Poor Credit, Credit Cards

kirpo — Sat, 26 Dec 2009 10:03:44 +0000

It seems like an oxymoron—poor credit credit cards. After all, the credit card was created for people who had perfect credit and a reputation that was solid. Some people in the credit industry believe that someone who maxes out a credit card (or falls into other types of debt) can’t be trusted with a brand new account.

Is this true?

The correct answer is that no one can say for sure…except the lending company who is providing the credit. Credit is not a source of money. Credit is a gift, a gift that is offered by a merchant or bank issuer that trusts the individual consumer to pay off a charge honestly.

So why is there the need for poor credit credit cards?

The majority of people do not sign up for credit cards with ill-intent. That is to say, they are not looking for an opportunity to abuse the credit system. What usually happens is that a person impulsively spends until the credit limit runs out. Of course, it doesn’t help that credit card interest rates are so high and can inflate your total balance to well beyond what you originally spent.

It doesn’t help that merchants are doing their worst to get consumers to spend money that they can’t afford.

Merchants make it easy to charge a gift on a card; some even offer to delay payments until months or even a year after purchase. Children are given credit cards, despite having no credit history to prove they are safe spenders.

Sometimes poor credit credit cards are necessary for other reasons besides impulsive spending. Sometimes credit cards are used for emergency situations. If a person suffers a major medical incident that can easily put the whole family out of work. Guess where that money comes from?

From credit cards! You also have to take into account divorce, which often results in one mate intentionally sabotaging the other one’s credit, or at least a division of all assets that hurts the wealthier mate. So while some may visualize bad credit consumers are as immature and hazardous buyers, the truth of the matter may be something totally different.

So the big question is… how does one get poor credit credit cards?

Most banks are not willing to take a risk on a person with a low credit score. Therefore, the best option is to look for a subprime financial institution. You may still get the same Visa or MasterCard but the lending company will have slightly different terms than a typical bank. You may have to pay higher interest rates or higher monthly payments once your application is approved.

These poor credit credit cards can be attained by submitting an application meeting minimum criteria.

The company will still want to know that you are employed or at least have a regular means of income. The company will also consider your residential history as this can be a sign of good credit. Just because a person has had financial difficulties in the past should not disqualify him or her from the finer things in life. Poor credit credit cards can provide you with emergency or leisure funds even after the banks say no.

Easy Credit Cards… Good But Can Be Dangerous

kirpo — Tue, 15 Dec 2009 07:45:41 +0000

Is it easy to get a new credit card? The term easy credit cards usually implies a credit card account that is easy to qualify for. Everybody agrees that credit cards are very easy to use right? You just swipe and sign. You don’t even have to know cursive…you just scribble down a doctor’s signature and take your bag of items.

Now qualifying for a credit card is a different story.

You might know right off hand that bad credit usually disqualifies you from opening a new credit card account. However, did you know that having no credit history or having little credit history can also count against your credit score? It’s true. Not having any history with credit cards is just as risky as having adverse credit items.

Furthermore, having only one card with a small credit limit doesn’t do you any favors.

Ideally, you want a few open accounts with medium to high credit limits so that you have access to a lot of credit and thus have positive credit utilization. So how can you qualify for easy credit cards and new accounts? First of all, try and selectively apply.

Applying for multiple cards at a time actually lowers your credit score. What bank or card issuer you apply with will depend on your unique situation. If you are a young person or new to the country, then you might do well with a limited credit bank card.

Sometimes children can qualify for a credit card account based upon their parent’s name.

If you have a job or a residence of your own (with utility accounts) this is favorable credit that can certainly get you started. What if you used to have a credit card and other accounts but have been relatively inactive for a number of years? Check to see if the accounts you remember are still open. Some companies will automatically close accounts after a period of inactivity, whereas others may have to be ordered closed by the cardholder.

In addition to credit cards, remember that store cards, utility accounts, vehicle notes and rent can be considered good credit. It isn’t easy getting credit cards but a lack of credit history is sometimes better than a bad history with multiple liens, judgments and repossessions. On the subject, what if you want easy credit cards but cannot seem to qualify for new accounts because of your adverse credit history?

If this is the case you may have to look into subprime lenders.

These lending companies don’t have sterling reputations like a well known bank would, but they do have a base of consumers they work with. These companies may or may not require some form of collateral, depending on the type of credit limit you hope to get.

However, all of these contracts will require that you have some sort of income and residential history. Rent, utility bills and vehicle notes do count as positive credit items. Remember this and don’t be afraid to make inquiries! The best way to go about finding easy credit cards is to study your credit report and then proceed to apply at a financial institution that works with your credit profile.

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Resource Partners

Easy Credit Cards... Good or Bad?

Poor Credit, Credit Cards

Easy Credit Cards… Good But Can Be Dangerous