Q. Can I obtain a credit card if I have bad credit?
A. Yes you can. There are many companies which will issue you a credit card with a low limit if you have some good credit in your file. Some will increase your limit every 3 to 6 months if you pay your bill on time.
Q. What is the difference between an unsecured and secured credit card?
A. An unsecured card does not require any security deposit. A secured card requires a security deposit which can be 50% to 150% of your credit limit.
Q. Why should I obtain a credit card if I do not have one and have bad credit?
A. If you are serious about building your credit back to A-1 condition and do not plan on abusing your card, then it can be an excellent tool in rebuilding your credit. But remember to pay your bill off completely each month and ahead of time. This will not only save you interest charges, but add a positive mark to your credit report.
Q. I can't resist charging to the limit when I get a card. What is you opnion?
A. Maybe you are not ready for a credit card.
Q. Why do I need a credit card?
A. To rent a car, reserve a hotel room, and a lot of other things. Remember, you can still pay for your hotel room with cash. You can also pay for your rental car with cash at some car rental agencies. The problem is that it is hard to rent one without a major credit card.
Q. Are there agencies or companies that can help me with my credit problems.
A. There are many non-profit credit counselling orginizations that can help for a very minimum amount. They have trained specialists that are there to get you on the right track.
Q. Are secured credit cards just for people with bad credit?
A. No, some people have no credit and wish to establish credit.