Bad Credit Blog » Credit Score http://blog.badcreditwhiz.com Just another WordPress weblog Fri, 03 Sep 2010 06:20:08 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 6 Simple Steps to Rebuilding Bad Credit http://blog.badcreditwhiz.com/bad-credit-rebuilding/ http://blog.badcreditwhiz.com/bad-credit-rebuilding/#comments Fri, 06 Aug 2010 08:19:59 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1551 A credit history is a record of how responsible you have been in repaying your debts. This credit history is used to help creditors to determine what level of risk you pose if they were to give you a loan. Many may think that the best option is not to have any credit history. However, the truth is much to the contrary, as financial institutions will be less likely to give you a loan if they have nothing to reference their risk. Therefore, control is the operative word to indicate your maturity in dealing with your financial obligations.

Individuals with bad credit can also implement various strategies that allow them to rebuild their credit rating. An indication of an effort to rebuild your credit rating will trigger off a flurry of interest from financial institutions who want to capitalize on your newfound financial responsibility. Some of the strategies that can be employed to improve your credit rating include:

Rebuild Your Bad Credit

1. Getting a secured credit card:

Secured credit cards offer the same accessibility as unsecured credit cards. However, with a secured credit, debtors are required to make a deposit as an assurance that you will repay your debt. This deposit is independent of you loan amount and creditors are issued monthly bills on their spending activity. Financial institutions are more comfortable with issuing secured credit to individuals with bad credit, as they are able to secure a part of their loan amount of the account defaults. On the other hand it also give creditors to turn around their bad credit fortunes as through strict repayment regimes they can significantly improve their credit rating.

2. Only charge what you can afford:

One weakness of credit card holders is to purchase items that are outside of their financial reach. As a result, they become burdened with additional payments each month. By sticking to your budget or using your credit card to purchase only recurring daily expenses, creditors will display effective control over their spending habits and consequently raise their credit rating.

3. Be consistent with monthly payments:

A consistent payment pattern does wonders for your credit rating. Even if you previously had bad credit, displaying discipline to meet your monthly financial obligations significantly improve your credit rating. Even one payment in the opposite direction does significant damage to your credit score.

4. Reduce the amount of credit card:

Each time you take out a new credit card, it chips away at your credit score. By proving that you can manage your spending with just one or two credit card demonstrates control and improves your credit rating.

5. Keep your balance low:

The interest charged on credit cards is based on your balance at the end of the month. By keeping you balance within 80% of your loan amount makes it easy to meet monthly payments and keep your credit score ticking over.

6. After one year, apply for an unsecured loan:

After proving that you are able to maintain a positive credit score, it is time to go to the next level by applying for an unsecured loan. An unsecured loan has no deposit requirements and gives you access to credit limits. This higher credit limit will be testament to your commitment to meeting your financial obligations.

]]> http://blog.badcreditwhiz.com/bad-credit-rebuilding/feed/ 0 Crumbling Credit Score and my Family Life – The pressure is mounting! http://blog.badcreditwhiz.com/crumbling-credit-score-and-family-life/ http://blog.badcreditwhiz.com/crumbling-credit-score-and-family-life/#comments Tue, 27 Apr 2010 07:29:55 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1389 Did you know that your bad credit can affect your family life in ways imaginable? Some people think that having bad credit can only have a negative affect if they apply for credit or from obtaining better loan deals and interest rates, but in an article written by Liz Pulliam Weston on MSN Money, shows that bad credit can also cost you a job.

According to Liz Pulliam, A fair chunk of employers want to examine your credit history before offering you a position or a promotion. Blotches there — repossessions, collections, high credit card balances — could cost you the job you want. For example, applicants for Transportation Security Administration airport screener jobs are rejected if they have more than $5,000 in overdue debt. Liz also stated that, many companies do use credit histories as a way to weed through job candidates. In the private sector, the people most likely to have their credit reviewed are those who will deal with cash or valuables, or who are financial executives, said Greenblatt, a labor attorney with more than 30 years’ experience in employee testing and screening.

“Bank tellers, CFOs (chief financial officers), controllers, people who work for brokerage institutions, financial institutions,” he said. “Jewelry manufacturers do credit checks. . . . When you’re dealing with diamonds, they’re easily concealed (and stolen).”

