Sub prime credit cards have been created specifically for individuals with a damaged credit history. For most these cards offer a second chance with credit.
They are often used to help rebuild a low credit score. They help because you can create a positive payment history and it can improve your ratio of available credit to debt.
These two factors are very important when your score is being calculated. If these two factors are good then you can create a good credit score even with negative items on your credit report.
There is monthly credit reporting with these cards. You should expect an APR of 19% and you will have some fees for these cards. This is the cost of a low score, however used correctly and this can be the last time you have a cost due to your score.
Your credit limit will be approximately $300 and you will be eligible for periodic credit limit increases. However some cards like the Tribute Gold MasterCard do offer a card with a limit of $70 for those with very bad credit.
These cards will help your score more that a secured credit card. This is because a secured card is reported to the bureaus as a secured account and will not impact your score as much as an unsecured account.
It is still important to remove negative marks from your credit history. However it has been learned that after a negative mark ages for four years it has much less impact on your score.
To get the most benefit from your card on your credit we suggest you keep the balance at roughly 20%. This will show the bureau that you do in fact use your credit and that you are using it responsibly.
If you have; collections, charge offs, judgments, bankruptcy, or a repossession you can still be approved for this card. Each card will have different requirements for approval and you will get an immediate decision when you apply.
In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.
They are often used to help rebuild a low credit score. They help because you can create a positive payment history and it can improve your ratio of available credit to debt.
These two factors are very important when your score is being calculated. If these two factors are good then you can create a good credit score even with negative items on your credit report.
There is monthly credit reporting with these cards. You should expect an APR of 19% and you will have some fees for these cards. This is the cost of a low score, however used correctly and this can be the last time you have a cost due to your score.
Your credit limit will be approximately $300 and you will be eligible for periodic credit limit increases. However some cards like the Tribute Gold MasterCard do offer a card with a limit of $70 for those with very bad credit.
These cards will help your score more that a secured credit card. This is because a secured card is reported to the bureaus as a secured account and will not impact your score as much as an unsecured account.
It is still important to remove negative marks from your credit history. However it has been learned that after a negative mark ages for four years it has much less impact on your score.
To get the most benefit from your card on your credit we suggest you keep the balance at roughly 20%. This will show the bureau that you do in fact use your credit and that you are using it responsibly.
If you have; collections, charge offs, judgments, bankruptcy, or a repossession you can still be approved for this card. Each card will have different requirements for approval and you will get an immediate decision when you apply.
In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.
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