Why A Bad Credit Credit Card

Category: Finance, Credit.

Use a credit card to get you out of the mess caused by credit cards?

The trick is all in choosing the right option and using it wisely. If you re trying to repair a damaged credit history, bad credit credit cards may hold part of the key. Your credit report is a listing of all sorts of information about you, including when and how you pay your bills, if you ve got overdue accounts, if you have a history of defaulting on loans and if it s safe to trust you with borrowed money. Bad credit credit cards can help you change the image that your credit report reflects- as long as you actually use them appropriately. On the flip side, it also can show that you handle money responsibly, that you ve paid off debts and that you are a fine upstanding citizen who pays accounts off on time and properly. Why a bad credit credit card? If you ve had trouble applying from most lenders, there are options, though designed for people with spotty, stained or downright tattered credit.

Obviously, if you qualify for a low interest option, you wouldn t need to be reading this, would you? In some cases, you may have to go so far as applying for a secured credit card- where you deposit 1- 2 times the amount of your credit limit into a bank account as collateral- in order to get a card that you can use- but the results are worth it. One feature that most bad credit options share is their reporting habits. Here s why. Most credit companies only make reports to the credit bureaus when you miss payments or are late on them. This is important if you ve had credit troubles in the past. Credit cards that are marketed as credit repair cards, on the other hand, often report every payment that you make, and label your account in good standing .

While many infringments will stay on your credit record for up to six years, the further in the past they are, the less they ll count with prospective creditors. That s even better an outlook than a person who had a spot of trouble four years ago, and hasn t used credit since. If you had a bad spot of trouble four years back, but your credit report now shows two years of regular, on time payments to a credit card company, the picture that emerges is of a regular person who had a tough time, but has since recovered and is paying their bills on time. Obviously, you ll pay a bit more for your credit card than if you had spotless credit. To offset that risk, they ll charge higher interest rates, and quite possibly membership fees and service charges. Bad credit issuers are taking a bigger risk by giving credit cards to those who have had trouble in the past. That doesn t mean, that you, though re stuck paying a fortune in unreasonable fees and rates.

You can compare various options online where you ll find a full selection of the best offers available in the UK today. If you shop carefully, you ll find companies that aren t taking advantage of your vulnerability by tacking on outrageous fees.

Read more...

How Do You Get Hold Of A Joint Credit Card - Finance and Credit Articles:

It really is very easy to recognize newly married couples.

Look For The Mortgage Lead Companies That Sell Their Mortgage Leads Fresh - Finance and Credit Articles:

If you do decide to go with a mortgage lead company, look for the mortgage lead companies that sell their leads in" real time, " this way you will be getting fresh leads, and you will be able to count ontheir quality. This is imperative because many mortgage lead companies will sell their leads up to seven times and your customer may already be working with your competition and not feel the need to call you back.

The Credit Report Layout - Pamela Gladfelter about Finance and Credit:

You might not realize but finding out the best way to read your credit report can actually save you a lot of time and money- it s not even that hard to get started, but there are some basics that you need to get your head around all the numbers, abbreviations and unfamiliar terms before reading your credit report.