Credit Cards Truthiness

Archive for September, 2009

Bad credit rating is always a problem especially for people who wish to have another try in getting a loan more especially so for a credit card application. Bad credit signifies a person who does not settle his bills on time, thus being marked with poor credit rating. This also shows that the person does not have the financial capability and willingness to settle his account-abilities in due time. This person becomes a bad account to the agency and is deemed not to get any other privileges. Most often, people with bad credits cannot avail themselves of a credit card since a good credit score is the basis of applying for such.

Though this is the situation, it will be good to know that there are financial institutions catering to this group of people. Credit cards for people with bad credit are now being offered. This is also one good way for a person with bad credit to redeem ones self. It will be a fair chance to show everyone that he can still live up to the expectation of having a good credit standing.

A good way to get back one’s credit ability is to apply for a secured credit card. This is called credit cards for bad credit with no fees. It means applying a credit card with the bank but with a security deposit being required from you. This is a great way of rebuilding your credit rating. Banks would normally pose a six-month period to establish your credit worthiness. With a secured deposit given them, there is a high probability of the person not getting into trouble with settling his account. The amount payable will be debited from the secured deposit in case the person is not able to settle his bills on time.

Different banks are offering bad credit credit cards with no deposit and an application can be done online. Again, this is a way of giving chance to those people with bad credit history to redeem themselves and rebuild a better credit rating score.

Here are some examples of these bad credit credit cards and what they have to offer.

The New Millennium Bank Visa Platinum Card offers this service. One can be approved up to $10,000.00 credit limit regardless of income or credit history. This means no credit check is required nor done. The annual fee is $59.00 with a 19.50% APR, which is not really bad especially for someone who is re-establishing a good credit history.

Then there’s the First Option Visa Card. There is no credit check requirement when one applies for this. Why? Because it caters to people with a bad credit history and is classified as a bad credit credit card. It highlights its objectives on “Building Your Credit.” It encourages people to establish positive credit history whenever they purchase. It would be more interesting to note that the requirement in applying for this type of credit card is a “Poor Credit” rating. Surprised? You should not be. This is a great way of inviting those people who fell into bad credits to prove themselves that they can do better and that each one deserves a chance – a chance to be in a good credit standing.

A credit report is a list of your payment history and transactions. It shows the payment behavior of a person whether he had been managing his financial transactions well. This report provides everyone with an overview of one’s financial status. It serves as the basis of any lending agency whether a loan can be granted. People normally go for a bank loan, housing loan, or car loan. The credit report is always required to be submitted for verification to assure that the person getting the loan qualifies for it. This is needed as it identifies the financial status of the person getting the loan. A good credit standing will surely be a big plus as it shows the person to have the financial security and maturity to pay for the amortization. Insurance companies rely also on the credit report. People with poor credit standing may pose a higher risk to the company.  Since the credit report contains the credit score, it displays the credit worthiness of the borrower. The higher the credit score, the better it is. The credit report is very important then for every financial transaction. .

The three Credit Bureaus Equifax, Experian, and TransUnion provide each consumer a copy of their Credit Report once every 12 months. These three bureaus can be contacted thru telephone, mail, telefax, and via online. They will provide you with the service needed and your credit report will be delivered for free. One source where one gets a totally free credit report is in the AnnualCreditReport.com. It used to cost somebody $9.50 to get hold of a copy of this.

The process to is easy. First is to login to AnnualCreditReport.com and access the annual credit report online for free. Next step is to dial (877) 322-8228 for verification. Complete the Annual Credit Report Request brochure and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may get a copy of the brochure from the Federal Trade Commission website. Your credit report shall be delivered for free. Online requests can be done but this involves keying in personal information, which others are not comfortable doing so. For online request, it will be good to print out for a hard copy so you may review it from time to time.

Once you have a copy of your own credit report, it is important to go through it and check for errors. Remember that this document serves as your identification and a representation of your financial status. Should you find any erroneous entry, a complaint should immediately be forwarded to correct it. Be sure to notify the Bureau at the soonest time possible. Gather all the documents to support your claim. This is important as this will be the basis of the Bureau for verification. The document will be checked with the agency or financial institution concerned. Once the document has been validated and an item has been found to be in error, a correction of entry shall be done. You may ask the Bureau to delete or remove the item from the list for a better presentation of the credit report. A request for an updated report could be done.

Credit Reports speak well of your cash management status and its impact on your financial endeavors. Just always bear in mind that you can get a totally free credit report, so try and get one!