Senin, 05 Maret 2012

Credit Cards For Very Bad Credit

Tips on Getting Credit Cards for Very Bad Credit

A lot of things in today’s world are pegged on your credit score. The three companies—Equifax, TransUnion and Experian come up with every individual’s credit ratings consistently, and these are taken as a parameter by the credit card companies when they have to issue a credit card to an applicant. In other words, if you have a good credit rating, your chances of getting a credit card improve. However, do you get a credit card if you have bad credit? It might be an uphill task, but it is not entirely impossible.

The first thing you have to remember here is that if your credit rating is low, you will have to end up paying a higher rate of interest on your credit card even if you get one. That fact is etched in stone. There is nothing like a low APR credit card for someone whose credit rating is bad. So, each month you will be making a significantly higher payment on your credit card than other people who have a good credit reputation. It might seem ironical, but that is the way it is.

Now, you may find some credit cards for people with bad credit rating online. Some of the new companies that have sprung up also offer instant credit cards for bad credit. You might want to check those out. Some of them might need some kind of security, like you might have to submit your professional details, etc. But, if you look harder, you might also find unsecured credit cards for bad credit quite easily. The best thing about these is instant approval. With this instant approval, you come to know within just a few minutes if you are eligible, and then you can decide whether you want to make a formal application.

One more way to go about it is to choose prepaid credit cards, also known as debit cards in some countries. Banks will willingly offer you prepaid credit cards, because here they have a great degree of security. You first deposit some money into your account and whenever you use the card for any transaction, the money is used from that account. You cannot go higher than the amount of money you have put into the account; so, that is a limitation with these cards. But, they are a nice way to improve your credit rating.

Speaking about improving your credit rating, that is actually what you should be striving for. Even if you get a credit card, you should ensure that you manage them well, make their payments in a timely manner, because that improves your standing. Six months down the line, you will find that you are in a better financial position and that your credit rating has improved than when you started out.

When your credit rating improves, you might plan on switching over to another card, with a bigger limit and a lower interest rate, and transfer your balances to it. Since your chances of getting better credit cards will have improved now, this becomes a possibility. Just keep in mind to choose a card that has a low balance transfer rate so that you are not much affected when you are transferring your balance to your new card.

So, finding a credit card for bad credit rating is possible. It is all about proper management, and in about a year, your situation will have considerably improved than what it is today.

Credit card tip from www.credit-card-application.org.uk :
"Always read the terms & conditions carefully before you apply for any credit card. Applying for multiply credit cards at the same time may negatively affect your credit rating."

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