Rewards Credit Cards for People with Poor Rating

Generally, if you have poor credit, you will not qualify for a rewards credit card. To be considered as part of the poor credit rating group, you should have a score of 549 or below. However, there are creditors that tag those who have a score of 600 to 649 as poor rating as well. This makes it even more difficult for you to get a card that comes with rewards.

Although quite rare, there are still a few cards that are willing to dole out rewards points, airline miles, or cash backs to people with poor credit. If you are on the market for a new credit card and you cannot boast about your current rating, brace yourself. You are going to be attacked with absurd and demanding offers if you have not been turned down.

Rewards Cards for People with Bad Rating – Are They Real?

If you find a great deal for your score at present and it seems too good to be true, it probably is. There are several misleading adverts on cards for people regardless of their credit scores. You should be able to tell whether they are scams and deceptive offers. Before you do anything, you should check your credit rating first. This way, you will only apply for the card that will accept you as you are. You not only get a new card but you also spare yourself from agonizing applications.

One of the most unbelievable offers for people with bad credit is no APR. Even if it is introductory, credit cards for those who have misbehaved on their credit usage will not be presented with favorable offers on APR. You may need to double check on the deal before you sign up for it. This is especially required if you only received the invitation through email. Several fraudsters are now using this kind of scheme to obtain important information such as your name, Social Security Number, and address.

Selecting the Best Rewards Card

Since you have poor rating, do not expect that you will get great proposals from a potential creditor. Some may only give you rewards if you show them that you can manage your account well. The first reward that you may get is a credit limit extension. Later on, you can qualify for a rewards card that can give your airfare discounts and free hotel stays. For now, you should focus on getting the most suitable card for your situation.

Decide whether you should go for a card with low interest rate or a card that has low fees. Those with low recurring fees, such as penalty and late charges may be beneficial for you if you carry a balance. Low APR or interest rate can provide you with many advantages if you often use your card for purchases or balance transfers. It is recommended, though, that you do not carry a balance to avoid paying the interest rate.

A good rule of thumb when it comes to selecting a card based on its APR is to go for one with an APR lower than 30%. The total fees that you should pay in your first year should not go over 25% of your current credit limit.