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Bad Credit Credit Cards – Pros And Cons

admin — Wed, 14 Apr 2010 18:58:44 +0000

In modern society, many people have adopted a buy now and pay later mentality about purchasing. This has caused problems for many people when they fall on hard times and are unable to pay their bills. This problem has come to the attention of some lenders who have developed a range of bad credit credit cards to accommodate people who fall into this financial category.

Bad credit credit cards have benefits for both the lenders and the consumers. Lenders have noticed the potential to charge higher interest rates, raise fees and increase profits making this business very lucrative for them. These cards help many customers to increase credit score and have returned purchasing power back to those who otherwise would have no other options.

There are many types of credit cards for consumers to choose from like prepaid, secured, and unsecured. Prepaid cards are generally just a debit card where the consumer is able to deposit his or her own funds. These cards have no effect on credit score and are not reported to credit agencies. As convenient as prepaid cards are to have, they are not helpful in rebuilding your credit.

When trying to rebuild your credit, think about secured credit cards. These cards are secured by funds that you deposit in to a savings account. This protects you the consumer from getting in over your head, and also protects the credit card company to know that they will receive the funds if you are unable to pay your debt back. These companies will typically report to a credit agency.

Having trouble establishing credit? Bad credit credit cards can be your answer. They are frequently unsecured, but have a higher interest rate and fees for late charges. Keeping your payments paid will not only increase your credit rating but will also raise your credit line which more often than not starts at around $500.

Customers should decide carefully when choosing a credit card. Be sure to find a card that suits your current needs and that also has terms and conditions that are favorable to the customer. Check your online credit score regularly to ensure that your score is being correctly reported.

By: Daniel Lesser

Adverse Credit Credit Cards

admin — Sun, 28 Mar 2010 00:46:56 +0000

As their very name suggests, adverse credit credit cards are an option available to those who have a bad credit history and, thus, credit rating.

Why you may want to apply

If you do happen to have a bad credit rating, then there is a strong likelihood that you’ll be successful when applying for one of these credit cards where you have been turned down when applying to the mainstream card issuers.

Moreover, if you do have a bad credit rating, then applying for adverse credit credit cards can help you to re-establish you credit rating quicker – provided, of course, that you manage the card correctly and pay your bills on time!

How to apply

You can apply either Online or in the more traditional method of sending off an application form. Normally it will take a couple of days for the issuer to decide your creditworthiness. Having said that, provided your credit rating is not totally destroyed you should be successful in your application.

What will the credit limit be

Don’t get too excited, although, like all mainstream cards, there is no set card limit, depending instead on your ability to repay the limit balance that may be outstanding, one of the ways in which adverse credit credit card issuers limit their exposure is to set the card limit below that which you may otherwise have received with a successful application to a mainstream issuer. That said, provided you keep a clean record and pay all of your bills in a timely manner, there is no reason why your limit should not go up over time as you build trust between you and the provider.

What’s the interest rate

Along with the credit limit, the interest rate is one of the factors that puts most people off applying for this type of card. In most cases the APR is higher than that offered by competing cards and if you were merely comparing credit cards then it would look unattractive. Nonetheless, the best interest rate offered by the card is the same as that with any other card – 0%. So, if you pay off the balance in full each month, and with the lower limit this should be easier to do, the card will cost you nothing, while at the same time helping to rehabilitate your credit rating and history.

Adverse credit credit cards are an easily affordable option of getting your financial health back on track. It is important, however, that you try and repay as much of the balance as you can possibly repay each month and that you never fail to miss a repayment date – otherwise this type of card can very quickly turn into an expensive and bad experience!

By: Joseph Kenny

Easy Approval Credit Card Applications With a Bad Credit Score

admin — Tue, 23 Mar 2010 04:12:33 +0000

I can still remember seven years ago when I applied for an American Express card online. It took more than one month for me to get approved. Nowadays it’s a lot different. With instant approval, you usually receive notice via email of your acceptance within seconds of completing an online card application. If you have a good to excellent credit record you can even get an easy approval credit card with guaranteed 10,000 limit or an easy instant approval student card, but what happens if have a bad credit score? Are you doomed to pay all your purchases in cash? Certainly not so don’t despair.

The first alternative for people with bad credit score is to get a “secure card.” There are some major card issuers which requires applicants to make a deposit or what we call “secure cards.” If you have a bad paying history, the most logical thing to do is save a little money to be used later on to “pre pay” a card. A secure card is a no credit card because the amount you can charge against the card is determined by the amount of your deposit. If you deposit, for example, $5,000, then you can charge up to $5,000 only. Hence, there is no actual “credit” being extended. Typically, these cards are marketed as no credit credit cards because of the fast, easy instant card approval.

The second alternative is to search for a “bad credit credit plastic” and find an easy approval unsecured credit, but they should try to resolve their bad credit issues and prevent further damage to their credit score.

While there are plenty of bad credit credit plastic choices available, they can do more harm than good if not used wisely. This is one way for a consumer to repair his damaged reputation by making up to date payments on his bad card and eventually upgrading to the real credit card in the future. And also a bad card charges a higher interest rate because of the increased risk to the issuer.

