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Credit Cards For People With Bad Credit Scores
Sometimes life lands you in a situation that causes your
credit to suffer. A job loss or illness can send your credit
rating south leaving you with nothing to do about it. Some
creditors may let you slide a month or two, but your records will
still show a delinquency. A stolen identity can also leave you
feeling violated and unable to resume a normal life with credit.
It is during these times you may have to search a little harder
to find companies that wan to deal with people who have bad
credit. There are a handful of lenders who will help you
re-establish your creditworthiness by using one of their credit
cards.
The price you will pay
Searching the Internet will give you a good idea of what types
of credit card companies will deal with bad credit. Companies
like Capital One, Orchard Bank, Providian Financial and even
Citibank have plans to help you get back on your feet again. But
at what price will you have to pay? The price is interest.
Interest rates from these companies can be up to 25-30% annually.
So it is important to manage your money and credit more
wisely.
One of the many benefits of using one of these preferred
lenders is that they report positively to the major credit
scoring repositories. That means if you make timely payment it
will be in your favor and will help boost your credit rating back
up. The interest you pay is a small price to pay to get back on
your credit worthy feet.
The secured credit card route
Most of the major banks and lending institutions may seek a
deposit matching mechanism called a secured credit deposit before
backing a credit card for you. This card is used the same way
that a normal credit card is, however the cardholder must fund it
before using. If the cardholder deposits $100 into the interest
bearing account their credit card is funded at 100% of their
deposit. Some credit cards can at their disposal issue double or
triple matches to boost the amount the creditor can spend. The
deposit of $100 can return $300 in credit terms. Secured credit
cards also report positively to the credit agencies and will
eventually become normal revolving accounts and the balances held
for deposit are credited back to the cardholder's account. A very
positive way for people with bad credit to obtain the financial
vehicles they need.
About The Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the
latest on personal finance, debt elimination, budgeting, credit
cards and real estate.
MORE RESOURCES:
MORE COLLEGE CREDITChicago Sun-Times, United States - 11 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Credit repair is a DIY projectBaltimore Sun, United States - 5 minutes agoBy Gail MarksJarvis | chicago tribune Mike Ferrara wants to buy a house in a few months and is worried that mistakes on his credit report will keep him from ... |
Ask, and you might receive a lower credit-card rateSeattle Times, United States - 22 minutes agoPick up the phone, look at the latest credit-card offers and keep repeating this: The bank needs me more than I need it. By Susan Tompor Pick up the phone, ... |
Credit - Google News
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