Each year, an estimated 10 million Americans are expected to become victims of crimes related to fraud and identity theft. Most often, consumers are not even aware that they had already become a victim of ID theft until their creditors start notifying them about their unpaid debts.
Students are also prone to identity theft and fraud because many young people are careless when it comes to handling their student credit cards. Sometimes students leave their credit cards in dorms where others can easily steal them or copy their account numbers. Some even tend to write down their account numbers and PIN numbers in sheets of paper that can easily get misplaced or stolen.
Whether you’re a student or an adult, what are the steps you can take to protect yourself from identity theft? Consider the following advice and remember to put them into practice:
Don’t throw credit card receipts and billing statements in trash. Be aware that identity thieves also rummage through trash bins in search of precious bank account information. Be sure to shred your bills into very small pieces before throwing them in the trash.
Use your ATM discreetly. When withdrawing cash from your ATM, watch out for people who may be watching behind your back, trying to seize your account numbers or PIN.
Keep your credit card in sight at all times. When paying with your credit cards, don’t let it out of your sight even for just a few moments. Identity thieves may use small “skimming” devices that can copy the important details of your credit card without making it obvious.
Protecting your credit score is a responsibility that must never be neglected. With a high credit score, you can grab more opportunities on your way. You can get better rates when applying for loans and credit cards. If you’re looking for a job or a place to rent, you won’t have any problem with employers or landlords who may doubt your credibility. On the other hand, a low credit score may cause hindrances to your plans. You may get denied with your credit application just because you have a poor credit rating.
Is there a secret to maintaining a high credit score? The fact is, it isn’t too hard to get a high credit rating as long as you know how to manage your finances responsibly. Let us consider these important steps to avoid having a bad score in your report.
Take advantage of the automatic payment system. If you have loans, arrange an automatic payment system that enables your bank to submit your monthly loan payments on time. This way, you can be assured that you’ll never miss a single payment and that your money is efficiently allocated. This is great especially for people who have trouble controlling their spending.
Check your credit report at least twice a year. Personally checking your credit report will ensure that no unauthorized transaction was made in your account and that all your payments were properly reported to the major credit bureaus. Consumers are entitled to receive a free copy of their credit report each year. Obtaining a second copy shouldn’t cost you so much and it’s definitely worth spending for.
Being swamped in debt can really bring stress and emotional pay and sometimes the best way to get through this situation is to seek credit counseling. A credit counseling agency can be a big help for people who are losing control over their finances. What can a credit counseling service do for you?
A credit counselor can negotiate with your creditors for easier repayment terms or reduced monthly payment fees. In some instances, a credit counselor may suggest that the client enroll in a debt repayment plan.
Debt Repayment Plan and Counseling What is a debt repayment plan? A debt repayment plan is when the credit counseling agency distributes the client’s monthly payments to the creditors along with negotiation. As a borrower, you will be submitting your repayments to your credit counseling agency and the agency would be the one to pay off your creditors.
Under a debt repayment plan, debts with the highest interest rates are often paid off first to keep debts from further building up. However, bear in mind that enrolling in a debt repayment plan or debt management plan is not always applicable for everyone. Do you really need a credit counseling agency to do this? OR would it be better to do repayment on your own?
Help, I Need Money! Have you found yourself saying or thinking these very words?True, all of us could face financial crisis at one point or another.And when this need arises, where do you find the appropriate help?Most people turn to commercial loans or bank loans for help rather than borrow from family or friends.True, applying for a loan is often the best option for financial help.In this article, let’s discuss some of the points you must carefully consider before applying for a loan.
What do you need the money for?
First, what is your purpose for getting a loan?Usually, home loans or mortgage loans are obtained before purchasing a home.Others need to get a loan to help them pay off debts from different creditors.This type of loan is known as debt consolidation loan.
If you’re planning to get a loan for debt repayment, it would be wise to consider other possible alternatives first.For instance, have you tried negotiating with your creditors?Talking with creditors and requesting for new repayment terms can help you keep up with your monthly bills more easily.Most lenders are willing to modify or adjust their terms to help a customer recover from debts.If you can work out a new repayment term with your lender, it may not even be necessary for you to apply for a consolidation loan.
What about auto loans?
Are you planning to get a auto loan?If yes, make sure that you’re purchasing a car out of necessity, not luxury.Some people are tempted to get a bigger loan amount so they could purchase the latest model of the vehicle they want.Always consider the consequences.If you can get a car at a lower price, then you can get a reasonable car loan as well.This means repayment of your car loan would also be a lot easier on your part.
If you’re a credit card holder, you should be interested in learning the tricks of cutting down your interest rates. Is it really possible to lower interest rates of your credit card? The answer is yes, if you know the right steps. Here are 5 practical steps to help you cut down those high credit card interest rates.
1.Review your credit card’s terms and conditions. Even if you’ve had that card for a long time, there may be some terms in your contract that you’re not aware of. Does the “universal default” clause apply to your credit card? If yes, your credit card company can increase your interests at any time without warning even if you’re on time in submitting your payments. All it takes is one late payment to any one of your creditors (not necessarily your credit card) and you could be paying more on your next credit card bill. Therefore, it’s important to understand every statement in your credit card agreement so you’ll know exactly how to handle your card.