Crumbling Credit Score and my Family Life

Keeping Your Credit Score High

The number one most damaging thing to your credit score is bankruptcy with the least damaging is a maxed-out credit card. Depending on your initial score, a late payment can lower your score by 60 to 110 points. If you have a foreclosure on your record this can drop your score by 85 to 160 points and debt settlement can cause a drop in your score of 45 to 125 points. Overall, any significant drop in your credit score is not good for obtaining credit because lenders use these scores to determine your credit worthiness and the higher your score the better off you will be in qualifying for a loan as well as getting a favorable interest rate and other terms and conditions on the loan.

Determining a Borrower’s Credit Worthiness

Lenders also use other factors in determining your credit worthiness, such as:

  • The total amount of debt you have in comparison to your income.
  • How long you’ve been employed at your current job.
  • The amount of savings you have.

In-order to reestablish your good credit you will need to use credit, however use it wisely and only for emergency purposes and most importantly pay your bills on time and do not exceed the credit limit. By doing these simple things, you can regain your once flawless credit history and put your family life back on track to a better financial future.

]]> http://blog.badcreditwhiz.com/crumbling-credit-score-and-family-life/feed/ 1 How to Improve your Credit Score REAL FAST? http://blog.badcreditwhiz.com/improve-credit-score-real-fast/ http://blog.badcreditwhiz.com/improve-credit-score-real-fast/#comments Thu, 18 Mar 2010 10:05:38 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1324 The race goes on to find ways of reducing debt and increasing our credit scores. This illusive feeling of being debt free has grown to be big business and financial professionals now charge individuals to give them advice of how to increase their credit score. Here we will break this mold and divulge some of the secrets that we hope will help in improving your credit score.

  • Pay down the Credit Cards: An effort to pay down your credit card gives an indication that you are willing to manage your debt. Although you may not clear your credit card debts, it does wonders to your credit score. Lenders are happy to see a huge gap between the amount of credit you use and your credit limit. A good ball-park figure is to maintain your credit balance below 30% of the credit limit. Therefore, while some analyst will suggest getting rid of the credit card with the highest interest rate, surveys of credit card lenders say if you want an accelerated increase in your credit score, it is best to pay down the credit cards that are closest to their credit limits.
Improve your Credit Score Fast
  • Regulate your Credit Card Use: The rate at which you use your credit card affect you credit score significantly. Making emergency withdrawals from ATM machine and frequent shopping send the credit score through the roof. Even if you pay off your balance in full each month, the credit score is calculated the balance of the last reported or your last statement. Now we are not saying that paying off your credit card monthly, actually, that is a great positive practice. However, by regulating your credit card use helps to improve your credit score real fast.

  • Use Old Card Every Now and Again: Even though we may stop using old credit cards, it is not wise to cancel them totally. Every six months or so use them to prevent your creditor from putting it on the list of dormant accounts. Have a credit card over an extended period show a huge amount of stability in the credit card system. As a result, this record is fed into the general system when calculating your credit score and improves your credit score exponentially.

  • Increase your limit: A word of caution here. If increasing your credit will trigger you to go on a spending spree, then this one is not for you. This is for individuals who have a lid on things and are managing the use of their credit card. Increasing your credit limit actually gives you more room between your outstanding balance and the principal. Now, for this to work, you must maintain your credit balance below the 30% of principal mark and then just enjoy watching your credit score flying through the roof.

  • Do not ruin a good thing: It is said if something is not broken, then do not fix it. If you already have a good credit score and good management of your credit card spending, then this is enough to give you a high credit rating. Continue implementing you control mechanism and do not play around with new ideas that may get you into problems.
]]> http://blog.badcreditwhiz.com/improve-credit-score-real-fast/feed/ 0 Credit Reports Made Easy http://blog.badcreditwhiz.com/credit-reports/ http://blog.badcreditwhiz.com/credit-reports/#comments Thu, 04 Mar 2010 09:46:48 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1294

More often than normal the problem is precisely not about understanding your credit report, but understanding the implications of various transactions on your credit score. A periodical review is sure to help you get rid of any discrepancies in the report and also the impact of transactions.

How can I understand my credit report?

Understanding the implications in your credit report is no great deal. We have made an effort to tabulate the events and the resultant impact on your credit report.

