Credit Card Rewards

Bankruptcy administers a devastating blow to your credit card. A bankruptcy may remain on your credit report for up to 10 years. But these effects do not remain long lasting; it starts to diminish on your credit report as soon as your case is closed.

Even before bankruptcy drops your previous credit report, you could qualify for credit with good rates and terms. In fact, newly discharged debtors are frequently solicited for enrollment onto new cards. However, before you plunge back into the credit world, consider the extent to which easy credit lead to a bankruptcy filing before you sign up for new cards. You must ensure that a responsible credit habit is maintained for payment of bills, and only a small portion of the available credit should be used.

Most credit card companies will allow you to keep their credit card for use even after you have filed bankruptcy. This is on the condition that you agree to reaffirm the balance on the card and enter into a new agreement, which is signed after the bankruptcy filing. Most creditors want your future business, and hence will be willing for you to use their cards.

A recent bankrupt may give you trouble to qualify for a regular, unsecured credit card. It may even turn out to be more expensive than before, and available with lower limits. Financially, secured credit cards offer you a better deal than any of the unsecured cards youre likely to run into after your bankruptcy.

So it is best to opt for a secured card, which sets a limit for you. This credit limit in a secured credit card is equal to an amount you have to deposit at the card-issuing bank. A secured credit card requires up to $500 to be deposited. This amount may seem miniscule as compared to exorbitant credit limits you may have enjoyed before bankruptcy.

A secured credit card is usually available at lower rates than unsecured credit cards. But secured credit cards have gotten a bad rap, because most dont help you rebuild your credit history.
Also, you must choose your secured card wisely. Look for a card, which has no application fee and a reasonable annual fee. Some secured cards demand huge upfront and annual charges.

If you maintain a good credit limit and make your payments on time, after 12-18 months you could be upgraded to a regular unsecured credit card.

However, there are some unsecured credit cards that you would also do well to steer away from. Most unsecured credit cards charge you such high up-front fees that youre in debt before you even receive the credit card. Since your goal is to re-establish your credit, pick a credit card that you think is best suited for you.

Then apply for that one card. Dont apply for several cards as they will stir up too many new inquiries on your credit reports. This will make your creditors nervous and less likely to extend credit to you.

The invention of the Pre-Paid credit card has several advantages and disadvantages. The advantage of having this type of card is that you can have an instant credit card without worrying about the usual credit check. This is good for someone with bad credit who can not get approved for an unsecured credit card. Unlike a secured credit card, the person doesnt have to have a bank account or deposit money.

Pre-Paid credit cards can be purchased at most private owned shipping and mailbox businesses, retail drug stores such as Walgreens, CVS, Rite Aid and many other businesses. This type of card can also be purchased online.

This is also recommended for the person who can not open a bank account due to credit issues. Many jobs require that a person receive direct deposit. Now, if a person can not approve for a bank account how can they receive their pay? Companies like GreenDot offer a solution by offering direct deposit for those who need it. This is perfect because there are no additional cashing fees that a person would normally be charged if they cashed their check at a check cashing store. The monthly fee is less than $5 per month. A person can order pizza, airline tickets or anything where credit cards are accepted.

Another advantage is that this helps a person to establish or re-establish their credit. Some Pre-Paid credit card firms offer services where the consumer can have their monthly account activity reported to major credit bureaus. All the person has to do is maintain a certain balance in their account.

The only draw back with a Pre-Paid credit cards that if you are in an emergency situation and you need to rent a car. Not all car rentals allow you to rent a car with a Pre-Paid Credit Card.

Another draw back is that with a regular credit card, most companies offer many benefits such as frequent flyer mileage. With a Pre-Paid card, there is none of the extras such as frequent flyer mileage or road side assistance. Many companies offer credit card holders benefits if their card is stolen. For example, some companies will immediately give their customers extra funds if money has been stolen out of their account in less than 24 hours. With a Pre-Paid credit card, that is not the case. Before investing in a Pre-Paid credit card, make sure that you read the companies terms and conditions, this will save you a lot of confusion in the long run.

A good credit history is an important part of survival in today’s world. Your credit history can affect getting an apartment, a home loan, car loan, insurance, and even a job. Yes they do look at your credit history whenever you apply for any of the above. It’s about responsibility and trust.

But wait a minute. Life isn’t always smooth sailing. Often times there are bumps in the road and these bumps can effect your credit. Illness and unemployment don’t always wait for the right moment to happen in our lives. They can often take a huge toll on families, not only emotionally but financially as well.

