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Getting a Good Credit Card for a Bad Credit

Credit card issuers love and pamper prosperous card holders. Well-to-do people get the most enticing offers, the most favorable terms, and the most appealing bonuses. Banks would more likely make concessions when it concerns clients with good or excellent credit than when it comes to bad credit owners. People with bad credit rating face more difficulties when they try to get a credit card they need. They pay higher interest; they are restricted in the choice of card offers, and can they hardly hope for any kind of indulgence for their credit commitments. If you are going through some financial difficulties and your credit score leaves much to be desired, or in other words, you are a bad credit owner, do not give way to despair. It is not that bad. Even with a bad credit you have a number of credit card deals to choose from. Even more, sticking to some rules and common sense you can get a bad credit card that will actually help you to start over. So, this is my vision of your road to El Dorado. (By the way, I have been through bad credit problems myself, so the guide below will be a mix of experts’ advice and my own experience).

When making a decision on a bank to apply for a card at, mind that smaller ones will more willingly issue you a plastic. Their reputation is not as solid as such financial giants as Visa, Discover, Citibank, Chase Bank, and others. But your and their trustworthiness is about equal. So, think of some small companies.

Stay with your current bank, credit union, or a savings institution. If they know you as a responsible client, they might overlook your money troubles and issue you a credit card without numerous checking procedures.

Pay special attention to banks that specialize on working with bad credit owners. First PREMIER and Orchard, for instance. These banks have, probably, the widest range of credit cards for bad credit. Among Orchard credit cards, Orchard Bank Platinum MasterCard is issued to credit consumers with poor credit rating. It comes with a pretty low APR and gives you a chance to enjoy the card’s Platinum status.

In case all your attempts to get an unsecured credit card fitting your financial status quo have failed, think of applying for a secured credit card. Of course, a secured plastic does not give you so many opportunities like an unsecured does. To activate an unsecured card’s account you are to make a deposit. The amount of money deposited will determine your credit line. But the main advantage of such a card is that it is perfectly safe for your credit score. You will not be able to spend more than you have deposited.

Find a co-signer. If you talk someone with good credit into co-signing with you, you will, most probably, get approved for a credit card. But remember that you will have to share the responsibility for the account. All your financial missteps will be reflected in your co-signer’s credit report.

When you apply for a new credit card try to pay all your bills on other plastics on time.

Mind an annual fee. Why pay more? Find a no annual fee credit card. There are plenty of them for all types of credit.

And, if you did not qualify for a credit card you had applied for, claim for an explanation. A credit card issuer, legally, has to tell you the reasons for their denial.

I hope you will find these tips helpful. I did a few years ago. Now I am a lucky owner of a good credit. I wish you go the same track.

Using Student Credit Cards to Build Positive Credit History

College life might be the most crucial moment of a person’s life. But most of us consider college life the most memorable and exciting one. During this stage, we learn a lot of things that we could benefit from in the future. This is also the time where we start building our own career to push through life. One way to start this is by using a student credit card and building positive credit history.

In countries, such as Canada, the UK, and the US, building good credit is the most important thing in a person’s life. When you have positive credit history, you could buy a house and lot, cars, and many other things that you and your family want and need through loans with the best interest rate. Bad credit history would give you a hard time seeking for a job and would even force you to get bad credit credit cards. Thus, building positive credit history is very essential in your future. So, why not get a student credit card and start as early as now?

To start, find a bank that gives students the opportunity to own a credit card. A lot of banks do offer student credit cards. As a matter of fact, these banks do not give interest for about six to twelve months. This is actually a very good offer because you can buy anything and pay for them without interest.

In addition, most banks offer incentives like cash back for every purchase you make. This means that you would be given reward points for each purchase and with these points collected, you would be able to get various rewards, such as PlayStation gadgets, television sets, or even concert tickets.

By using your card continuously, you are not only taking advantage of the incentives but obtaining positive credit history as well, which is the real incentive. The agency would keep track of your credit history records, like paying your credit on time, having a good experience with your student credit card expenditures, and the like. Remember to use your card wisely and effectively and you would eventually be able to build positive credit history.

Even with all the incentives offered by the banks, do not use your student credit card on useless things if you do not want to be like those unlucky people who end up getting credit cards for bad credits.

You Owe It to Yourself to be Creditworthy Again

There are so many consumers who have fallen behind on credit card payments and other financial obligations it seems man_with_credit_cardno longer taboo to admit you have had some financial setbacks. In fact, getting help to control your debt is a popular topic these days as many consumers realize the seriousness of debt.

