Tips In Choosing The Best Bad Credit Card
Author: Liz Roberts
Having bad credit does not mean one can never apply for good credit cards. Because of so many people having problem with their credit, credit card companies saw the potential in providing service for this people. Thus, credit card companies came up with bad credit credit cards. As the name suggest, these credit cards are especially created to cater people with less than perfect credit history.
Bad credit credit cards or secured credit cards do come with higher interest rates and fees to make up for the risk from customers who have a poor credit history. When compared with standard credit cards, these cards also impose lower credit limit for its card holders since they were not able to present impressive credit.
However, this doesn't mean that credit cards are inferior since these cards can be a tool for people with bad credit to regain their credit reputation. Just how is this possible? By submitting regular payments on your account, secured credit cards report to the major credit bureaus to ensure that your credit report is updated.
Understandably, not all bad credit cards are offered in the market are great and it is up to you to do your choosing carefully. One of the first things you should look for with a credit card is whether it reports to the major credit bureaus. There are some secured credit card providers that do not have this important provision. This is crucial in helping you rebuild your bad credit history.
Of course, just because you don't have an excellent credit doesn't mean you have to settle for unreasonably high rates that credit cards impose on their clients. It is possible to find secured credit cards with interest and fees that do not take advantage of your poor credit.
Another important factor to check about secured credit cards is the minimum amount of deposit required to get an approval. This security deposit is held in your account in case you default on your debts, thus giving the bank a guarantee that they can use this money to pay for the debts your defaulted. Take note also that some banks place this security deposit in an account that bears interest. Make sure that you'll be able to claim this security deposit along with its interest after building your credit.
The use of your security deposit may also differ depending on your bank. Some creditors will take your deposit if you miss a single payment in your account while some banks allow at least 5 to 6 months before deciding that the card holder has completely defaulted his debts.
Most importantly, choose a secured credit card that allows you to convert your account to an unsecured one after a certain period if you can prove that you are submitting all your payments dutifully and timely. This way, you can enjoy the privileges that unsecured credit card holders enjoy such as lower APR, higher credit limit, and less restrictions.
Article Source: http://www.articlesbase.com/personal-finance-articles/tips-in-choosing-the-best-bad-credit-card-311043.html
About the Author:
Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing loans for bad credit and bad credit credit cards .
Showing posts with label Bad Credit. Show all posts
Showing posts with label Bad Credit. Show all posts
Building Your Credit From No Credit or Bad Credit
Building Your Credit From No Credit or Bad Credit
Building Your Credit From No Credit or Bad Credit by Paul Basco
Building credit from no credit or bad credit often seems to be a catch-22. Most credit card companies and lenders will not open an account for you or give you a loan if you don't already have an established credit history, but you can't establish a credit history without opening a credit card account or applying for a loan! Luckily, there are ways to break into building your credit score, even if you have no history or bad credit history. The secret is to start small and stay responsible.
Know the Score
Especially if you are recovering from bad credit, it is important to settle up on all of your lingering credit issues. If you have many debts or have recently gone through a bankruptcy, it can be difficult to keep track of how much you owe and to whom you owe it. To take care of this problem, you'll need to order a credit report from each of the three major credit agencies. They are:
Experian Equifax TransUnion
These are the exact same credit bureaus that lenders and credit card issuers are going to order your credit score from, so it is important to know what they are going to see when reviewing your history. By looking over them yourself first, you get a chance to explain any bumpy spots in your history or dispute any inaccuries.
Dispute Inaccuracies and Settle Unresolved Issues
Once you get your credit report, review it carefully. If you find any debts you have not paid off yet, pay them off right away. If you find any inaccuracies or mistakes on the lenders part, dispute them right away.
First, make sure you keep a record of all your correspondences with the company. If you are writing letters, print off two copies of each and date them. If you are calling on the telephone, be sure to get the name of each representative you speak with and keep a log of all the calls you make.
