High Limit Credit Cards for People with Bad Credit

Smita Pandit Jan 18, 2019
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If you have a bad credit history, you can still get a credit card with a high credit limit. Here is the options available for you. Read ahead.
Many people use credit cards these days. Though an easy mode of payment, there are times when people are unable to repay the amount credited by the credit companies leading to a bad credit history.
Often, people think that their chances of getting a high limit credit card is almost next to impossible due to their past credit mistakes. Though the credit limit is often influenced by credit history, other factors also play a role.
A person with good income will easily get credit cards, as the companies are sure of the person being able to pay back. Credit card market is too competitive, one could get a high limit credit card even with bad record.

Credit Cards for People with a Bad Credit Record

If your expenses are increasing and you feel that you should have a credit card with high credit limit, you could check the secured credit card. Once you get the card, and you make your payments on time, you can rebuild your credit record. These are cards, secured by collateral. These are forms of secured debts and less risky for credit companies.
Under such cases, one has a make a security deposit, which is held as a collateral, in case one defaults on credit card payments. Since the applicant has to pledge a security, in case the card holder seems to be unable to pay off his debt, the pledged asset can be sold by the creditors in order to recover the debt.
Though secured credit cards have advantage over the unsecured credit cards that have high interest rates and low credit limit, the risk of losing the pledged asset can cause worry. So, if the card holder doesn't use the credit card in a judicious manner, and the pledged asset is sold off, your credit report will also be blemished.
If you are not willing to take such a risk, you can check out the prepaid credit cards. However, these might not have a high credit limit as this requires you to put money in your account and that amount only can be used for subsequent purchases. This is a viable option for those having a bad credit history. This is a way to improve your credit ratings.
If you just want to increase your credit limit and you are unable to get such a high limit credit card, you have the option of keeping multiple credit cards. However, you must make sure that you do a lot of research and select credit cards with low interest rates and other charges.
Though using a credit card is very convenient, you must always make sure that you use it wisely, so as to avoid getting a bad credit record.