Bad Credit? Get the Credit Card you Want and the Credit Card you Need!

So you have bad credit, millions do, and more importantly millions did.  Yes million of people have taken the steps necessary to improve their credit history, and credit ratings.

Before you start to improve your credit rating, it’s critical to find out why your credit is in the state that it is. If you don’t know why your credit is poor, then you must ask to see your credit reference file to find out.  At the UK Credit Card Centre we can help you in your quest to understand your credit score (Visit our Credit Help page).

Once you have a good understanding why your credit score is poor, or bad, there are a number of simple steps you can take to help improve your credit rating and start to rebuild credit history and score:

  • Make sure you are on the electoral roll. It only takes a few minutes to register with your local council and it will help to improve your credit score over time.
  • Always pay bills when they are due. This will begin to improve your credit history and score and will again give you an improved credit rating over time.
  • Do not apply for too much credit.  The number of times you apply for credit, either credit cards or loans can have a negative effect on your credit score. Every application for credit is logged into your credit file.  Too many credit applications in a short period of time may not help your credit rating.
  • The truth matters.  When applying for credit never give false or misleading details.  Always tell the truth.  If there are inconsistencies with past credit applications or details that are held on credit checking systems differ from your application it will affect your credit score.
  •  Start to build a credit history over time and when you check your credit reference file you should find an improved credit score.  Remember good credit will not occur over-night, but if you take the time to fix your credit blemishes, your score will improve over time.

So how can you improve credit ratings if you can’t get credit?  Credit card companies like our Vanquis and Capital One are specially designed for people with bad credit, or for people that have credit that needs help.  Even if you have been turned down by other credit card companies, you may be able to qualify for cards designed to improve credit.

As long as you manage the card properly, stay withn your credit limits and pay promptly, this is a good way to build credit history and to improve your credit rating.  Take the time to understand how to build good credit, and you will start down the road of financial freedom.  To find out more about cards designed for people with bad credit, Please visit our site UK Credit Card Centre for additional details.

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About the Author

At the UK Credit Card Centre our primary purpose is to provide personal financial solutions. Choosing the credit card that is best for you is rather simple. What’s not simple is the effort that is needed. That’s where we come in, we provide the tools and information necessary to help you find the credit card that is right for you

Bad Credit Credit Cards are not Bad at All

Bad credit history may greatly affect your future credit card applications, at least for the next seven years down the road. We know that bad credit does not just target the lazy person, it holds no discrimination as to whom it will target and it will not. Plus, many of us understand bad credit can sometimes feel like the end of the world, but it does not have to be. With bad credit, getting approved for a standard credit card can be difficult, if not impossible, and it is tough to get any type of unsecured credit card with bad credit. If you have bad credit, you may be under the impression that you are not able to apply for a credit card. However, today we have bad credit credit cards available to help us.

If you have bad credit, there are still credit card opportunities for you to apply to and even receive instant approval. That is one of the reasons bad credit credit cards are a highly searched item on the Internet. Bad credit credit cards are some of the most misunderstood financial tools of all time. They are intended to make it easier for many to obtain credit. That is because bad credit credit cards allow people with less than perfect credit, or no credit history to get on the right track and begin building or rebuilding their credit.

Bad credit cards approval is possible with many bad credit card applications, though bad credit cards approval may imply additional requirements, for the applicant. Bad credit charge cards are regular credit cards, except that the interest rates and fees may be a little higher, and they are specifically designed for those with no credit history, or adverse credit history. In many cases they are the best option for anyone who has a lot of debt and bad credit, also. As you can see, bad credit credit cards are unique cards geared towards people who have had trouble getting approved for a standard unsecured credit card. Once acquired and used correctly, bad credit credit cards help greatly to fix credit scores. Using a bad credit card the right way rebuilds your bad credit history, so, if your credit score needs improvement, do not hesitate, compare credit card offers and select a bad credit credit card to start rebuilding your credit score at once. After all, a bad credit credit card can be just the thing that saves your credit.

