4 Tips For Using Credit Cards When You Have Bad Credit

If you have bad credit, it is a must that you use your credit cards responsibly to pay down your existing debt and improve your score. By doing so, you will make more financial solutions available to you in the future. However, because achieving your financial goals can be difficult, here are 4 tips for using credit cards when you have bad credit:

1. Find the card that is right for you.

If your credit is poor, or you do not have any at all, then you will need to find a company that will work with your credit standing. Depending on your credit score, different card options will be made available. However, many bad credit cards have higher interest rates and lower credit limits than normal, although improving your credit score can change things for the better.

It is also important that you change your credit card as your score improves. By doing so, you may be eligible for better interest rates, higher credit limits, and other benefits.

2. Make sure that you do not miss any payments.

It is crucial that you make the minimum payments on time to avoid earning even more debt. To help pay down the debt faster, it is also recommended to pay considerably more than the minimum whenever possible. To ensure that the balance is paid off, you will need to put any extra money that you have toward your paying down your debt, and this may require sacrifices in other areas of life. However, you must do what you can to ensure that your credit is not further damaged.

3. Do not go over your credit limit.

No matter what your credit limit is, you must not exceed the amount. Not only will you have over-the-limit fees attached, but you will further damage your credit rating. Many companies like to see only up to 30% of the total credit limit being used.

4. Only use your card for emergencies.

The best way to manage your credit card is to only use it for emergencies. By limiting your credit card use, you will prevent yourself from earning more debt than is necessary.

Having bad credit does not mean that you have to be stuck in debt forever. With these 4 tips for using credit cards when you have bad credit, you can better learn how to be a responsible consumer.  You’ll also stop yourself running into financial problems whilst building a great credit rating – which is ideal if you ever want a mortgage!

Sam Jones, the author, uses balance transfer credit cards to manage his debts and finds the maths frustrating buy the outcome worthwhile.

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