Title:
Credit Cards For Bad Credit
Word Count:
499
Summary:
Having a bad credit history will make it more difficult for you to get
another card, but not necessarily prevent you from getting one. This is
because many banks, if they feel that an individual with a bad credit
history has good intentions to pay bills, will offer bad credit credit
cards to re-establish a good credit rating.
Credit cards for bad credit fall under two catogeries – Secured and
Unsecured credit card for bad credit.
With secured credit cards for bad credit...
Keywords:
bad credit, finance, loans, credit repair, credit cards
Article Body:
Having a bad credit history will make it more difficult for you to get
another card, but not necessarily prevent you from getting one. This is
because many banks, if they feel that an individual with a bad credit
history has good intentions to pay bills, will offer bad credit credit
cards to re-establish a good credit rating.
Credit cards for bad credit fall under two catogeries – Secured and
Unsecured credit card for bad credit.
With secured credit cards for bad credit, you will be required by the
bank to deposit a certain amount of money that may range from a few
hundred to several thousand dollars, into your savings account as
security for your line of credit. Your credit line is a percentage of
your deposit, somewhere between 50 to 100 percent. The bank will then
issue you a card with a spending limit equal to your credit line, which
will serve as collateral for use of the credit card for bad credit. The
money in the savings account, or the collateral, will be used to pay the
balance if you fail to pay your credit balance. It is also probable that
you’ll be paid interest for your deposit but you may also have to pay
application and processing fees.
As for unsecured credit cards for bad credit, the bank will not require
you to deposit an amount as security or collateral. However, you will be
issued a credit card for bad credit with a low spending limit that may
range from a few hundred dollars to one or two thousand dollars, and very
high fees. Your spending limit will also be increased if you continue to
prove your ability, and good intentions of making payments in time. Make
sure that the issuer reports to a credit bureau if you’re applying for a
secured card to build or re-establish a bad credit record, so that a
proper credit history can be built by the bureau.
When looking to apply for a credit card for bad credit, watch out for
scams and deceptive ads. The Federal Trade Commission (FTC) has launched
a campaign and taken action against such misleading companies and
agencies. Learn to identify frauds and scams by studying telltale signs
such as those offering credit card without examining your credit report,
a call to a “900” number for which you are billed (without you knowing
how much), and cards offered by credit repair companies.
When applying for a credit card to rebuild credit, most of the major
credit card companies such as Bank of America, Bank One, Capital one etc
will be able to assist you in getting a secured credit card. This will
ensure improvement in your credit history because ever payment made in
time will be reported to one or two credit bureaus. You may also
eventually receive an offer for an unsecured card with a significant
spending limit if you continue to follow rules and pay your credit card
bills and other payments in time.