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Bad Card Credit Credit - The “Bad Card Credit/Credit Card” Alternative

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It is really no secret that many people are suffering from poor credit. This is generally not because people have opted to just forget about their responsibilities. Often, people suffer from circumstances that can damage and harm their credit. Losing your job, incurring medical expenses, or being the victim of fraud call all lead to the severe damaging of a credit score. The obvious impact of this is that the ability to be approved for a credit card becomes almost non-existent.

This is where the “bad card credit/credit card” alternative comes into play. Basically, there are options available to those that do not make a good prospect for a credit card application approval. There may be a few complexities associated with these particular credit cards. However, the need for such a card will outweigh the complexities associated with it.

For stability and security, it is certainly helpful to have access to a credit card. Often, it is impossible to carry liquid cash. In other instances, a lack of personal funds may make liquidity an issue as well. Some might not be all that concerned with such a scenario. What happens when a car breaks down and needs to be immediately repaired? Again, access to a “bad card credit/credit card” alternative opens the door for being able to reverse a financial emergency.

How can one acquire a credit card when the specter of bad credit hangs overhead? The following are common ways this can be done:

The most basic way of being approved for a bad credit credit card would be to have a co-signer. This would mean the co-signer is responsible for the debt in case the primary account holder defaults on the card. The clearest problem with this strategy would be the difficulty of finding a willing and credible co-signer. Those unable to find a co-signer might be best served taking the next step which would be applying for a secured credit card.

As the name implies, a secured credit card requires putting up a security deposit on the card. A common example of how this “bad card credit/credit card” alternative works would be to place $500 in escrow with the bank. The bank would then issue a credit card with a $500 limit. The $500 deposit would be held for six months. At the end of the six months, the $500 deposit would be released provided the client made timely payments during the probationary period. Some might consider the probationary period to be a bit difficult to accept. However, this type of credit card does set the stage for repairing your credit while also providing access to lending.

Another “bad card credit/credit card” alternative would simply be to apply for credit cards specifically designed for those with bad credit. Such cards have their positives and negatives associated with them. For most, being approved for the credit card is the positive that outweighs all else.

These types of credit cards will frequently come with high interest rates. The reason for this is that a person with weak credit may be considered a lending risk. As such, higher interest rates are applied to the card.

There is a common way around this problem. Those that pay off their credit card balances in full each and every month. Such a payment plan would completely circumvent the issue of high interest rates since the balances will be paid off in full.

Some “bad card credit/credit card” alternative options will come with high annual fees. Most people will not be enthralled at the notion of an annual fee. Once again, with a poor credit score, options may be limited. So, being more accepting of annual fees might be required.

One thing that needs to be clearly understood about bad credit is that there will come a time when you need to take deliberate steps to improve your score. Acquiring a new credit card – even one with a high interest rate and high annual fee – will certainly prove to be a helpful means of repairing a credit score.

Bad credit does not necessarily have to be the impediment to acquiring a credit card. Options do exist and they are well worth exploring.

Bad Credit Bank Accounts - How To Qualify for Bad Credit Bank Accounts [next] [back] Bad Credit Banks - Bad Credit Banks for Checking Accounts and Loans - Bad Credit Banks for Loans, Bad Credit Banks for Checking Accounts

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about 7 years ago

You are correct and our Public Savings Bank secured Visa credit card does have a security deposit that you receive back when you close the account as long as you've paid off your any existing balance in full.

You can open our card with a balance anywhere between $300 - $2,000. You can also apply for a credit line increase at any time by simply calling us.

Our card is great for those who have either no or very low credit because we don't check your credit upon application we also have a 25 day grace period. It's to help you either establish your credit or re-establish your existing credit history.

We also report our card to all three major credit bureaus at the end of each month and we're accepted wherever Visa is.

Thanks for writing this and have a wonderful day!