S.No Issue Impact on Credit Report
1 Credit Score Ranking Check out the ranking and know where you figure
High Risk 330-550
High Risk – Medium 551-625
Medium Risk 626-699
Low Risk – Medium 700-725
Low Risk 726-830
2 Availing maximum credit on cards It is ideal to maintain your credit usage at around 50 % to avoid huge impact on your credit score
3 Credit score was reduced by around 20 points soon after a home loan was applied for. Why? A difference of twenty points could be because of a different credit score model used by the lender. You should be careful when there is a difference of around 100 points in your credit score
4 Will the change in credit report be informed to lenders? Say, your credit was rejected and thanks to your efforts, the report has been rectified, on your request, the credit reporting agencies can send across the ‘Notice of Result’ to all the lenders who happen to check your credit report  
5 Who else will refer to my credit report apart from the lenders? Employers and insurance companies will refer to your credit scores in addition to lenders.
6 Will lenders know about my employment status from my credit report? Credit report will have no information on your employment and related details.
7 Does everyone look for the same information in my credit report? It depends on the type of loan you have applied for. Every lender would like to know if you can afford to pay the loan you have applied for 
8 Checking my credit report too often cause any trouble? Not at all. Your checking has no relevance, credit report request from companies are certainly viewed seriously, when they exceed a certain number of times
9 What items are excluded from my credit report? No information as such need be excluded from your credit reporting. Except for the credit report request made by lender all other requests especially those from employers and from you will not be reflected in your report
10 Do doctor’s unpaid bills get reflected in my credit report Any amount due is a liability what if it is a medical bill? All liabilities get reflected in your report
11 Will co signing a loan application affect my credit score? It certainly will. The amount will get reflected as a liability in your account. You better not do it as it will reduce your affordability for other loans
12 In order to offer pre approved credit cards, companies often check into the individual’s credit report. Do these affect my credit report? Certainly not, any credit request presented without your consent will not be counted and reflected.
13 On getting married, will the credit score of my spouse affect my credit score? No. Each of your credit reports are tracked through your social security number and the creditworthiness of your spouse has nothing to do with yours
14 I am unnecessarily being troubled by pre approved credit cards and insurances. How can I avoid their access to my credit report? All you need to do is inform all the credit reporting agencies not to provide these companies with your credit details. You can call up 1 888 5OPTOUT (1-888-567-8688) to inform the same
15 I would like to close some of my credit cards. Which are the ones to be closed? Where you opt to close your credit cards kindly remember the following
Choose retail cards to bank cards
Choose cards with lower credit limits
Do not surrender cards you had been holding for long
16 I had a divorce, should I inform the credit bureau? You should. Furnish the new address and the fact that your spouses credit details should not be furnished along with yours
17 There is an error in my credit report. How do I rectify? Call up the respective credit reporting agency and send a letter stating the mistake and proof of credit report. When the same has been resolved with the creditor, the credit report will be accordingly rectified.
18 Can I add favorable items to my credit report? You certainly can. You can repair your credit account by adding some of those positive items, and yes you will charged for that by the credit reporting agency
19 Does a credit bureau decide the sanction of loan? No. Their duty stops with just providing the information and the decision part is left to lending companies
20 How do I know the status of my credit report? All you need to do is call one of the credit reporting agencies and get a copy of your credit report
21 Which are the three credit reporting agencies in the US? There three credit reporting agencies in the US they are
TransUnion
Equifax
Experian
22 What is a credit report fee? Credit report fee is charged by the lender on a loan application. It costs around $25 to $50. This charge is incurred to get a copy of the credit report of the applicant
23 I should a get free credit report every year. Do I get one from each credit reporting agency? Yes, you totally get three free credit reports each year
24 Will credit counseling taken by me reflect on y credit report? Yes does reflect. It is not a bad thing in your report, as getting credit counseling is better than not paying loan installments
25 Is there some way I can know that someone is trying steal my identity? If you find transactions you never made in your credit report or you get a call for payment of something you never purchased or availed, you will know that someone is trying to steal your identity
26 Investigative Credit Report. What is this? If required under the federal law a credit reporting agency may conduct a detailed investigation on your credit report, even enquiring your friends, neighbors and associates. The agency should inform you before proceeding to investigate
27 What are these credit repair agencies? Often credit reporting agencies claim to clean your credit report, which they normally do not. Hence it is advisable not to go for it, instead see what best you can do
28 I have too many cards and I want to close them. Is there a problem? The problem is not when you don’t pay, but when you apply. By closing these cards the ratio of debt to credit reduces affecting your credit score. It is better you pay down the loans and not use them any more
29 While shopping for mortgage loans, there might be many credit enquiries? Will it affect my credit score? No, multiple enquires over a 45 day period is considered 1 by FICO regulations. Hence go shopping peacefully
30 How to ensure no identity theft happens? As soon you spot a discrepancy report the same to the reporting agencies and along a police complaint if required and make sure your complaint is rectified in time. Keep track of your credit report as often as possible.
]]> http://blog.badcreditwhiz.com/credit-reports/feed/ 1 Understanding Second Mortgage Loan http://blog.badcreditwhiz.com/second-mortgage-loan/ http://blog.badcreditwhiz.com/second-mortgage-loan/#comments Mon, 22 Feb 2010 08:25:11 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1273

