If you are suffering from a bad credit score and feeling helpless, then you are not the only one. Setting up revolving debt credit cards like Visa, MasterCard, American Express, Discover or any department store credit cards is important to your credit history because it’s a self-managed account and you know you have to pay an installment at least once a month.
Given outsiders’ inability to invest at truly market-dictated prices – or to repatriate earnings at will or, at least, in sufficient quantity to fundamentally alter their risk calculations – there’s little reason to believe they’re going to assume the liability for China’s credit bubble.
This is because a low credit score tells a financial institution that there is a greater likelihood you may fail to pay back a loan versus somebody with a higher FICO score – thus increasing the risk the lender takes on. As a result, the best credit cards for bad credit are also secured cards, or credit cards which require a consumer to put down a security deposit.
Let’s start with the bad news on how this is playing out, which is that the average level of debt among the minority of students with unpaid balances on their credit cards rose very slightly to $3,444 in 2012 from $3,440 in 2009, and from $1,279 in 2003.
On the other hand, you need to use the card once in while since financial institutions have been known to also shut credit accounts which were dormant or cut down the actual credit limit, probably none of which is very good with regard to your credit score.