Low-Rate Credit Cards for People with Lower Credit Scores

Specialty Cards

People with low credit scores must obtain special credit cards for their situation. Generally, the credit limit will be fairly low and the interest rate will be much higher than traditional cards. Some cards also mandate that you have steady employment and check whether you have a history of keeping adequate funding in your bank account before issuing a card. If you have recently declared bankruptcy, these requirements will be even more stringently examined.

Some specialty cards provide reminders to help you pay off your credit card. These include text messages and emails as your payment date approaches. These cards also provide lower rates if you have undergone credit counseling that equipped you with personal reminder strategies for paying off credit cards on time.

One strategy to lower rates is to negotiate rates down over time. Get into a high rate card initially and start paying off the card each month, or at the very minimum pay the minimum balance due on time. After several months of steady payments, call to renegotiate the interest rate. The interest and fees credit card firms receive from you are their profit, so they are interested in maintaining you as a paying user. Negotiate with the bank by letting them know of your option to consolidate your loans at another firm or with another card if you have investigated that possibility.

Overall the best way in obtain access to low-interest-rate credit cards is to improve your credit score. The components of a credit score are payment history (which comprises 35 percent of the total score), outstanding debt which (30 percent), length of payment history (15 percent), and an additional 10 percent is based on new bank or credit accounts and 10 percent is based on the different types of accounts that you have. If you have several different types of accounts that are paid regularly, it can help to improve your overall score.