Bad credit credit cards can be a good way for consumers with poor, or no credit history to establish and build a solid credit history. They are offered by many banks as financial tools to help people establish or re-establish their good credit rating. Still, it is true that bad credit credit cards must be used responsibly, or your situation will just worsen. For all practical purposes, bad credit credit cards are just like regular credit cards, but they are specifically for high risk cardholders.

Bad credit credit cards charge various fees and offer various features and they are unlikely to be no annual fee credit cards, but you can search for the best low interest credit cards for poor credit. Bad credit usually attracts high APR on credit cards, plus bad credit credit cards often charge annual fees of up to $50 or more. In spite of the additional fees bad credit credit cards are an excellent method for the people with bad or no credit, to improve their credit rating and to enjoy the benefits of credit cards.

Bad credit credit cards are offered by many banks as financial tools to help people establish or re-establish their good credit rating. Though some consumers have a negative view of bad credit credit cards, they should not. Bad credit credit cards are primarily intended to make it easier to obtain and re-build credit, which is good for consumers and merchants as well.

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About the Author

Art Taylor has been a successful internet marketer for 10 years. He writes articles about credit cards and other topics. For more information or to apply for credit cards visit his websites at: {Credit Cards|Eshopperworld} or {Cards|Ecreditcardworld}.

5 Major Drawbacks of Bad Credit Credit Card

With a bad credit and less than perfect credit history, getting a credit card with competitive features is not that easy. In this article we take a look at the 5 major drawbacks that come with a bad credit credit card.

1. High APR

With a bad credit credit card the interest rates are reasonably higher. Forget those 0% intro APRs- they rarely come with a bad credit credit card. So, keep your credit card balances low, to stop this high APR from burning a hole in your pocket.

2. One time processing fee

Some credit card companies charge a processing fee for people with bad credit who apply for credit card. This is generally charged by credit card companies due to the credit checks, other formalities and risk involved in providing a credit card to bad credit people. If you are going for a secured bad credit credit card then this fees can be waived, otherwise it has to be paid. The catch here is that credit card companies demand upfront payment of processing fee. But, a wise credit card consumer will find a credit card company which charges the fees to the credit card not demands cash in advance.

3. High annual fee

Keeping the bad credit credit card is definitely going to cost a lot in terms of annual fees depending on the credit report it can go in hundreds of dollars per annum. Bad credit credit cards with 0 annual fees offer is very difficult to find.

4. High late payment fee

Late payment with a bad credit credit card is severely penalized. The credit card companies charge heavy late payment penalties on repayment default and are very quick in reporting the default to credit rating agencies with a bad credit credit card.

5. Lower credit limits

Since, the credit card companies face increased risk in providing credit card to bad credit people, therefore the credit limits are lower. The credit limits can be increased with secured bad credit credit card and proper repayment of credit card balances.

These 5 factors related with bad credit credit cards increase the cost of owning one. Comparing various credit card offers, especially, when you have a bad credit will help you lower the interest and fees burden of a bad credit credit card.

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About the Author

Duran Mueller an expert author and credit card consultant, provides great Advanta credit card tips. Read more credit card articles at his credit card website.

Bad Credit Credit Cards: How You Can Avoid High Fees

Individuals with problematic credit histories often suffer unfairly from high mortgage, insurance, and car loan rates. On top of that, they have difficulty getting approved for credit cards. The whole situation can get extremely frustrating. Frequently, I get emails from consumers wondering what they can do to rebuild their credit. The first thing I tell them is to get a credit card designed for people with bad credit. The second thing I tell them is written in bold: READ THE FINE PRINT.

There are only a limited number of credit cards for individuals with bad credit. At first glance, many look the same. They all help build and rebuild your credit by reporting to the major credit bureaus on a monthly basis. They all provide you with the Visa or Mastercard you need to make many purchases. And they are all necessary evils that can save you thousands of dollars in mortgage and car loan rates in the future. However, you must read the fine print before applying for one of these credit cards, as they often charge high yearly fees, set-up fees, and even monthly fees. Here, I will examine a few examples of charges current “bad credit” credit cards bury in the fine print. Of the three major cards I will examine, only one stands out as consumer-friendly.

