#get a credit card with bad credit
Can I Get A Discover Card With Bad Credit?
July 14th, 2012 | Author: Stephanie
Discover branded credit cards are not as popular as Visa and MasterCard and until recently were only available to consumers with excellent credit scores. However, Discover partnered with Continental Finance and now offers several types of credit cards to people with a bad credit record or no credit history.
Marketing for the Matrix Credit Card by Discover is specifically targeted to people who could not qualify for a regular Discover card. The Matrix credit card has all the same functions as a traditional Discover card, but has a number of fees and a much higher interest rate.
If you qualify for an unsecured Matrix by Discover credit card, you do not have to make any kind of upfront security deposit. However, Continental Finance may require you to make a partial or full security deposit in order to get the special Discover card. The credit decision depends upon a number of factors in your financial history, including but not limited to recent late payments or bankruptcies.
Generally, the interest rate for any Matrix by Discover product is about 29.99 percent which is at least double that of a traditional Discover credit product. The Matrix card fees can exceed $75 a year, which is a little higher than regular Discover credit cards. The average starting Matrix credit limit is $300, while a Discover card for college students or people with an excellent credit history will probably get at least a $1,000 initial credit limit.
For people with no credit or bad credit, Matrix is an excellent way to build or restore a positive bill paying history. However, you should not carry a large balance on a card with a 29.99 percent interest rate. Use the card as sort of a debit card for every day purchases such as gas or food, then pay it off each month. Do not exceed about 50 percent of your available credit limit; the less credit you use the more credit line increases you will receive. Also, using less than 50 percent of your Discover credit line will dramatically improve your credit score.
Pay your bills early as much as possible and consider getting a second unsecured or secured credit card. Do not get too many new accounts at once as this can further decrease your credit score. You are much better off keeping one or two cards in good standing than trying to get a dozen new accounts and trying to keep track of the payment due dates.