Not yet registered? Create a OverBlog!

Create my blog

How to get credit cards for people with poor credit

If you have failed to comply with the terms and conditions of any of your credit agreements during the last six years, this information will have been passed to credit reference agencies. This means that your days of getting a low credit card rate are over for the foreseeable future. However, you may be able to get an adverse credit card from a specialist poor credit issuer.

What are credit cards for poor credit?

Why is bad credit a problem?
When you have been declined for credit elsewhere, this is normally due to your credit score. Issuers are not prepared to offer you credit because they are concerned that you are going to default on the agreement. However, if you are willing to accept the fact that you will need to pay extra for the opportunity to borrow money, there are issuers who are prepared to offer you a card. You should expect to pay additional charges and a higher rate of interest in return for a lower credit limit.

Types of credit cards for bad credit

Unsecured credit cards
The card may be the same as you are used to having in your purse or wallet. However, you will not get the best card credit rate and you will normally be expected to pay several upfront charges. Although issuers will report timely repayment to credit reference agencies, you will only be offered a $300 credit limit. If you exceed your spending limit, you could do yourself more harm than good. You may qualify for a higher limit in the future, but you will need to manage your account responsibly for the next 6-12 months. Secured credit cards
Although the credit cards APR will not be hugely different to an unsecured card, the main benefit is a much higher credit limit. This is not because the issuer is more generous, it is because you are securing your debt with a cash deposit. The larger the amount you deposit into the issuer's account, the higher your spending limit. Given that most credit experts agree that you should not use more than 30% of your limit in a single month, this is one of the most effective credit-building credit cards. Pre-paid credit cards
If you have found it difficult to manage your financial obligations in the past, a pre-paid credit card could help you. You transfer money to your card by bank transfer and are free to spend it as you wish. Unless your card displays the credit builder symbol, it will not help to rebuild your credit history.

Same category articles Banking

Where to apply for cheap car loans online

Where to apply for cheap car loans online

When you take on a secured loan , like a car loan, cheap loans can be obtained if you have good credit. Often, however, going to the dealership is the worst way to get a loan since the financing may not be advantageous for you and you might not get a good rate. To get the best possible car loans for you, you should consider shopping online first. However, you need to know where to look.
What are HUD loans?

What are HUD loans?

When people are shopping around for a new home, they must also shop around for home loans. There are a variety of different home loans offered by banks and financial institutions, but one of the more popular types of loan is a HUD loan. Since the housing market crashed, many potential home buyers are looking into obtaining a HUD loan, because it can be more benefical to them.
Useful money management tips

Useful money management tips

Check out the four things that you can do to better manage your money. Your expenses and even your personal savings can be prioritised.There is more than one way to track your money. Get your money management tips and advice in the following article.
The types of UK tax-free investments

The types of UK tax-free investments

Tax-free investment possibilities in the UK include individual savings accounts, venture capital trusts, the enterprise investment scheme and community investment tax relief. These offer various tax advantages including relief from income tax and capital gains tax. The choice of which investment vehicle to use may depend on the investor's tax position, appetite for risk and the required return.