Credit Card Debt Relief

Sunday, March 4, 2012

No Annual Fee Credit Cards For Bad Credit

There is a growing trend in the credit card industry now with the introduction of offerings with no fees attached. More persons are realizing the benefits and are opting for these no annual fee credit cards.

It is quite hard to get a credit card when the applicant has had a poor credit card history. This can be harder with no annual fee credit cards. However it is still possible.

People with a bad credit history tend to have a hard time when looking for a credit card. This is because credit card providers take a close interest in a person’s credit history as they have found over time that the sort of people who have defaulted on credit in the past are the most likely to default on credit in the future. Defaulting on credit cards is one of the greatest costs of credit card providers, partly through the loss of the money that has been leant out and partly because the credit card provider has a large number of administrative costs when a person starts to go into default and when they try to get the debt recovered.

There are a number of credit cards that do allow people with bad credit to get a credit card, but these tend to be providers who charge a considerable amount more than other credit card providers. In some cases these specialist providers are actually large financial providers, but who are using a different name for the higher interest rates that the sub prime lenders tend to use.

There are very few specialist credit cards that are available for people with bad credit that have no annual fee.

For many people with a poor credit history, but not a terrible credit history, there are standard credit cards that will be available. This can change according to the credit environment. When there is a lot of credit that is being loaned by the banks then the cards will be more readily available to people with poorer credit.

It is possible to get no annual fee credit cards when a person has a standard credit card. No annual fee credit cards are more likely than some other standard credit cards to refuse people with a questionable credit history as these credit cards keep their costs under control by screening out people with poor credit risks.

The best long term strategy is to repair credit history. This can be done by taking small debts and paying them back consistently, on time and in full. This will establish the sort of pattern that lenders like to see, which is the consistent paying back of debt.

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