2.Find out what other credit cards have to offer. Competition among credit card issuers is definitely a good thing. Check out what other credit cards have to offer and you may find one with a better deal. Of course, you’ll want to be careful about choosing and signing up for a new card. Aside from a low interest rate, make sure that the rest of the fees and terms are reasonable.
Listen, you've got bad credit -- it doesn't necessarily mean you have the plague and that you're forever destined to apply for bad credit cards. Of course, it could mean exactly that if you don't take the appropriate steps right away. Here are a few things to keep in mind.
Bad Credit Cards Are The Means To An End
Okay, you've messed up your credit. Don't expect to get a platinum card with a great interest rate. You need to hit the bad credit cards first - the ones with the annual fees and the higher-than-usual finance charges.
It's not the end of the world and you can use these cards to build your credit back up. Once you do that, go ahead and apply for the cards with the better terms. In the meantime, however, bad credit credit cards are all you've got.
You'd Better Change Your Wayward Ways
Those $4 lattes and happy hour runs are going to be a thing of the past till your credit gets in order. If you don't have money to get yourself completely out of debt, you don't have money to be throwing away. The majority of your extra cash needs to go towards paying down your debt. If you don't, you'll be at the mercy of bad credit cards forever.
People who have bad credit history and low credit scores are often confronted with difficulty when trying to get a loan. But there are instances when taking out a loan or borrowing money is really a necessity.
When this happens, people with bad credit often find themselves rejected by lenders or are taken advantage of by predatory lenders. If you’re in this situation, is there a way to make things better?
Bad Credit Secured Loans What are bad credit secured loans? As the name implies, these loans are especially offered for people with bad credit history. To make up for the risk of having a low credit score, a borrower will be required to submit a security or collateral to his lender. This way, the lender can have a solid guarantee in case the borrower fails to keep up with his repayments or if the borrower defaults on the loan. Of course, as a borrower, you should take your payment obligations seriously through out your loan’s term in order to save your property.
Because of the property submitted to the bad credit lender, most bad credit secured loans come with lower interest rates than unsecured bad credit loans. For many borrowers, this is a welcome opportunity to get through their financial needs with less hassle. Despite their low credit scores, the borrower can still get a loan approval with reasonable interest. Thus, the system works not only for the lender but for the borrower as well.
There is one more benefit that comes with bad credit secured loans and this the chance for the borrower to improve his damaged credit history. By submitting his monthly loan payments on time, the borrower also boosts his credit score. Once repayment of a bad credit loan has been completed, the borrower can regain a good credit standing.
If you have a low credit score, you're not alone. Millions of Americans have run into problems with debt. The good news is that there are certain steps you can take to rebuild your score. And you can even use a credit card to do so. Bad credit credit cards are designed to help you move forward and put your financial history where it should be: in the past.
Apply For One
Your first step toward a better financial future is to look online for a credit cards for bad credit. Many credit card websites include a special category for this. You can compare various options side by side. You'll notice that many are issued under well-known names such as Mastercard.
As you search online, you may find that this type of card includes a number of fees. You can expect to pay a fee for signing up, and you may be charged an annual fee as well as a monthly fee. All of these charges can seem overwhelming. While they are more than what regular cards charge, they are designed to give people in your position another chance at credit. A low score can make it difficult to take out a loan or get any kind of monetary help. This card, if used properly, will help you move back up the financial ladder.
Once you are afflicted with problems related to bad credit, you have to start making changes to your lifestyle. You will virtually loose the financial freedom and the ability to fulfill your needs and dreams. Loans will be hard to derive as lenders do not particularly favor the idea of risking their money. In such a hapless scenario, the only alternative is to go for bad credit loans. With these loans, you will be able to derive financial assistance to fulfill your various demands as well as to replenish the shattered financial condition.
Unlike regular loans, these loans are different, as an applicant with serious credit deformities can access it in a convenient manner. Any applicant with CCJs, IVA, arrears, defaults can utilize these loans to serve needs like paying of old debts, so as to improve the credit score. In addition to these, the poor credit loans can be also maneuvered to purchase a car, renovate home, covering expenses on education, wedding, vacation etc.
The approval of the loans comes mainly on the basis of your income and repaying capability. As usual, the loans are classified in to secured and unsecured form. Secured form of the loans are collateral based and can be availed only by pledging collateral such as home, automobile or real estate. The amount, thus approved is usually in the range of $5000-$75000. Repayment tenure too is large and spans over a period of5- 25 years. Owing to the presence of an asset as collateral, these loans for bad credit are approved with a comparatively low interest rate.
It would be to your advantage to look into business credit cards if you are a small business owner. These credit cards will allow you to keep personal and business expenses separate. This will make it easier to keep records of your business transactions. You will also benefit from the additional perks that these cards offer. In addition, this credit card can add to the professionalism of your company and will help you to establish the business credit separate from your personal credit.
The biggest perk in getting small business credit cards is being able to separate your business and personal expenses. This is an important factor in establishing the business as an entity separate from the owner. In the past, all small business credit is based on the owner’s personal credit. However, this can cause problems, especially if the business owner has bad credit. You need to establish business credit so that you will have a chance to build a good credit history that will help you to get loans or other credit needs.
