Jan 17 2009
Credit Cards for Those with Poor Credit
If you’ve been thinking about getting a credit card for those with poor credit, I have to tell you that this may not be a good idea. Yes, you are likely to find a company that will give you a credit card but you are also likely to be charged an excessive amount of money for the “privilege of having this card.” Instead, you are better off paying down your credit and using csh baby. Not only will doing this significantly raise your credit score but it will give you peace of mind and will prevent you from backsliding into more and more debt.
Consider this. Let’s say that you do find a credit card for those with bad credit. You then use it to buy a nice polka dot dress on sale and then you use it to buy a green hat and blue shoes. The next thing you know, your credit card for those with poor credit is to the max and you arent’ able to pay the minimum balance. As such, you get late and you are charged the default rate. Now, this sucks big time.
On the other hand, let’s say that you pass on the credit card and use cash instead. In this instance, you are less likely to buy the dress, shoes, and what not and if you do, you make cut backs somewhere else so that you can stay within your budget. The result? You don’t add to your debt.
So, my advice is to only take out a credit card for those with bad credit if you plan on paying your balance in full and being responsible. Otherwise, leave that card exactly where it is or you could very well find yourself in even more debt.
Great Article.