First, notify the credit agency that reported the issue that there is an inaccuracy. Write a letter to each credit agency notifying them of the inaccuracy and let them know that you are disputing it.
Next, contact the business that reported the false claim. Call them on the phone at first and let them know you will be mailing them a letter as well. If possible, ask if there is an appropriate department to address your letter. Also, let them know that you have already contacted the credit reporting bureaus about the matter.
Call the agency, or include in your letter that you would like them to contact the business in order to resolve the dispute. Once you get the business and the credit reporting agencies in a dialog, things will go much smoother for you.
Once the matters are all resolved, get a hold of each credit agency again and make sure they include a record of the dispute and the inaccuracies resolution on all of your future credit reports. This lets lenders know that you have addressed all issues that appear on your credit report.
Learn about Secured and Unsecured Credit Cards
Depending on your situation, you may want to get either a secured or an unsecured card. A secured credit card is isssued by a bank or credit union and has a credit line that corresponds to a balance in another account. This balance acts as collateral for your loan in case you default. This minimizes the risk for the lender and can get you better terms on your loan.
An unsecured credit card has no collateral, thus making it harder to be approved for and riskier to use. However, some predatory card issuers will lure vulnerable borrowers in with overblown offers with the anticipation that they will rack up huge balances and accrue interest. Unsecured credit cards can also come with hidden fees and special interest rates that are designed to get more money from you.
If you are just starting out or already have questionable credit, a secured credit card is a better way to go. Secured credit cards ensure that you always have enough money to cover your debts, which means less liability both for you and your credit card company.
Practice responsible borrowing habits
Pay off the entire balance each month. This will keep interest from building up. Always pay on time. Just one late fee can be a blemish on your credit report that can take a long time to go away. Don't spend what you don't have. Forget about cash advances, super checks, or keeping a balance over a long period of time. This leads to debt, debt, debt and interest. Stick with one credit card company. The longer you keep an account in good standing, the better it will look on your report. Keep an eye on your statements. Report any unauthorized activity or errors immediately. Negotiate better terms once you have stayed in good standing for about 2 years. Let your credit card company know that you are a responsible customer and deserve better rates.
Paul Basco provides expert opinions and reviews to help you Apply for a Credit Card and Compare Credit Card Offers with GettingaCreditCard.com.
Article Source: Free Article Directory Submit Your Article
Building Your Credit From No Credit or Bad Credit by Paul Basco
Building credit from no credit or bad credit often seems to be a catch-22. Most credit card companies and lenders will not open an account for you or give you a loan if you don't already have an established credit history, but you can't establish a credit history without opening a credit card account or applying for a loan! Luckily, there are ways to break into building your credit score, even if you have no history or bad credit history. The secret is to start small and stay responsible.
Know the Score
Especially if you are recovering from bad credit, it is important to settle up on all of your lingering credit issues. If you have many debts or have recently gone through a bankruptcy, it can be difficult to keep track of how much you owe and to whom you owe it. To take care of this problem, you'll need to order a credit report from each of the three major credit agencies. They are:
Experian Equifax TransUnion
These are the exact same credit bureaus that lenders and credit card issuers are going to order your credit score from, so it is important to know what they are going to see when reviewing your history. By looking over them yourself first, you get a chance to explain any bumpy spots in your history or dispute any inaccuries.
Dispute Inaccuracies and Settle Unresolved Issues
Once you get your credit report, review it carefully. If you find any debts you have not paid off yet, pay them off right away. If you find any inaccuracies or mistakes on the lenders part, dispute them right away.
First, make sure you keep a record of all your correspondences with the company. If you are writing letters, print off two copies of each and date them. If you are calling on the telephone, be sure to get the name of each representative you speak with and keep a log of all the calls you make.
First, notify the credit agency that reported the issue that there is an inaccuracy. Write a letter to each credit agency notifying them of the inaccuracy and let them know that you are disputing it.
