Looking for credit cards for people with bad credit? Based on the US scenario, Brazil could see a significant increase in unemployment in the coming days. Losing a job in the midst of a crisis could contribute to more Brazilians becoming delinquents.
We often find Brazilians who are in debt or have some overdue bills.
Unfortunately, Brazilian consumers can have their name tarnished, or have it distorted, or have their name protested at a notary's office.
Therefore, due to the restrictions on a consumer's credit record, it becomes virtually impossible for someone with a negative credit history to obtain a credit card.
The good news is that it's possible to choose a credit card even if your name is on a blacklist.
So what do you want to know about the best credit card for people with negative credit scores? Read this article!
How do credit cards work for people with a negative credit history?
In general, credit cards of this type, that is, for those that are in short supply, have a special feature: they are usually sent.
This means that the consumer has access to a negative credit card balance, but to guarantee payment, the bill amount is always deducted from their salary.
This prevents new debt, in addition to the debt the person with the negative credit history already has and is trying to pay off.
Furthermore, it's important to mention that there's not only the payroll loan option, but it's also possible to have a prepaid credit card, without any deductions from your negative salary.
The number of people with negative credit records at credit protection agencies, SPC and SERASA, exceeded 63 million at the end of 2020. For these people, it will be more difficult to install apps and make online purchases.
If you belong to this group and didn't know it's possible to apply for a credit card even if you have a negative credit history, we've listed 4 no-annual-fee options for consumers with credit restrictions.
4 credit card options for people with a negative credit history
1. Caixa Simples Credit Cards
The Caixa Simples card is a loan card for retirees and INSS beneficiaries. In addition to having no annual fee, the card also offers lower interest rates.
Since the card uses part of the benefit as collateral, it charges up to 3 times lower fees than regular cards, according to Caixa.
With the card, it's also possible to withdraw 95% of your credit limit in cash without paying any fees.
In addition to allowing online and installment purchases, lower rates can also be an alternative to more expensive debts; that is, you pay to use part of your credit card limit to pay off old debts.
2. Trigg credit cards for people with negative credit history
Trigg is a credit card that is requested directly through the app and is entirely managed via your mobile phone. The application and approval process takes place within minutes of the request.
In addition to the ease of approval, the card also has its own cashback program, where customers who make purchases with the card receive up to 1.3% back on the value of their bills.
For those in a hurry to make a specific purchase, there is a virtual card feature available before receiving the actual credit card, even for those with a negative credit history.
Trigg has an NFC system for card purchases, and a membership system that rewards the user for each friend invited to start using the card.
3. PagBank credit cards for people with negative credit history
We've already written an article about prepaid credit cards, which goes into a bit more detail. They're mainly for those who need to make occasional purchases and have negative credit.
The big difference with a PagBank card is that you can use your account balance as a credit card without having to request a prepaid card or pay the issuance fees that are common for this payment method.
In addition to standard features such as online shopping and prepaid services, you can choose how to use your balance, whether for debit or credit.
4. Credit cards for people with negative credit history from Banco Next
The bank, which emerged from Banco Bradesco's initiative to democratize banking services, also offers a payroll deduction card for those who receive their salary through an account.
The big difference is that the Next card isn't just for pensioners and public employees. Private sector workers under the CLT (Consolidation of Labor Laws) scheme who receive their salary through Next can apply for a payroll deduction card without having to check their credit report (CPE) or SERASA (credit bureau).
The bank states that it is conducting an internal credit analysis and may or may not issue the card to those whose applications are denied, depending on the analysis, but it is an alternative for those who are not INSS pensioners.
In general, credit cards can provide relief to the family budget and help people get through stressful periods for those with negative credit histories. However, it's important to note that credit card debt is one of the main reasons why Brazilians default on their loans.
It's ideal to try and reorganize your finances, as negative credit cards can charge cardholders higher interest rates.
A good way to start with financial planning and organization is to read previous articles that delve deeper into the topic during times of crisis.
Credit cards for people with negative credit histories offer an opportunity for those with banking restrictions to obtain an online credit option to make purchases in a more moderate and conscious manner.
Therefore, the financial market is giving you an opportunity to obtain a credit card to make your purchases in a conscious and simplified way. It's worth checking out the post and seeing which cards are available.
