Good And Bad Credit Cards
by Mammon
If you are reading this article, you are probably thinking about applying for a credit card soon. While this is a noble endeavor for the right reasons, you need to make sure you apply for the correct one for your circumstances. You may be able to get a great interest rate if your credit is good, but if it's spotty you will have to watch out for the sharks out there who promise their customers the world, only to deliver them a whopping 23% APR with a $300 limit and $250 in fees just for activating the card (yes, it exists, from a bank in North Dakota).
With good credit
If you have excellent credit, then you can get pretty well any card. You'll even find you get offers in the mail, and don't even need to try to find them. Although you probably should anyway, as you know those mail cards are rarely worth getting.
Surprisingly, the best of credit cards can be found in the most usual of places. To give you one example, many grocery stores now offer a points based reward card that also features discounts, and acts as a visa card both in that store and outside of it. More then that, most of these stores will send their customers coupons, or other credit, when they spend a specific amount.
Good credit can also be a help with other things, for example a good credit can get you discounts on insurance, or a no annual fee credit card, or otherwise reward you for building up and maintaining a good credit score.
If you have bad credit
Even though you may have bad credit, this does not mean you have to suffer under a card like the one in the first paragraph. The best thing for you to do could well be to apply at your bank for a secured credit card. This card will give you a low limit, much more then most credit cards, and will ask for a security deposit ranging anywhere from 25% to 100% of the limit. On the other hand, it will give you the chance to re-establish your good credit score. Once you've done that, you'll find that banks are willing to extend you much more credit, and will remove the restrictions.
You still need to be careful though. Unsecured offers that come in the mail are usually a lot worse then what you could get at a local bank. If you really need access to a credit card, then go to your bank or credit union and apply there. They'll find something that's appropriate, whether you are looking for a secured or unsecured card. You might even be able to apply for it online.
Author Mammon is an experienced financier, and an expert on building good credit. Click here to see his site on bad credit credit cards. This and other unique content 'good credit credit cards' articles are available with free reprint rights.
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