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Credit Cards for Bad Credit

admin — Sat, 20 Mar 2010 07:15:49 +0000

If you have bad credit, then you are probably wondering what kind of credit card you can and should get. Although they may not always be easy to find, credit cards for bad credit are available. And contrary to popular belief, even those with poor credit and no credit have options when it comes to credit cards. This article will explore those options so that you can get on to rebuilding your credit right away.

The first type of credit cards for bad credit are secured credit cards. These cards are available to almost anyone, even individuals with a record of bankruptcy or very bad credit. This is because these cards are of the prepay variety. When you are issued a secured credit card, you make your own deposit that becomes your credit line. And if you use your card wisely, you might be eligible for credit beyond your deposit.

The second type of credit cards for bad credit are high interest credit cards. These cards may not seem like a good idea, but for some people they can be. A high interest rate makes up for the fact that you are not trustworthy in the bank’s eyes. And if you carry a low balance on your card, you can start rebuilding or establishing credit without spending too much in interest.

Another option you have when it comes to credit cards for bad credit are low balance cards. These cards come with a low spending limit and are available from all the major card companies including visa and mastercard. Best of all, if you make your payments on time and don’t go over the spending limit, you may become eligible for a higher spending limit over time!

By: Sarah Freeland

Credit Repair Scheme Promises Fast Score Increases But May Be Illegal

admin — Mon, 21 Dec 2009 05:18:55 +0000

Establishing a good FICO credit score isn’t all that difficult; all you have to do is pay your bills on time. But if you have a bad credit score from a history of not paying your bills promptly, repairing your score and building it up to a level where you can get competitive loan rates can take time. It can take several years of paying your bills on time to build up your score and it can take seven years to wipe out a judgment or a bankruptcy from your credit report. Most consumers, understandably, would rather not wait that long and there is not shortage of companies that promise to repair credit quickly.

Several companies are offering dramatic increases in credit scores of up to 200 points in as little as 60 days using something known as “seasoned credit.” The concept is simple – if you are added to the credit account of someone with good credit as a cosigner, that good credit will add to your own credit score. What these companies do, for fees ranging up to $5000, is arrange to add your name as a cosigner to the accounts of willing participants who have good credit of their own.

Adding a cosigner to an account isn’t illegal; husbands and wives add each other to their own accounts all the time. What is illegal about this scheme is that it is a deliberate effort to manipulate credit reports and credit scores. If it is done for purposes of qualifying for a loan for which the borrower otherwise wouldn’t qualify, such as for a mortgage, it constitutes fraud.

In addition to the questionable legality of the practice, there are some other reasons why this sort of credit “repair” should not be attempted. The idea of having someone else’s credit rub off on you works both ways. Customers of these companies have no idea whose accounts their names are being attached to, and if those customers stop paying their bills, then their credit score will go down along with yours. None of this is under your control; you are stuck with whomever they stick you with. Since these companies advertise that once your score increases, you can become part of their “good credit network”, it only stands to reason that you may have your name attached to that of a person who only recently had a bad payment history, too.

Increasing your credit score by 200 or more points in 60 days’ time sounds like a great idea. But the risks of paying someone thousands of dollars to do it for you are great. It is better to build your credit the old fashioned way. Take your time.

By: Charles Essmeier

Avoiding Credit Repair Scams

admin — Thu, 10 Dec 2009 11:45:32 +0000

Credit repair can take time, especially if you have poor credit and don’t really have the time that you need to repair it. Unfortunately, many criminals and con artists know that credit repair is much needed and often time consuming and see this as an opportunity to make dishonest money by offering people what they want but that the con artist isn’t able to offer.

Even more unfortunate is the fact that large amounts of money are scammed in this manner each year, almost always from the people who are most severely in debt and can afford it the least. If you worry that you might fall victim to one of these credit repair scams, then the information below might help to give you a better idea of what to look out for so that you don’t end up losing money that you can’t afford to lose.

The Appeal of Something for Nothing

The reason that credit repair scams are so numerous is that people love the idea of being able to get something that they want with minimal investment of either time or money on their part. Desperation can add to this, especially in the case of someone who is severely in debt and it seems as though the only option that they have left is bankruptcy. Credit repair scammers generally offer a “quick fix” to an individual’s credit, and the price usually isn’t that bad… unfortunately, the service (if any) that they provide is illegal and by the time that a consumer finds that part out the scammer is gone.

Avoiding “Instant” Solutions

One of the biggest scams of this kind is that of “instant” credit repair, in which the scammer replaces an individual’s tax ID number with a new one in order for the individual to be able to establish new lines of credit without the burden of years of bad credit causing a denial.

This can be especially troublesome for the individual, since in most cases the scammer is operating within the law to create the new tax ID number which is actually a business tax ID. When the individual uses the new number, though, they are actually breaking the law and committing fraud… something that they often don’t discover until it’s too late and they’re facing legal problems.

In order to avoid these scams, just remember that anyone who offers instant results is just trying to take your money. All credit repair takes at least some time.

Other Consequences of Scams

In addition to losing your money to credit repair scams, it’s possible to face legal charges, heavy fines, and possibly even jail time if you use falsified tax ID information or get involved in certain types of scams. If you are found to be a scam victim, the charges will often be dropped… but not always. Then, of course, there is the fact that you are still in debt and have even less money with which to repay what you owe; credit repair scams can often push people seriously in debt over the edge into bankruptcy.

Without the Scam

In order to repair your credit without getting scammed, check into consumer credit repair or other certified credit repair services. Check references and make inquiries with local police and consumer groups to make sure that they are legitimate, and follow their suggestions to help you to attain a debt-free life without the worry of credit scams. It may take longer this way, but it will be worth it in the end.