Next, contact the business that reported the false claim. Call them on the phone at first and let them know you will be mailing them a letter as well. If possible, ask if there is an appropriate department to address your letter. Also, let them know that you have already contacted the credit reporting bureaus about the matter.
Call the agency, or include in your letter that you would like them to contact the business in order to resolve the dispute. Once you get the business and the credit reporting agencies in a dialog, things will go much smoother for you.
Once the matters are all resolved, get a hold of each credit agency again and make sure they include a record of the dispute and the inaccuracies resolution on all of your future credit reports. This lets lenders know that you have addressed all issues that appear on your credit report.
Learn about Secured and Unsecured Credit Cards
Depending on your situation, you may want to get either a secured or an unsecured card. A secured credit card is isssued by a bank or credit union and has a credit line that corresponds to a balance in another account. This balance acts as collateral for your loan in case you default. This minimizes the risk for the lender and can get you better terms on your loan.
An unsecured credit card has no collateral, thus making it harder to be approved for and riskier to use. However, some predatory card issuers will lure vulnerable borrowers in with overblown offers with the anticipation that they will rack up huge balances and accrue interest. Unsecured credit cards can also come with hidden fees and special interest rates that are designed to get more money from you.
If you are just starting out or already have questionable credit, a secured credit card is a better way to go. Secured credit cards ensure that you always have enough money to cover your debts, which means less liability both for you and your credit card company.
Practice responsible borrowing habits
Pay off the entire balance each month. This will keep interest from building up. Always pay on time. Just one late fee can be a blemish on your credit report that can take a long time to go away. Don't spend what you don't have. Forget about cash advances, super checks, or keeping a balance over a long period of time. This leads to debt, debt, debt and interest. Stick with one credit card company. The longer you keep an account in good standing, the better it will look on your report. Keep an eye on your statements. Report any unauthorized activity or errors immediately. Negotiate better terms once you have stayed in good standing for about 2 years. Let your credit card company know that you are a responsible customer and deserve better rates.
Paul Basco provides expert opinions and reviews to help you Apply for a Credit Card and Compare Credit Card Offers with GettingaCreditCard.com.
Article Source: Free Article Directory Submit Your Article
The TRUTH About Credit Repair...
The TRUTH About Credit Repair...
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
Have you ever wondered what companiessend you when they claim you can erasebad credit overnight? How about thoseads that say you can get any majorcreditcard without a deposit or a creditcheck?
Ads abound almost everywherethese days (online and off) sellingbooks, systems and secrets tohelp you fix your credit. Manyof these programs have claimswhich read like the covers ofsupermarket tabloids:
"In 3hrs my credit score jumpedfrom 580 to 676!"...
"Erase bad credit and smash yourdebts with just 2 Magic Letters!".
Are these types of claims ALWAYStoo good to be true? The answer is"Yes and... no".
While many people would love foryou to believe the only thing thatcan fix bad credit is time; inreality... nothing could be furtherfrom the truth. The fact is, timeis only one factor which can fixa credit report, but it's a far cryfrom being the only factor. Howcan I back this up? Easy.
Under a consumer protection lawknown as the Fair Credit ReportingAct (a.k.a. the FCRA) the onlynegative information which canremain on your credit report isnot what is accurate... but whatcan be proved as accurate underthe FCRA. What's this meanto you?
It means any negative item onyour credit report can only remainthere if it is accurate and CANBE PROVED AS SUCH under theguidelines of the FCRA. Thisundisputable fact presentsconsumers with both goodnews and bad news.
The good news is that throughthe FCRA your credit score canmost likely be improved dramaticallyin a very short period of time withonly a modest amount of effort onyour part.
The bad news is that while the actual "work" will take very littleof your time, it is vital that youhave good information on "how"to go about it. This is the badnews; 9 out of 10 courses onrestoring your credit will do nothingmore than lead you into snakepits because they will provideyou with what the industry refersto as "Boiler Plate" dispute letters.These are nothing more than formletters and... quite frankly (morebad news) the Credit Bureaus andCreditors will laugh at you if youtry to use them.
