Making the most of your credit begins with understanding your credit. Your credit is not just the plastic cards in your wallet or the vehicle in your driveway. If you have no reported credit history, it will take time to establish credit. But, if you develop bad credit you may have a very difficult time obtaining services and products to help rebuild your credit. As a result of your poor credit score, banks and other lender may now see you as a high risk customer. What could have caused this?
Causes Of A Low Credit Score
There are many causes of a low credit score, ranging from
- Being young in age
- Just starting your career
- Just staring to build your credit
- Being older in age and never having used credit.
- You may have an unpaid bill that has been sent to a collection agency
- A bill that went unpaid for a number of days, weeks or months.
You may not be aware of this but businesses will report late payments to credit bureaus and your credit report will show if you were 30, 60 or 90 days late on your payment.
The Best Credit Card for People with Bad Credit
You may be asking yourself how you are going to get out of this situation and rebuild your credit. The answer is simple. Apply for a Secured Credit Card. A Secured Credit Card is the fastest and easiest way to rebuild your credit. All credit cards, secured or unsecured, are always reported to the credit bureaus and all activities are updated on a monthly basis.
Your new credit card will give you access to credit just like any credit card. However, you will be required to provide a security deposit to the credit card company as collateral before you receive your card and have access to the credit. The deposit will secure the credit card and may or may reflect the amount of your credit limit. If you do not make your payments, your security deposit will be used to cover your defaulted payments. Companies will vary in their account terms so it is important to read the documents thoroughly, ask questions and research the credit card company that you are applying to. This opportunity could be the difference between renting and owning a home or low and high interest rates in the future.
A Secured Credit Card will most likely carry a high monthly fee and percentage rate therefore you should use it as a stepping stone. Monthly or yearly fees can quickly add up along with the high average percentage rates (APR). Cardholders should not be lulled into a false sense of security as you are still responsible for paying the balance or minimum payment every month. Be responsible. Buy a few things and pay off the balance of the card rather than carrying a balance on the card at all times. Contact your bank of choice for more information on their Secured Credit Cards. Capital One is also a very common selection.
Affirm MasterCard®
Fixed interest rate of 29.99%. This card is issued by Peoples Trust Company pursuant to license by MasterCard® International Incorporated. MasterCard® and MasterCard® Brand Mark are registered trademarks of MasterCard® International Incorporated.
- True credit – no security deposit required
- Credit limit up to $3,000
- Use it anywhere MasterCard® cards are accepted
- Fixed interest rate – 29.99%
- Reports to credit bureaus every month under Affirm Card/BC
| Program Specs | |
|---|---|
| Intro Rate | N/A |
| Intro Period | N/A |
| Regular APR | 29.99% |
| Annual Fee | $84.00 ($7.00/month)* |
| Balance Transfer | Yes |
| Credit Needed | See website for Details* |
| Intro (Purchases) | N/A |
| Intro (Balance Transfers) | N/A |
Click here to apply for the Affirm MasterCard®
