain cards will make more sense, depending on how you plan to use them. For example are you planning to pay off your balance every month? If you said yes, are you positive you are being realistic about this expectation? If so, then you are someone who may not really need to look at things like APR’s and other fees, because they simply won’t affect you.
If however, you plan to carry a balance or are very likely to carry a balance, then you will want to pay close attention to how interest will be compounded on your debt. To begin with you will want to check the APR. Look for a card with a low rate, preferably a low fixed rate.
Are you looking to transfer a balance from another card that you need to pay off? If this is you, spend some time looking for a balance transfer card that either offers a good introduction APR like 0% interest for several months or one that has a lower, locked in interest rate. Be careful if choosing a low start up rate. Check to see what the terms are and what your rate will jump to after the promotion time period ends. Sometimes these cards, if you can’t pay the balance off before the end of the promotional period, turn out to not be cost effective.
Are you looking for particular features and benefits from a credit card? Like getting a card that has a rewards program for example? If this is you, there are an abundance of options available. You can earn everything from dining certificates to free travel to cold hard cash. Shop around and pick one that fits your needs. Just be careful to check card terms and make sure they fit your needs before signing up.
In picking a credit card that is right for you there are other things that you should also consider. You will want to check all the fine print. Some cards charge annual fees that you will have to pay each year. If you are looking to use your card to transfer a balance there will most likely be a balance transfer fee. Almost all cards also charge fees for using your card to get cash. Some credit card companies today are even imposing fees to their customers for inactivity. If you don’t use your card enough or don’t charge enough on your account during a certain time period they will charge you a set fee.
Before applying for a card you will also want to know what your credit score is and what cards you will qualify for. In today’s economy it can be more challenging to get credit, unlike times in the past. If you have poor credit you may have to look into building your credit before you are able to get the credit care you truly want.
No matter what card you choose, remember that with a credit card comes responsibility. When you are issued a credit card you should always use it wisely. Proper use will ensure that the credit card company is reporting you in good standing to the credit bureaus each month. Using your credit card carelessly can hurt your credit.
The first question you need to ask yourself is how do I plan to use the credit card? This question is important, because certain cards will make more sense, depending on how you plan to use them. For example are you planning to pay off your balance every month? If you said yes, are you positive you are being realistic about this expectation? If so, then you are someone who may not really need to look at things like APR’s and other fees, because they simply won’t affect you.
If however, you plan to carry a balance or are very likely to carry a balance, then you will want to pay close attention to how interest will be compounded on your debt. To begin with you will want to check the APR. Look for a card with a low rate, preferably a low fixed rate.
Are you looking to transfer a balance from another card that you need to pay off? If this is you, spend some time looking for a balance transfer card that either offers a good introduction APR like 0% interest for several months or one that has a lower, locked in interest rate. Be careful if choosing a low start up rate. Check to see what the terms are and what your rate will jump to after the promotion time period ends. Sometimes these cards, if you can’t pay the balance off before the end of the promotional period, turn out to not be cost effective.
Are you looking for particular features and benefits from a credit card? Like getting a card that has a rewards program for example? If this is you, there are an abundance of options available. You can earn everything from dining certificates to free travel to cold hard cash. Shop around and pick one that fits your needs. Just be careful to check card terms and make sure they fit your needs before signing up.
In picking a credit card that is right for you there are other things that you should also consider. You will want to check all the fine print. Some cards charge annual fees that you will have to pay each year. If you are looking to use your card to transfer a balance there will most likely be a balance transfer fee. Almost all cards also charge fees for using your card to get cash. Some credit card companies today are even imposing fees to their customers for inactivity. If you don’t use your card enough or don’t charge enough on your account during a certain time period they will charge you a set fee.
Before applying for a card you will also want to know what your credit score is and what cards you will qualify for. In today’s economy it can be more challenging to get credit, unlike times in the past. If you have poor credit you may have to look into building your credit before you are able to get the credit care you truly want.
No matter what card you choose, remember that with a credit card comes responsibility. When you are issued a credit card you should always use it wisely. Proper use will ensure that the credit card company is reporting you in good standing to the credit bureaus each month. Using your credit card carelessly can hurt your credit.
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