Description:The article is about the offer we can get from capital one credit card, it mentions a friend who got a bad credit, his record score reached to the normal level and got another new credit card. And it tells us to pay for the credit card in time to avoid the additional fees.
My name is Hilary Rousseau and I am your guide on a journey around credit land. I would like to welcome you to our section. Dedicated to people with bad credit, you will find a selection of credit cards that are considered best for people rebuilding their credit situation and credit cards for bad credit.
Remember the times when any credit score could get you a credit card with high credit limits, low interest rates and great rewards. Those days are long gone and today you have to work twice as hard as to get a credit card. This is especially painful for people with bad credit, because banks have become extra cautious to whom they lend money to.
It is difficult to admit that the main reason why your credit score was ruined is because of the mistakes you made managing your finances late payments delinquencies or unexpected life-changing events are the major contributing factors to bad credit.But admitting that you have bad credit is the first step to recover the 2008 recession which left millions of people with ruined credit history.
One of my friends lost his job in the last recession and ran up to $25,000 in credit card debt. He tried to stay afloat while being unemployed, but the recession turned his life upside down, plunging him into debt and foreclosure. Two years later after finding a job and settling his debt, he tried to apply for several credit cards, but was denied because his credit score was at its lowest. To help him out, I suggested that he should consider credit cards for people with bad credit.
There are several types of these cards and each has its own purpose. The prepaid debit cards are very useful inventions for several reasons. Although they do not help you improve your credit score, because they do not report to major credit bureaus. You can get the card without a need to verify income or your credit history, most importantly prepaid cards which teach you how to make timely payments and allow you to make purchases.
Whenever a credit card is required, prepaid cards should be considered a good practical lesson. And managing your money with a card which will become priceless when you become eligible for an actual credit card.
Unlike a prepaid card, a secured credit card is an actual credit card that is subjected to an interest rate on the amount you spend. Not everyone can get the card, because it requires approval by your bank. The only similarity with prepaid cards is that secured credit cards require a one-time deposit when you open your account. The bay will open a line of credit equaling to the sum of your deposit.
Some banks may even give you a higher credit limit exceeding the deposited amount. You should decide to close the card when your account is in good standing. The deposit is refundable although security credit cards require money collateral to open the card.They help you improve your credit score and they do this by reporting your timely payments to the credit bureaus.
This credit reporting feature is the main advantage over prepaid cards. Additionally, if you pay on time, you can avoid paying high interest rates and costly late fees. This is why it is so important to develop timely payment habits before applying to a secured credit card .If you do a good job in managing a secured credit card, your credit score may somewhat improve and a credit card company may graduate your account to a classic unsecured credit card.
A regular credit card that helps to improve your credit score. The main advantage of a regular credit card is that it is an unsecured credit card which is a big deal in the eyes of three major credit bureaus. This is very important, because the type of credit you have plays a big role in your credit score.
Regular credit cards are the best types of credit card. All three types we discussed is for improving your creditworthiness, although classic credit cards usually offer better terms and secured credit cards. People with a bad credit rating may have a hard time getting a regular credit card.
Thankfully, there are regular credit cards designed for people,with that credit these cards coming with high interest rates. But the rate may become lower, once your credit score improves, if you make your payments on time. I recommended my friend to apply for a credit card for people with bad credit.
My advice was that the bank will typically give you 25 days of a grace period to pay off the balance before the interest kicks in. So if he treats a card responsibly and spends within his ability to repay the balance and within the cards grace period, he will be charged late fees or interest. Luckily, my friend was approved for such a credit card and after seven months of timely payments his score improved to a point when he received a new offer for a credit card with lower interest rates.
His new card even offered rewards like cashback which is another wonderful incentive to improve your credit score. Although this story has a happy ending, you must agree that it is entirely up to you to improve your credit score. So follow my friend, pay your bills on time and maintain your account balance below the credit limit, you will be amazed to see your credit history improve.
Keeping in mind these parts for bad credit may charge additional fees other than the annual fee or interest rates. You should take the time to read the terms and conditions conveniently available for every card at credit land.com