Sep 15

What You Need To Know About Bad Credit Credit Cards

topic 6

Do you have a low credit score but in need of a credit card? Majority of people find themselves in a quagmire especially when they have bad credit and in need of a credit card. Most financial companies are unwilling to approve unsecured credit cards that come with a range of benefits to people who have bad credit. However, the picture is not as gloomy as it looks as people with bad credit can get access to credit cards albeit with fewer benefits and a low credit limit.

For starters, it’s imperative to note that there are two kinds of bad credit credit cards. We have the secured credit cards and the unsecured credit cards. Secured credit cards for individuals who are deemed to have bad credit are designed in such a way that a person has to make a deposit before they are approved. This deposit is held in an account by the credit company and is simply a security measure in case the applicant defaults on the money spent on the card. It is usually returned to the card holder provided that their credit card account is in good standing.

Secured bad credit credit cards are generally for people whose credit score is very low and therefore experience problems applying for credit cards with great benefits and high limits. They are mostly designed to help people with bad credit enjoy some form of advanced credit while at the same time according them an opportunity to repair their credit report. The only downside is that various companies tend to charge exorbitant annual fees due to the credit status of the applicants.

Considering that these credit cards require some form of deposit, it’s advisable for an applicant to make a comparison of a number of cards offered by different companies to ensure that they get the best deal. One should not make a mistake of applying with the very first credit card company they interact with. By comparing the upfront down payment required and the annual fees imposed by various companies, a person could be able to narrow down to a card that is specific to their needs in terms of cost, limits to credit advanced and benefits.

Alternatively, there are bad credit credit cards that do not require any kind of deposit. These are the unsecured credit cards. In as much as they are appealing and have a relatively higher limit as compared to secured credit cards, they always come with higher fees especially as relates to people with bad credit. Chances are that you don’t have the money that is required to pay deposit for the secured card and therefore resort to unsecured bad credit credit cards. The same rule of engagement applies. You need to take your time and compare several credit card companies and settle on one that best suits your needs in terms of cost, limits and benefits.

Taking out a credit card for bad credit can be instrumental in helping you repair your credit report so long as you don’t exceed the limit and pay up on time.

Sep 15

How to Get a Credit Card If You Have Bad Credit

topic 5

Bad credit is not a cup of coffee for anyone. It’s a term that makes people fidget in their chair especially if they are in need of a loan or need to be approved for any given contract. People with bad credit are generally given second class treatment especially when they are seeking for loan facilities from high street banks or other traditional lenders. The same applies when they are seeking to secure credit cards. Chances are that there applications will be rejected hence making them ineligible to enjoy the benefits that people with a good credit history do.

Luckily though, it’s now possible for such people to get access to a credit card and start rebuilding their credit report or in certain circumstances build one from scratch. What is it that they need to do in order to be approved for bad credit credit cards?

  • Understand what a credit score is

The first thing you need to do before applying for a bad credit credit card is to understand what a credit score is. Basically, it’s a 3 digit number that various credit bureau agencies such as Equifax, TransUnion, and Experian derive from your credit report to ascertain your credit worthiness. The lower your credit score, the more unlikely to be approved for a credit card and the high your credit score, the more likely you are to be approved for a credit card.

  • Check what your credit score is

Once you have a general idea of what your credit score is, the next thing is do an inquiry from the 3 major credit bureau agencies and find out what your score is. Generally, personally checking your score is referred to as a soft inquiry and therefore does not affect your credit report. Consequently, a check by a creditor is referred to as a hard inquiry and may affect your score. Remember that your score may not be the same from all the bureaus as they use different methods to arrive at your score. The idea for checking is to ascertain if everything in the report is accurate.

  • Put your house in order

If you already know the cause of your low credit score, it is time for you to put your house in order. If for instance there are inaccuracies, you might want to sort out the errors before you apply for a credit card. Consequently, you can seek to have a friend who has a better score to list you as an authorized user in one of his credit cards that he has used for a long period of time. He doesn’t need to pass over his card to you but simply list you as an authorized user. It goes a long way in improving your chances of being approved for a credit card.

