 |
|
Paying with plastic has become a common part of everyday life, with more people now using credit or debit cards than cash for day to day purchases. The rapid rise of online
shopping means that it's almost essential to have some way of paying by card, but people with poor credit ratings have always struggled to get approved for credit cards. It's
not impossible though, and there are ways for people with even the most impaired credit histories to enjoy the convenience of plastic.
People with mild credit problems or low incomes will probably not be approved for the most heavily advertised credit cards with the most attractive offers, but many companies
operate a policy known as Risk Based Pricing.
|
|
| |
This basically means that their cards will offer a different interest rate depending on the credit score of the applicant. If your
credit rating isn't good enough to be accepted for the card you apply for, you may be offered a different card with similar features but a higher interest rate.
Risk based pricing is a great way for people with some adverse credit history to get a card, but people with more severe problems will need to look elsewhere. Several companies
offer a card specifically aimed at people with poor or no credit history, and market them as a 'first' or 'starter' card. The idea is to offer a card with a low credit limit and
a comparatively high interest rate, as a way of allowing people to being to develop some positive history on their files.
While these cards are poor value in comparison to more mainstream offers, the acceptance rate is very high and by opening an account and keeping up with your repayments, your
credit rating will slowly be improved to the point where you may be able to apply for a cheaper card further down the line.
People with more severe credit problems such as bad debt or a previous bankruptcy may find that even these starter cards are out of their reach, which leaves only one real
option : prepaid cards. These cards, also known as secured cards, are not in fact credit cards at all as they need to be 'loaded' with funds before you can use them to spend.
Bad Credit Rating
|
 |
 |
|
Tips For Responsible Credit Card |
|
 |
|
|
If your current credit situation is not as good as it could be you need to be very responsible when using credit cards. While irresponsible spending habits are not always the cause of bad credit no matter how you ended up in this situation the privilege of credit card use should be taken seriously to prevent going into further debt.
Here are some great tips for responsible credit card use.
If you have several credit cards look into transferring the balances to one or two that have the lowest interest rates and then get rid of the other credit cards. By limiting the number of credit cards that you own you will not have to worry about juggling a repayment schedule that you can’t afford to keep up
|
|
| : |
with. Once you have the balances on your remaining credit card under control then try to limit your purchases to things that you really need.
Refrain from taking out cash advances on your credit card if at all possible. Credit cards most always charge huge interest rates on cash advances so if this is a common practice for you it will certainly drive you further into debt and if you already have bad credit it will only make things worse. If you do need to take out a cash advance on your credit card make sure you will be able to repay it as soon as possible.
Repay you credit card bills on time. This is simple common knowledge but is often overlooked by many credit card users. Document your payment schedule and follow it to the letter. This will not only help you build a solid history of good credit it will save you the stress of worrying about getting your credit card bill paid.
Tips For Responsible Credit Card
|
|
|
|
