Credit Card Debt Relief

Tuesday, February 28, 2012

Unsecured Credit Cards For People With Bad Credit

Working Towards Unsecured Credit Cards For People With Bad Credit

I have personally struggled with my credit in the past and want to help people with bad credit to understand how to overcome this difficulty. I now have excellent credit and you can too.

Getting unsecured credit cards with bad credit is extremely hard in today’s climate. Banks are in trouble right now. My credit card company used to increase my available credit limit almost every month. They won’t do it anymore because like most banks, they are struggling. This affects people that don’t have cards because it’s slightly harder to get approved. I pay off my card in full each month, have a 770 credit score, and make more than $12,000 per month. I guess they want to give their credit to people who are more qualified. :)

Since credit is a little harder to come by than it was a few months ago, I want to teach you how to play the game. Getting unsecured credit cards for bad credit isn’t the same game it was in the past. It’s something you’ll have to work towards, starting today.

The best shot you have is at your current bank – the bank where you have your current checking account. Step one is to go to your bank and apply for a credit card. If you don’t get approved, I have more options for you. I they tell you that they’ll notify you by mail that means you weren’t approved and you can move on to step 2.

Get A Secured Card First

If you didn’t succeed at your bank, you need to get a secured credit card today. Don’t waste time because with credit, every day counts. The sooner you can open up a credit line, the sooner you’ll be able to get a regular, unsecured line of credit.

When I took out my first secured credit card, I had a FICO score of under 500. Getting my card cost about $400 because I had to put down a deposit of $300 and pay a fee of $100. That card was one of the smartest decisions I ever made. My limit was $300 (the amount of my deposit).

I paid that card off every single month and in a few short months, I started getting offers for legit, unsecured cards in the mail. I took out a few of those cards and the rest is history. It’s been a few years now but my credit score is now almost 800. I took control of my situation and can now get any loans I want, at the best interest rates out there.

Additional information:
FICO stands for Fair Isaac Corporation, which is the company that created the industry standard credit scores used by almost all lenders. FICO has been in business since the 1950s but began building the famous FICO score in the mid 1980s.

A “FICO score" is simply a numeric summary of the information in your credit reports that represents your potential credit risk. These scores are delivered to lenders when they purchase your credit reports and review your application. A higher FICO score means that you are a lower credit risk and you will probably be approved at better rates and terms than if your FICO score is lower. If you have low scores, you could be approved with less attractive interest rates or be declined all together.

The highest FICO score you can get is 850 and the lowest is 300. The vast majority of the U.S. population scores between 500 and 799. It is very uncommon to have a credit score over 800. Anything over 750 is considered an excellent score.

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