Credit Cards Truthiness

Archive for the ‘Credit Cards’ Category

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.

Credit card companies will always depend on the credit report of a person. People with high credit scores who are applying for a card get instant approval as compared to those with poor credit rating. This is based on the principle of “Good Paying Habits.” It simply states that people who have the financial resources are able and willing to pay for the product or service they need as opposed to those with poor credit rating who would pose a high risk to the card business.

However, there could be unavoidable circumstances, which anybody may get into and one of them is bankruptcy. There are numerous reasons why somebody declares a bankruptcy, but for no reason at all they should be given a fair chance to come back and rebound from such a situation especially so if it was not of their own intention. This is where credit card companies come and offer assistance.

Rebuilding ones’ credit profile is no easy task for someone who just suffered from bankruptcy. Getting a secured credit card is one sure way of starting to rebuild. There will be banks that may offer unsecured credit cards since they do not require any credit checks and they guarantee approval. However, having a secured credit card compared to an unsecured one may be more advisable based on the situation.

First, the interest rates (APR) are always lower. Unsecured credit cards may give you a maximum 23% compared to secured credit cards at 9% APR. That is definitely a great way to save money. The credit limit may be low at the start; say, $500.00 but if you are able to your credit worthiness over the next few months, the bank will raise it higher or even allow you to convert it to an unsecured credit card.

One may simply look at the website to check as to which among them can offer the best secured credit cards after bankruptcy. Here are some of them:

1.    Applied Bank Secured Visa card. A minimum $200.00 deposit is required. This will equal to the allowable credit limit. Basic APR is 9.99% but a Late Fee and Overlimit Fee of $32.00 are being charged. No credit check and income requirement. Annual Fee is $50.00 with the first year deducted from the deposit.
2.    Public Savings Secured Visa Card. Minimum deposit is $300.00 with no credit check and income requirement. No annual fee and with 0% APR for the next 6 months.
3.    Applied Bank National Express Secured Visa Card. Minimum $200.00 deposit is required to a maximum $5,000.00. No income requirement but a verification of information is required. No activation fee. Annual Fee is $50.00.

These are just some of the best secured credit cards to rebuild credit. The most common requirement is a minimum deposit. The credit limit is always equal to the amount of deposit and one is not allowed to have an over limit otherwise a fee is charged. Secured credit cards will always be a good start to tighten up one’s budget and spend within one’s level. The better deal is that people with bad credit are given the opportunity to start and rebuild a better credit report.