The third option is to apply for a debit card. Debit cards are cards that can be used depending on how much money the user transfers to the specific card. Consequently, the risk of running up credit card debt is nil. There are also no finance charges to contend with, only minimal fees for application, start-up and ATM card.

Credit cards for bad credit score were designed to rebuild credit that had been damaged. For those with no credit or poor credit there are secured credit cards, bad credit credit cards and debit cards but there are also unsecured cards that can be used for this purpose. These cards generally come with low credit lines (around $300) and additional fees. This kind of card will not allow you to on shopping sprees but it will certainly help you restore your damaged credit history. If you’re disciplined and pay all your bills on time you can ask for a credit increase after a while with an end goal of upgrading to an easy approval credit card with guaranteed 10,000 limit. Isn’t that wonderful? But in the meantime let’s concern ourselves with finding easy approval credit card applications with bad credit score.

By: Raul T. Cruz

Bad Credit Credit Cards – Who Needs Them

admin — Sun, 14 Mar 2010 14:17:28 +0000

United States without credit cards. You won’t be able to rent a car or a hotel room, and very many merchants will not accept a personal cheque without a credit card. Now such persons as those who migrated to the United States, college and university students who have very little or no credit history, or persons who did not do too well at managing their credit history, should apply for credit cards that cater for this.

There are three basic types of bad credit credit cards. These are:

Prepaid – Very similar to the standard debit card. You open an account and place a deposit in it. This deposit will become your card limit. With this type, you are not extended credit by the bank since any purchases made come directly from your deposit. When you have exhausted this, you can no longer use the card until you make another deposit. This type of card can be likened to the training wheels on a bicycle, and are excellent in helping you to budget and to live within your means. The major downside of such a card however is that they cannot help you to rebuild your credit. This is because no credit is being extended to you, and as such, these accounts are not reported on by banks to the credit bureaus. Secured Bad Credit Credit Cards – With this type of card, you will have to open some type of savings account and deposit a sum of cash in it. This will be held as collateral by the bank that issued the credit card to you, and for as long as you have the credit card, you will not have access to those funds. You can deposit more to be held as collateral for the card as you go along. Now the amount deposited will normally represent the credit limit on the card. It can be a little more. If you default in the payment on this card, the bank will deduct from your savings to pay it. The interest rates and charges on this card will normally be more that the typical credit card. This type of card should be reported on by the issuing bank. This is great card for learning money management and savings. Unsecured Bad Credit Credit Cards – This will be similar to the normal credit card. The interest rates and fees may however be significantly higher than the current market rate. In some instances, you will be charged a fee upfront as the cost of extending the credit facility. This fee is separate from the annual fee. The credit limit that is extended to you on such a card will generally be low and depending on how well you manage it, the issuing bank may increase it as time goes by. This type of credit card should be reported on by the issuing to the various credit bureaus. Bad credit credit cards are generally designed to help these persons build or repair the credit record. Most of them would generally incorporate some feature that will encourage the cardholder to save. Now because these cards are used as training wheels, it is very important that you ensure that they are reported on. You may not want to use this type of card for too long a period of time. So exercise your right to free credit reports and ensure that they are being accurately reported on.

Orchard Bank has a few bad credit credit cards that cater for the needs of persons with bad credit history. These include:

Orchard Bank Platinum MasterCard

Poor Credit Credit Cards

admin — Sun, 07 Mar 2010 15:08:32 +0000

People who have bad credit have many more credit card options today than they did just a few years ago. Maybe this is contributed to the theory of supply and demand or maybe the credit card companies just realized how much more money they can make by charging high interest rates to people with bad credit. I personally think it may be a little of both.

But no matter what the reason why, there are many credit card companies willing to grant credit to people with bad credit these days. This is good news to those with tarnished credit records. But people with bad credit should evaluate what actions got their credit into bad shape in the first place before applying for more credit. For many people their bad credit is due to uncontrollable circumstances like the loss of a job or medical reasons. But for other people, their bad credit is due to irresponsible financial decisions. If you have bad credit and it was caused by the second reason, it is imperative that you change your credit habits. Otherwise you will never improve your credit score and will always end up paying high interest rates and fees.
Higher interest rates are obviously the price you have to pay in order to obtain a credit card if you have bad credit.

Fortunately, if you are responsible with your bad credit credit card and make your monthly payments on time, over time you can improve your credit score and eventually get a lower interest rate. Make sure that the bad credit credit card you are applying for frequently reports to the major credit bureaus. This will insure that your credit score will improve as quickly as possible by having your positive payment activity reported.

There are credit card websites that have researched the best bad credit credit card deals available and have listed them in an easy to read format. Visit http://www.amex-visa-mastercard.com to look at the details. Many of the bad credit credit cards listed on this site do monthly credit bureau reporting.

We have all run into hard times and made mistakes with our credit activity. Thankfully there are bad credit credit card offers available that will still give you the freedom of having a credit card along with giving you the chance to rebuild your credit.

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By: Beth Pardue