Owning a home gives you the opportunity to borrow money from the equity in your home. If you are ever in need of additional funds education, debt consolidation, remodeling your home or other personal financial needs, taking out a second mortgage loan gives you easy access to the unused cash known as equity.

Second Mortgage Basics

A second mortgage loan is a loan taken out on your already mortgaged property. The second mortgage loans are called subordinates; this means that in the event of a default after your property is sold, the first mortgage is paid off completely before the second mortgage can be paid. However, if there is not enough money from the sale of the home, the second mortgage does not get paid. This loan comes with a much higher interest rate because it is riskier for lenders.

Two Types of Second Mortgage Loans

There are two types of second mortgages. There is the closed-end home equity loan which is the traditional home equity loan where the borrower receives a lump sum at the time of the closing and cannot borrow any further. The other type is the open-end loan. This is the home equity line of credit where the borrower can choose when and how often to borrow.

Are there any Risks Involved in taking out a Second Mortgage Loan?

Taking out a second mortgage loan is risky because it can lead to foreclosure if you default on your loan. In the event that you default on your loan, the second mortgage lender will purchase the first mortgage then foreclose, leaving you to lose your home to the second mortgage lender.

What are the Advantages of a Second Mortgage Loan?

The funds are readily available to you, should you need to borrow from your home equity. A second mortgage is easier to get that other types of loans because it is a secured loan. Also, the interest paid on the second mortgage is easier to deduct from your taxes.

How much can I Borrow on a Second Mortgage Loan?

The amount that can be borrowed on a second mortgage loan is determined by the difference between your outstanding principal balance on your first mortgage and your home’s current value.

How can I Qualify for a Second Mortgage Loans?

To begin the process, the second mortgage lender will make sure that you have a significant amount of equity in your home, a high credit score, a low debt-to-income ratio and an excellent employment history, among others. Before moving forward with taking out a second mortgage loan, make sure you know all the important details regarding your loan before signing the application.

Taking out a second mortgage to pay for a college education, home remodeling or repair or even to pay for your dream vacation, makes a lot of sense. But before you commit to any agreement, make sure you do your homework – weigh the pros and cons and determine if the second mortgage is worth all the risks involved. Only you can decide whether or not a second mortgage is worth it.

]]> http://blog.badcreditwhiz.com/second-mortgage-loan/feed/ 1 Refinancing Second Mortgage after Declaring Bankruptcy http://blog.badcreditwhiz.com/refinancing-second-mortgage-after-bankruptcy/ http://blog.badcreditwhiz.com/refinancing-second-mortgage-after-bankruptcy/#comments Thu, 14 Jan 2010 09:59:28 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1206

If a person fails to pay his creditors and is legally declared unable to repay his creditors, then the term used is bankruptcy. Either the creditors can file bankruptcy against the individual or the individual can declare himself bankrupt. To declare bankruptcy, an individual needs to find legal and financial advice to make sure that this would be the best option. To deal with the immediate consequences of bankruptcy, the person needs time and it is recommended to try refinancing or a second mortgage after looking at all the other available options.