By: Paul Rogers

FAQ: What Can Credit Repair Specialists Do Legally?

admin — Thu, 05 Nov 2009 09:50:14 +0000

The consumer has legal right regarding the information that is reported to and stored by the credit bureaus. Credit repair specialists help consumers take full advantage of their legal rights.

How can I repair my credit report? If any information on your credit report is inaccurate, out-dated, unverifiable or misleading, you can dispute this information. Credit repair specialists can help you if you do not have the time or the know-how.

Will establishing “good credit” repair my credit report? While establishing good credit is always a good idea, even if that means obtaining a secured credit card, “good credit” does not outweigh “bad credit”. Most lenders look at your overall credit score, most evaluations are done by computer these days, so if you credit score is below a certain number you may not qualify for lower interest rates, or you may be denied credit completely. Reputable credit repair specialists should evaluate your individual situation, before promising results.

Can I repair may credit report on my own? Yes, it just takes time and patience.

Can I repair my credit report if I still have outstanding debts? No. While you may be able to have negative items removed, if the debt is still owed, the creditor may just report the information again. Reputable credit repair specialists do not recommend that you try to have items removed from your credit reports which are accurate, only that information which is inaccurate, misleading, unverifiable or out-dated.

Can I repair may credit report if I have declared bankruptcy? It is possible that you may be able to achieve some results if you have declared bankruptcy. Many people believe that bankruptcy wipes their credit report clean, but it only releases you from overwhelming debt. It does not remove information from the credit report that led to the bankruptcy in the first place. If you have a past bankruptcy and you are trying to improve your credit rating, it might be wise to contact credit repair specialists that are associated with a law firm. They will probably be able to offer more assistance than credit repair specialists that are credit counselors.

Where do I go to view my credit report? The website http://www.annualcreditreport.com has been set up to allow consumers to easily view their credit reports on line. Companies that advertise as credit repair specialists and attempt to charge you for copies of your credit report are not being honest. If you need more than one copy of your credit report per year, then you may have to pay for additional reports, but this payment should be made directly to the credit bureau.

Can credit repair specialists repair my credit report for me? They can help. You will be involved throughout the process, because the credit bureau will only communicate directly with you.

By: Patsy Rose

Credit Repair – A Fresh Start

admin — Mon, 26 Oct 2009 06:20:28 +0000

Life is Unpredictable

There are innumerable reasons people fall behind on their bills. Getting back on your feet after a period of financial challenge can be hard. But if you take the proper steps you will not only succeed, but emerge stronger than ever. Here are some awesome credit repair tips along with some advice on organizing your efforts.

Post Bankruptcy Cleanup

If events of your life led to the necessity for bankruptcy, don’t feel bad. You are not alone. And if you make sure your credit report reflects the bankruptcy properly, your credit scores will suffer only a minimal impact.

Once a bankruptcy is complete the items that were discharged should no longer report as collections, charge offs, or with past due balances. If you ignore your credit reports after a bankruptcy these items can linger and continue to weigh down your credit scores for years to come. Post-bankruptcy credit repair is easy. Make a copy of your bankruptcy discharge, along with the schedule of items included, and send it to all three credit bureaus requesting them to clean up each effected item.

Student Loan Problems

Student loans are unique among all other liabilities. It is almost impossible to discharge a student loan in bankruptcy, and there is no statute of limitations for collectability. Unlike old credit card debt, you can’t just wait out the next few years until it goes away; student loan debt is here to stay. It is for this reason that we suggest to our customers that they pick up the phone and deal with it right away.

But there is good news. First, the law requires that student loan lenders accommodate borrowers by making repayment as flexible and affordable as possible. And second, there is assistance available to help you understand your rights. If you are having any kind of issues with your student loans, if they are currently past due, or even long since in default, please call the Student Loan Ombudsman Office at (877) 557-2575. Call today!

Credit Card Re-Aging

If you are currently behind on credit card payments and are working hard to catch up there is a way out. There is a little known procedure offered by credit card issuers known as “re-ageing.” This procedure will allow you to convert your past due balance into a current balance, and will eliminate the entire history of late payments on the account. That’s right! Once the process is complete your account will be entirely current, and will show on your credit report as if there had never been an issue. This is a super effective credit repair technique!

Here are the rules. The account in question must have been open for at least nine months. For your part, you must offer to make three on-time payments. Re-ageing is designed for people that have been through a period of hardship and are now ready to get back on track; so you need to be in this category, and you must communicate this to the credit card company.

Just call the credit card issuer and tell them that you are interested in their re-aging policy. Some card issuers refer to this process as “curing”. If the person you are speaking with does not know what you are talking about, please ask for their supervisor. I suggest that you organize your thoughts before you call. Remember to tell them that your life has changed and you are going to be a great customer!

Budget Thoughts

An intelligent credit repair effort can make a world of difference. But in the long run, the key to maintaining great credit is living within your means. Life will not always cooperate with your attempt to stay on a budget, but the more careful you are to plan your finances while times are good, the more resilient you will be when unforeseen circumstances arise.

Organizing a budget requires a bit of careful thought – and a pen and paper! You will need to consider all of your monthly expenses. Make sure to include everything, rent, mortgage payments, utilities, auto expenses, food, etc. Knowledge is power. Too many people lose control of their finances simply because they don’t take the time to know what their commitments are. Only when you know your limits can you make reasonable decisions about what to purchase, or what amount of new debt is manageable.

Savings Tips

While you are contemplating your budget, make an allowance for savings. In the long run savings will be the most important contributor to financial stability. Make a habit of setting aside money. Savings leads to confidence and peace of mind. In time your savings will provide the foundation of unshakable credit that is capable of withstanding all of the events of life. Good luck!

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

By: Jim Kemish