It seems like an oxymoron—poor credit credit cards. After all, the credit card was created for people who had perfect credit and a reputation that was solid. Some people in the credit industry believe that someone who maxes out a credit card (or falls into other types of debt) can’t be trusted with a brand new account.
Is this true?
The correct answer is that no one can say for sure…except the lending company who is providing the credit. Credit is not a source of money. Credit is a gift, a gift that is offered by a merchant or bank issuer that trusts the individual consumer to pay off a charge honestly.
So why is there the need for poor credit credit cards?
The majority of people do not sign up for credit cards with ill-intent. That is to say, they are not looking for an opportunity to abuse the credit system. What usually happens is that a person impulsively spends until the credit limit runs out. Of course, it doesn’t help that credit card interest rates are so high and can inflate your total balance to well beyond what you originally spent.
It doesn’t help that merchants are doing their worst to get consumers to spend money that they can’t afford.
Merchants make it easy to charge a gift on a card; some even offer to delay payments until months or even a year after purchase. Children are given credit cards, despite having no credit history to prove they are safe spenders.
Sometimes poor credit credit cards are necessary for other reasons besides impulsive spending. Sometimes credit cards are used for emergency situations. If a person suffers a major medical incident that can easily put the whole family out of work. Guess where that money comes from?
From credit cards! You also have to take into account divorce, which often results in one mate intentionally sabotaging the other one’s credit, or at least a division of all assets that hurts the wealthier mate. So while some may visualize bad credit consumers are as immature and hazardous buyers, the truth of the matter may be something totally different.
So the big question is… how does one get poor credit credit cards?
Most banks are not willing to take a risk on a person with a low credit score. Therefore, the best option is to look for a subprime financial institution. You may still get the same Visa or MasterCard but the lending company will have slightly different terms than a typical bank. You may have to pay higher interest rates or higher monthly payments once your application is approved.
These poor credit credit cards can be attained by submitting an application meeting minimum criteria.
The company will still want to know that you are employed or at least have a regular means of income. The company will also consider your residential history as this can be a sign of good credit. Just because a person has had financial difficulties in the past should not disqualify him or her from the finer things in life. Poor credit credit cards can provide you with emergency or leisure funds even after the banks say no.