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.

Translating Credit Card Use To Savings

Affiliate companies are engaged by creditor banks in specialty credit cards for specific uses. This trend started with the frequent flyer miles granted to travelers and has evolved in its own stead and has started off different promotions in different retail merchandise and products.

Today, regardless of the product or merchandise, you can avail of a promotions offer with your best credit card that can generate and credit points for you leading to your next purchase. Similar to the frequent flyer miles, you can earn rewards points for every purchase you make, giving you the chance to get your purchases for your everyday needs and then paying it at the end of each billing cycle.

Just for spending for the same amount you would in cash, the credit card offers you incentives by way of redemption points for gift items which would add value to your purchasing activities.     

As these incentive programs are easy and convenient to use, caution has to be exercised to see to it that it is not overused or abused. For this program to really translate into real savings there has to be commitment on the part of the credit card user to pay off the balance in full each billing cycle in order to avail of the rewards points. Should you fail to pay in full or worse, falter on your payments, then the interest and late charges would add up making it more costly than the availing of the rewards points itself.

A lot of creditor banks do offer zero APR or annual percentage rate to their balance transfer feature. Since there is no interest reflected on your balances, it would be much easier to pay your balances in full and on time. However, caution must be made in verifying the interest rate’s effective duration, as it may vary when the introductory rates expire.

These interest-free offers usually last from 6 months to one year, as introductory offers for a new credit card applications. If you make a careful plan or strategy in the payment of your balance and are able to fulfill your obligations on time, then you would not have to pay any interest at all.  

When you avail of the balance transfer feature, you are opening yourself to improvement of your credit rating. Even if your credit rating is already good, using your balance transfer option would further drive up your credit score, and this is good for your credit history. You reduce the overall interest rate and the amounts of your accounts when you group your balances together in a single credit card.

This consolidation of balances means you pay only for a single balance per month and you only have to observe one due date. Should you incur problems, you only face penalty for a single account. Aside from these, you are able to easily monitor your account and have easier budgetary control over the same.

One thing good about balance transfers is that even if you group your balances into a single account, your other accounts can remain open and usable. This makes for good opportunities to improve your credit rating, as it is determined not only by how you make your payments, but also how much credit limits you may have on your different credit card. By using the balance transfer feature, you can instantaneously upgrade your credit rating by doubling your credit limit without paying more cash. When you lower your liability chances you proportionately increase your credit rating.

Getting gift cards is ideal for sending to loved ones for them to be able to get the items they need. The gift card is a form of credit card that affords you relative savings when you avail of them.

What Is An Online Credit Card Application?

An online credit card application is the most popular way to fill out credit cards. You will find that there are a lot of ways that you can apply for a credit card nowadays. Typically, people enjoy the ease of doing it online. Not only will you be able to apply for a credit card from the comfort of your own home at your own pace, you will also be able to apply for several at once.
You will get to see the information for each card and what it offers and who it is best for. You will also be provided the ability to fill out as many credit card applications as you want to in a day.

A lot of the time, a credit card application is very simple to fill out as long as you know the information that it is asking right off the bat. If you do not know the information, then it is a good idea to have any information that you may need nearby. Some information that people do not know right off the bat is their social security number, their annual income as well as the household income.

You will need to make sure that you know this information or are able to get it easily. This information is required with just about any credit card that you apply for as it is something that will allow the bank to look you up and see what your credit looks like. They will also be able to see how much you make so that they can figure out what to make your limit.

There are several benefits to applying for a credit card online. For instance, you will have access to any type of credit card that is out there. Not only will you be able to have multiple credit cards to choose from, you will still be able to get all of the necessary information from each of them. Also, if you do not have your information readily available, then there is no time limit to fill out an application.

If you need to make a phone call to get some numbers or get up to look for something, then this is something that you can do. You are given a lot more freedom with an online credit card application than you would with any other type of application that you may come across.

In order to fill out a credit card application online, you will simply need an internet connection and also the aforementioned information. It is a good idea for you to do your homework and find a website that is going to be able to provide you with the selection that you need. There are sites that only can provide you with one type of credit cards whereas there are others that have a larger selection. Know what you are looking for when you start out and then go from there. This will make things a lot easier for you.

Choosing The Best Credit Card- How To Decide

When you decide to apply for a credit card you will inundated with choices. There are cards with low interest rates, reward programs, and even cash back incentives. Some cards carry a combination of these three things. Some are free, and others have annual fees associated. So how do you know which best credit card is going to work best for you? Here’s a quick guide of what to expect with different card types to help you narrow down your choices. 

Reward Programs

Reward programs are very popular with credit card companies. It’s a way to earn rewards you wouldn’t ordinarily receive just for using your card. Many cards are branded with specific stores or airlines, and only offer rewards that can be used with that specific retailer. These cards can be the best credit card type for those who frequent these airlines or establishments, but there are a few things to keep in mind.

To reap the rewards of these benefits you may have to give up a low interest rate. Many co-branded cards (such as credit cards associated with airlines) will offer generous rewards for use with that brand, but in return you will pay a higher interest rate. The interest is how the bank is able to recover enough money to pay for these rewards.

Rewards may also have restrictions on them. While many card issuers are getting better about not having black out dates or periods of time when the rewards can’t be redeemed, you will still want to check the fine print. Airline cards may only allow you to redeem so many points per year, and others will have a list of flights that are excluded. Retail branded cards may restrict what you can use the rewards on all together. You may find that you can’t redeem rewards for gift cards, and things of that nature.

Still, a reward card program can be a great credit card for those who spend frequently on their cards and want to receive something in return.

Cash Back Cards

Cash back cards are quickly becoming the most popular type of card program offered. These cards offer you incentives in the form of cash for using your card. These programs vary greatly, but in most cases will offer anywhere from 1-5% cash back in the form of either quarterly or yearly checks of statement credits. Just as many of the reward programs have restrictions, the cash back programs will as well. Most of them only allow a maximum amount of cash back per year, and cash back rewards are usually not offered on cash advances, mortgage, or insurance payments made with your credit card.

This type of card may be the best credit card for those who spend infrequently, or those who don’t mind waiting for the rewards.

Low Interest Rate Cards

Believe it or not, this is considered a benefit if a credit card offers it. Most low interest cards don’t offer rewards, or any other bells and whistles. If you just want an affordable way to finance purchases, this may be what you should apply for. Just beware before you apply for a credit card with a low interest rate that you can forfeit the rate if you are over-limit, late, or miss a payment.