Just like it is important to have good credit, it’s almost impossible today to get by without some sort of credit card. The financial institutions realize this and that’s why they offer credit cards for people with bad credit. There are secured and unsecured credit card offers available.

Some people may want the unsecured credit card. They should be aware, however, that if they’re not one to pay off the balance in full each month, there’s a hefty interest rate on those cards. The financial institution is taking a risk because of your poor credit history, no matter what the reason.

An alternate solution is to get a prepaid credit card. This is where you deposit the funds before you use the card, which is why they call this a secured credit card. It works just like a credit card and can be used the same way as a regular card, anywhere they accept that type of credit card. Your funds are also available at any ATM.

Prepaid credit cards aren’t just for people with bad credit, however. Some people don’t want to pay later as with regular credit cards. They want to pay as they go. That’s where the prepaid credit card comes in for the regular consumer.

The advantage of a prepaid credit card is you don’t need to carry a lot of cash. You can also use the card online just like any other credit card. Last but not least, you can control your spending as you are limited to the amount on deposit.

Prepaid credit cards are advantageous in more ways than one. They look like a regular credit card. They are accepted just like a regular credit card. But the difference is, youre in control of your own finances.

Instant Approval Bad Credit Credit Cards – 3 Ways To Improve Credit Rating

Have bad credit? Bankruptcy? If so, you can get approved for a credit card. Although having bad credit may make is impossible to obtain super low rates when financing merchandise, you have the power to change your credit situation. There are various ways to improve credit. Furthermore, if you are having a difficult time establishing credit, bad credit credit cards can put you on the right path.

What are Bad Credit Credit Cards?

Bad credit credit cards are designed for people who are unable to qualify for a regular credit card. There are many reasons why a person is denied for a credit card. Possessing a credit card is very useful. However, if you have no credit history, and you are hoping to establish credit, many credit card companies place you in the same category as a person with bad credit. Why? If you have no credit history, lenders cannot judge creditworthiness.

There are two types of bad credit credit cards. Secured credit cards ask applicants to submit an application with a down payment. With an unsecured credit card, a down payment is not required. However, these credit cards carry a high interest rate, and steep penalties for late and missed payments.

Use Bad Credit Credit Cards to Your Advantage

If obtaining a bad credit credit card to boost your credit rating, use the credit card wisely. Maintaining good credit is not hard. However, you must be disciplined and make smart credit decisions.

For starters, maintain low balances. Resist the urge to spend money frivolously. Credit cards are not free money. Set a spending limit and do not exceed this limit. If possible, pay off the balance each month. This way, you avoid accumulating unnecessary debts.

Additionally, submit credit card payments on time. Aside from late fees, skipped or missed payments justify an interest rate increase. Furthermore, irregular payments will greatly reduce your credit score. Also, if you do not maintain a good payment history, the credit card company may decrease your credit limit

Once you have established a good history with your current credit card company, you will qualify for better credit card offers in the future. However, avoid too many credit inquiries. Applying for several lines of credit will lower your credit score. Within a twelve month period, limit credit inquires to one or two.

Prepaid credit cards also called stored value card can be ideal for individuals who are unemployed, have bad credit or difficulty obtaining an unsecured credit card. Prepaid credit cards are also excellent for individuals who have a hard time controlling their spending and prevent the individual from overspending and getting into credit card debt. If your objective is to establish or rebuild you credit over a period of time, make sure the prepaid card issuer reports cardholder transactions to the credit bureaus namely Experian, Equifax, and Trans Union.

It is very easy to obtain a prepaid credit card because there is no credit check or employment verification since the funds you will be using are yours and not that of the prepaid credit card issuer. Prepaid credit card spending limit or credit line is the amount of money you loaded to your prepaid credit card account. Prepaid credit card carries the Visa or MasterCard logo. It can be used anywhere MasterCard and visa is accepted except renting a car at certain car rental companies and setting up automatic recurring payments.

The difference between a prepaid credit card and a debit card is that the spending transactions are deducted from the amount of money you loaded to your account unlike a debit card where the money spent is subtracted from your checking account and could cause Non-Sufficient Funds (NSF) charges. The NSF charges are due to a customer drawing funds from an ATM or making purchases that exceeds the balance in their checking account. With a prepaid card this will never happen since the prepaid card holder is not borrowing any money and can only spend the amount of money loaded to their prepaid account.

With prepaid credit card there are no interest charges because you are using your own money. To obtain a prepaid credit card requires paying a setup or application fee and may charge a fee each time you load more money to your account. Some of the ways prepaid credit card can be funded is with a wire transfer and a cash deposit at certain locations approved by the issuer.