Bad credit cards are normally designed for people with a bad credit history. People with a low score can usually get a card specifically for their needs. Orchard bank is one such institution that provides programs to improve your Fico score as they report to the major bureaus on a regular basis. Take advantage of the opportunities available, find the best rates and start rebuilding your Fico score today.
Unsecured
The unsecured options come without any collateral, but this type of program usually comes with much higher interest rates.
Secured
With the secured options, your limit usually matches the amount that you deposit. With on-time payments you can usually be considered for unsecured offers after some time, normally 6-12 months.
Interest
If you pay off your balances in full each month, you can typically avoid high interest rates and late fees associated. But remember, by paying only the minimum each month you will incur interest at very high rates especially if you have a card designed for bad credit. Consumers with low Fico scores usually will have higher interest rates because of the risk of default. The fact that these types of programs carry a high interest rate usually 20% – 30% or more shouldn’t stop you from getting one, in an effort to get your Fico score on the road to recovery.
Prepaid
Another option would be prepaid cards, which are a great way to control spending while still being able to use plastic and maybe help that low score. The amount of money available to use on a these programs depends on how much money is deposited on the card. Both bad credit and prepaid options will allow you a chance to build your credit. Another great use for this type of card is to teach your teens good spending habits.
Bad credit credit cards are a very good concept that can provide relief to people with a low score, by allowing them a chance to rebuild there credit, when used wisely. The above options are probably the best option for anyone who has a lot of debt as well as a low Fico score. It can be very rewarding to get you back on track with the help these types of programs, but they also have several disadvantages especially if you don’t make your payments on-time or only pay the minimum each month. You may very well find yourself in an even worse situation.
By: A. Pens
Apr 30 2010
Bad Credit – Credit Cards – Use Wisely
Apr 28 2010
How to Remove Bad Credit from Your Credit Report
Most people don’t even realize that it’s possible to remove bad credit from your credit report. Most people believe that once they are plagued with bad credit, they simply must go through life paying high interest rates or not being approved for loans at all. They’ve been told that it takes anywhere from 7 to 10 years for the negative items on their credit report to come off. They rarely even try to get new positive items reporting.
Hopefully one day “most people” will realize that it is possible to do something about their bad credit. Here’s how you can get started today:
1. Obtain your credit reports. You can do it for free at AnnualCreditReport.
2. Analyze your reports and locate the negative items.
3. Dispute the negative items with the credit bureaus. Anything that can not be verified by the creditor within 30 days must be removed from your credit report.
4. Disputed items will either be removed, corrected or remain.
5. Request validation with creditors and collection companies on the accounts that remain.
6. If the creditors validate the accounts, you can choose to negotiate with creditors and collection companies.
7. After negotiating and making payment, creditors delete the negative accounts or change them to a positive rating.
8. Apply for new credit. Rebuild your credit by adding new positive accounts to your report.
9. Make your payments on time and keep your balances below 40% of your limits.
10. Enjoy good credit and remember to be responsible.
By: Chane Steiner
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