Credit Card Debt Relief

Saturday, February 11, 2012

Secure Credit Cards For Bad Credit

Secure Credit Cards for Improving Bad Credit

No need to be ashamed of yourself if you should have bad credit. In these dire economic times, bad credit is the new pink. However, this is not the time to be complacent! It’s time to rebuild your credit because credit is one of your most important assets. The good news is that there is no such thing as permanent bad credit.

Just what are secure credit cards?

Secure credit cards are a good option if you have poor or bad credit. They’re cards targeted towards people with bad credit that are good for building positive credit. Some cards require annual fees. Some require money deposits to generate a credit line. Some check your credit first.

Many with bad credit resort to using cash only, but these payments go unreported to your credit agencies, keeping your credit in poor standing. Thus, it’s wise to seriously consider a secure credit card.

All secure credit cards are not created equal. As with credit cards, it’s important to compare the offers. There’s also some things to keep in mind when choosing the best card for you:
  • Credit Bureau Reporting: Make sure they report to all 3 credit bureaus. Use a card that doesn’t report to the bureaus as a secure credit card as that may reflect poorly on your credit score.
  • Deposits & Credit Lines: Some credit cards offer lines that are only going to be as large as your deposits. Compare the terms for credit. It’s not about obtaining large amounts of credit but establishing good credit.
  • APRs: The lower amounts of interest, the better. If there’s an intro 0% APR period, then that’s even better, considering it’s a secured credit card.
  • Credit Checks: This may not necessarily be a bad thing. However, if your have poor credit, an inquiry may affect it in a negative way. Some offers boast that they do not check your credit, whilst some do. Just be aware!
  • Compare: Compare, compare, compare. Check out to compare secure credit card offerings.

Unsecured Credit Cards For Bad Credit Instant Approval

Even hotel reservations and plane tickets are now reserved on-line where a card is necessary in order to make the reservations successful. However, having bad score or lack of credit may give you a hard time obtaining a card. The good news is there are cards that are designed especially for people who are in tight situations such as those described previously. Card issuers have designed this card to have higher rates and some are with additional fees but they are meant to give an opportunity for people to build or improve their score.

One option when applying for a card is to take secured cards. These types of cards are not particular to history. The reason for this is that you are required a security deposit of an amount usually between $100 and $500 before you are allowed to make any purchase with your new line. This security deposit determines your limit. The best thing about this is that if you encounter problems with regards to paying your bill, the deposit will cover your obligation so that your debt is secured.

Having a secured card does not appear like a real line of credit but it does help you establish or rebuild your history because all your activities concerning credit will be reported to the three major bureaus. Some other advantages of having secured cards include: 1. up to 4.5% of the interest may be paid on the deposit; 2. merchants give high regard for cards that have MasterCard or Visa logo on them; 3. some issuers give you double the amount deposited as your limit; and 4. if you've proven your ability to handle your monthly bill, your limit may be increased minus the additional charges.

Your second option is to apply for unsecured cards. This type of card does not require a security deposit and the limit and interest rate are dependent on your history. If you have poor or no history then you will most likely not land an unsecured card. There are cards that are instantly approved through on-line application where no security deposit is required. However, higher interest rates and some additional fees will be asked from you.

Now, if you have bad credit or none at all what you can do is to try the unsecured card first. If your application gets approved, not only will you have avoided shelling out for security deposit but you will also have a "true" line of credit. If you are denied an unsecured card, most issuers will give you the option to apply for a secured line. It is best if you try for an unsecured line before agreeing to take a secured line. That is, you take the latter if there is no other option left to take.

Visit for more information about unsecured credit cards for bad credit instant approval. Instant credit cards that are unsecured can be applied for on-line in order to get an instant approval credit card in 60 seconds or so. Taking an unsecured instant credit card first is best for those without any credit or for those who have bad credit.

Tuesday, February 7, 2012

Balance Transfer Credit Cards For Bad Credit

Understanding Balance Transfer Credit Cards for Bad Credit

Balance transfer credit cards for bad credit made it possible for a cardholder to transfer balances from high interest (APR or annual percentage rate) cards to 0% introductory APR cards. This in turn gave the cardholder the chance to reduce the debt burden since the money, that was paid in lieu of interest, could be used to reduce the balance on the new credit card. Credit card companies allowed this practice on account of the following reasons:
  • Credit card companies could charge a balance transfer fee for allowing the cardholders the privilege of transferring the balance to a low or zero percent APR card.
  • Low or no interest rate feature was not permanent and it eventually made way for higher interest rates.
  • If consumers had balances that bore different interest rates, payments in excess of the minimum amount could be applied first to the balance with the lowest interest rate.
  • Interest rates could be hiked by the credit card company without giving prior notice to the consumer.
  • The credit card company could apply the principle of universal default and increase the APR on the credit card if the consumer defaulted on other payments.
It's evident that allowing credit cards for balance transfers (for bad credit consumers) benefited the credit card companies in more ways than one. However, today consumers cannot hope to procure balance transfer credit cards, for reducing credit card debt, with the same ease because of the following reasons.

Are Balance Transfer Credit Cards Still an Option?