A second mortgage refinancing loan is possible to get after two years of bankruptcy. To opt for the second mortgage loan after declaring bankruptcy a person needs to ensure the following:

  • improve your credit score
  • clear your bad credit history
  • find a good lender
  • get good quotes for refinance rates

Options for You

If you have been declared bankrupt but you have cleared all your debts and have ended your period of bankruptcy there are a few options for you to get the second mortgage loan. You need to make sound financial plans to clear your debts and increase your credit score. Also you can put some restrictions on yourself so that you do not fall into a debt pattern they may have contributed to the situation.

Good Credit History

A good credit history will enable you to apply for a second mortgage loan after declaring bankruptcy. Your credit record is the key indicator for your lender. There are certain types of bankruptcy that are filed by or against you. The credit report will reflect a Chapter 13 bankruptcy for seven years and a Chapter 7 bankruptcy for ten years. Accumulating assets and paying bills on time will improve your credit history and you can become eligible to receive second mortgage refinancing.

Refinancing Rates

Searching for low refinancing rates can be a daunting task for you as there is so much information available. There are subprime brokers available on the websites for you to compare rates and fees. After comparing financial costs, you can get an estimated cost of the loan you are going to apply for. You may consider the top three lenders that you find trustworthy and reasonable, then go ahead and investigate them further.

Real Quotes Comparison

Mortgage loans are determined by various factors like property location, employment history, and credit score. A subprime broker needs all of this information to give you a realistic quote. After comparing these quotes including rates, fees, and terms of refinancing offer, you can proceed to the loan process. If you require any additional information, you may contact the subprime broker over the phone or through their website. You can then complete your application for the loan.

Advice

Once you have declared bankruptcy, you can seek the assistance of a good lawyer or financial expert to assist you locating a second mortgage loan. Your attorney or financial adviser can help keep you out of future bankruptcy and offer sound advice to ensure that you find a good mortgage loan with lower interest and closing fees. ]]> http://blog.badcreditwhiz.com/refinancing-second-mortgage-after-bankruptcy/feed/ 1 Finding a Bad Credit Mortgage Broker http://blog.badcreditwhiz.com/bad-credit-mortgage-broker/ http://blog.badcreditwhiz.com/bad-credit-mortgage-broker/#comments Tue, 05 Jan 2010 11:40:02 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1198

There is no escaping a history of bad credit and a low credit score. No matter where you go, your bad credit will follow you. This can create many difficulties when it comes to getting mortgage loans, credit cards or other credit. However, don’t let your poor credit get in your way of getting the mortgage loan you need. The chances of getting a mortgage loan with bad credit are a lot easier than you think.

A Mortgage Loan is STILL Possible for People with Bad Credit

Mortgage lending has reached an all time high and poor credit mortgages have increased significantly over the past few years. Mortgage brokers lending to people with bad credit has become competitive. Lenders are competing to give people loans with bad credit. This is good for the borrower because bad credit brokers can be a lifesaver and come in handy when you need it the most. Even though your credit score plays a vital role in the borrowing process, there will always be a bad credit mortgage loan to suit the needs of people with bad credit, regardless of the financial situation or credit score.

How to get Loans with Bad Credit?

Due to the high demand for bad credit loans, there has been an increase in the number and variety of bad credit loans available. People with bankruptcy and late payments are now able to obtain loans at a higher interest rate than normal loans. However, you can improve your credit score simply by reducing the usage of credit cards prior to taking out a loan and start making payments on time. Getting your credit score up by a few points can be helpful. This will not only help improve your credit score, but it will also avoid making higher monthly payments and paying a significant amount more on your loan in the long run. You can also consider asking a relative or close friend to co-sign for a loan. The co-signer however, is responsible for paying off the loan if you stop making payments.

What is a Bad Credit Mortgage Broker?

A bad credit mortgage broker is someone who gives mortgages to people with bad credit score rating. A bad credit mortgage broker is designed specifically for those who find themselves with poor credit standing but still want to purchase property. The primary reason that bad credit brokers exist is due to the high demand for bad credit loans.

How to find the best Bad Credit Mortgage Broker

There are brokers who specifically cater to people with bad credit and bad history in mortgage repayment. To find the best bad credit mortgage broker, you should make sure of the following:

  • Make sure you are offered the most competitive programs at the best interest rates.
  • A bad credit mortgage broker is able to explain and give you all the important information about the mortgage deal and about your options.
  • A bad credit mortgage broker should be specialized in making mortgage deals to people with a history of bad credit. They should have the expertise in this field and is able to make the right decision
  • Look for a compatible lender and make sure the loan is from a legitimate lending source. You should only borrow from a reliable source.

