In my other article was about Top 10 Best Credit Cards To Get in 2022, and for those people that already have established credit. If you have credit score below 715 or worse than that, this article is specifically for you.
Worst Credit Cards SHOULD NOT Apply For:
High Interest Rates Credit Cards:
When you first started out, you are probably bombarded or desperate to get any credit card offer. Most likely be offered our credit cards from the following, and these are credit cards your you should never, ever get:
- Credit One Bank ($300-$500 limits, depending on your credit history)
- Capital One Platinum ($300-$500 limits, depending on your credit history)
- Premier Horizon Gold ($150 limits)
- First Premiere ($300 limits)
Which most likely you guys have a lot of my reader, when they sign up for my ebook to know how they can increase and have a good credit score, they already have these cards.
I will show you why you should not apply for these Credit Cards, let's look at the interest rates on these:
- Credit One Bank: 23.99%
- Capital One Platinum: 26.99%
- First Premiere: 23.99%
- Premier Horizon Gold: 26%
You do not want to have that at all, right?
Just rebuilding your credit and trying to get good credit, you're not going to get good credit by ripping yourself off and giving your money voluntarily to these credit companies. So do not apply for any of these. And there is more there's, they're usually have APR in between 23%, 24%, 25%,....Some even higher than that.
Secured Card
Then next is called the Secured Card. Secured credit card by your local bank, if your bank is Bank of America, Chase Wells Fargo,.. they will offer you a Secured Credit Card, which is basically you opening up a credit card with a secured deposit that is used against you and then you're being charged interest on.
Just imagine putting money into a bank and then having that costing you money. So let's look at APR: 22.99% on money that you can't even really use, you have to pay back and you have to put money up front. That a secured credit card.
Another thing is when you're building or rebuilding your credit score, and you have these credit cards in your arsenal, in your wallet, you're basically putting a tattoo on your forehead or a sign on your forehead that says :"take advantage of me. I'm a desperate borrower. I don't know how to manage money, so I'm dumb enough to give them 24% or 26%, whatever interest rate that they're taking, plus annual fees and stuff like that". It hurts but it's true. Secured card is no different.
Best Credit Cards to Get If You're Just Starting To Rebuild Credit
I'll tell you what you need to do. Let me raise this. So what's better than getting the $300 credit limit, $500 credit limit, or putting $1000 opening deposit on a secured credit card from a bank that charges you 22.99% of interest. It's 10k of unsecured credit overnight. There's two banks:
- Carmel Financial ($5000 Credit Limit)
- Major Financial ($5000 Credit Limit)
They're going to approve you for a $5000 Credit Limit each. That's a lot better than if you were to combine all of those 4 cards that I put up before Credit One, First Premier, Capital One Platinum or Horizon Gold. It would still not equate $5000.
If you're just starting, this is what you need to show on paper. You need to show to the rest of the banks that you have a $5000 limit x2, and you're using them properly. There's a rule, any time you have a credit card for personal credit, you have to have your balance, keep your balance below 9%. So if you get these two credit cards and then next month you'll get those trade lines reported on your credit reports, TransUnion, Equifax and Experian, then your scores should jump up. And every time you make a monthly payment, your score is going to continually bump up.
The Bottom Line
I recommend that all of my friends do this immediately or as soon as they can. That way they get way better than a secured credit card and all those subprime credit cards that are going to charge you like 22.99% interest or above. This is what you want. You want to have 10K of credit reported on your credit report. So you have your available limit really high. And then as you begin to make your monthly payments on time, then we can apply for those better top tier credit cards accordingly. Good credit when just starting out. That's definitely something everyone want to do.
If you really want to step up your game, check out the new eBook I wrote for you, the Credit Repair 101. Simple instructions, and illustration will help you learn how to boost your Credit Score, and other amazing credit tips & tricks. Check out the samples on the product page.
