Credit Cards for Bad Credit

Credit Cards for Bad Credit

by Noreen Ruth

We're living in a world where we want immediate gratification for our efforts. In fact, we feel that we deserve life's rewards even if we haven't done anything to merit them. This is why so many people find themselves in a bad credit situation. They have taken a system that was meant to make our lives easier and turned it into a way of life. Easy credit approval, ever increasing credit limits and the implication that you are owed a line of credit can get you into big trouble. bad credit loan

If you are being rejected by lenders due to a bad credit record, you need to do the necessary things to make it right and turn that bad credit into a good credit record. The first step is to establish a new credit account. Over time and with responsible behavior you can improve your credit score and ultimately your ability to get the credit you need. bad credit loan

It would appear that this would be an easy process when you consider all the offers that show up in our mail. Even those that claim to be pre-approved credit cards for bad credit require more than just filling out a form. Know what you are getting yourself into and you will be on your way to repairing your credit. bad credit loan

Credit Cards to Repair Bad Credit ARE Different!

* There is usually an annual membership fee ranging from $25 - $100.
* The Annual Percent Rate (APR) is higher than a standard credit card.
* A security deposit may be required to establish a line of credit, if your credit record is extensively damaged. bad credit loan
* Charges for cash advances, late payments and over-limit fees will be higher than a standard card. bad credit loan

Making the Right Choice
If you need credit quickly, the fastest and easiest card to get is a secured credit card. With this type of credit, you will be putting up a security deposit to cover the loan. The lending companies are much more willing to approve a secured credit card because their risk is minimal with your own money backing the loan. The obvious downside is that your own funds will be tied up but in return your will be moving toward repairing your bad credit record. bad credit loan

A more desirable option would be to secure a standard unsecured credit card. A security deposit is not required but the credit limit will be low. Over time the limit will be increased as you show your credit worthiness and you will eventually be offered lower interest rate cards.

If it Sounds too Good to Be True . . . bad credit loan
One word of caution about offers that promise to get you a credit card regardless of your past history or your current financial situation. These promotions often require a processing fee before they will approve you for a card. The catch is that the once you pay the fee the company vanishes - with your money. The worst case scenario would be that they will take your personal identification information and use it to steal your identity. bad credit loan

Caution is advised when dealing with a company that:

" Guarantees your approval without a credit check or regardless of your credit history
" Has an international address or phone number bad credit loan
" Asks for money upfront " Requires that you wire money business or individual
" Has a recorded message at the posted phone number directing you to call a difference number

Tips to insure a legitimate company:

" Deal with brick and mortar stores in your area
" Check out the company with the Better Business Bureau
" Call and verify that your agent is actually affiliated with the company

Beware the Cost of Borrowing
When dealing with a bad credit record, the cost of borrowing will be very high. Whenever possible, it is best to purchase with cash; but for emergencies or life's essentials having credit available is a blessing. bad credit loan

Purchasing for today with the idea of paying it off in the future is a dangerous slippery slope into possible debt problems. Always pay off your credit card balance each month. bad credit loan

Be Optimistic
Be patient, persistent, and optimistic about the efforts you are making to improve your credit report. As you establish a history of on-time payments, your credit report will reflect a better standing and you will qualify for credit cards at lower annual percentage rates. bad credit loan

For more unsecured card offers visit us at ASAP Credit Card.com - Best Low APR Credit Cards where you will find valuable information on 0%, air miles, instant approval, rebate and reward credit cards. bad credit loan