Jan
31
How to Get a Credit Card with Bad Credit
January 31, 2007 | Leave a Comment
One of the major disadvantages of having bad credit is that you will frequently have trouble qualifying for a credit card. As we all know that can be a major problem because many places of business, including hotels and car rental agencies will not do business without you providing a credit card. Failure to possess a credit card may also mean you can’t make purchases online as well. All in all, not having a credit card can be a major inconvenience. The good news is that you don’t have to live without a credit card; there are some things you can do to obtain a credit card even if you have really bad credit.
One way to manage the problem is to take out what is known as a secured credit card. A secured credit card is backed by a deposit you make to cover the costs you charge on the card. At first this may not sound like much of an advantage, especially if you are strapped for cash. In reality; however, this type of arrangement can help you to build your credit back up to a reasonable number while also providing you with the convenience of possessing a credit card for renting cars, reserving hotel rooms, etc. Depending on the company you elect to go with, you may be able to obtain a secured credit card with a credit limit as high as the deposit you can afford to make.
Another option is to purchase a pre-paid credit card. You may wonder how that is different than a secured credit card. With a pre-paid credit card the money you pay for the card goes directly to the expenses you charge on the card. This is different from a secured credit card because with a secured credit card you are responsible for making the monthly payments on the card for the expenses you charge. The security deposit is just in case you don’t pay back the money.
You might also wish to obtain a credit card offered specifically for those individuals with bad credit. While this type of option will get you the credit card you need it doesn’t come without drawbacks. For example, you’ll probably be charged the highest interest rate allowable and your maximum credit line will probably be quite low. When you first take out the card, you can expect for your credit line to only be about $250 or perhaps even less. As you make payments on time, pay off the expenses you charge and make an effort to keep your balance below the maximum credit, you may qualify for lower interest rate and credit line increases.
Regardless of which method you decide to use when obtaining a credit card for your bad credit situation, remember there is generally a reason why you have bad credit. It may have been due to a financial hardship that is now no longer a problem, but be sure to use discretion and good judgment to ensure you don’t create even more financial problems.
Joe Kenny writes for Card Guide, offering information on credit cards in the UK, apply for a credit card with a 0% balance transfer rate and start clearing credit card debt today.
Visit today: http://www.cardguide.co.uk/
Popularity: 14%
Jan
30
Teen Credit Cards; Good or Bad Debt Training
January 30, 2007 | Leave a Comment
Are teen credit cards a good or bad idea? You will have to decide for yourself. They can either teach your child responsible spending habits or they can teach them that having a plastic card means getting what they want when they want it. A”teen credit card” is not a real credit card. It’s really just a type of debit card that you purchase from the credit card companys. The only money that can be spent is what you put on the card when you buy it. There is a fee charged by the credit card company, but it is usually less than the fee for a real credit card.
There are some good points that can be learned from having the credit card. Your child can learn to manage their money by tracking how it is spent.Having the credit card can teach the holder about budgeting, general finances, and good money management. The amount put on the card is limited and
monitored by both the credit card company and the parents.
There can also be some negative points to having the credit card. These cards are treated just like adult cards. This means that teens can go online and order what they want without your knowledge or approval. With credit card debt being one of the leading causes of bankruptcy and debt consolidation, the good may not be enough to offset the bad that can result.
It is a lot more convenient to carry around a plastic card than cash or checks. The teen may become accustomed to pulling out their card without a second thought. After all, if the card is already out of money, then the purchase will simply be declined. The problem here is that when they are older and have real credit cards, the card limit may be way above what they can actually afford. They usually realize this when the bill comes in. This is when you, the parents, will probably be receiving a phone call or E-Mail from your “loving” children asking about your financial situation. Hello Bankruptcy!!
But seriously, giving a teen a credit card (real or otherwise) is something that should be given serious thought. You know your child better than anyone else. Are they mature and responsible enough to handle it properly? Will they gain some valuable knowledge about real finances or become another one of the
millions that are struggling with overwhelming credit card debt. That is something that you cannot know for sure. All you can do is teach them the best you can, then hope and pray for the best. Good luck!!!
Popularity: 13%
Jan
30
How To Get a Bad Credit Personal Loan
January 30, 2007 | Leave a Comment
A bad credit personal loan is still a possible - and some will say viable - option. Don’t let a bad credit report prevent you from applying for emergency cash.
While a bad credit personal loan is a good reason for your lender to examine your situation with a fine-toothed comb, do not despair. If lender “A” rejects your application, you move on to lender “B”. A bad credit personal loan is not a social stigma. These types of loans change hands everyday. And people do manage to repair their bad credit, so they eventually qualify for a bad credit personal loan, warts and all.
You and I know that there are thousands, if not millions, of bad credit personal loan lenders out there. In fact, most of these people thrive on the phenomenon of bad credit. Without bad credit, they could be packing their bags and looking for more lucrative ways to make money.
You see, you may not be aware of this but a bad credit personal credit can still generate substantial revenues for the lender. Don’t ever doubt this - or else why do they stay in business? What these lenders like to see on their desks is a higher number of personal loan applications from people with bad credit.
Bankers and lenders have several strategies to turn a bad credit personal loan into a cash cow. They’ve studied the human factor, they know the dynamics of lending and banking, and they have the means to get their money back. There are mechanisms in place - supported by legislation - to ensure that they do get their money back.
A bad credit personal loan will require a lot of supporting documents. Your credit report card, for one, a list of all your assets and liabilities, proof of revenue, and whether or not this is your first bank personal loan for bad credit. It does not end there.
Your bad credit personal loan may be slapped a higher interest rate, and may be for a shorter term so that your monthly payments could be rather steep. Your lender may also opt to insert a few clauses that could constitute hardship - like an acceleration clause for one, or a balloon payment clause - if you default.
However - and this is the most encouraging part - if you have excellent negotiation skills and you have one - just one - proof that demonstrates your integrity, you could go back to your lender after a few months and ask him to “ease up” on the restrictions of your bad credit personal loan!
Guy Ray is a published internet author and has more than 100 articles to his credit. If you would like to learn more about qualifying for a bad credit personal loan be sure to visit his website at http://www.all-credit-repair-tips.com.
Popularity: 12%
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