“Bad Credit” Credit Card #1: This credit card charges a very low interest rate for an unsecured credit card. However, your first fine print glimpse reveals that there is a one time setup fee of $29. Not too bad. So far, since the next charge is a one time fee of $95. So far, we’re up to $124 in expenses. That’s got to be it, right? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. That’s brings the cost of your new credit card to $244 the first year, and $120 each additional year. This is no small change, and a card such as this should be considered only if you cannot be accepted for a better unsecured credit card for bad credit.

“Bad Credit” Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This can’t be good. But the setup fee is only $29. Maybe this card isn’t so bad. There is that pesky monthly maintenance fee of $6.50 per month which brings the cost of this unsecured credit card to $107. Maybe we’ve found a bargain. Not quite. The annual fee is a whopping $150. Yes, $150 every year. That not only brings the initial cost up to $257, but you will also pay $228 a year just to maintain the credit card. There has to be a better offer.

“Bad Credit” Credit Card #3: This credit card is available as both a secured and unsecured credit card, based on the issuer’s review of your credit history. The interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. However, based on your credit, this fee can be as low as $0 or as high as $49. So far so good, especially if your credit is not that bad. But, there must be a huge annual fee. Not exactly. The annual fee for a secured credit card is only $35, and for an unsecured credit card, this fee can be as low as $39 or up to $79. So far, the cost of this card ranges from $35 to $128. Now its time for the monthly maintance fee. This one has to be huge. Or not. Its $0. That means the most you could possible be charged to obtain this credit card is $128, about half of what competing cards are charging.

Clearly, there are substantial difference between “bad credit” credit cards. Of the three offers we have examined, only one doesn’t take you to the cleaners. In fact, “bad credit” credit card #3 provides great value. All positive changes to your credit history and credit score will translate into lower loan rates, lower credit card interest rates, lower insurance rates, and ultimately, thousands of dollars in savings. The path to rebuilding credit has its costs, but in the long term, rebuilding your credit with a “bad credit” credit card is the fastest and most cost-efficient way to correct the often unfortunate circumstances that have damaged your credit in the first place.

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Bad Credit – A Brief Guide

If you’ve ever applied for a loan but been rejected, it might be because you’ve got bad credit on your credit history. Believe it or not, it’s actually a problem that many people suffer from, sometimes without even knowing it – latest reports suggest that around 25% of people applying for loans have bad credit on their credit history! Even worse, it can appear on your record in several ways, including some you might not have realised…

Some ways of it being generated are obvious: for instance, if you take out a credit agreement or loan and fail to make the repayments, you’ll default on what you agreed to pay. The same also goes for paying bills like gas, electricity and telephone late, meaning suppliers have to send you red bills. However, it can also be gained by regularly applying for credit (loans, credit cards, hire-purchase and more) and being turned down. This is because applying for credit causes a check to be made on your credit history – more checks means more activity on your credit record, which can ultimately lower your credit score. Bet you didn’t know that being turned down for the credit on that washing machine could lead to bad credit, did you?

Unfortunately, many people think that the problem will fix itself with time. While that’s technically true, bad credit can actually stay on your record for between 7 and 10 years – that’s an awfully long time to avoid getting credit in. Thankfully, there are ways of repairing a poor credit rating, some of which are very easy. Registering to vote, for example, is one element taken into account on a credit record, as is having utility bills registered in your name with a fixed address. Debt consolidation can also help, as it reduces your monthly outgoings into one manageable monthly payment and adds a sense of reliability to your previously bad credit score. And while you don’t want to be snowed under with credit cards and loans, it’s often wise to at least have some credit that you manage easily – this can help repair your credit rating, since it proves to lenders and loan providers that you can be trusted to repay money that you’ve borrowed.