Individuals have to fight a lot for their survival. Even in case of availing a loan, you are required to prove your credential. Such a situation makes it more difficult for you when you are tagged with a bad credit mark. Lenders turn down your loan application without even ponder over you money situation. However, you can reverse the situation now, as bad credit personal loans are here to provide you financial back up at an affordable choice.
Usually personal loans for bad credit are obtained without bothering much about credit conditions. These loans are formatted in secured and unsecured forms. This classification put options before you to avail an amount based on your affordable condition. A secured form is accessible to borrowers who are ready to offer an acceptable asset as collateral for the loan security. On the other hand, unsecured form can be obtained without attaching any asset. This loan option is beneficial for borrowers like tenants, non-homeowners, students, graduates, self-employed, unemployed, etc. with the absence of collateral, the loan is approved very quickly. However, the amount you are approved happens to be at a slightly high rate of interest.
Bad credit record is one of the common problems of the borrowers’ today. You can not escape taking loans as money is required in each and every step of life. The excessive loans mostly make you feel burdened and you become irregular in paying these off. This leads to a bad credit record. So, you need not to be worried with the poor credit score anymore. Solution to this is also there. The bad credit loans can be used as the best means to get rid of the poor credit scores.
Bad credit loans, if paid off regularly without skipping any installment or without being late then there are huge chances for you to improve your credit score. This process may take some time in making you reach a clean credit record but still is very effective. You can approach the loans for bad credit with any credit record and get home a good amount for facing any financial obligation. Credit records that allowed for the poor credit loans include: CCJs, bankruptcy, skipping of installments, arrears, defaults and late payment.
eople with bad credit may think that there are no decent bad credit credit cards. In fact, bad credit credit cards exist, but they are not always advertised as such. An individual just needs to recognize how certain cards work and how their bad credit might prevent them from getting these credit cards.
A prepaid credit card is one of the best bad credit cards. It works like a credit card, but a prepaid credit card requires a savings account be opened that acts as the account balance. It works very much like a bank issued debit card with a credit card logo. And a person cannot overspend and they are not subject to fees or interest charges with prepaid credit cards.
A retail store card could also be considered as a type of credit cards for bad credit. It’s easy to get these cards and are useful for those are looking to establish their credit history. However, these cards can only be used at the specific retail store that issued them, and they usually carry a low credit line balance. Companies who offer these cards are more willing to give a person with bad credit a chance than larger credit card companies.
So, you think your very bad credit is a big impediment in taking a loan at the time you need it the most. And perhaps you are justified in thinking that way as you may have been denied a loan for more than one occasion or may be your bad credit makes you shy for asking a loan. Ok just try the lenders who provide very bad credit loans. These are the lenders who have designed very bad credit loans keeping a sympathetic view that borrowers like you also need to meet financial requirements.
You can locate very poor credit loans providers easily on internet and apply to them then and there through filling an online application. Despite your bad credit, the loan is approved in lesser possible time for your convenience. Knowing the difficulties very bad credit people face, the loan process is kept very simple.
Very bad credit seldom comes in the way of availing secured very loans for bad credit. There is no major need for the lender to do a credit check as he has secured the loan through your property like home and in case of payment default he can recover the loan by selling your property. Secured very bad credit loans come with many advantages. The secured loan is offered at lower interest rate and repayment duration is larger ranging from 5 to 25 years giving you plenty of time to recover financially. You can borrow any amount depending on equity in collateral.
People with history like arrears, default loans, late payments, etc; are referred to as people with bad credit history. A bad credit history is just like an infectious disease. Most lenders don’t provide loans to the persons with bad credit. Many times, their request for the loan is declined. Lenders ignore the fact that people with bad credit were once rated in good credit history borrowers. It is just a matter of time that things change. So it is illogical to punish these people for their acts of past. Slowly this fact has been realized. Now, there are loan facilities for more and more people with bad credit so as to cater to their needs and requirements.
Bad credit personal loan becomes irrelevant under the secured form of loan, as the borrower is needed to put some collateral or security against the loan with the lender. Normally, the bad credit personal loans holder have to pay a higher rate of interest. This is normally because of the high risk potential of such loans. One can be overcharged for this loan amount. A hefty charge and inflexible terms of payment is asked to be paid on account of the borrower. But there are lenders who charge a lower rate of interest. Taking a loan is not an easy matter. One has to put the asset at stake. This affects the financial condition of the borrower. The information technology has provided a respite to the people as they can now search for the loan provider in an easy way. It is just the click away of a mouse. Those days are gone when people have to go all around to the lender’s office to avail the facility. Internet has become one of the best medium to meet your finance requirements.
If you are like many with credit problems, then you will understand and appreciate the lenders that deal with bad credit loans. Lenders that offer these loans are great because they understand your situation, and they are there to help. It is not hard to find a lender of this type of loan today; in fact they are seemingly on every corner. That may seem like a stretch, but the fact is they are everywhere for a reason. The more coverage they have to the public, the more likely you are to find them when you need them. Anyone with poor credit and that is looking for a great loan; need look no further than these lenders.
