High Limit Credit Cards for People with Bad Credit
A majority of people use credit cards these days. Though using a credit card is a very convenient mode of payment, there are times when people are unable to repay the amount that is credited to them by the credit companies. This results in a bad credit history. When credit scores are adversely affected due to bad credit history, one may think that getting a high limit credit card is almost next to impossible. Though credit limit is often influenced by credit history, other factors also play a role. Applications for high limit credit cards for people with bad credit might be accepted if the applicant pays attention to other aspects. Now that the economy is recovering from the recession, and the credit card market is as competitive as it can be, people with bad credit history can also get their hands on high limit credit cards.
Credit Cards for People with a Bad Credit History
If you have a bad credit history and your applications for a regular credit card have not been accepted due to bad credit, you can get a secured credit card to rebuild your credit history. These are secured by collateral. Now several credit providers have started paying such credit cards. So, even if your credit score has gone down and is below $500, your application might be accepted. Those who have a good income will be readily given credit cards as that will assure the credit companies of the ability of the person to pay back the credited amount.
If your expenses are increasing or you feel that with your income, you should have a credit card with high credit limit, you could also check out the secured credit card. So, what do you need to do to get such a credit card? Well, these are forms of secured debts and a less risky option for the credit companies. Since the applicant has to pledge a security, in case the card holder seems to be unable to pay off his debt, the pledged asset can be sold by the creditors in order to recover the debt. There is certainly a risk of losing the asset if the card holder doesn't use the credit card in a judicious manner, and in case the pledged asset is sold off, your credit report will also be blemished.
Though secured credit cards have an advantage over the unsecured credit cards for bad credit that have high interest rates and low credit limit, the risk of losing the pledged asset can be a cause of worry.
If you are not willing to take that risk, you can always check out the prepaid credit cards, but these might not have a high credit limit as this requires you to put money in your account and that amount only can be used for subsequent purchases. This is a viable option for those who have a bad credit history. This is a way to improve your credit ratings. If you just want to increase your credit limit and you are unable to get such a high limit credit card, you have the option of keeping multiple credit cards, but make sure that you do a lot of research and select credit cards with low interest rates and other charges.
Though using credit cards is very convenient, you must always make sure that you use it wisely. Use the credit card well in order to avoid bad credit history.
