Credit Cards for Bad Credit -- by Stu Barnett
A bad debt credit card is basically a credit card that a credit card supplier offers to people who have bad, little or no debt.
Secured Credit Cards
Bad debt credit cards are typically classified into two categories. The first category of bad debt credit cards are those credit cards that are secured (also known as secured credit cards). These secured credit cards require a security deposit i.e. you have to open (and maintain) a bank account with the bad debt credit card supplier. The credit limit on this secured credit card is calculated as a percentage of the bank balance that you maintain with the account you have set up with the bad debt credit card supplier. Generally, this is 50-100% of your bank account balance. Secured credit cards work similar to bank debit cards allowing the card holder to withdrawal money for purchases. But, unlike bank debit cards, secured credit cards work towards building positive credit marks on your credit report.
Unsecured Credit Cards
The second category of bad debt credit cards are those that are unsecured (also known as unsecured credit cards). Unsecured credit cards are for people with low FICO scores but still may qualify for a unsecured line of credit. People who have steady work histories, but may have lower incomes and higher debt to income ratio are generally excepted for unsecured bad debt credit cards. Unsecured credit cards will typically charge higher rates of interest due to the fact of the lower credit ratings.
Knowing where you stand with your credit score is important to know what kind of bad debt credit card you can get. Before you apply for any credit card it's best to obtain the free credit reports from the big three credit reporting bureaus. Review these credit reports carefully and ascertain that there isn't erroneous or outdated information contained within them. If you find any issues, contact them and see if you can get them corrected. Over 85% of credit reports contain erroneous entries, removing this negative information will be a big help in obtaining a better credit score and lower interest credit cards.
Building good credit can be a long term process, it's analogous to getting good grades in school. However, no matter what your FICO score is today, you can always repair your credit history, just be patient and diligent.
For the best credit card offers online visit Stu Barnett's website at: www.911CreditCards.com
Lexington Law - Credit Report Repair. Learn more
A bad debt credit card is basically a credit card that a credit card supplier offers to people who have bad, little or no debt.
Secured Credit Cards
Bad debt credit cards are typically classified into two categories. The first category of bad debt credit cards are those credit cards that are secured (also known as secured credit cards). These secured credit cards require a security deposit i.e. you have to open (and maintain) a bank account with the bad debt credit card supplier. The credit limit on this secured credit card is calculated as a percentage of the bank balance that you maintain with the account you have set up with the bad debt credit card supplier. Generally, this is 50-100% of your bank account balance. Secured credit cards work similar to bank debit cards allowing the card holder to withdrawal money for purchases. But, unlike bank debit cards, secured credit cards work towards building positive credit marks on your credit report.
Unsecured Credit Cards
The second category of bad debt credit cards are those that are unsecured (also known as unsecured credit cards). Unsecured credit cards are for people with low FICO scores but still may qualify for a unsecured line of credit. People who have steady work histories, but may have lower incomes and higher debt to income ratio are generally excepted for unsecured bad debt credit cards. Unsecured credit cards will typically charge higher rates of interest due to the fact of the lower credit ratings.
Knowing where you stand with your credit score is important to know what kind of bad debt credit card you can get. Before you apply for any credit card it's best to obtain the free credit reports from the big three credit reporting bureaus. Review these credit reports carefully and ascertain that there isn't erroneous or outdated information contained within them. If you find any issues, contact them and see if you can get them corrected. Over 85% of credit reports contain erroneous entries, removing this negative information will be a big help in obtaining a better credit score and lower interest credit cards.
Building good credit can be a long term process, it's analogous to getting good grades in school. However, no matter what your FICO score is today, you can always repair your credit history, just be patient and diligent.
For the best credit card offers online visit Stu Barnett's website at: www.911CreditCards.com
Lexington Law - Credit Report Repair. Learn more