They Are Not Hiding
Bad credit loans are not for everyone, they are there for those that are finding themselves in a financial pinch and they cannot get out of it. These loans are for those that have blemishes to their credit history, and are having trouble finding someone willing to take a chance on them otherwise. If you feel like you are being rejected at every turn, then it may be time for you too to start thinking about this type of loan for you and your financial needs. These loan lenders are not hiding, it may have just been a simple case that you have never had a need for their services before now. Well the fact remains that they do exist, and they are there to help those in need.
Debtors who owe money to their creditors or say who are in a state of indebtedness toward them since a long time, may make the most of bad credit loans. Many credit-lending institutions have come up with such schemes to help you to pay what you owe with bad credit loans.
Next, accumulated debts make a person's life miserable. Loan companies often turn down the loan applications of people, who are not on good terms with their earlier creditors.
Relief for loan seekers
Several creditors have realized borrowers often default on monthly payments due to sudden change in employment, which disturbs their overall financial situation. Hence, they offer you the opportunity to pay what you owe with poor credit loans. They restrict the formalities for obtaining bad credit loans. Bad credit loans come in many types such as bad credit auto loans, bad credit home loans, bad credit personal loans and credit cards for bad credit.
Generally, a borrower with a bad credit score thinks that he cannot apply for any loans. The main reason behind such kind of belief is the less credibility of bad credit scorers among the lenders. And due to this reason, whenever such kinds of borrowers apply for a loan, they face a lot of hassles. But now put an end to all sorts of hassles. Avail bad credit loans and get money for your financial needs.
Loans for bad credit cover all types of cases, responsible for a bad credit score. It includes CCJ, IVA, bankruptcy, default, arrears, skipping payment, late payment and bankruptcy. If your loan application is turned down due to your bad credit score, then opt for poor credit loans.
Bad credit loans are of two types secured and unsecured. While following the secured way, a borrower needs to pledge a security against the lending amount. But such kind of requirement is absent in unsecured option.
If you're reading this article right now, there's a good chance you have bad credit. Does bad credit make you a bad person? Absolutely not. As the years go on this earth, the debt continues to go on as well. In fact, over thirty to forty percent of all Americans have some sort of debt that doesn't include their mortgage. So, the question is, "What do you do when you have awful credit and no where to turn?" The answer is quite simple, apply for a secured credit card.
A secured credit card is a great way to re-establish your credit. Instead of applying for a bad credit credit card and have a low success rate of being approved, you should turn your head to a secured credit card where your chances of getting approved are almost one hundred percent. With such a high approval rate, this is why many people turn to a secured credit card when they are looking to re-establish their credit.
If you're not familiar on how a secured credit card works, I'll guide you through the process. Keep in mind that this type of card is very different than a regular credit card. When you apply for a best secured credit card, chances are they you'll be approved. This is because you'll have to supply the credit card companies with a deposit The reason you'll have to supply the companies with a deposit is because if you don't pay off your bills, they will have something to fall back on.
If you have bad credit, you may be under the impression that you are not able to apply for a credit card. While it is true that you may be rejected from getting certain credit cards or loans, there are options available for those who have bad credit. Since a sizeable percentage of the population has bad credit, this has created a market which many banks and credit card companies have tapped into.
Your credit report is a reflection of your credit history, and it is very important when you need to apply for a car or mortgage. There may be situations where you will need a credit card to complete a certain transaction, and if you have bad credit you will run into problems. There are a number of options available for those with bad credit who want cards. Secured credit cards are one good option. A secured credit card allows you to deposit money into the account which you can then use.
Instead of borrowing money from the credit card company, you use your own money. You will not be allowed to go over the amount you place on the card.
Credit problems happen to people regardless of circumstances. Although some consumers are irresponsible with credit, others simply fall on hard times. Loss of employment, family problems, and illnesses may have a negative effect on our credit. Fortunately, there are ways to boost credit rating. Bad credit credit cards are intended for people hoping to rebuild their credit history.
Numerous circumstances justify obtaining a bad credit credit card. If you have filed a recent or past bankruptcy, re-establishing credit is essential. Hence, you can take advantage of unsecured credit cards for bad credit. Moreover, individuals with no credit history may get approved for such credit cards.
Once approved for your new credit card, the credit card company will report to the credit bureaus monthly. Thus, if you maintain a low balance and pay creditors on time, this will reflect on your credit report. Little by little, you credit score will improve. On the contrary, if past credit mistakes are repeated, you will further damage your credit rating. Three tips to improving credit involves, timely credit card payments, no skipped payments, and keeping a low revolving balance.
Initially, you should anticipate a low spending limit. These limits range from $250 to $500. Because of your history, your new credit card company will exercise caution. After several months of making regular payments, your credit limit will increase. However, credit increases are on a probationary basis. If you miss a payment or submit a late payment, the credit card company has the right to decrease your credit limit and raise your interest rate.
Bad credit loans are creations of the modern day loan business as more and more people are being under debts and multiple payments mistakes are leading them to a blemished credit history. These are, therefore, especially carved out loans for the people having in their names faults like late payments, defaults, arrears and CCJs. However, the applicants will get the approval on ascertaining some conditions.
Both tenants and homeowners can find these loans once they have proved their income and repayment capability. These loans are accessible in secured or unsecured options. For homeowners, the secured option is ideal if they need to borrow any big amount at low rate of interest against their property. Value of collateral will determine the loan amount, which usually ranges from £5000 to £75000 for its use in home improvements, debt-consolidation, purchasing a car, going to a holiday tour etc. You can repay the borrowed amount in 5 to 25 years.
