Are you considering getting a credit card with a poor credit rating?
Do you have a poor credit rating but thinking of getting a credit card? This may be hard for someone with a poor credit rating because it has a higher risk for the credit card issuer. If you want to rebuild your credit score, many credit repair professionals are there to lend help. However, credit card companies nowadays issue cards even if you have a poor credit rating. The downside is that it has higher interest and lower credit limits than regular credit cards.
Make sure to search for credit card companies with the lowest interest rate. Companies will base you on your reasoning why you have a poor credit rating. If one of your reasons is either job loss or medical expenses, which are circumstances beyond your control, creditors may be considerate in your application. However, when your reasoning is something like spending beyond your means, they might reconsider your application or give you a higher interest rate.
Annual Percentage Rate (APR)
APR is on all types of loans. APR is the percentage of interest the borrower needs to pay yearly, and you must bear it for five years. Meaning the borrower should pay this percentage of interest every month.
There are two types of APR:
1. Fixed APR
The annual percentage is fixed. The rate will be the same for the entire course of your loan. Whether the market rate will increase or decrease doesn’t matter. The approved percentage on your application will stay the same.
When choosing fixed APR, you have a consistent payment every month, and you will not predict how much your loan will cost you.
2. Variable APR
Unlike fixed APR, Variable APR will change depending on the market rate fluctuations caused by economic conditions. Variable APR is better when there are decreases in market rate and usually has lower interest at first; however, it might go higher depending on the market condition.
When you think of applying for a credit card, you might want to consider doing some research to check out the best offers. As I’ve said, consumers with poor credit ratings have higher interest than regular credit cards. APR is often to be around 10%, and it might go higher or lower depending on what circumstance you’re on. You must go with a car that has a lower APR.
You might consider getting help from credit restoration Canada to accelerate your credit rebuild. Just make sure that you choose the right credit repair company for you.
Or better yet, make sure to pay your bills on time. When you are guaranteed a card despite having a poor credit rating, you might want to get this opportunity to accelerate your credit build-up. Being responsible for your payments will also lower your APR from time to time.
Having a budget plan ahead may also help restore your credit rating. Being responsible for your spending pattern is the key when you want to be financially stable. Having a credit card with a poor credit rating may give you a lower credit limit which may be an advantage. With the automatic restriction on spending, you can better manage your credit repayment position.
We already talk about paying your Annual Payment Percentage, but how about getting your APR?
Like how you pay for APR, you can also get an APR in different circumstances. Getting APR usually comes from deposit accounts. It works because the bank borrows it from you when you deposit money into your account. However, they only pay low interest as APR to you. That’s how banks earn money. They borrow money from you with the lowest interest and lend you money with a higher interest rate.
Any borrowers need to check and understand the policies and APR if they loan money. It helps borrowers to establish a budget and use their loans wisely.
To restore your credit score, you need patience and determination. You can’t have your credit restoration overnight or expect a good result in just one week. Get help with a credit score fixing service and take less hassle in rebuilding your credit score. But, of course, it takes two to tango. You cannot expect a fantastic result when all you have to do is laze around. Even if you have a good credit repair company that helps you, you have to do your share of the responsibility to ensure a fantastic result.
Have long patience and determination. Balance your finances and make sure to follow a budget plan strictly. I know it’s not an easy journey, but you’ll get there. We all start from the bottom and climb slowly and steadily. We might make mistakes, but the important thing is you don’t give up. Being financially stable is one of the keys to an easier life.