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CREDIT CARDS FOR PEOPLE WITH BAD CREDIT
People with credit problems like slow or
poor credit, bankruptcies etc. can apply
for credit cards using on-line
applications; the advantage is that the
response is instant. Though mainstream
lenders always seek people with a good
credit history since risk is low, there
are small lenders who specialise in
lending to people with a not-so-good
credit history by charging them more
than the normal credit cards. Thus, when
you plan to improve your credit and are
in need of a credit card, you have some
options to choose from. But the cost
effective option is to opt for a secured
credit card. By using pre-paid credit
cards, you do not get into debt. At the
same time, you do not get the
opportunity of re-building the credit
history. There are many people who opt
for unsecured credit cards. Another
option is, if your family member or
spouse has a good credit history, apply
jointly for the normal credit card.
To get a secured credit card, a deposit
has to be made to the card issuer. You
will get a card having a limit that is
less than the deposit. To get unsecured
credit cards, there is no need for a
deposit because the fees or interest
charged will be high
Generally, when you need to improve your
credit, you will not get the regular
card that has no annual fee charges from
the popular card issuers. On the other
hand, the card issuers who issue cards
to people having a bad credit charge a
fee. The fee can be any type like an
application fee which is a one-time fee.
It can run up to hundred dollars. In
addition to this, the applicant will
have to pay a one-time processing fee
too. Enquire about the annual fee that
is charged too. Monthly processing fee
too is common.
After availing the card, to re-build
your credit, pay all your bills
promptly; your credit score will
gradually improve. After that, you can
opt for credit cards that do not have an
annual fee.
You have to keep certain things in mind
when you want to choose between cards.
Always choose cards that have a good
reputation in the market. Since your
goal is to gradually build your score
and become eligible for cards without an
annual fee, check whether the credit
card reports reach credit bureaus like
Experian, Equifax and TransUnion every
month; some report to even four credit
bureaus.
You need to search the internet for
unsecured credit cards which have been
designed for customers with a bad credit
history. The cards may vary with respect
to the fee associated with them and so
it is important to know the fee
structure and then decide which card
will suit you.
Some cards allow cash withdrawals during
emergencies while others reward you. The
round the clock customer service is of
help if you do not keep track of
spending on your own. You may access the
information online too. |
