credit card question...

So I was wondering if there is credit cards for people with not so great of credit. I'm looking into gettig a credit card. Don't worry I know all about how its not a good idea etc. And I have had one before when I was young and stupid. I am trying to get another one but I don't have perfect credit. I think my scores are in the 630's I believe ( back in 09) and since 09 I have paid off two collection bills and my old credit card and I'm continuing to pay off bills and try to get my credit better. I am unable to get things like loans and such due to the fact I've messed up my credit and I also don't have a lot of credit to begin with since I'm young and not out buying houses cars etc...

Why do you need a credit card?

There are credit cards out there for people with bad credit, or people who have previously had problems. A lot of that will stay on your credit rating for a few years, I believe. The biggest problem is that because you're high risk the interest rates will be insane. Easily looking at 19% and up interest rates. Very scary if you run into trouble again and cannot pay off the balance.

You could get a prepaid one the you put money onto before you use it.
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I'm sure there is one out there but the rates will be ridiculous. If you are looking to re-build credit, get one with a small limit and put a small amt on it each month (tank of gas, groceries, etc) and pay it off every month so you are getting good dings on your credit report. Look for one that reports to all 3 bureaus so it will raise across the board.

That being said, I'm not a credit card fan. I have one - for emergencies but haven't used it in years. My hubby had a substantial chunk of cc debt when we married, it was a royal pain to get rid of. I grew up in an "If you don't have the cash for it, you don't need it" family and I'm very thankful for that as I've carried that attitude with me into my adult life. Having that has allowed me to at 31, own my farm outright (started making payments to my gpa on the farm at 16) and my only debt is my new car.

A lot of people use credit cards because they don't have money, which is obviously a bad thing to do. :)

As a retired banker, I don't ever recommend having a credit card. They are a ripoff quite honestly. They are issued with very low standards to almost anyone, resulting in a very high loss rate - which is made up, of course, by charging everyone a high interest rate and high fees.

It is far more prudent to save and spend, rather than spend and repay debt.

If you need to establish credit or rebuild your credit, there are far better ways...

I agree in that people use them when they don't have moeny and that it can be a ripoff, but when you don't have credit, you can't get a loan or anything without it.

I am 20, I have had a credit card for 2 years and I have never had a problem. I use it all the time to shop and get gas, etc.

It is a wells fargo credit card. After I shop for the day, I go home, wait till all the charges are on there, usually takes a day or so. Then I pay it off (the day after I buy things.) I have NEVER had a monthly bill or an interest charge for not paying it by the date. This is the way to do credit cards! Gets you credit so that I can one day buy a car, house, etc.

I don't get people who go into debt. :roll: Unless you have a medical problem that needs to get fixed and you can't afford it, that is the only reason I see to go into debt. If you don't have the money to buy something, then don't buy it! :)

I completely agree with you, however, there are times where one does need a credit card. Up here in Canada, some of the hotels require a credit card to book a room along with renting a car. You can't use a debit or cash, because if you wreck the room or damage the car without insurance they then have your credit card to bill as they see fit. :)

What about just a debit card?
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As someone who works in a card service company, I'd say DON'T!

Credit card companies target defaulters as primary candidates for credit limit increases and 'special member' offers. Next thing you know you have a debt that you can never pay off if you pay minimum payments or thereabouts.

If you need money quickly look at getting an overdraft from your bank or a personal loan (building societies and credit unions are always cheapest). If you want a card because it has flexibility, get a debit card visa/mastercard