If you have poor credit or no credit history, choosing the right credit card can be difficult. There are options out there, but you need to have your eyes peeled for predatory cards. PennyGem’s Johana Restrepo has more.
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00:00If you have poor credit or no credit history, choosing the right credit card can be difficult.
00:09There are options out there, but you need to have your eyes peeled for predatory cards.
00:15MarketWatch recommends looking for cards with annual fees around $50.
00:19Some cards have application fees, activation fees, processing fees, and maintenance or
00:25membership charges that can all be avoided with a little research.
00:30Usually, the lower your credit score is, the higher your interest rate will be.
00:35According to NerdWallet, while cards are trying to make a profit, high interest rates are
00:41more about risk to the lender.
00:43Some credit cards tailored for people with poor credit can charge up to 30% or more APR.
00:50Try to find alternative options like looking into a card from a credit union or cards that
00:55require a refundable deposit.
00:58Cards that don't offer upgrade paths are still useful, but if you're using your card responsibly,
01:04you'll outgrow it, which means you may be stuck with a card that is costing you an annual
01:09fee or that may impact your credit score when you try to close it.