Bad credit credit cards are normally designed for people with a bad credit history. People with a low credit score can usually get a card specifically for their needs. Orchard bank is one such institution that provides cards to improve your credit score as they report to the major credit bureaus on a regular basis. Take advantage of the opportunities available, find the best rates for a bad credit credit card and start rebuilding your credit today.
Unsecured
Unsecured cards for a bad credit history come without any collateral. The unsecured options usually come with much higher interest rates.
Secured
With the secured options, your credit limit usually matches the amount that you deposit. With on-time payments you can usually be considered for unsecured offers after some time, normally 6-12 months.
Interest
If you pay off your credit card balances in full each month, you can typically avoid high interest rates and late fees associated. But remember, by paying only the minimum each month you will incur interest at very high rates especially if you have a credit card designed for bad credit. Consumers with poor credit usually will have higher interest rates because of the risk of default. The fact that these types of cards carry a high interest rate usually 20% - 30% or more shouldn't stop you from getting one, in an effort to get your credit score on the road to recovery.
Bad credit loans from banks prove to be a great help for people who are trying to regain their financial stature. Having bad credit really does not look good on one's credit report, and it affects his credit reputation greatly.
That is why some banks are trying to assist people in this kind of financial distress. People who apply for bad credit loans from banks are certainly trying to restore their credit file as well as remove any bad information from it. And poor credit loans from banks assist these people greatly.
Banks that offer this type of loan usually do not ask too much about the person's credit file. More often than not, they also do not ask for equity or collateral. And if you are interested in taking advantage of loans for bad credit from banks, they usually offer assistance through their customer care service representatives who can answer any of your questions regarding their program.'
It would surely be a common thing for people involved in financial dealings that one sees the bad credit history developing if the commitments are not cleared on time. Bad credit history of the borrowers reduces their credibility which gives rise to problems when they want to borrow money in the future. Poor credit personal loans can be borrowed in such a situation when financial requirements are troubling you.
Home improvement, debt consolidation, wedding expenses, car purchase, travel expenses, etc are some needs that can arise for the borrowers. If this happens when the borrower is suffering from a low credit score, this might turn out to be a problem for him. In such a situation, bad credit personal loans can be borrowed so that all such needs can be dealt with easily. The borrowers who are ready to pledge their assets with the lender for the money can get the secured form of these loans. Money can be borrowed according to the equity of the asset pledged, in the range of £5000-£75000. Also, the borrower can repay the loan in a term of 5-25 years. The rate of interest for these loans is low due to the attachment of collateral.
Credit runs into our lives and has effect on almost every decision we make. Bad credit runs in our credit application and has effects on every loan we borrow. A recent survey has shown that one fifth of the adult population cannot qualify for regular loans. For such a huge loan borrowing population there are specific loan programmes called bad credit loans.
With loans for bad credit you can borrow loan amounts of the likes of £5000-£75,000. Repayment term will vary from 5-25 years. Both secured and unsecured options are available for bad credit loans. Unsecured poor credit loans will require no collateral and will suit if you want to borrow smaller amounts. For larger amounts secured bad credit loans are appropriate and would require collateral like home, real estate or car etc.
Start with your credit report and credit score - that will give you a clear idea about how ‘bad’ your bad credit is. Credit score has statistical information which can be used by loan lenders to assess the risk accompanied while lending you money. Different credit score structures are used by loan lenders – however the most common is fico credit score. Fico score ranges from 300-900. Anything below 620 will mean you have bad credit score and will qualify for such loans only.
Bankruptcy, arrears, late payments, CCJs, defaults, foreclosure and any court case are seen as bad credit cases. None of these things on your credit report can prevent you from having loans with bad credit, unless you have pretty bad credit condition like multiple bankruptcies. In worst case scenario there will fewer lender ready to take this sort of risk.
Getting a credit card with bad credit isn’t an impossible task, but you’re not going to get the best credit offers in the world. Still, it’s a line of credit that you can use to build up your credit score and get you out of bad credit hell.
Step1. Have an open checking account in good standing. If you have a negative balance at your bank there’s a very good chance that you will be denied for credit - even for a secured credit card!
Step2. Make sure you pay your bills on time.
If your electric or cable utilities are always being turned off, you will want to get your finances in order before you apply for a poor credit card.
Step3. Repossessions are bad.
If your car was repossessed, see if you can get the car back by making a payment.
Step4. Make sure you have no loans currently in default.
Talk to your lender and see if there is some kind of payment play you could work out that would better fit your finances. Just note that if you do manage to work out a new payment structure then you should be aware that the life of the loan may be extended for several years: my particular loan went from a 2 year repayment period to a 15 year period.
Step5. Do not have any accounts in collections.
Sometimes it happens: we slip so far that in order for a bad credit card company to make a profit, they have to sell your account to a collections agency. Before you apply for any credit card make sure you are not in collections.
A secured credit card is just that; a credit card secured by a deposit account held by the cardholder. The card holder may then deposit anywhere between 100-200 percent of the amount of credit as he may desire. But sometimes the credit card issuers may reduce that to only 10 percent. From the issuer standpoint, the secured credit card is better as there are fewer delinquencies when the cardholder suspects he may lose something by not paying.