Every individual can be credit worthy again, not matter what happened in the past. Being credit worthy allows you the option to select from the best rates and terms for credit cards, loans, mortgages, and the like. Getting a boost to your credit score is even more important now than ever before because it takes a higher credit score, 730 +, to be deemed as having excellent credit. Rebuilding your credit on your own is not impossible if you follow some of these tips:

Pay Off Debt First

While it may seem enough to just pay down your balances, it is much better than you focus on paying off your balances. You can boost your credit score by having less debt and you will also be able to save more cash for your retirement and investing purposes. Focus on making more than the minimum payment on your balances and stick to your budget to prevent overspending which you work to pay off all that you owe.

Don’t Apply for New Credit

As you work to pay down your debt, do not seek any financing or additional credit cards. Having too much credit will be a sure-fire way to bring down your credit score instead of raising it up. Do not send out any applications for new credit cards until you are able to get the best deals and rates.

Check Your Credit History

When you are working to improve your credit score, it will certainly help to know what you are improving. Order a copy of your FICO score as well as your credit report from both of the credit reporting agencies, TransUnion and Equifax. Then take the time to go over each individual item and make sure it is accurate. If it is not, file a report immediately. The credit agencies will have to open an investigation and any thing they can not resolve, it will be removed from your credit report, thereby boosting your score. After 6 months paying off your debts and paying your bills on time, you should reorder the same reports and score and see how you have improved your credit worthiness.

If you want a financially secure future free of debt, you have to act now to get a head start on better money management and debt-free living. Your credit score will make a big difference in the amount you pay in interest for credit cards, mortgages, and any personal loans or financing.

The ABCs of building good credit history

The credit history has a very vital role to play in the life of a person. almost every aspect of life, including a home and a job is tied to this important document. Building a good credit history is a step by step process that requires you to put in conscious effort at every stage of life. while this may seem to be a tough task, it is not definitely impossible and will be worth the effort you put in.

First of all, if you are intent on building a good credit history, opt for just one credit card and manage it wisely. One of the main reasons for people to fall prey to bad credit is the fact that they opt for multiple credit cards at the same time and end up spending on all of them and miss making their payments on time. In order to prevent all this from happening, opt for a card that you think is the best for your needs and use it sparingly.

Remember to make your payments on time consistently. Do not spend over thirty percent of the total credit limit available on the card as any amount spent above this limit gets reported to the credit bureau. Use the card only for making purchases and not for cash advances. Opting for a cash advance on your credit card can have devastating effects if you don’t repay it at the earliest. Not only will the cash advance attract a higher rate of interest, there is also no grace period associated with repayment of the cash and the finance charges are also higher.

When making purchases, opt for only essential commodities and refrain from buying expensive items that are out of your reach just because you have a credit card. Spending within the amount you can afford to repay is the key to building a good credit history.

Try paying off the balance on your credit cards at the end of each month. If you are not able to do so, at least make the minimum payment due on your card regularly. Skipping any payment can lead to a black mark on your credit history. Do not give rise to late payment charges which are also reported to the credit bureaus.

A good credit history will prove to be your ally when you apply for newer credit cards, loans or mortgages. Banks will favor your application form and be willing to offer you favorable terms.

What to Check When Applying for Credit Cards

Owning a credit card needs a great deal of self-control. It is a common denominator to a lot; when one has a credit card especially for first-timers they have the tendency to abuse it. When you tend to shop everywhere without regard for how much you’re earning, you will soon realize that you’re paying for with bills which you can’t afford.

It sure is very comforting having a credit card knowing that you have something to run to when emergency comes. But the thing sometimes is before we even use it for some emergencies, the card has already reached its maximum. So be very careful then with credit card spending.

Since you wanted a credit card so badly, you should make a good research first to make sure that you are applying for the right credit card. Most of the time the success in finding the right card is based on how much time and effort you have invested researching.

Credit cards could be offered to you by banks or by credit card companies. You either receive their offers through email, a phone call or a brochure sent to your mailbox. Whichever way you received the offer, don’t accept the offer immediately. Do your research and as much as possible have a wider coverage and more options. Having more options can give you higher chances of getting the best deals from the best card.

The very first thing to check on is the rates. Is it reasonable? If yes then include it among your options. The perks can also be a deciding factor. Some credit card issuers offer cash rebates, points reward, no annual fee and frequent mile points.

There are times when we get surprised with the figures that we see on our bill. This is likely to happen if we don’t read and fully understand the policies before signing up for the card. Credit card issuers always reserve the right to make changes even without giving notice to their customers so reading the fine print should be a rule of the thumb so in case their are some clauses that you really don’t like then you can always go for another card.

If you are undecided on what card to apply for, you can ask some people that you know for their recommendation. You can’t be careless when it comes to your choice of credit card or you’ll be burdened with fees that can take a huge part of your paycheck.