1
October
2010

Credit card in the recent times has somehow become a part of life; no matter to what extent it is despised. It is more of a habit nowadays and very difficult to change for that matter. The problem is actually not with the credit card you own but with its improper usage. If the card is misused or overused, the end result is undoubtedly bankruptcy filing followed by financial trauma. The only solution can be to have a clear perception of the way a credit card work and the measures you should take in order to remain debt free.

Having bad credit is certainly a flaw. But it does not necessarily prevent you from having a credit card. The noticeable effects are that you may face difficulty if you are keen on larger purchases. If you have a bad credit larger purchases are a complete ‘No’. Here are some tips to consider if you have bad credit but are in need of a credit card:

• When applying for credit cards opt for credit cards at smaller retail stores. With a bad credit the bigger companies may not be keen in providing you with a credit card. Most often it is considered risky to allow credit cards to individuals with bad credit. The smaller retail companies can offer you the chance as they are more willing to risk. If your application is accepted, start off with small purchases and timely monthly payments. This can help you avoid any more negative markings in your credit card. But make sure you do not get the card from a single store or chain of stores.

• Another safe option can be to get the card from the bank, savings institution or credit union where you have an account. As you will not be a stranger the possibilities of allowing a credit card can work. If you have your business dealings or accounts still active, you can easily get a credit card.

• You can also apply for a secured credit card if you want a safe deal. Here you need to open a savings account and maintain it as security for your line of credit. The credit line will be a percentage of your deposit.

• Get help from a friend or family member while getting a credit card. If all options fail, ask someone who has a good credit score to co-sign. In this case you are eligible for a part of the good credit score of the co-signer. Here you have an advantage that if you cannot pay back the loan, your co-signer must do so. But this action is not encouraged as it brings negative markings on the credit rating of your co-signer.

• There are some things you should keep in mind if you are planning to get a credit card. Try and pay all your other bills on time. This saves you from any other negative effects. If you want to keep credit cards make sure you do not keep more than three credit cards. Also do not get a credit card that charges annual fees. Conduct a market research to know which card suits your conditions best before you get your credit card.

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