While I agree with the Federal TradeCommission (FTC) that "Anything aCredit Repair Clinic can do for youlegally, you can do for yourself atlittle or not cost"... the key elementyou need for success is the latestinside techniques and proceduresto get the results you want. Thisinvolves strategies such as "Proofof Contract", "Constructive Notice","Challenge of Procedure" or"Restrictive Endorsement" and manyothers.
All these terms may "sound" impressivebut they are really quite simple. Intheend, it is nothing more than a methodof communication which exercises yourconsumer protection rights, gets theresults you want and raises your creditscore. Even more impressive, once youlearn how simple it can be by doing itforyourself, you will find there is afortuneto be made doing it for others! Eitherway, it all starts by requesting a freecopy of your credit report here:
http://www.AnnualCreditReport.com
In the next segment we'll talk about:
"Is Your Credit Score CostingYou A Fortune
The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group.For more information on the "CREDIT SECRETS BIBLE" you may visit:
http://tinyurl.com/2rgyht
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
Have you ever wondered what companiessend you when they claim you can erasebad credit overnight? How about thoseads that say you can get any majorcreditcard without a deposit or a creditcheck?
Ads abound almost everywherethese days (online and off) sellingbooks, systems and secrets tohelp you fix your credit. Manyof these programs have claimswhich read like the covers ofsupermarket tabloids:
"In 3hrs my credit score jumpedfrom 580 to 676!"...
"Erase bad credit and smash yourdebts with just 2 Magic Letters!".
Are these types of claims ALWAYStoo good to be true? The answer is"Yes and... no".
While many people would love foryou to believe the only thing thatcan fix bad credit is time; inreality... nothing could be furtherfrom the truth. The fact is, timeis only one factor which can fixa credit report, but it's a far cryfrom being the only factor. Howcan I back this up? Easy.
Under a consumer protection lawknown as the Fair Credit ReportingAct (a.k.a. the FCRA) the onlynegative information which canremain on your credit report isnot what is accurate... but whatcan be proved as accurate underthe FCRA. What's this meanto you?
It means any negative item onyour credit report can only remainthere if it is accurate and CANBE PROVED AS SUCH under theguidelines of the FCRA. Thisundisputable fact presentsconsumers with both goodnews and bad news.
The good news is that throughthe FCRA your credit score canmost likely be improved dramaticallyin a very short period of time withonly a modest amount of effort onyour part.
The bad news is that while the actual "work" will take very littleof your time, it is vital that youhave good information on "how"to go about it. This is the badnews; 9 out of 10 courses onrestoring your credit will do nothingmore than lead you into snakepits because they will provideyou with what the industry refersto as "Boiler Plate" dispute letters.These are nothing more than formletters and... quite frankly (morebad news) the Credit Bureaus andCreditors will laugh at you if youtry to use them.
While I agree with the Federal TradeCommission (FTC) that "Anything aCredit Repair Clinic can do for youlegally, you can do for yourself atlittle or not cost"... the key elementyou need for success is the latestinside techniques and proceduresto get the results you want. Thisinvolves strategies such as "Proofof Contract", "Constructive Notice","Challenge of Procedure" or"Restrictive Endorsement" and manyothers.
All these terms may "sound" impressivebut they are really quite simple. Intheend, it is nothing more than a methodof communication which exercises yourconsumer protection rights, gets theresults you want and raises your creditscore. Even more impressive, once youlearn how simple it can be by doing itforyourself, you will find there is afortuneto be made doing it for others! Eitherway, it all starts by requesting a freecopy of your credit report here:
http://www.AnnualCreditReport.com
In the next segment we'll talk about:
"Is Your Credit Score CostingYou A Fortune
The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group.For more information on the "CREDIT SECRETS BIBLE" you may visit:
http://tinyurl.com/2rgyht
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