Credit Cardholders' Bill of Rights was signed onto law in May 2009. Although, most changes will be enforced from 22 February 2010, the first provision of this law came into force on August 20, 2009. The new credit card law has curtailed the freedom of credit card companies in more ways than one.
  • As per the new law promotional offers, like low or 0% APR that encourage balance transfers, have to last for a minimum period of 6 months.
  • Excess payment made by the consumer have to be applied towards balances with higher interest rates prior to reducing balances that carry a relatively low rate of interest.
  • The principle of universal default is no longer applicable.
  • The credit card company has to give 45-day notice before hiking the interest rate on the card.
  • Consumers have the right to opt out of increases (stop using their cards), on account of an interest rate hike provided the hike was not triggered due to the following reasons: The consumers delayed payment, that was due, by more than 60 days or the card was a variable rate credit card.
Since, credit card companies can no longer increase the rate of interest on the cards, they may end up offering balance transfer cards with zero/low APR only to consumers with good credit rating. They may also increase the set-up fees and the annual fees for people with bad credit. This is because credit worthiness and absence of annual fee go hand in hand.

The article, ''Are There Credit Cards For Bad Credit With No Fees?'', deals with the different types of credit card fees and the consequences of the new legislation in great detail. It's evident that the new law will usher in an era when balance transfer credit cards for bad credit consumers will become a rarity.

Monday, February 6, 2012

Credit Cards For Those With Bad Credit

People with bad credit have the fewest options for credit cards. That's because few credit card issuers want to take the risk of loaning a credit card they might not get paid for. Though it may be harder, you can get a credit card with bad credit.

Credit Cards for Those With Bad Credit

There are some credit cards aimed specifically at people who have bad credit. For example, the Capital One Classic Platinum approves applicants with credit scores as low as 577 according to The card has a 19.8% regular APR and $39 annual fee. You may be able to get the annual fee waived if you ask.

Orchard Bank also offers credit cards to borrowers with poor credit scores. When you apply, the bank checks your credit history to decide whether you give you a secured or unsecured credit card. This initial check is a soft pull and doesn't hurt your credit score. Reviewers with credit scores as low as 550 have been approved for the unsecured version of this credit card which has a regular APR between 14.9% and 28.9%. The Orchard Bank credit card does come with an annual fee and upfront processing fee that vary based on your credit history.

Retail stores have a reputation for approving applicants who have bad credit. You have a better chance getting approved for a limited purpose credit card that can only be used at that store rather than a credit card backed by Visa or MasterCard.

Secured Credit Cards

Too many borrowers dismiss secured credit cards because the cards require a security deposit to be made against the credit limit. A secured credit card that reports to the major bureaus is better than having no credit card at all. Many secured credit cards can be converted to unsecured credit cards after a year of on-time payments.

If it's the security deposit that's keeping you from getting a secured credit card, start putting $50 in a savings account each month. In six months, you'll have $300 to put toward a credit secured credit card. Some of the money can be used to take care of the application fee and the rest can be put toward your credit card balance. Yes, you'll have a low credit limit starting out, but that's true of unsecured credit cards for bad credit, too.

What to Watch Out For

Beware of fee harvester, or subprime credit cards, that charge high upfront fees which take up up most of your credit limit. Though Federal law limits the amount of fees to 25% of the credit limit, at least one subprime credit card issuer has gotten around the law by assessing a $90 fee before the credit card is ever issued. The First Premier Bank Gold MasterCard is an example of a credit card to stay away from.

Prepaid cards are often advertised as an option for people with bad credit, but these aren't really credit cards. Prepaid cards require you to make a deposit before you can use it to make purchases. But unlike secured credit cards, your prepaid card purchases are deducted from your balance. Prepaid cards don't improve your credit either, because they don't report to the major credit bureaus. (They can't since they're not a credit product.)

Sunday, February 5, 2012

Store Credit Cards For Bad Credit

Store credit cards for bad credit can be a great way of rebuilding your score, or even building it for the first time. These kinds of cards are developed by individual retail stores and are available to use on all purchases at that store. These kinds of cards can come with many benefits, especially when it comes to improving your credit score.

The fact is that it is a lot easier to get approved for a retail card that it is for a traditional credit card, usually because the balance is low and there is therefore less of a risk for the lender. Most work in the same way as a traditional credit cards, but some can only be used in the individual store. The second type are offered to people with bad credit and while this may seem inconvenient, it can be a temporary solution while you try to your credit rating.

Like any credit card, store credit cards will charge you interest when you miss your payments or don't pay off the full balance. However, you should try to make all payments on time due to the fact that interest rates can be high. Paying on time will also prove you can manage your payments and will improve your score quickly.

There are both disadvantages and benefits to store credit cards for bad credit. When you sign up, try to do so for a store you would shop at normally - but do not buy things you don't need simply because you have available credit. You may find that the card even comes with added benefits including discounts, rewards programs and specials offers. Your ultimate goal should always be, however, to make your payments on time and to build your score as soon as possible.

Visit the authors credit card website at to find and compare the best store credit cards for bad credit.

Related Posts