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.
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.
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