Archive for the ‘Credit Cards’ Category
People with poor and bad credit will not be able to avail of desired financial service such as an auto loan, a housing loan, or a credit card application. This is for a fact that a bad credit standing means a person does not have the financial capability to settle any bill he will incur. Such person does not have the willingness and attitude to attend to his accountabilities. He is a high risk to the business and financing industry. It is just but proper that one who has a bad credit not be approved for additional loan request. It is befitting that his request be denied.
Despite these, there are still financial institutions and banks that are willing to offer their services to people with bad credit. They are ready to take chances disregarding the credit history of the person. There are banks that offer unsecured credit card to people with bad credit. The rationale behind is quite unimaginable, but simple. They are willing to take the risk. They are giving these people with bad credits to prove themselves and rebuild a good credit standing.
Having a good credit score for 6 months is enough to rebuild a good credit report. Unsecured credit cards with bad credit are now fast gaining attraction as they require no credit check, and may even waive annual fees. Some banks even agree on Balance Transfer Reversal. This is a method wherein the past due amount a person has from the other bank or institution will be carried over and payment can be continued. This practice helps a lot of people as interest rates become lower. Continuation of their existing outstanding amount shows that the person is willing to pay his debt. This is a positive sign of a financially responsible person and he definitely deserves a chance to rebuild a good credit standing.
Let us take a look at some of the Unsecured Credit Cards with bad credit:
1. Ultra VX Visa Card. An unsecured credit card, which requires no credit check and allows the cardholder to a maximum $25,000.00 credit limit. It does not require any minimum income or any bank deposit. Instant approval is granted. No annual fee being charged but APR is at 14.90%.
2. IberiaBank Visa. This unsecured credit card requires applicants with bad credit to have a balance transfer for the first 6 billing cycles. This means whatever outstanding balance one has from his former credit card will be billed first for the next three months of being a member. No annual fees for this card.
3. Horizon Gold Card. This card offers an instant guaranteed approval. It targets those with bad credits. Initial credit limit is $500.00, which means that one has to start rebuilding a good credit history to avail of a higher credit limit in the future.
These are just some of the unsecured credit cards with bad credit being offered, but one can notice it immediately that there really are just a few of them. This means taking so much risk for the card company but the good thing in here is they have the intention of giving those people with bad credit a fair chance – and that is to help them start rebuilding a good credit standing. A good credit standing will show a good credit score and later on a good credit report which will really be beneficial to them in their life.
People with bad credit will always have a special place in the financial institution. They get to have poor Credit Score, which is being circulated all over. They also get to receive litigation cases with all those surcharges and attorneys fees filing up. Although they could have settled the full amount, they are being marked as “not of good credit standing” and will not be given the chance to apply again either for a loan or a credit card. They just deserve it, as others may think. However, in the real sense of financial upheaval, these are the people who not only settled their account fully including all the interests and charges, but also have suffered the negative criticisms of the society. A name listed by the Credit Bureau as having a bad credit heeds a bad reputation. This further implies being blocked from applying for other loans. Hence, one’s credit worthiness has been lost.
This may not really be the end of the line. A person who suffered from such may still apply for a credit card. There are two types: the Secured Credit Card and the Unsecured Credit Card for people with a bad credit history. A Secured Credit Card is a type of application where one maintains a secured deposit with the bank. The amount of credit limit and spending level for the credit card being applied for are determined by the total amount of secured deposit he maintains with the bank. With a $1000.00 secured deposit with the bank, one can request for the same amount of credit limit for his card. Any balance which he is not able to pay from his monthly bills will be automatically debited from the secured deposit. He is also required to maintain the secured deposit, otherwise, his spend level and credit limit will be lowered down. Having this secured credit card helps the person with bad credit rebound from his previous situation and start rebuilding his good credit history. Six months of good credit standing is enough for him to qualify again for such a claim. Here are two of them for a start; the Applied Bank Secured Visa Gold Credit Card, and New Millennium Bank Secured Platinum Visa or MasterCard!
The Unsecured Credit Card for people with a bad credit history is another type. This is a type of credit card, which does not require any secured deposit from the person. They do not require credit checking and approval is guaranteed. What differentiates them from other types of credit card is a higher annual fee and interest rates. This is expected considering that the probability of losing profitability is much higher as they are catering to people or individuals who are of bad credit standing. Credit limits also vary from a minimum of $500.00 to as high as $10,000.00. Not bad, right? Aside from no credit checks, there is also no income requirement for this type of credit card. More so, this is one best way for people with bad credit to establish a new and better credit history. To name a few, we have the following: Public Savings Bank Visa Card, First Option MasterCard, New Millennium Bank Visa or MasterCard.
Also, Unsecured Credit Cards for people with bad credit history are available online and are easy to apply!