From the cardholder's standpoint, a secured credit card can serve the purpose of building your FICO scores. For these types of cards, everyone is invited.
For the sake of prudence, it has to be said that secured credit cards make the better choice. Since you cannot spend beyond the amount secured, it is unlikely that you will bury yourself in debt. That way you can start building a good credit history, but make sure that the credit card issuer reports your record to the credit bureaus.
The credit card holder in this case is expected to make regular payments to meet the amounts charged on the card. The deposit will only be used if the account is closed either at the customers request or after excessive delinquency. So there is no question of you forfeiting your deposit in the event of just one or two defaults. Also, the annual fees for many secured credit card in the market tend to be reasonable, unlike some available credit cards. The fees may be as low as $30 whereas for other cards, the fees could go up as high as $50.
People with bad credit can still obtain home loans, auto loans and personal loans. Having bad credit doesn't mean that the consumer can't obtain credit, it just means the terms won't be as favorable and it may take a little more searching to find the best deal. Bad credit ratings can result for several reasons; bankruptcy, too many credit cards with missed or late payments, defaults on loans, etc. Whatever, the reason bad credit loans may still be available.
Acquiring a bad credit loan, may be the first stride to rebuilding your credit. Many people with credit evils find that a bad credit loan can help them get back on their feet and find the way to special fiscal liberty once again. A bad credit personal loan can be worn to help get your life back on track, get rid of calls from creditors and even avoid bankruptcy.
The bad credit personal loans may be used for other situations and not necessarily debts, so it could be used for an emergency expense that has arisen like medical fees not covered by insurance or a wedding for example. It is not uncommon for a person to arrange a loan just so they can repair their damaged credit history. They may not require the money for any specific situation.
Bad credit is a big, and growing problem in the US. In this article, we will be answering questions regarding bad credit. If you are currently having problems with your credit score, check out these questions and find out what you can do about improving your credit rating.
If you have bad credit, does that mean you can never apply for a credit card?
No. Even with bad credit, you can still apply and be approved for a credit card. Although standard credit cards generally require excellent credit or high credit scores from their applicants, there are credit card companies that have special programs designed especially for people with bad credit. Bad credit credit cards were created to cater those who will not qualify for a standard credit card due to a low credit score.
What are bad credit credit cards?
Credit cards for bad credit have specific requirements that are suitable for people with bad credit. Some bad credit credit cards are secured, which means the card holder would need put it in a certain amount in his savings account as deposit or as security for his debts. Therefore, the credit card company is assured that in case he fails to keep up with his credit card bills, the money he deposited can be used to pay off his dues. Some are unsecured meaning you are given a credit line much like a regular credit card. The only difference is that most unsecured bad credit cards have small credit lines and higher than normal interest rates. The good thing about both of these cards is that they are easy to get approved for, report to the credit bureaus, and with a good payment history the credit companies will increase the lines of credit that you are approved for.
Instead of meekly surrendering to the prevailing circumstance, you should try to fight with. This sort of situation occurs when your financial condition is not good and along with you are having bad credit problems. It is not that you cannot avail any external finances. To allay your fears, now you can avail ample finances to sustain your various demands with the help of bad credit personal loans.
In fact these loans are designed to provide monetary assistance to those individuals who are having problems like CCJs, IVA, arrears, defaults etc. Through these bad credit loans, you have a chance to raise the necessary finance to execute your various needs. For instance you can use the amount for home improvement, consolidation of existing debts, going for a tour, purchasing a car or any other needs.
In the loan market, these loans are broadly classified in to secured and unsecured form. The secured form can be availed by pledging any valuable asset as collateral. Usually under this bad credit loan option you can borrow a bigger amount of up to £75,000 or more. The repayment period is large and falls in between 5- 25 years. Since the amount is secured against an asset, the rate of interest too is comparatively low.
How familiar are you about bad credit credit cards? How much do you really know about credit cards for people with bad credit? In this article, we’ll discuss the common false notions people have about credit cards for bad credit. Hopefully, you’ll be enlightened about the use of bad credit cards when you’re done reading this article.
Bad credit credit cards always come with high-interest rates. It is true that credit cards for bad credit do have higher rates than regular credit cards but this doesn’t mean that all of them are unreasonable. Some credit cards, such as the Centennial Gold credit card have an apr of 9.99% which is a great interest rate for a card that services people with problem credit.
If you take your time and shop around the market, you’ll be surprised to find that there are credit card issuers that offer bad credit credit cards with decent rates. The key is taking your time in comparing quotes and not opting for the first offer you see. Don’t just rely on the ads but be diligent enough to read the complete terms and conditions of the card.
Bad credit credit cards always require a security deposit. Some credit cards demand a certain deposit amount from their clients to make up for their risk. These credit cards are called secured credit cards. Not all credit cards for people with bad credit are secured credit cards. It is possible to find an unsecured credit card even if you have less-than-perfect credit.
People with bad credit are often confronted with the problem of choosing lenders and credit card companies. Since their only option is to apply for a bad credit credit card or a bad credit loan, credit card issuers and lenders may take advantage of their credit status. If you have bad credit, how can you select the best credit card or lender? How can you stay away from unfair rates and predatory lenders?
