Bad Credit Credit Cards
Posted by admin on August 13th, 2009 at 12:00am
Question:
Bad Credit Credit Cards?
When I was in university, I did not pay some debts that went to a collection agency and was not reimbursed four years after. Now that I am attempting to get a bad credit credit card every financial institution is denying my requests. How can I get a bad credit credit card when even the lousy cards will not accept me?
Answers:
There are more that a couple lenders who deal in bad credit credit cards for people with bad credit. You just have to search a little harder than other people would.
Obtaining a credit card after you’ve had a couple problems doesn’t necessarily mean that you have a larger than usual rate. As I said, you’ll just have to differentiate between credit lines, yearly fees, and interest rates. Just be sure you do your research before you commit, and you’ll do fine.
I would recommend that you look into getting a secured Mastercard or Visa. The way this works is that you open a savings account with a balance of about four hundred dollars. The card giver will then give you a credit card with a four hundred dollar limit. You will receive interest on the savings account too.
After that, begin using the credit card for minute purchases and be sure to pay off the balance due every month. Your payment record on time will gradually begin to increase your credit score to the point that you will start to receive offers in the mail for unsecured cards which you can actually get. These typicaly carry an ugly interest rate, therefore you should use such a credit card sparingly, but always maintain a good record of regular payments.
Eventually, you will be able to rejoin the big credit card mainstream with the warning, again, to use credit cards sanely.