Credit Card For People With Bad Credit

  Credit Card For People With Bad Credit  - 5 important reasons why people apply for credit cards  - May 7, 2007  

Credit cards are an inevitable reality in modern financial world. Many factors prompt people to acquire credit cards . The five most popular reasons are listed in this article, not necessarily in that order.

1. No need to carry cash. The plastic does it all.

Imagine carrying a 10000 bucks in your pocket. The anxiety, insecurity and simply the bulk will keep on nagging you. People like to avoid this feeling and a credit card helps them achieve this.

2. Rewards, rewards and more rewards

Cashback, travel, airmiles, stay in hotel, special stores discounts, you name the rewardt and the credit card companies have it. Coupled with a great customer service program, this becomes a big factor luring people to take credit cards.

3. Convenient online shopping and purchase protection

Secure online transactions have created a boom in online spending. Credit cards are the most favored means to pay and buy things online. The 128 bit security offered by secured sites have made people believe that online transactions are the safest. Add to this the chargeback, and payment protection things even get better. Other people apply for a credit card for the reason that the products they purchase will have protection from the credit card company. This usually is the case when something has happened with the item you have paid through the credit card and the credit card company will pay for the loss by reimbursing the amount.

4. To help with money in emergency situations

Credit cards can be used to withdraw cash from ATM machines, which are available at numerous locations. Though, it is not advisable to withdraw cash using credit cards because there are heavy fees and transaction charges to pay but, people do so because the demands of the situation are too overwhelming.

5.Establish a credit history

They way you use credit cards and repay your balances are recorded by banks and reported to credit bureaus. This builds the credit history. People with good understanding of finances use their credit card wisely and build up a solid credit history. On the contrary those who use credit cards recklessly will somehow find themselves penalized in their credit reports.

There can be other reasons why people take credit cards, but the above mentioned factors are most favored by people to take credit cards

  Credit Card For People With Bad Credit  - Bad credit? No problems. Have these credit cards  - Apr 14, 2007  

People with bad credit or poor credit are often face difficulties in obtaining a credit card. The fact is indeed true that their choices are limited when it comes to credit cards but, credit card issuers are increasingly offering financial products that specially cater to bad credit people.

Bad credit problem can be caused due to a number of situations. The credit card choices available to bad credit people allow them to rebuild their credit history. Financial products that help bad credit people are prepaid credit cards or debit cards, secured bad credit cards, unsecured bad credit cards. In this article we take a look at each one of them.

Prepaid or debit cards:

These are the easiest option available for bad credit people. There are no verifications, no credit checks, no employment requirements, and the approval is instant. All they have to do is to deposit a money and a prepaid card is issued. This card has the borrowing or buying capacity equivalent to the funds deposited. The good thing with prepaid credit card is that it promotes financial discipline. Some prepaid card issuers report to various credit rating agencies, thus it helps in rebuilding your credit history.

Secured bad credit credit cards

These credit cards are issued to bad credit people who can offer a collateral. Generally, offered to homeowners, secured bad credit cards help one rebuild his credit history. The interest rates and borrowing limits on these credit cards are good and favorable for bad credit people. Secured credit cards can also be linked to a savings account in which case it will have a credit limit of some percentage of your savings or money in your account. As the credit card issuer gains confidence with you it can increase your credit limit. Again, if you control your finances and spending, repay on time and do not default your credit history will improve.

Unsecured bad credit credit cards

These credit cards have high fees, which makes them a costly proposition to own. But, the bad credit people have limited choices. If a person with bad credit doesn't have anything to offer as collateral or is unable to buy a prepaid or debit card. This is the only option that remains. However, on a positive note, this unsecured bad credit credit card offers the person a chance to rebuild his credit history.

So, the options are there for bad credit people to have a credit card. But if they don't learn lessons from their existing situation and do not improve things will get worse with time and become uncontrollable.

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