Of course, even if you’ve had financial problems in the past, it’s not totally impossible to get a loan; many lenders and loan providers have allowances for Bad Credit Loans (loans given to people with bad credit that usually have a higher rate of interest on repayments). These can also help to repair a bad credit rating, so they’re worth considering as an option if you have nowhere else to turn. There are also a select number of credit cards designed for people with bad credit, although these too have higher-than-usual interest rates and are usually quite restrictive on the credit limit offered too.

If you think that you might have bad credit, it’s worth getting hold of your credit report to check for what might have caused it. You can do this easily online through one of the main credit reference agencies like Experian or Equifax – it’ll only cost £2 for the report and can help you understand exactly what’s going on behind the scenes.

In Summary

Bad credit can…

  • Prevent you from being accepted for loans and credit cards
  • Be earned by not repaying loans or regularly applying for loans without success
  • Stay on your credit record for up to 10 years
  • Be repaired by taking out a Bad Credit Loan or other form of secured credit
  • Be avoided by paying your bills and other debts on time!

Copyright: Individual Finance, 2010
About the Author:   IF’s Martin Mathers is a professional journalist with 12 years of experience, covering everything from finance and business to movies, music and technology.

Individual Finance has informative articles on a wide number of aspects relating to UK finance. It also keeps users up to date with the latest money-saving offers and vouchers through regular e-mail newsletters.

How is Your Credit Score Calculated?

Ever wonder how your credit is scored?  To those of us who don’t actually do the figuring, it seems like a deep dark secret…how do they arrive at those numbers?

While each of the three major companies that report credit scores has their own method, there are some factors that each one takes into consideration when they calculate your credit score, and you can use these same factors to estimate your own credit score.

For example, if you have never had a credit card, car loan, student loan, or any type of bill in your name, your credit score can actually be zero, meaning that you have no credit history.  At some point, each of us started at zero, and there are even those among us who have been debt free for enough years that their credit score has actually returned to zero, or no credit.

Unfortunately, if you have no credit, it can be just as hard to get a loan as it would be if you have bad credit, so it’s a good idea to build your credit slowly, beginning at an early age, and even though you may not actually need credit in later years, continue to maintain good credit standing by using credit cards responsibly.

And now, for the rest of us, here’s an approximation of credit scoring methods:

  • 35% of Credit Score:  Credit history
  • 30% of Credit Score:  Current amounts owed to creditors
  • 15% of Credit Score:  Length of credit history
  • 10% of Credit Score:  Open accounts and applied for accounts
  • 10% of Credit Score:  Other factors

Your credit history, which makes up 35% of your credit score, is defined as the bills that you have or have had in the past, and whether or not those bills have been paid. If you’ve always paid your bills on time, every time, and have never defaulted on a car loan, been evicted from a home, or paid your credit cards late, then your credit history should be okay.  However, if you do have a record of slow payment, repossessions, or bankruptcy, expect it to affect your credit for seven to ten years.

Your current debt load, which makes up 30% of your credit score, is defined as how many loans you have, how many credit cards you have (and the amount that you owe on each card), whether or not you pay your bills on time, and whether or not you are carrying too much debt.  Hint: Pay off and/or pay down the balances on your loans, credit cards, etc., to see a higher credit score in this area.

The length of your credit history, which makes up 15% of your credit score, is defined as how long you’ve had a credit history, how long you’ve lived at your current address (including length at previous addresses), and even how long you’ve been employed at your current and previous positions. Hint: The more stable your lifestyle, the better your score will be in this area.

Open accounts and applied for accounts, which make up another 10% of your credit score, are defined as how many open accounts you currently have (even if the balance on the account is $0.00), and how many new accounts you have either applied for or opened recently.  Hint: Opening too many new credit card accounts can damage your credit score.

And, finally, the other factors (10%) that will be taken into consideration include things like joint ownership of accounts, other information that has been collected with regard to your financial history, and the individual practices of each credit reporting company.

How Do I Improve My Credit Status?

Whether we know it or not, we all have our own personal credit status. For some of us it’s good, and enables us to get a mortgage, a loan or a credit card with a good rate of interest. For others it isn’t as good, and those people may experience trouble getting financial products when they need them.