Types of loans for people with bad credit

There are two types of loans available to people with bad credit: secured loans and unsecured lo

Secured Loans: By taking out a secured loan, you must remember that your assets are at stake. By getting a secured loan you promise to hand your asset over to the lender if you fail to pay on your loan payments. However, secured loans are the most preferred loan because it allows borrowers to get better deals such as lower interest rates. Lenders are usually eager to offer as many secured loans as possible and give preferential treatment compared to borrowers of unsecured loans. There is less risk to the lender in secured loans. Make sure you know all the risks involved before you take out a secured loan.

Unsecured Loans: Unsecured loans/signature loans, on the other hand are not attached to any collateral. If you fail to pay, the lender has nothing to go after. They cannot take possession of your assets but they can report you to the credit reporting companies and this can negatively affect your credit rating. The interest rate for unsecured loans, however, is typically higher as the lender takes all the risks. ]]> http://blog.badcreditwhiz.com/bad-credit-mortgage-broker/feed/ 0 Credit Cards for People with Bad Credit – How to choose what is Just Right for me? http://blog.badcreditwhiz.com/credit-cards-with-bad-credit/ http://blog.badcreditwhiz.com/credit-cards-with-bad-credit/#comments Wed, 23 Dec 2009 11:20:14 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1188

If your goal is to improve your credit, there are several alternatives you can choose from. However, simply getting a credit card will not help you build or rebuild a good credit score. You will need to make your minimum monthly payments are on time, and you would need to stay within your credit limit. Over time you are able to re-establish your good credit and thus change your financial future.

How to Choose What is Just Right for You

When applying for credit cards, you should make sure they offer low fees, low APR (below 10%) and, most importantly, that they report your payments to the credit bureaus such as Equifax, Experian and Trans Union. If they report to the credit bureau, it is a good way to rebuild your credit so that in the future you can get regular credit cards with no application processing or annual fees.

What Kinds of Credit Cards are Available to People with Bad Credit?

There are a variety of credit cards to choose from for people with bad credit. You will definitely need to shop around and find the best possible deals. Due to poor credit, chances are you will not be able to get a regular, no annual fee credit card from regular credit card companies. However, there are many credit card lenders who specialize in people with bad credit and will issue credit cards but most, if not all, of those cards come with a fee that you should be aware of. Some are:

Annual Fee: A fee you pay annually, for the privilege of using the card.

One time Application/Processing Fee: A fee charged for application process, which can be as high as $100.

Monthly Fee: Many credit cards have a monthly processing fee, which can range $5-10.

Excessive Fee Due to Having Bad Credit

You may end up paying quite a bit in fees just to have the privilege of using a credit card but this is the price you have to pay when your credit is less than perfect. Having a credit card can be a lifesaver and comes in handy if you need to make a plane or hotel reservation or rent a car. It is also a way to rebuild your credit score if used responsibly. Once you have made your credit card payments on time and stay within your credit limit, you can then begin to establish new credit and get a regular no annual fee credit card.

Secured Credit Cards/Prepaid Credit Cards

A secured credit card or prepaid credit cards require a cash deposit. The cash deposit will be your available credit limit. For instance, if you make a deposit to your account in the amount of $200, that is your credit limit and you can only charge up to $200 on your account. You are also able to add more money to your account if you need a larger credit limit. Secured/Prepaid credit cards on the other hand, are an excellent choice because it prevents you from getting into more credit card debts. However, it will not help you to rebuild your credit history.

Unsecured Credit Cards

Unsecured credit cards do not have a security deposit linked to it. The higher your credit score, the higher your credit limit will be. Being able to get an unsecured credit card in the future should be your goal. All you need to do is keep a clean credit history from now on. ]]> http://blog.badcreditwhiz.com/credit-cards-with-bad-credit/feed/ 1 Bad Credit Unsecured Credit Card http://blog.badcreditwhiz.com/bad-credit-unsecured-credit-card/ http://blog.badcreditwhiz.com/bad-credit-unsecured-credit-card/#comments Mon, 14 Dec 2009 09:51:14 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1180

If you are looking for an unsecured credit card with built in benefits that provides you the opportunity to rebuild your bad credit, you have no need to worry. There are several alternatives you can choose from such as prepaid credit cards, secured credit cards and unsecured credit cards. However, an unsecured credit card is the preferred card for most people with bad credit.

