Reasons For Having Poor Credit Rating Credit Cards [mortgagefraud101.blogspot.com]
Following the global recession it is no surprise that many people have found themselves with poor credit. This could be for a number of reasons. Principally many lost their jobs and had to borrow to see them through the storm. In addition many pre-existing agreements were terminated as the banks rushed for liquidity and this adversely affected consumer' credit scores. Another reason was the reliance on credit cards or inability to pay credit card bills following the crisis. However, from these, problems have sprung solutions for consumers in the shape of poor credit rating cards.
Poor credit rating cards are exactly the same as normal credit cards but are available for individuals with a bad credit history.
Why would a credit card company want to extend credit to someone with a poor credit rating you might ask? Well the reason is that the rates are often slightly higher and the credit card companies can earn more from people than with their normal products. In addition, the limits for such cards are usually assessed and set to control the amount of risk that the card company assumes.
It is as important as ever to properly research all of the options available on the market before jumping into an agreement for a poor credit rating card. You must look at the rates, amount of borrowing, time limits and repayment schedules etc. In addition, make sure you really understand the charges and interest structure so that you can know the true cost of the borrowing.
Poor credit rating cards are not supposed to be for people who are plunging further and further into debt and need alternative sources of borrowing but as a means for people who have had difficulties in the past or simply who are victims of the credit crunch to be able to own cards again. In addition, poor credit rating cards are available for consumers with no credit rating at all.
Sometimes, if an individual has not borrowed anything in the past, the credit reference agencies will not hold any information on them and this may produce a bad score or significantly limit the amount that you can borrow.
A poor credit rating card can help people out of this situation by building your credit information so that they can move onto owning mainstream credit cards.
Find More Reasons For Having Poor Credit Rating Credit Cards Issues
Question by Curious Cat: Credit cards for poor credit ratings? I want to buy a house so I am working on repairing my credit. Due to death of child's father and job lay off my credit suffered to the point where my scores were in the 300s. Over the last 1 1/2 years I have brought them up to very low 500s. The mortage company said I should get two credit cards and rebuild a payment history so my scores will increase. How can I get these cards if no one will give me credit? Are there any credit / department stores that give credit to very poor credit score holders? I don't want to pay horrible fees and such. Best answer for Credit cards for poor credit ratings?:
Answer by B.B
go to www.creditcards.com or www.orchardbank.com
Answer by Scott
Check with Bank of America. They have a secured card where you put $ 99 in a savings account and you get a credit card with a $ 500 limit. Pay on time, and after a year, they'll release the savings account. Continue to pay on time and you'll get credit line increases. I appreciate the previous responder's answer of "Orchard Bank," but HSBC (Orchard) has so many fees associated with it's card that its hardly worth it.
Answer by Speed1200
Youll get a really high interest rate, 29.99% !
Answer by Christopher C
You can get a secured credit card from your bank. This requires that you put money in a savings account that you cannot touch. You can borrow up to the amount of your savings. then make the monthly payments. I would also recommend that you go to each bureau and dispute every negative item they are reporting (whether true or not.) RE: According to the fair credit reporting act, creditors must respond to a dispute filed with an agency within 30 days. Many times credit companies don't respond because... well, why pay one of your employees to do it if you have already recieved your money? Often times items will be removed from your report because the creditor doesn't respond in time. Best time to do this is Summer / November - December timeframe. Because employees are on vacation or because of the holidays your chances of companies not respond increase quite a bit. Good luck!
Answer by jimobasa
The type of institutions that offer credit facility to borderline cases (like yours) inevitably charge very high interest rates. For example a standard credit card might be 32.5% APR whereas a platinum card (given to a person with good credit history) might be only 19.5% APR
Answer by Sarah W
I too suffer from bad credit and have never been able to get a credit card. Recently though, I got an imagine mastercard. You have to have a checking account to be eligible. They only start you out with $ 150-$ 300 dollar limit, and it increases if you pay back successfully. I know you will be eligible. Good Luck!
Answer by Jeremy P
You have a few options available if you'd like to rebuild or repair your credit. Several credit card issuers specialize in credit cards for people with poor / no credit. You can find a complete list of offers here: http://www.asapcreditcard.com/unsecured-offers.html While these credit cards will have higher interest rates (and additional fees) when compared to 'standard' credit cards-- you'll pay much less than with a 'store' credit card. Plus, they'll give you the opportunity to prove your creditworthiness and help build / improve your credit score. In time, with regular on-time payments-- you'll be able to apply for better offers with lower APR's and less fees. Hope this helps. GOOD LUCK!
Answer by See Saw
Major credit card issuers like Discover, American Express and Chase offer a credit card for bad credit holders. A 'shopping' card offers you an unsecured line of credit from specific sellers. Use these cards to increase your credit rating, since the credit bureaus will be informed about your timely payments.
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