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Have the negative name can seem like a big hurdle when thinking about finances and credit. However, even with a less favorable credit history, there are options available on the market.
In this article, we will demystify the concept that credit is inaccessible to negative people and show how you can reorganize yourself financially with the right tools. Here, you will find a careful selection of credit cards that offer not only the ability to purchase, but also the chance to rebuild your financial health.
So, if you are in this situation, follow us and find out what your best options are to get back to have credit in the market.
What does negative status mean for your credit?
The negativity It's like a red flag on your name when it comes to finances. Imagine that each person has a kind of “note” that says whether they usually pay their bills on time or not.
This note is important because banks and stores look at it when deciding whether to lend you money or give you a credit card.
When you become negative, it means that this your grade dropped because you haven't paid some important bills. This happens, for example, when someone fails to pay a credit card bill, a bank loan, or even electricity and water bills.
Then, your name ends up on lists of defaulters, which are like notebooks where the names of people who have debts are recorded.
With their name negative, banks and stores stay one step behind when offering you credit. They think: “If this person hasn’t already paid other bills, will they pay ours?”
Therefore, it becomes more difficult to get a new credit card, a loan or even buy something in installments. Additionally, if you get credit, interest rates may be higher because banks will want to protect themselves from the risk of you not paying.
Criteria for choosing the right card when you are negative
It is important to pay attention to some things to make the right choice. First, take a look at the interest rates. When the name is dirty, banks often charge higher interest rates, as they see lending money as a greater risk.
You don't want to end up paying much more than the value of your purchases in interest alone, right?
Another point is to check if there is monthly or annual fees. Some cards may incur additional costs just because you have them in your wallet, even if you don't use them. It's important to choose a card that won't weigh down your pocket.
Also, see if the card offers any benefit that is useful to you. Some cards have points programs, store discounts, or even insurance included. Even if you are negative, you can find options with benefits that help in your daily life.