Even if you have bad credit and low income, that doesn’t mean that you shouldn’t have access to a credit card. Paying off a credit card regularly can help you reestablish your credit and have access to cash in the case of an emergency. However, simply having bad credit means that it will be difficult for you to qualify for a traditional credit card. It can be troublesome due to the fact that you need a credit card to establish your credit, but you can’t get a credit card with bad credit. This common problem has led to the invention of non-traditional credit cards that are specifically designed for individuals that don’t meet typical lending qualifications. Low interest rates have led to a ballooning of personal household and credit card debt in countries like Canada as well as the USA.
Less Options to Choose From
If you have a pristine credit rating, you can have your pick of different credit card lenders and choose options with the lowest interest rates and other great features. However, if you have poor credit, you must take what you can get when it comes to credit cards. This might mean choosing form credit cards that have high fees or high interest rates. Although you don’t have as many options, you can still choose from a variety of bad credit cards that are designed for individuals in your predicament. Visa’s official site may have more information on this, but they won’t necessarily offer any credit cards for fellow Canadians. Look into credit card reviews such as the review on Creditwalk.ca of the Capital one mastercard.
Check Your Credit Report Before You Begin Searching
When looking for a credit card with bad credit, you want to make sure that your credit report is accurate and not worse than it should be. It is best to know what your actual credit score is and obtain a free credit report that you can check for accuracy. If you notice a discrepancy between your statement and what you think you owe, you will want to look into things further in order to know if you a victim of any sort of fraud. It’s free to check your credit score in Canada by letter mail, however if you want instant access you will need to delve into things a bit further online and pay the fee to see the reports online. Visit Equifax for more information on credit scores.
High Credit Risk Credit Card: Secured Credit Card
If you have bad credit and have a credit score that is
- 500 or below
- you will most likely be considered a very high credit risk among lenders
- This means that you don’t qualify for typical credit card options and must consider secured credit card options
Which can help reestablish your credit. In order to obtain a secured credit card, you must pay a security deposit that is used as collateral on your credit card. The amount of your security deposit will often match the actual limit of your credit card. This means that the lender faces no risk and will be willing to issue you a credit card that can help you rebuild your credit rating.