Tips That You Need To Know Before Applying For Credit Cards For Bad Credit

If you are planning to apply for a credit card and is currently suffering from bad credit history then you’re not alone. In fact more than about 50% of US residents are actually in debt or has bad credit history, this due to the mass layoff that occurred previously. Workers are the most badly hit by the recession, however because of the government’s aim to help all these citizens, we could see that a lot of people are getting back their jobs and are gradually getting rid of their debts.

However applying for credit cards for bad credit is still pain to most but not impossible. Yes, that’s right a lot of banks and other financial institutions are seeing the improvement in the economy, and they understand even a person has a bad credit history, it does not imply that, that person is incapable of making repayment, hence credit cards for bad credit are now being introduced.

Tips when Applying for Credit cards for Bad Credit:

First you should know that some financial institutions like banks tend to apply higher interest rates and sometimes asks for a large amount of deposit - if you are going for secured card - however a law states that upfront fees must not exceed 25% of the card limit. If the bank is asking you for more than that then tell them about this new law that restricts upfront fee amount.

Make sure that when you apply for a credit card you choose has the lowest possible interest rates, fees, and credit limits. Sometimes when a card is so easy to get, then you have to think twice about it. Banks do this to cover up for the high risk they’re in however even if you have bad credit history you should still choose and not just grab the first opportunity to have a credit card, you surely don’t want to end up being debt once again.

Banks are asking for a deposit only for security however the amount might be around $300- $500 and sometimes even higher. If you are out of budget, then going for small credit limit would be the best way to start, if you show good faith the bank will gradually increase you credit limit without needing an additional deposit.

Things To Know About 0 Balance Transfer Cards

There are many credit card companies that will offer various 0% APR or low percentage APR for an introductory period to new or existing customers who choose to transfer their balance from one card to another. These transfer can take place from a higher percentage card of the same company or from another company, however persons must be eligible to take advantage of these offers.

0 balance transfer cards are one method that credit card companies use to attract new customs and keep existing customers. Using this method, customers can effectively consolidate their debts on to one card and receive better rates on the new card.

The company will benefit by receiving high interest payments once the introductory period expires. However if you miss or make a late payment, there will be an automatic cancellation of the 0% offer, resulting in a very high APR and late fees.

Requesting Balance Transfers

You can apply for a balance transfer card online and receive instant approval.  However, the transfer may still take days or weeks to be completed between your old and new creditor. For this period your balance will still be gaining interest and hence always check with your old creditor after the transaction is complete to see if any outstanding balances remaining. Normally persons having a good credit score will receive these credit card offers in the mail. However, mail in orders will take longer to process, and you will still need to continue paying your old creditor during this process.

Things to Bear in Mind

Your credit history will play an important role in the specifics of the offer that you receive, so check your credit report from time to time, to ensure that you are in good standing.

If you request a transfer that exceeds the credit given to you by the company, only the amount given will be transferred and the rest will be left with your old creditor.

You introductory period will eventually expire, most last between 6 – 12 months. You should therefore try your utmost best to pay off as much as you can during this period. If you have a balance at the end of the period you can repeat the process again and apply for a new 0% transfer card.

The Best Credit Card Offers You Can Find Online

A lot of things are now being done online. You can buy the clothes you want, order the things you are longing for, and you can also make investments that involve huge amounts of money securely.

The application and the acquisition of the best credit cards can now also be done online; this can definitely help you a lot when searching for the best credit card offers you would surely want to have.

Convenience and security are two important factors offered by the application for credit cards online. Now, you no longer need to visit a bank or an authorized lender just to get the best credit card for you. Through visiting the website of the best bank or lender, you can then easily find and apply for the best credit card anywhere you want to.

However, it is crucial that you also consider certain harms that might be present once you decide to apply for a credit card online. You should be aware that there are also certain threats present like hackers and malwares that might exploit your personal information. Make sure that you only get the service from a website that is secure and that makes sure that your information and your transactions are kept private.

The best online provider does not only provide quality and secure transactions, but it can also provide you with the best offers as well. The best site can offer a wide array of credit card types fit for varying needs of individuals. They can also offer popular types like low interest rate credit cards and secure credit cards fit for those who need to repair their credit scores.

Remember that applying for a credit card you can use is no easy feat. Even if its application and acquisition can now be conveniently done online, it is still important that you make sure you get and evaluate all of your options along with all of the consequences that will be present once you get to choose the best type of credit card you can use.

Do not be fooled by marketing tactics and offers used by other banks and lenders as this is just a dirty trick they are using to get ahead of their competition. You should make sure that the offer you plan on getting is indeed the best for you and can provide you with everything you need in a credit card.

Question To Ask Before Accepting Credit Card Offers

An offer to get a new credit card with a balance transfer from your old card may seem like a tempting idea. While it has its many advantages, it can work to your disadvantage, costing you a lot of money if you do not bear some important things in mind. Before accepting any offer for a credit card transfer, ask these questions:

1. Will there be an introductory interest rate?

Many companies have credit card offers where if you accept a balance transfer you receive a low or 0% introductory interest rate on the balance transferred. This will then cause a reduction or elimination of any monthly charges on the balance you transferred, making easier for you to eliminate your debt.

2. What is length of the introductory period?

Normally the introductory time period is anywhere between 6 – 12 months. Of course the longer period is desired as this give you more time to reduce your debt without the charges.

3. Will the introductory interest rate apply to purchases, or just the balance transferred or both?

Most credit card companies will have an interest rate for the balance transferred which is the introductory rate, and another for any purchases made. Some even have a third for cash advances. If the new card has different rates, be clear as to what the introductory rate will and the regular will apply to.

4. Will the introductory rate apply to you?

Not because a 0 balance transfer is being advertised means that you will qualify for that rate. The rate you are given will be based on your credit history, and hence may even be higher than you suspected due to poor credit.

5. Will there be any fees for balance transfer?

Even though you have a 0% introductory rate, you may still be required to pay a fee for transferring your balance. This may be a percentage of the amount be transferred or a fixed fee.

6. What will be the APR after the introductory rate?

Even though you may be getting a good introductory rate, you still want a very low APR for life after the introductory period. Also find out if a different APR will be charged on any balance you may have left and purchases made. Use the fact that APR will increase to motivate you to pay off your balance quickly.