  • Apply for your credit card

Now that you know what your credit score is and have taken measures to improve it despite the fact that you have bad credit, you can approach your bank and apply for a bad credit credit card. Unsecured cards are generally those reserved for people with stellar credit score. Secured on the other hand are those which you are required to make an upfront payment as deposit before you can be approved. Whatever the case, there are a number of companies that approve credit cards for people with bad credit although with lower limits. This might be the best option for you rather than going for day loans which are exorbitant and have a short repayment period. You simply need to choose which financial company to apply a bad credit credit card with and check that the rates are affordable!

Sep 15

Guide to finding the best bad credit-credit card company

topic 4

Before the recession that hit the world, credit card companies were unwilling to approve credit cards for people with bad credit. They were, unfortunately so, seen as outcasts from a financial perspective. Such people could not be approved for mobile phone contracts and were put through microscopic lenses when applying for loans. However, the global credit crunch changed the ball game all together and stringent rules that were in place relaxed. A good number of lenders across the UK were now willing to approve credit cards for people with bad credit.

Of course, this was a sigh of relief and a step towards the right direction as the issue of bad credit is not a unique one and at times is not within a person’s control. The challenge however for many people with bad credit seeking for credit cards with good deals is finding the right credit companies. How can they go about this?

  • Utilizing comparison sites

There are a number of comparison sites that contain valuable information on legit and most reliable companies across the UK. If you have bad credit and in need of credit cards for people of your caliber, such sites come in handy. You get all the information you need in one site and can gauge the difference in credit limits, the deposits required, the annual fees attached as well as the interest rates. You also get to know of the benefits that each credit card offered by different companies provide and by so doing apply for one that best meets your needs.

  • Read reviews

Scour through the internet and read a number of reviews on various bad credit credit card companies. Positive reviews and testimonials is of course an indication that a given credit company treats its customers well and do not frustrate them with exorbitant fees and the like. By reading reviews, you can make an informed decision on which credit company to apply for a credit card if you have bad credit.

  • Ask a friend or family members for recommendations

There is a high probability that you have a friend or a family member who is in the same predicament as yours and might have taken a credit card for bad credit with a given credit company. If that’s the case, you can always ask them to refer to you to a good credit company based on the kind of experience they got, the affordability of fees, the interest rates and the range of benefits offered.

  • Personally talk to customer personnel

They say how a customer representative of a company treats you is a reflection of how a given company operates. Why not give customer personnel a call and get an idea of the bad credit credit cards available. You can ask as many questions as possible and thereafter make a decision based on your findings.

To sum it up, finding the right company to take a credit card for bad credit is an important thing. It could mean enjoying better benefits, enjoying higher limits and an affordable annual fee. It all boils down to you.


Aug 15

Credit Cards for Bad Credit – An Overview

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What is bad credit?

Ideally, people who have defaulted in paying bills in the past or have not been able to manage their finances properly are deemed to have a poor credit rating. Such a low credit score is what is referred to as bad credit and generally negatively impacts a person’s life especially as concerns approval of credit cards, approval of loans and even approval of mobile phone contracts. People with bad credit need not feel as if they are on their own as it is a common thing not only in the UK but also other parts of the world. With the global credit crunch, it became impossible for people to effectively pay their bills hence falling deeper into debts. However, this did not mean that they no longer need credit cards to manage their financial needs on a day to day basis.

Determination of bad credit

Essentially, when you apply for a bad credit credit card, credit card companies tend to look up your credit rating to determine whether you are eligible to be advanced credit. They check with the top 3 credit bureau agencies in UK (Experian, TransUnion, and Equifax) to determine what your credit score is. The idea is to determine the credit limit they can advance you as well as the type of credit card you qualify for and the applicable fees or interest rates. If you have low credit score, it means you have bad credit and therefore eligible only for secured bad credit credit cards.

Bad credit credit cards

Having bad credit is not an indictment on your personality or financial management. In fact, if it were, then we wouldn’t be having bad credit credit cards. These are credit cards that are determined for people with bad credit and more often than not have a low credit limit. If managed in the right way, credit cards for bad credit can be used to repair a person’s credit rating in the long run. However, it should be noted that this does not happen overnight and is a lengthy process that requires determination and patience.

You should never apply for many credit cards for bad credit at once with the aim of quickly repairing your credit report. This could further put you into financial problems especially when you find yourself in a position where you cannot effectively manage the credit cards you’ve applied for.

