When applying online, most credit card companies offer instant approval. Credit cards for bad credit are designed for people who are unable to qualify for a regular credit card due to their bad credit history. Days are gone when a bad credit rating on a credit report prevented you from obtaining a credit card.
Today, you need to have a credit card for all purchases and transactions. If you have a bad credit rating, you would probably be attracted to marketing strategies, such as ‘credit cards with bad debt’ and ‘credit card for bad credit history,’ etc.
Most instant approval credit cards for bad credit are unsecured credit cards. Though you may not have to pay a down payment, these credit cards carry high interest rates. However, if you have a bad credit rating, obtaining credit cards with bad debt and then using them wisely may boost your credit rating.
To maintain a good credit here onwards, you must maintain good discipline and make smart credit decisions. Begin by maintaining low balances. Credit cards are not free money and so do not spend money frivolously. To avoid accumulating unnecessary debts, pay off the balance each month.
Bad Credit Cards Improve Credit Score
Companies providing bad credit credit cards provide monthly reports to four major credit bureaus. These credit bureaus maintain the credit history of millions of people around the country. Most credit card companies contact these bureaus to verify the credit rating of credit card and loan applicants. You can enhance your credit rating by timely paying your bad credit credit card dues for some time and after some time you become eligible for normal credit cards.
Tips for Selecting Bad Credit Credit Cards
People with bad credit are always on a lookout for offer of bad credit credit cards. These days you will find hundreds of offers such as bad credit instant guaranteed credit cards, instant bad credit loan approvals, credit card instant approval bad credit, instant approval credit cards bad credit, instant credit card approval for bad credit and many more.
Such offers are a big temptation for the persons with bad credit. However, you have to be careful in selecting any of such offers for credit cards and loans for bad credit because a wrong selection of Credit cards for bad credit could land you in a bigger financial mess.
When selecting instant approval credit cards for bad credit, ensure that you are not unscrupulously being charged for program fee, account set up fee and annual card fee, etc. You may be able to identify unsecured credit card companies that would charge an annual fee and little or no set up fee etc.
Pre-approved Unsecured Credit Cards
13-11-2009 by admin
If you’re like everyone else, you’ve received a letter in the mail saying you’re ‘pre-approved for a credit card’ from the specified company. If you choose to open the sent envelope, the numbers of how much money you’ll be granted are large, but the rules and what you’re actually getting are small enough to miss. What does this mean to you?
An unsecured card is essentially for someone with good credit, who the credit card company trusts enough to pay off their debt on a monthly basis. Unsecured credit cards are held by a majority of people, and tend to be the most desired option. It allows for the user to make purchases and pay it back in monthly increments set by the credit card company.
Secured credit cards, on the other hand, are for those with unsteady, erratic and unsatisfactory credit, who have a history of late or not forthcoming payments. With a secured card, the credit card company requires the amount desired to be deposited before the card is issued. Upon receiving the deposit, your credit line is established for that amount. The deposit acts as a safety net, and if payments are not made, the company will take payment from your original deposit.
Unsecured cards do not require a deposit, and the consumer is allowed more freedom with spending and repayment. If the payments are on time, the limit allowed will be increased if desired. If, however, payments are not paid on time, credit card companies will continue to add additional late charges, as well as a certain amount of interest that also must be repaid. The interest varies, but can be as low as single digits and as high as 20% on your outstanding debt.
Pre-approved is another term used to lure in new credit card customers. Credit cards must always be applied for, and involved with this is a listing of the applicant’s occupation, income, other debt and similar factors. Once the application is submitted, the credit card supplier will examine the numbers and decide if you will be able and likely to repay your credit card purchases.
Pre-approved means the credit card company has obtained your credit score from a credit bureau such as Equifax and Transunion and already is aware of your good credit. You do still have to go through an application process, and the credit line advertised is not necessarily what you will get, but there is a better chance of being approved in this method than simply applying blindly for a credit card, in general.
Credit Cards For People With Bad Credit
24-10-2009 by admin
Bad Credit Credit Cards
Various financial institutions out there will offer credit cards to people with not-so-good credit histories. So, if you have poor or no credit history at all, you still have options available so that you can repair them by re-building your credibility in the form of credit cards. There are 2 options for those who do not have good credit ratings.
Unsecured Credit Cards
Your first option will be to apply for an unsecured credit card. The application process is not complicated but the credit limit that you will be issued; upon acceptance, will be dependent on how good your credit rating is. Generally, these cards offer quite a high interest and more than often, a slightly lower limit; especially to those with poorer credit scores than others. The financial institutions that offer these cards will do a credit check on your credit history, either from Equifax or Experian, and make their decision on whether to approve your application. Even though your initial credit limit may increase, it does take a few months before your credit is put up for review.
Advantages:
o Allows you to repair your credit history by making on-time monthly payments
o Ability to access funds in times of emergencies or when the use of regular debit cards as form of payment is not accepted
Disadvantages:
o Low initial credit limits
o High interest rates
o Usually, most cards have an annual fee that you cannot escape from
Prepaid Credit Cards
Unlike unsecured credit cards, prepaid credit cards do not give you access to funds that you do not possess, that is, let you go in debt. You also do not need an excellent credit history for your application to get accepted. This is simply because these cards are exactly like debit cards. You fill them up with value and the credit limit is equivalent to the amount that you have stored them with. Most of these cards are refillable even though some may not be.
Advantages:
o Accepted as form of payment when a debit card is not accepted such as booking hotels and hiring cars whilst on holiday
o It does not allow you to get in debt since you load the card with your own funds
Disadvantages:
o Does not report to the credit bureaus thus not helpful if you are trying to rebuild your credit in quest of a better score
Instant Credit Card – Tips For Getting Instant Approval
25-08-2009 by admin
If you are searching for an instant credit card you should know that there are several instant approval offers on the market including secured and unsecured cards. In this article we are going to offer you tips on how to get approved when submitting an instant approval application.
First and foremost let us discuss the differences between secured and unsecured credit cards. Secured cards are for people that pledge collateral in the form of cash. These cards are for consumers that have a less than stellar credit history but would still like to have the convenience that a card offers them.
A great advantage of secured cards is that the vast majority of them report to the three major credit bureaus. This allows the cardholder to repair and rebuild their credit record. They can be an invaluable asset for those wishing to reestablish their credit rating.
Unsecured cards, on the other hand, are the ones that we are all pretty much familiar with. These are the cards branded through Visa, MasterCard, American Express and Discover. They do not require collateral and are issued based primarily on how strong the applicant’s credit history is.
When you apply for an instant credit card your credit history will be checked through the credit bureaus. Based on your credit score you’ll be categorized as to how much of a credit risk you are. If you have a credit score of 750 or above you are considered to have excellent credit and will receive the most favorable interest rates.
If your credit score is lower than 750 but still falls within the range of 650 or above you will still qualify for a substantial number of offers. It all basically depends upon the issuer and the standards that they have set for their perspective cardholders.
Important Tip
Before you apply for an instant credit card, or any other type for that matter, it is advised that you first check your credit record. By doing this you will be able to discover if there are any errors or an accurate information on your credit report that may be keeping you from having a higher score.
It is definitely worth the time to do and besides, you are allowed by law one free credit report each and every year so you may as well take advantage of it. It can actually make a substantial difference in the APR you get from the bank and could end up saving you a substantial amount of money on interest payments.
The top quality comparison websites will have a category dedicated specifically to instant approval credit cards. This will make it easy to compare the features and benefits of each including interest rates, fees, grace periods and rewards programs. Take advantage of this by comparing offers from the leading issuers.