Credit,Cards,For,Bad,Borrowers finance, share, loan Credit Cards For Bad Credit Borrowers: 3 Card Options To Co
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
It seems unlikely that someone with extremely low credit scores could qualify for a credit card. But, in actual fact, there are options available to bed credit borrowers. These are specially designed credit cards for bad credit applicants, tailored to provide the cardholder with a chance to rebuild their credit status.The most damaging part of having a low credit score is the difficulty there is in rebuilding credit reputation. The only effective way to do so is to take out another loan or credit card and maintain repayments without fail. But finding a lender to take the risk is a problem.But there are credit card options available that provide an ideal route back to a good credit rating. The terms of these cards are not ideal, with higher interest charged and limited credit available on the cards. We look at 3 options worth considering.1. Secured Credit CardsA secured credit card is linked to your own savings account. But rather than taking money from your account as it is used, as with a debit card, the account only serves as security. As a credit card for bad credit borrowers, it works fine as long as there is money to open a savings account with.The card works as a normal credit card, with the funds provided as a percentage of the savings account balance. Usually, 50% or 100% can be used, so a $1,000 savings account, means $500 or $1,000 credit is on the card. As long as the cardholder makes regular payments, the savings account is never touched.In terms of rebuilding credit reputation, this option is excellent. Not only is there a vested interest in making payments, and not seeing savings drained, there is also a minimal chance of worsening credit ratings. Like other credit card options, they come with an annual fee and high interest rate.2. Prepaid Debit CardsWhile these are not credit cards, they still offer a chance adopt disciplined card habits. One of the problems with credit cards is that the user often sees it as free money, since it does not usually affect their bank account. It is why, on the face of it, a credit card for bad credit borrowers seems a strange solution.With prepaid debit cards, however, the money spent comes directly from the card account balance, which is decided only by the sum the cardholder decides to deposit in the account. The card is not given a specific credit limit, and as the buying and depositing activity continues, it contributes to efforts at rebuilding credit reputation.Most banks offer some kind of debit card, with the most popular being the All-Access Prepaid Card and the Wired Plastic Prepaid Card, both of which are provided by VISA. And, as one of the credit card options to return to a strong credit status, it is the most manageable.3. First Premier and Orchard Bank Credit CardsSome banks offer specific credit cards that are designed for bad credit borrowers and are available at special terms. For example, the First Premier Bank issues a credit card for bad credit borrowers at a low interest rate but is approved instantly - the Gold Card is available through MasterCard and VISA. The Orchard Bank, meanwhile, offers a Platinum MasterCard with a low interest rate on purchases.Because these banks report regularly to the credit bureaus, they play a key role in rebuilding credit reputation. However, both of these credit card options come with high fees. First Premier has a setup fee of between $29 and $95, monthly participation fees and an annual fee. Orchard Bank charges a high annual fee. The cost of these cards is worth it when the credit score increases. Article Tags: Rebuilding Credit Reputation, Credit Card Options, Credit Cards, Credit Borrowers, Card Options, Credit Card, Rebuilding Credit, Credit Reputation, Savings Account, First Premier, Orchard Bank
Credit,Cards,For,Bad,Borrowers