In this article, let’s discuss important points on how you can avoid getting scammed when looking for bad credit cards.
The best Credit Cards for people with bad credit
Bad credit credit cards in the market are created to cater people with bad credit. These cards have more lenient terms and often grant approvals easily. Nevertheless, not all give the best offers.
Obviously, each credit card demands a different interest rate. When it comes to credit cards for people with bad credit, the interest charges can be extremely high. Nevertheless, it is possible to find ones with fair interest rate if you do your research.
Acquiring a bad credit personal loan is an option for people with less-than-perfect credit to get the financing they need without difficulty. Since a high credit rating is often a requirement sought by regular loan lenders, those with bad credit can still get the loan if they can find a sub-prime lender.
Bad credit loans are also known as guaranteed approval loans because these loans grant approval for anyone regardless of their credit standing. Guaranteed loans are also easily available online. All one has to do is fill out an online application form, submit it from the lender’s website, and wait for an approval. Because of its convenience, most people with credit problems prefer to get a bad credit loan this way, rather than go through the process, and possible loan rejection of a standard loan.
If you’re planning on getting a guaranteed approval loan yourself, consider your options first. Do you really need the cash in a hurry? Or is it possible for you to work on improving your credit rating before you apply? It’s important to note that bad credit loans are designed as a short term help, never as a long term financial solution.
Each lender who works with applicants who have bad credit has their own rules that determine how one qualifies for bad credit personal loans. Because each lender differs, it is important to make some inquiries before you make the final decision on a loan. Another thing to keep in mind is that being turned down by one lender doesn't mean another one won't approve the loan. Take the time to ask questions, and the process will go much smoother.
Employment history
One of the most important factors in any loan is a stable employment history. In the case of poor credit personal loans, this is even more important. The borrower with good credit who has a questionable employment history is going to go and find another job so he can pay his obligations, but with the borrower who has bad credit, the lender needs more assurance than just his word. Thus, the applicant with bad credit will have to have a stable employment history, or the lender is not going to be willing to give him a chance to reestablish his credit.
Purpose of the loan
The lender is going to put a great deal of weight on the purpose of the loan. Bad credit loans are not going to be approved just because the borrower wants some extra money or wants something frivolous. There will have to be a specific purpose for the loan, and it must be something that is necessary. Loans for medical bills, college expense, and home or car repairs are more likely to be approved than a loan for vacation or to host an anniversary party for friends or relatives.
Interest rate
Another factor for the borrower to keep in mind is that personal loans for bad credit are going to carry a higher rate of interest than what is offered to customers who have good credit. This means that the payments are going to be somewhat higher than what is paid by a borrower with good credit being loaned the same amount of money. For this reason, there is a possibility that the bad credit customer may not be able to borrow the amount of money he needs since the lender is going to look at his current Income to Debt Ratio and determine how much he is willing to risk.
Credit problems happen to people regardless of circumstances. Although some consumers are irresponsible with credit, others simply fall on hard times. Loss of employment, family problems, and illnesses may have a negative effect on our credit. Fortunately, there are ways to boost credit rating. Bad credit credit cards are intended for people hoping to rebuild their credit history.
Quickly Improve Credit Score with Bad Credit Credit Card
Numerous circumstances justify obtaining a bad credit card. If you have filed a recent or past bankruptcy, re-establishing credit is essential. Hence, you can take advantage of bad credit credit cards. Moreover, individuals with no credit history may get approved for such credit cards.
Once approved for your new credit card, the credit card company will report to the credit bureaus monthly. Thus, if you maintain a low balance and pay creditors on time, this will reflect on your credit report. Little by little, you credit score will improve. On the contrary, if past credit mistakes are repeated, you will further damage your credit rating. Three tips to improving credit involves, timely credit card payments, no skipped payments, and keeping a low revolving balance.
People are often encouraged to build their credit history or improve their credit scores by obtaining credit. Ironically, most lenders require excellent credit before they grant an approval. If your problem is that you have never had credit or you have a poor credit score, chances are your application will be declined. Do you have other options? Fortunately, yes!
Best secured credit cards are made especially for people with problems with their credit score or for people who haven’t yet started building a credit history of their own. That’s right. Even with poor credit or even with no credit at all, you can still get approved if you apply for a secured credit card. Does this prospect interest you?
What is a secured credit cardand how do they differ from regular good credit cards? As the name suggests, this type credit card requires a security deposit from the card holder. The credit card company uses your security deposit as collateral just encase you stop making timely payments they will simply use your deposit to pay the card off.
How much is the security deposit? The minimum amount required depends on your credit card issuer but typically, it ranges from $300 to $1,000. Your credit limit will often depend on the amount of money you deposited as security. Usually, your credit limit will be 50% or equal to the amount you deposited. There are some secured credit cards however that give a credit limit that is doubled your security deposit.
What about the interest rate? The interest rates on secured credit cards are expectedly higher than credit cards for good credit. Still, this doesn’t mean you should settle for unreasonably high rates. Do your research and you’ll surely find a secured credit card with reasonable rates and fees.
