As their very name suggests, adverse credit credit cards are an option offered to those who have a poor credit history and thus credit rating.
Why you may want to apply? If you do happen to have a poor credit rating, then you will find there’s strong likelihood that you will be successful when applying for one of these simple credit cards in which you have been unapproved when applying to the mainstream card issuers.
Moreover, if you do have an undesirable credit rating, then applying for adverse credit credit cards can guide you to re establish you credit rating quicker, provided, of course, that you simply manage the card correctly and pay your bills punctually!
How to apply? You can apply either Online or in the greater traditional method of sending off an application form. Normally it will take a couple of days for the issuer to decide your creditworthiness. Having said that, provided your credit rating isn’t totally destroyed you have to be successful in your application.
What will the financing limit be? Don’t get too excited, although, like all mainstream cards, there is no set card limit, depending instead on your capability to repay the limit balance that may be outstanding, one of the ways through which adverse credit credit card issuers limit their exposure is to set the card limit below that which you may otherwise have received which has a successful application to a mainstream issuer. Having said that, provided you keep a clean record and pay all of your bills in a timely manner, there is no reason why your limit should not go up over time because you build trust between you and the provider.
What’s the interest rate? Combined with the credit limit, the interest rate is one of the factors that puts most people off applying for this sort of card. In most cases the APR is higher than that offered by competing cards and if you were merely comparing credit cards then it would look unattractive. Nonetheless, the best rate offered by the card is the same as by purchasing any other card %. So, if you repay the balance in full each month, and with the lower limit this should be easier to do, the cardboard will cost you nothing, while at the same time helping to rehabilitate your credit rating and history.
Adverse credit credit cards are an easily affordable option of getting your financial health back on track. It is crucial, however, that you try to repay as much of the balance as you can possibly repay each month and you never fail to miss a repayment date, otherwise this type of card can very quickly transform into an expensive and bad experience.