The best ways to use your credit card when you have bad credit

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Benefits of an adverse credit card
Adverse credit cards are generally used by people with bad or poor credit ratings. Consumers with a poor credit rating will find it hard obtain credit cards with low APR, and high interest credit may be the only option.

However, there are benefits to high interest credit cards, and one of the major benefits is improving a credit score.

Credit building credit cards such as high interest cards can help consumers with a bad credit reference repair their credit score.

Regular payments
Purchasing goods on a high interest rate credit card and consistently making repayments on time and in full every month will help to repair a credit score. Over time the consumer’s credit score will begin to rank higher and will be looked on favourably by lenders. Consumers considering this option should compare the credit cards available and look out for cards that do advertise additional credit rebuilding services.

Use credit cards without interest
As with lower interest rate credit cards, high interest credit cards do come with interest free periods. This means credit customers can purchase goods and have a specified amount of time before interest fees will be applied. In most cases, the interest free period will be from one month to six weeks.

Customers who repay their credit card balance in full within the specified interest free period will not be charged any money in interest fees. This can be helpful in rebuilding a credit rating and in this way, you can also avoid wasting money on the high interest fees charged by bad credit credit cards.
Always repay credit card balances on time
Pay your bills on time
One point to remember with high interest credit cards is the importance of making monthly payments on time. Customers who fail to repay on time every month will be charged very high interest fees and late or missed penalties.

What may happen if you don’t make monthly payments on time?
These fees and charges can soon mount up and one missed payment will have an adverse effect on credit building.Consumers should, at the very least, make minimum repayments if they are intending to use high interest credit cards as a way of rebuilding a credit rating.

Author’s advice
Remember, adverse credit cards are not the cheapest credit cards on the market but for those with poor credit rating, they can be advantageous towards repairing a credit rating. Once the rating has been repaired customers can then apply for credit cards with far lower interest rates.