If you’ve ever need money in a hurry you probably wished you had a credit card. They are handy for those little emergencies or those last minute purchases. Chances are you have had them in the past and may be like the millions of other consumers who fell on hard times and lost them. Now with bad credit, getting another will surely be a feat. That’s not necessarily true today. There are cards that can be approved quickly regardless of your bad credit history.
Getting a secured card fast is easy with a down payment or some sort of collateral but maybe you don’t have any. Then try for an unsecured credit card. That being said, there are some things you need to know to avoid paying high upfront fees or ridiculous interest rates. This is all can sometimes come standard with unsecured credit cards. Since past economic crisis has caused companies to tighten up their approval procedures, there are some things you should know before you go looking.
Determine why you may want the credit card in the first place. Is it for those unexpected expenses or to work on repairing your bad credit? Chances are it’s probably both. Prepaid cards are the easiest card to get but they aren’t really traditional credit cards. You have to put money on them to spend. So those are out of the question. Not to worry, there are quite a few bad credit programs available to you.
(more…)
Chances are if you’re reading this your credit score is not what you want it to be. Poor credit is a very common problem. Millions of individuals are affected, especially in the current economic times. If you’re willing to take the time you can make a difference in your scores. They’re constantly changing and ultimately you are the one that determines your score.
Far too often people speak of their credit score as if they have been marked. It’s as if they feel the credit bureaus just assign them a low number to make things difficult. This is anything but true. The credit reporting agencies simply look at the information that has been reported and calculate a score using their methods. They are not biased nor do they hold any kind of vendetta against you personally.
So above all else you need to begin reporting positive information. Add items that can’t help but bring up your score. Promptly paying your bills, paying down credit cards, and paying off debts early as possible will all bring your score up. Your creditors are required to report your information accurately, they must report the good and the bad. Once again you are in control of what gets reported.
(more…)
With unemployment and credit card defaults as high as they are, it seems like a terrible time for employers to screen candidates’ credit histories. But more employers are doing just that. If you really need a job but have a problematic credit report, here are some strategies that might mean the difference between gaining employment and spending many more months in job-hunting tedium.
Be the First to Mention It
Don’t go through ninety percent of the hiring process, only to be shut out at the last minute because of dings on your credit report. Potential employers will resent having to go through all the trouble of interviewing and running checks, only to find that you don’t meet their credit standards. To maximize your chance of landing the job, tell the employer that you’re aware of some problems with your credit, but that you’re in the process of repairing them.
(more…)
Bad credit can be depressing. It keeps you from getting good rates on loans or, particularly in this economy, any loans at all. If you’ve ever been denied for credit, you know how lousy it feels to be discriminated against because of past mistakes. Of course, lenders use your credit history to determine how much of a risk they’re taking by lending you money or extending a line of credit.
Still, the fact that lenders need to protect themselves doesn’t mean you have to settle for predatory practices. If you have bad credit, there are ways to improve your situation without getting taken to the cleaners.
First, it’s important to shop around for the very best deal you can find. All sub-prime credit cards are not created equal. Some will squeeze you for every penny, while others have fair terms and conditions appropriate to your credit rating. Don’t waste your time applying for credit cards that won’t help you build up your credit score.
(more…)
If you have bad credit, you probably know from personal experience just how difficult it can be to get approved for a loan or even a credit card. Bad credit closes many financial doors. But did you know that you can not only get a credit card with bad credit, but you can also use it to help rebuild your credit?
Secured credit cards give many sub-prime borrowers access to credit that they need, but can’t get through traditional means. Anyone can get approved for a secured credit card because these cards pose no risk to the card issuer. The credit limit is secured when the borrower deposits a certain amount of money into a bank account. This account is left alone unless the borrower defaults on their card payment, in which case the funds are used to cover the outstanding balance.
(more…)
In today’s harsh credit crunch, your credit score is more important then ever. Fair or good credit won’t cut it any more. To have a chance of getting approved for big-ticket items like car loans and mortgages, you’ll need to clean up your credit. Here are five steps you can take to boost your credit score – fast.
Step 1 – Order your credit report.
Before you can raise your credit score, you have to know what it is. Get a free copy of your credit report from annualcreditreport.com or order your credit score from myfico.com. You’re entitled to a free copy of your credit report each year, or any time you’re denied for credit. While these free reports might not contain your credit score, they will give you some insight into what’s bringing it down.
(more…)
If you’ve got a subprime credit score, you may have wondered about low limit credit cards designed for people with poor or no credit. Do they really help you build good credit? Are their benefits great enough to justify the high fees associated with these cards? That’s the debate that’s raging right now between the Fed and numerous subprime credit card issuers.
First, some background: In May of 2008, the Federal Reserve Bank proposed price controls for subprime credit cards. If these changes are passed, subprime credit cards could no longer charge startup fees higher than 50% of the total credit line. Startup fees higher than 25% of said credit line would have to be spread out over a period of one year.
(more…)
Credit scores are a big deal, and for good reason: low credit scores can make life hard, while high credit scores can open the doors to our dreams. In order to get a line of credit – any line of credit – some people take the first credit card offer that comes their way. Thrilled by the chance to have a credit card of their own, some customers don’t even bother to read the terms they are agreeing to.
Unscrupulous sub-prime card companies count on this. These companies take advantage of desperate folks by spelling out contract details in vague terms, down-playing changes to interest rates after a specified length of time, extending pitifully low credit limits, or charging exorbitant fees. How can a person with no credit (or bad credit) protect themselves?
(more…)
Is your college-age child finding it difficult to get a credit card? Many students face a catch-22 when applying for their first card. Some card companies market their products specifically to students, yet the students often get rejected when they apply. Why? Insufficient credit history. If you don’t have credit, many companies won’t extend credit to you. Thus, the dreaded credit catch-22.
If you’re a parent who is concerned about your child’s credit score, take heart. Here are five strategies for getting them started down the path to good credit.
Car Loans
Teenagers eventually need cars, and it often falls to parents to provide those cars. But the teens should be involved in the paperwork, too. One of the simplest (and most overlooked) ways to start building your child’s credit is to get them to co-sign for their car loan. Once their name is on the contract, they will begin to receive credit for timely car payments.
(more…)
Face it: humans are far from perfect. Being the dominant species on the planet doesn’t mean we always make the best choices. Sometimes those bad choices are related to our credit. In those cases, mistakes can haunt us for years to come.
So what if a loved one with less than stellar credit asks you to co-sign for a credit card? This can be a tough decision. Of course you want to help them build or rebuild their credit, but you probably have valid concerns about harming your own. After all, your credit score is a numeric representation of how responsible you are with your finances. And it can be used against you when you try to rent an apartment, buy a car, or get a job. How can you say yes to a friend in need without making a mistake that could have a very real impact on your life?
(more…)