Unsecured Credit Cards

Even if you have bad credit or no credit history at all, you can still get approved for an unsecured credit card. Unsecured credit cards do not have a security deposit linked to it. The higher your credit score, the higher your credit limit will be. Getting an unsecured credit card not only gives you convenient access to cash and credit, it can also help you build your credit history and rebuild your good credit. As long as you make your monthly payments on time and stay within your credit limit, you should be on your way to re-establishing your once good credit.

Where can I get a Bad Credit Unsecured Credit Card?

There are many credit card issuers that cater to people with bad credit. Due to your bad credit record, chances are you cannot get a regular credit card without an annual fee from mainstream credit card issuers. So you will have to start with a credit card that will help you to rebuild your credit in the future and overtime you will be able to get a card with no annual fees.

When you shop around, and you definitely want to do so, to compare credit cards, keep in mind that you may not be able to get the best credit card offers. Those offers require good credit, but over time you should be able to apply for the best deals. That being said, know that these unsecured credit cards don’t come cheap. These bad credit unsecured cards come with higher fees, more stringent terms and a much lower credit limit.

Excessive Fee due to having Bad Credit

You may end up paying quite a bit in fees, just to have the privilege of using a credit card but this is the price you have to pay when your credit is less than perfect. Having a credit card can be a lifesaver and comes in handy if you need to make a plane or hotel reservation or rent a car. It is also a way to rebuild your credit score if used responsibly. Again, once you have made your credit card payments on time and stay within your credit limit, you can then begin to establish new credit and get a regular no annual fee credit card.

Benefits to look for in Unsecured Credit Cards

  • Accepted at millions of locations worldwide

  • 24/7 account management and account information

  • Email and text messages to remind you of payments due

  • Customer service assistance

  • Reputation of the credit card issuer is good

  • Credit card issuer reports to credit bureaus

  • Low APR

  • Low fees

Get the unsecured credit card that will give you the best deals – Good Hunting :) !! ]]> http://blog.badcreditwhiz.com/bad-credit-unsecured-credit-card/feed/ 1 Is there a RIGHT Bad Credit Loan for me? http://blog.badcreditwhiz.com/right-bad-credit-loan/ http://blog.badcreditwhiz.com/right-bad-credit-loan/#comments Fri, 04 Dec 2009 10:47:45 +0000 William M. Davis http://blog.badcreditwhiz.com/?p=1165

Keeping in mind the need for financial assistance, and the track record of the individuals applying for loans, many companies these days have also started lending money to bad credit borrowers. The need for bad credit loan borrowing has grown over years. Hence if you are looking out for a bad credit loan, you can be sure that you will definitely find one

Bad Credit Loan Options

Loan options vary depending upon the financial soundness of the borrower. Almost all companies extend what is called the bad credit loan option, meant for those people who don’t have a positive credit score. These loans are basically of two types namely secured and unsecured loans. While secured loans are issued based on the value of collateral offered by the borrower, unsecured loans are extended irrespective of the credit score of the borrower.

Finding that bad credit loan option which best suits you is possible given the kind of loan you can afford. If you are looking out for a low interest bad credit loan and have a collateral security to pledge then it would be wise if you can go for a secured bad credit loan, where the risk factor arising out of your bad credit score is offset by the collateral security offered. Where no collateral is offered and no sufficient source of income of the borrower to fall back upon, naturally an unsecured loan is offered will be at a higher cost.

It is always better to avoid opting for a bad credit loan, given that you already have and credit score, but again situations does not warrant a hassle free environment, aiding you in setting right the credit score and outstanding loans.

Right Bad Credit Loan …Just for YOU!!

All major lending institutions offer these bad credit loans. Hence there are several sources from which you can raise a bad credit loan. Whether the loan opted for is right for you, completely depends on how much loan you have opted for and what are terms on which the loan has been issued to you.

Every lending institution offers to help the borrowers choose the most suitable loan option that makes it an ideal one for them. Several loan options are available irrespective of your financial status and therefore it is definitely possible for you to find that best suits you. ]]> http://blog.badcreditwhiz.com/right-bad-credit-loan/feed/ 0