If there is one thing worth remembering about your own credit status, it’s this – however bad it might be, you can improve it given time and effort. By doing this you will make yourself more appealing to lenders of all shapes and sizes in the future.

Here’s how it works. Every time you make a payment on your credit card, for example, that payment is recorded by the main credit agencies. If you meet your payments every month you will generally be regarded as a good credit risk, even if you don’t always clear your balance. Similarly, if you miss a payment – for whatever reason – that also gets noted down, and if missing payments starts to become a habit you will find it increasingly hard to get credit elsewhere.

It is advisable to check your own credit history to see how you are likely to be regarded by others when applying for loans and mortgages. It’s also worth checking to see whether all the facts are correct. Mistakes do happen and they can mean you are unfairly turned down for financial products, so if you spot an error make sure you contact the credit agency who provided you with your report to get it corrected.

If you need to apply for a loan at any point and you are turned down, don’t do what many people end up doing and immediately apply for others with other lenders. Having too many applications in a short period of time can throw up a red flag, as lenders will start to wonder why you are applying for several loans at once.

Educating yourself about your credit status is a good way to start improving it, especially if you are taking a fresh look at your finances and starting to clear some debt. Remember that it isn’t necessarily how much debt you have that prevents you from getting credit, it’s how much of a risk you are. If you have several credit cards but pay back the balances in full – or at least on time – each month, you may still be regarded as a good risk.

In the final analysis, your credit history will follow you around all your life. However good or bad you are with money, your credit record will tend to mimic your habits. If there was ever a good reason to be responsible with money, this reason should be top of the list.

About the Author:  Paul McIndoe is an online, freelance writer from Scotland. When not writing, he enjoys playing golf and is a keen gardener.

How to Improve a Credit Score after Bankruptcy? What is a Good Credit History Score?

Concerned Consumers Ask How to Improve a Credit Score after Bankruptcy

While it may not be possible to erase bad credit reports, there are steps you can take to improve the overall health of your credit report and improve your credit history.

The February issue of Realtor magazine divulges seven tips to shore up your credit well being.

The article by Patrick Ritchie recommends identifying any mistakes on your credit report and attempting to have those rectified.

When reviewing your credit report, Ritchie advises looking at credit history such as late payments, collections, payment records, unusual accounts, original dates, available credit, types of accounts, and reason codes.

He suggests retaining a copy of your credit report for seven years to track the date of new additions or removals. Collections and chargeoffs should no longer be a part of your credit history or report after that length of time.

Unfortunately for some, review and maintenance of the credit report is not enough. Money and finance experts at media company AOL are fielding more and more bankruptcy questions from worried consumers asking how to improve a credit score after bankruptcy.

According to the media company’s personal finance site WalletPop, Chapter 7 bankruptcy filing remains on your report and is reflected in your credit score for 10 years after filing bankruptcy. One step to rebuilding and improving credit history includes eventually obtaining a new secured credit card and making payments in full, they say.

What is a Good Credit History Score for Lower Auto Rates?

Cautiously opening credit cards in college could spell benefits in the long-run.

One perk from building good credit history in college could be lower rates on auto insurance in the future.

“Despite all the criticism about college students and credit, now [during college] is a good time to get your first card and start building your credit history, as long as you can be sure to pay off the card each month,” says Kimberly Palmer, senior editor for U.S. News and World Reports.

According to national insurers, financially responsible applicants with a good credit history are eligible for savings on auto insurance plans.

A credit-based insurance score – which examines the likelihood of involvement in a future insurance claim – is used to determine auto plan rates. Factors like credit payment history and length of credit history can affect these calculations.

GMAC Insurance suggests paying bills on time and minimizing balances carried on credit cards as two ways to improve credit history and an insurance score.

According to research firm Conning & Co, 92 percent of insurance companies consider credit history information when evaluating new policies.

About the Author:  This article is brought to you by Allison Tomek for offers credit reports and monthly and annual credit monitoring services to help prevent identity theft. Our service accurately identifies your credit score and credit history.