As much as it is tempting to apply to a number of cards to rebuild your credit  report in the shortest time possible, resist the urge. Why should you? Every time you make an application for bad credit credit card, the lender in question checks up your credit score which ultimately ends up reflecting negatively on your credit report.

To improve your credit score, simply ensure that you do not default on the minimum amount of money set by the credit company and that you do not exceed your credit limit. If done diligently and consistently, it will only be a matter of time before your credit report is in good status.

Aug 15

Guaranteed Bad Credit Mobile Phones Contract

topic 3

The general rule of thumb is that people with bad credit are less welcoming when they seek to be approved for a mobile phone contract, credit card and even be approved for a loan or mortgage. Many lenders deem them as high risks and would only approve them for a mobile phone contract if they pay an upfront payment. While this has been the case since time immemorial, providers across the UK like InstantMobile have relaxed rules on people with bad credit and have found an avenue in which they can bring these people on board. The result has been an emergence of several providers in the UK that offer bad credit mobile phones contracts.

Guaranteed bad credit mobile phones contract have given most people with bad credit across a new lease of life. People with bad credit can be assured of getting approved for mobile phones contract their credit score notwithstanding. However, as attractive as this may be, people with bad credit need to be careful to apply with the right providers. A number of providers offer guaranteed bad credit mobile phones contract but the benefits to the customers are limited. In most situations, a person is required to settle for the middle range phones.

What this basically means is that if you are looking for the latest high end phone and yet you have bad credit, you wouldn’t be able to. Providers opine that people with bad credit are a risk to them and therefore try to minimize the risks as much as possible. As such, most people have access to a refurbished or mid range mobile phones that are not expensive or pose a high risk to the providers.

Secondly, providers might require you to make an upfront payment before they could approve you to the kind of bad credit mobile phone deal you want. Though this is not a requirement, it gives you a better negotiating power and the provider is more likely to approve you for a better deal than would be the case if you didn’t make any upfront payment. This upfront payment is normally returned at the expiry of the contract provided that the account is in good standing.

The greatest advantage of guaranteed bad credit mobile phones contract is that it could be used to repair or rebuild a credit report. It’s also instrumental in helping a person jumpstart their credit score building. If managed in the right way and a person makes payment without any problems, they in the long run would be able to repair their credit score. As the name implies, the contract would always be approved but what differs from one provider to the other is the benefits such as the number of minutes given in a month, the data bundle size, the number of texts and even the required upfront payment.

With this in mind, making use of comparison sites or seeking for recommendations from friends based on their past experiences could go a long way in ensuring that you get the best deals.

Aug 15

Are bad credit-credit cards used only to improve credit scores?

topic 1Questions abound as to whether credit cards for bad credit card are ostensibly used for the purposes of improving credit. This is of course an incorrect argument as bad credit credit cards have many uses. The number one advantage is of course the fact that these kinds of cards give you some form of flexibility that a pay day loan cannot. For instance, with a credit card, a person is able to enjoy interest free borrowing of up to 56 days which by all means is good news to a struggling borrower. With this in mind, such a borrower would of course not see the need to go for a pay day loan.

Secondly, going for a bad credit credit card provides the holder some form of protection especially as relates to purchase of goods and services. Should there be a dispute, the holder of the card can inform the credit card company for a chargeback or refund in situations where the seller is not willing to do the same. It is also instrumental in helping you control your spending because you have a credit limit and therefore you have no option but spend wisely.

How do credit cards for bad credit work?

Generally, credit cards for bad credit have a lower limit as compared to other mainstream credit cards. This is so because people with bad credit are seen as high risk and are believed to be prime candidates for defaults in monthly repayments. Different credit card companies therefore set a certain limit based on a person’s credit rating.

The benefits are also limited as compared to mainstream credit cards and therefore a person with bad credit cannot be able to enjoy such benefits as cheaper overseas spending, air miles or even cash back. The good thing about bad credit credit cards is that if they are used in the correct way, they offer a great opportunity for a person to rebuild their credit report and even qualify for better perks in the future. The secret lies in never missing the monthly repayments and ensuring that credit limit set is never exceeded.