Why would anyone want a credit card?

Question

If you have bad credit, then getting a credit card would just be adding fuel to the fire-right?

Answer 1

To address this question without more detail is a bit difficult, but I'll give it a try. The others are correct, but it seems like you are more interested in knowing how opening a credit card with having bad credit history will help your credit score. If so, keep reading.

Credit scores are calculated using many different formulas and many different attributes about your credit history. One such big factor is the ratio of debt you have vs. the available credit you have. So, if you have $10k in debt from $10k available credit, your ratio is 1, but if you were to apply and get an additional $10k in credit (making $20k available credit), then you would lower your ratio down to 0.5.

Another thing they look at is average life of credit. The older your accounts the better. So the sooner you start, the better off you are.

The third thing they look at is credit activity/payment history. By having a credit card you are able to have constant activity and prove consistent payment history. Since creditors report late payments, by having and showing consistent on-time payments over a duration of time, you will help raise your credit score. There are other things they look at as well, but these basic 3 involve having a credit card. Good luck!

Answer 2

If you know you have bad credit and you need a credit card try applying with orchard credit card services. They would need an initial deposit to secure the credit card. This will tell anyone that looks at your credit and knows your trying to make good on building a good credit rating. Just don't charge what you can not afford at the end of the month.

Answer 3

Absolutely right. People have bad credit because of bad habits and behaviors. Getting more credit when those behaviors are still present will only result in more debt and worse credit. Most people could live much better lives without credit cards. Disciplined spending habits allow people to have enough money to cover the things they need without credit. If you don't have money for it, YOU DON'T NEED IT!!!

Answer 4

No relocating cash in your Capital One card would possibly not aid you simply but. You simply must pay up to you probably can in the direction of your Bank of America card each and every month and don't use it in any respect. Clip coupons, downgrade your cable or telephone mobile kit, devour mac and cheese a pair nights every week. You'll be amazed how so much additional cash you're going to must positioned in the direction of your bank card invoice. That's the exceptional option to pay it down. About the Avon account. It's time to speak in your mother. Tell her you wish to have her to pay that off NOW it hurting your credit score peculiarly if they're calling you b/c she is overdue paying. You too can name Avon and spot if you'll be taken off the account you can also want your mother's permission to try this but when you'll you will have to and quickly.

Answer 5

people want to get credit cards because you don't have to keep on taking money out of your pocket or keep on going to the bank to take out money, you just write a check to the credit card company. also, for some companies like Discover, for every hundred dollars you spend, you get a dollar back.