Having bad credit can be a huge dilemma especially when it comes to getting a loan. Since lenders want to reassure the credit worthiness of their clients, those with low credit scores can be immediately declined. Yes, bad credit loans do exist in the market, but if you want to stay away from high interest rates, it is a far better option to work on improving your credit score first before applying for a loan. Unless you need the cash in a hurry, rebuilding your credit is definitely the best choice.
How to Fix Your Credit Score
Is there really an instant way to fix your credit score? Despite what some credit-fix companies may claim, the only safe and guaranteed way to fix one’s credit is to address the root of the problem. Why did you receive a low credit score in the first place? What are the factors that led to your bad credit?
Late payments and unpaid bills are the number one cause of bad credit. Excessive use of your credit limit can also affect the result of your credit score. Of course, defaulting on your debts completely means more damage to your credit history. So how do you really address these problems?
How to Prevent Identity Theft Identity theft is the fastest growing crime in America today. More than 9.9 million Americans were the victim of many types of identity theft scams in 2004, which ended up costing them almost $5 billion. Most identity theft victims suffered sever financial damage and even financial ruin because they thought identity theft would not happen to them. No matter what your current financial state is like, where you live, or what your spending habits are, you are a target for identity theft. The truth is that everyone is at risk for identity theft, but fortunately there are things you can do to prevent identity theft from happening to you. Read more>>>>
According to statistics from 2006, identity theft happens to more than eight million people a year. As a result, there are a slew of companies offering services to prevent it. There ARE measures that the average person can take though that will help prevent identity fraud. This includes protecting your privacy,and your personal information, shredding mail and financial documents, and monitoring your credit diligently. You might also consider purchasing identity theft insurance. It won't stop it from happening, but it will prevent scammers from taking over your savings and ruining your credit. Read more>>>>
Things You’ll Need:
Knowledge
Awareness
Shredder
Caution
Tips & Warnings
Sign up to Receive Free Credit Alerts From Equifax. Please click on the link posted below to read my article 'How to Receive Free Credit Alerts From Equifax'
Monitor all your bank and credit accounts by single login by signing up for 'My portfolio' services. Many banks offer such services through their online banking. Please read my article 'How to Access Multiple Bank and Credit Accountidens by Single Login' below.
If you have a WAMU bad credit card you would be able to track your FICO credit scores on a monthly basis for free. Please click on the link below to read my article 'How to get a Free Monthly Credit Scores'
There are many credit companies that make loans available to people with bad credit scores. Even if you have a bankruptcy on your record, it's still possible to get a loan. The biggest concern, however, is that typical "bad credit loans" have very high interest rates, forcing you to take responsibility for high monthly payments.
1. APPLY. Create an account on the site with a user ID and password. Once you have a user ID, you simply fill out the application, with information like your name, employment history, etc., and submit it with a click of your mouse. Nothing could be easier!2. SIT BACK AND WAIT! The lender will review your application. Oftentimes, you'll receive a phone call or email asking for more information, and in some cases you may need to provide documentation, such as faxing the company one of your recent pay stubs.3. READY TO GET SIGN. With most types of poor credit loans, you'll need to physically sign the paperwork, and the loan company will want the original copies. Some companies hire a processor to meet with you and handle the signature aspect. Others will send or overnight the papers to you so you can sign them, and then you'll have to mail them back to the company.
Helpful article on getting a loan with bad credit score.
If you get a loan and take care to meet all payments on time and in full, the loan can actually help your credit score.
If your credit score is low, most lenders will only offer you high interest loans. Not only will you be making higher monthly payments, but the bad credit loan will also cost you significantly more in the long run.
Make sure that you are getting your loan from a legitimate lender. There are numerous lending scams that specifically target desperate individuals with bad credit scores.
Having bad credit won't necessarily prevent you from getting a credit card, but it can make it—along with other, larger purchases in your life— much more difficult. Follow these steps to get a credit card despite your bad credit.
Here are some article that will be helpful for you in repairing your credit score
While you are trying to get a credit card, keep paying all your other bills on time.
Once you get a credit card, you'll start getting offers for other cards in the mail. Be wise: You should have no more than three credit cards - one or two with a small credit limit and one with a larger limit for emergencies.
Don't get a credit card from a single store or chain of stores. Use Visa, MasterCard, Discover or American Express, as these are widely accepted.
Do not get a credit card that has an annual fee. There are lots of credit cards available that don't charge annual fees.
If you are denied credit, by law the issuing company has to tell you why. Request a copy of your credit report to see what is in it.
Don't overspend. Use your credit cards to your advantage. Only buy something that you can pay for in cash. This will keep you from buying more than you can afford.
Many credit cards carry interest rates of 18 to 21 percent. If you cannot pay off your balance every month, you are spending more than you can afford and need to stop using your credit card until you can pay off the balance.
A borrower with less-than-perfect-credit history has a chance to get a loan with bad credit personal loan. The borrower should clearly state what is the purpose of the loan. The reason is one of the basis of the bad credit loan term and its repayment.
* Credit application * Supporting documentation (credit report, proof of earnings, notarized list of assets and liabilities)
Tips & Warnings * Use the opportunity to improve your credit rating. Pay back the poor credit personal loan promptly, don't miss any payments and watch your credit score increase. * The fees, closing costs and interest rates on a personal loan for bad credit are usually much higher than standard bank loans.
