Getting bad credit cards is not a herculean task anymore
There were times, a few years ago, when people with bad credit faced a tough time in getting credit cards that can help them fix their mistakes. However, today, things stand changed and it is now possible to obtain bad credit cards without having to bend over backwards.
Though cards under this segment are easily available, they carry high interest rates and high fees. Hence, the applicant will have to use this card wisely in order to better the credit score rather than worsen it further. The good news is that the CARD Act that has come into effect in recent times stipulates banks and other financial institutions to review each consumer`s track record once every six months and lower the interest rate if they have been consistently doing a good job of repaying their dues. This implies that in addition to bettering their credit history, consumers can also reduce the interest rates on their bad credit cards.
The secured cards are the best options for people with bad credit. However, on the flip side, most of these card lenders do not report transactions to the credit bureau which leaves no alternative but to opt for unsecured credit cards. It is important to pick and choose the unsecured credit cards wisely to ensure no further concerns or blemishes on the credit report. There are credit cards that banks are exclusively offering people with bad credit.
The Classic MasterCard from the First Premier Bank is a bad credit card worthy of your consideration. The bank which currently occupies the tenth place in issuing MasterCard to its consumers specializes in deals for subprime consumers. While there is no need for any deposit upfront, the fees associated with the cards and the interest rate are pretty high.
One of the newest additions to banks offering credit cards to subprime borrowers is Anacott Financial LLC. Being a part of the Deutscheland Financial Services, this bank does offer both secured and unsecured credit cards to people with bad credit. The choice between offering a secured or unsecured card is made by the bank after reviewing the application and credit history of the applicant. The promotional interest rate on the card stands at 6.99% but reverts to 13.99% once the promotional period expires.
The Classic MasterCard from Orchard Bank is also another card worth considering. However, this is definitely not for people who have a doubt about making payments on time. With the interest rate on this card ranging between 14.90% and 28.90%, this is not a card for defaulters.
Latest Bad Credit Card News
It’s the American dream—but it can turn into a nightmare for your credit score if you’re not careful. Financial experts at Take Charge America warn that buying a home when you’re not truly prepared for the responsibility you’re taking on can lead to financial stress and a lowered credit score.
Having poor – or nonexistent – credit history can be a big problem when you apply for a loan, an apartment, a credit card, or even a job. Because many people struggle with this issue, the government is stepping in to offer advice on building, improving, and protecting credit history.
At the beginning of the year, many people make resolutions about getting in shape. Starting diets, doing yoga, and going to the gym are the prevailing trends as a new year begins. However, this year those resolutions have been edged out in popularity by a different goal: getting finances in shape.
There’s been a lot of talk lately about how Millennials are dealing with their finances more responsibly than previous generations – avoiding debt, checking their credit scores, and even saving for homes. But for young people who don’t have great credit and live paycheck-to-paycheck, it’s a different story.
For folks who struggle with money, being approved for a credit card has long proved a challenge. And now a new study shows that 72% of Americans with nonprime credit scores are unable to charge $500 to a credit card in case of emergency.