Tuesday, January 29, 2013


Consumers often receive credit card offers by mail, but if they have bad credit, they quickly realize that many of these deals are out of their reach. According to the company Fair Isaac, the company that created the FICO scoring the model, credit scores range from 300-850. More your credit score, the more difficult it will be for you to qualify for a credit card. If you have a low FICO score at the moment, do not worry. There are credit card options for those with bad credit, just know what they are.
High interest credit cards
Credit cards with low interest rates and 0% introductory offers are usually reserved for consumers with high credit ratings. If you have bad credit, you will not receive these offers. The truth is, there are millions of consumers with bad credit who need access to a credit card. In response to this need, a whole industry has surfaced that caters to consumers with bad credit. This is good news. The bad news is that these cards usually carry a higher interest rate. Responsibility for credit card, 2009, accountability and disclosure Act (CARD) hiking provides consumer protection for credit card holders by limiting the interest rates retroactively, but there is no limit the rate of interest banks or lenders are allowed to charge. In other words, the rate would be 2% or 50%. In May 2010, the Orchard Bank MasterCard for bad credit to an annual fee of $ 74 the first year and an annual percentage rate (APR) up to 28%, and the first Prime Minister of bank card credit with 79.9% APR. While there is a high number, keep in mind that when you have bad credit, a credit card is to have access to a small amount of credit to pay the bill on time each month and allow this new credit history in order to increase your eligibility for a card with more traditional lower interest and smaller fees. This is an end. Consider it as such and use this opportunity to make a financial measure before.

Secured credit cards
A secured credit card is issued based on the deposit placed with a bank. Credit lines generally vary between a minimum of $ 200 to a maximum of $ 5000, unless guaranteed MasterCard Bank of America, which has an upper limit of $ 10,000. The credit line will be equal to the amount of deposit. This is different from an unsecured credit card, the Bank determines the credit limit based on your credit. Unlike cards high interest rates, secured credit cards usually have lower interest rates. Some cards, such as Visa obtained HSBC will waive the annual fee for the first two years. According to the Bank, the deposits are placed in a savings account or certificate of deposit. Deposits may or may not earn interest. Check the terms of the agreement to explore for some. If you use a secured credit card wisely, it will improve your credit over time and the doors open to unsecured cards on the road.

Prepaid credit cards
A prepaid credit card is a rechargeable credit card that allows you to add money to the card as you need. It has the MasterCard or Visa logo, which gives you the opportunity to use it for online purchases, pay bills and ATM withdrawals. It is not attached to a checking account as a debit card, so you do not incur overdraft charges because you can only spend what is on the card. Similar to a secured card, your spending limit is based on whatever funds are added to the map. Some secured credit cards, such as MasterCard guaranteed by Citibank are secured with a certificate of deposit, which means that you can not increase the credit limit when the account was opened. With a prepaid credit, you can change the credit limit at any time by adding more funds. Some cards monthly fee. Others, such as the Bank Freedom Prepaid MasterCard, no. Read the terms and conditions before signing. Also, some card issuers refer to prepaid credit cards as prepaid debit. Both terms mean the same thing and should not be confused with a traditional debit card, which is issued by the Bank after opening a checking or savings account.