Information on Obtaining Bad Credit Credit Cards – Valley Auto Loans

100% Bad Credit Car Loan Application AcceptanceInformation on Obtaining Bad Credit Credit Cards

Information on Obtaining Bad Credit Credit CardsWith the downturn in the economy, ongoing credit card defaults, home foreclosures, and record job losses, it is no wonder that many more individuals have bad credit. However, there is surprising good news for individuals with credit scores rated 600 and below that still want or need a credit card to make daily purchases, rent a car, or for emergencies.

In the past, money problems often indicated some kind of character flaw. Now however, financial struggles can happen to nearly anyone. If you have been avoiding making applications for a credit card believing you will be instantly turn down, the truth is there are available easy options. Now you can improve your poor credit and start healing your financial health.

Making minimum payments on time after obtaining a new credit card is an easy way to establish a better credit history. This can be accomplished by maintaining a low account balance through a secured or unsecured credit card. Even if your credit score is extremely low, there are still fee-based options available through a simple application process. Once your credit card is approved, you will gain instant access to every merchant around the world.

Regaining a healthy credit score is critical in living an active lifestyle. There are valid reasons to have an active credit card. These include:

• To Handle Emergencies – Having instant access to a credit card can work as a lifesaver in times of an emergency. This will provide available cash well beyond your savings to pay for a leaky roof repair, necessary medical or dental procedure, or for repairs on your vehicle. A credit card offers you the opportunity to charge the unexpected expense that can be quickly paid off.

• Rebuild Credit – The quickest way for repairing any bad credit is to develop a solid credit history using a credit card. Charging small items and making timely payments can quickly reverse the damage that caused your bad credit score.

• Receiving Points and Other Rewards – If you use your credit card to make necessary purchases and pay the balance off every month you can earn points, airline miles and other rewards to be used for services and goods for free.

• Renting Cars and Reserving Hotel Rooms – Nearly every car rental provider and hotel require you to use a credit card when making a reservation.

Bad Credit Credit Cards

There are financial institutions that offer credit cards specifically for those that have bad credit and are working to rebuild their credit health. Many offer both secured and unsecured options. Companies that provide unsecured credit cards perform a “soft pull” on your credit report so as not to hurt your score. Some individuals that have credit scores ranked at 550 and higher have been approved for receiving an unsecured card. However, the interest rates often range between 14.9% and 28%.

A Secured Card

Many individuals that have been struggling financially simply dismiss obtaining a secured credit card because of the required security deposit. The lender will offer a credit limit equal to the amount of the security deposit. What they neglect to understand is that these financial institutions send reports to every major credit bureau on the timely payments made every month. This can help establish a solid credit history and improve your credit score. In fact, some secured credit cards are easily converted to an unsecured card in as little as 12 months when there have been timely payments made consistently.

If the security deposit has been the obstacle for you in obtaining a secured credit card, simply put away $50-$100 every month in your savings account. In just a few short months you will have enough in your savings to put toward obtaining a secured credit card. The funds you safe will be enough for the application fee and the security deposit. In addition, it will work to your advantage because you will have a low credit limit at the beginning but can make small purchases and timely payments every month to work toward an unsecured card.

Sub-Prime Cards

There are sub-prime credit cards available. However they offer extensive high upfront fees that generally eat up nearly the entire credit limit. These are often considered fee harvester cards, and should be avoided. In addition, prepaid cards are usually marketed to individuals that have bad credit. However, these are not really classified as credit cards, but work like a secured card without being reported to the credit bureaus. Because of that, they do not improve your credit score.

If you suffer with bad credit, obtaining a secured credit card through a reputable company is the best option. To avoid any problems, be responsible about how you use the card to earn credibility. This can be accomplished by paying your debt down every month. In time, you will be able to graduate to a higher level card that offers lower charges and quality rewards.