Credit Cards Available For Those with Bad Credit

It is not easy to apply for credit when your past history is rather murky, however there are credit cards available for those with bad credit. If you are in such a situation, this may be a good chance for you to start your credit repair, as when you pay your monthly payments on time, this is recorded and shared with the 3 major credit bureaus. Once you are seen to be paying on time, your credit history will be reversed putting you in better stead for the future.

Following is some advice on choosing the most suitable card for you and how you can make it work to your advantage.

There are many available credit cards for people with bad credit with various financial establishments competing for custom so you can afford to be picky. Look around for offers that suit your current situation and compare terms and conditions. Do a thorough research before applying for cards here there and everywhere as this will not look good on your record. It will appear that your are applying for credit that you may not be able to settle.

One particular credit repair card of note is the Orchard Bank card by MasterCard. There are a few variations of the card that you can select to suit you and they are accepted all over the world including online. There is a service with the card where you can arrange to be sent text messages to remind you of a due payment, when and how much. These little things can make all the difference in keeping track of your payments and paying on time, the weeks always pass by faster than you think. The APR is relatively low with this card and balance transfers may be performed.

Another great option for those looking for bad credit repair is the prepaid MasterCard. This card is designed to hep you exercise your budgeting skills with no risk as the available balance on the card is money you actually put into the account. It is like borrowing from yourself and when the funds are depleted, you cannot use the card until you have deposited funds into the account.

You may come across the First Premier Bank Gold MasterCard on your quest for a credit repair service. This card is also available to those with bad credit and comes with a very low APR. One of the unique features of this card making it an attractive offer is the fact that you get a 5% bonus credit on your balance when you pay your monthly instalments on time in the first year of using the card. You can actually make money by managing your account well. Not only do you benefit in the pocket but you will begin to undo your bad credit reputation.

Credit Card–The Pros and Cons

Credit cards have been a part of our modern culture. The purchasing power it gives the cardholder is substantial and is indeed of good value.

Credit card application is easy and this gives its holder the power to do quite a number of purchases without having disposable cash. Like other things, there are a lot of advantages and disadvantages of having a credit card. Having a basic knowledge on these things might help you while you’re planning to apply for a credit card.

There are a lot of things which give credit cards its popular stature today. Its most attractive feature is the ease of purchase and the increase in purchasing power.

Another great advantage of having a credit card is that some companies don’t accept cash in their online transactions – hotels, airlines, car rental agencies and some other online shops require you to have a credit card instead to process your payments.

In times of emergency, credit cards offer you an irreplaceable source of money. This could fill in if you’re in a situation wherein you really need money. Meanwhile, some credit card companies also offer rewards and large discounts for their long time card holders. They may come similar to the concept of airline miles or travel discounts.

Another important feature of having a credit card is the protection of your purchases. They give you additional protection from defective, stolen or lost products that you may have recently purchased. If you’ve lost your original receipt, your credit card statement can prove to be a valuable resource since it can vouch your purchase. Over time, you will be able to build a good credit line record if you pay your credit dues on time. This credit line can later be used during loan application, rental application or in some cases, job applications too.

Credit cards also have their own share of disadvantages. The most common of such is that it encourages the holder to spend a lot. If you’re not careful on your credit card expenditure, you can end up overspending and getting to your credit limit – which means you will owe your credit company a large amount of money.

Credit cards interest rates are high, and their penalt interest rates are higher if you’re not able to pay your bill on time.

Another thing you have to look out for is that if you lose your card, it is imperative that you report this to the credit card company as soon as possible to avoid fraudulent use of your card.

Having a credit card certainly is certainly an advantage for you if you know how to control your expenditure. However, credit cards can be costly if you do not control your spending.

The only thing you have to remember when using a credit card is to set limits and be a responsible cardholder. Control your expenditure, pay your credit card bill on time and you won’t have any problem.

Low-Interest Credit Cards Can Be a Useful Debt Management Tool

Credit card debt is one of the most daunting things that could be a part of your life. You probably still find a ton of low-interest credit card offers in your mailbox on a regular basis, and may be considering taking one out to transfer balances or use for everyday purchases.

The secret to credit cards is that they must always be used as a tool for convenience; they should never be used to buy things that you can not pay cash for – only for items that make it impossible to pay for with cash such as online purchases.

Credit card companies will issue you a certain line of credit that may tempt you to use and max it out to buy everything your little heart desires. However, many don’t realize this will lead to 10, 20, sometimes 30 years of payments to the company that issued your card!

If you currently have credit card debt that you are trying to pay off, a low-interest credit card can be used as part of your personal debt management or debt consolidation plan. If you can not qualify for a debt consolidation loan, or have not reached agreeable terms with your current creditors, switching balances to a lower-interest card could save you thousands in interest fees while you pay the debt off.

When considering an offer, remember to read the fine print. Does the low interest rate expire in a few months and automatically increase, or does it stay in effect for the life of the account? Also, ask if the low rate will apply to transferred balances.

If the rate will expire, ensure it is far enough down the road for you to pay off the balances you will transfer. Any good debt consolidation program requires advanced thought and foresight into these little details!

After applying for the low-interest card and transferring your current credit card debt, CUT UP THE CARD and never use it for anything, period. If you think you may need to use it in an emergency situation because you don’t have a savings account, you can freeze the card to prevent impulse purchases and use in the future.

After you pay off your existing debt, it’s time to start rebuilding your credit and work on improving that credit score. Use your low-interest credit card for small, everyday purchases like your coffee, gas or groceries. Then, when you receive your monthly bill, PAY IT OFF. No ifs, ands or buts, you must pay off the balance immediately. Otherwise, you’re opening the door to the vicious cycle you just worked so diligently to get out of!

Also remember that the amount of your monthly payment toward your debt consolidation plan will greatly affect the cost of your credit. Paying only the minimum payments will likely not save you much at all. You must increase the monthly payments drastically to see those balances disappear and begin saving your own money!