Can't Get a Credit Card? Apply for a Secured Credit Card Instead

By Mario AL Churchill
A credit card is one of those ubiquitous inventions of the modern age that refuses to quit. In fact, it has made itself so necessary in our lives that we need one to rent a car, book a hotel room or just to buy a comicbook online. More than that, credit cards are one of the ways creditors take a peek at our credit history with and they can actually make or break our chances for a good loan, an apartment or a job. So what do we do if we've torn our credit to pieces? We turn to secured credit cards.
Secured credit cards are a great substitute for regular credit cards. Whether you have poor credit badly needing repair, can't get a credit card or are new to the credit scene, a secured credit card can help you re-build or establish your credit.
How does it work?
A secured credit card is a cross between a credit card and a debit card. It requires collateral in the form of cash deposited in an account. That amount then functions as your credit line. So if you deposited $700 in your account, you can use your secured credit card to purchase items up to $700, nothing more. The catch is, you have to pay it back.
Some banks offer to give you more credit as a reward for being a good client (i.e., you pay your bills on time) or maybe allow you to charge up to a certain percentage more than your deposit amount. You only need to pay a small interest rate to cover for that type of usage.
What's the minimum deposit amount?
Depending on the type of card you chose or on the banking institution, most secured credit cards will require a deposit starting at $300. There is no limit to how much you want to add later on.
What to look for in a secured credit card
Compared to unsecured cards, secured credit cards require annual fees and come with higher rates. If you're shopping around for a secured card, make sure to get one that has no application fee. You will have to pay an annual fee so choose a secured card that does not ask for a prohibitively high charge.
Watch out for secured credit card agreements that hide fees or ridiculous add-ons that you don’t really need. An example is one where a credit card company will approve your secured card application provided you sign up for a monthly insurance policy that costs $50.
Where can I apply for a secured credit card?
Not all banks offer secured credit cards but you can still check out your local banking institutions if it's still part of their product line. You can also check with your credit unions since many of them offer these cards to members only.
Using secured credit cards to build credit
While most banks target clients who have never had credit before as the main users for secured credit cards, many consumers use secured credit cards to help re-establish their credit. To do this, consumers need only to use their secured cards and ensure that the bill gets paid each month. By establishing their reliability, the consumer establishes positive credit.
The future of secured credit cards
Secured credit cards are still the choice of many card holders, but many are giving up their secured cards in exchange for unsecured cards. Unsecured cards don’t require cash collateral, which accounts in part for their attractiveness. A secured credit card is still a great choice, especially for people who are still building credit or for those who are trying to rebuild theirs.

Build Credit for a Better Future

By Michael Benifez
Building credit is building a better future for yourself. Nowadays, it takes good credit scores to purchase just about anything, such as a home or car. If your credit is bad, your life will seem like it’s in a downward spiral. It takes time to find a solution that will repair your credit.
The fist step in repairing your credit is to take a look at all your bills, including the past-due ones. Make sure current bills are paid in full to avoid more negative credit reporting.
Once you have taken care of your current bills, work toward paying off your late bills. Some current bills, such as utilities or unsecured bills, can wait longer than others. You might want to payoff your secured bills first. Secured bills are those that require collateral. You risk losing more with unpaid secured debts, so take care of those first.
Most utility companies will delay a bill if you don't have the funds, and you may be able to get some help paying them. Social Services and some religious organizations offer this type of support to low-income families. If you have a loan with a bank, you might want to contact your lender to see if there are options for reducing your monthly payments.
Some banks wait for financial burdens to occur before they offer a solution. They may, for example, ask you to consider refinancing your home or car. Be careful in this situation because some loans have high interest rates. Some loans may have additional hidden charges, so read the fine print thoroughly.
When you’re trying to repair your credit, it’s important to find the best deal out there for you. To start with, though, figure out what you can cut back on. Reduce spending as much as possible. Delayed gratification may be your key to a better future. This will also allow you to begin repairing your credit.
Credit repair is the process of rebuilding your credit history, thereby reestablishing your life. You need to look at all angles to find a solution to repair your credit. When you are searching for solutions, consider all aspects of the resolution you choose. If there are additional charges, you risk getting further in debt instead of building a better future and repairing your credit.
Debt counselors, debt consolidation, bankruptcy and various companies offer credit repair solutions. These, however, should probably be the last resort if you really want to get out of debt and repair credit.
If you think bankruptcy is the answer, realize you will need a few hundred dollars upfront to even start the process. Lawyers are not cheap! On top of the high prices you’ll have to pay, you’ll also go through court proceedings and other headaches. The best solution is to find a way out of debt on your own.
If you’re in debt over your head and have nothing left to loose, it might be the time to ignore your debts completely. This sounds ludicrous, but it’s sometimes is the only solution to debt relief.
Before it gets this bad, however, you might ask your family or friends for a loan that’s enough to pay off your debts. You might have to pay them interest, but friends and family will often charge less and give you a longer time frame to repay your debt. This solution is often better than applying for a bank loan to payoff your debts.
Most bank lenders welcome people who are struggling and take advantage of their situation by offering high-interest rate loans. Your monthly installments are often lower, but your price in the end is huge. Search all options before deciding on a solution to repair your credit.

Bad Credit Auto Loan? Shop For Low Rates!

By Mary Wise
It is you who has to shop around to find a low interest rate. Fortunately it doesn’t require too much effort to shop around for the best bad credit auto loan rate, nor does it take too much time if you choose to search online. But before you begin your quest for the best bad credit auto loan rate, keep in mind that these loans come at higher rates than traditional loans.
Average Market Rate
Therefore you need to find out the lender who offers you bad credit auto loans at rates lower than those of the market. Try the car dealerships, the banks and online to explore your options. The wise consumer is the one who shops around. Whatever you do don’t make the mistake of settling for the first loan that comes your way.
The interest rates on bad credit auto loans are very expensive mainly due to the fact that you pose a high risk. This implies to the lender that there is every chance that you will not repay the loan on time, if at all. Thus a higher interest rate is charged on bad credit auto loans to enable the lender to recover the maximum amount of their money from the interest payments on the loan if you fail to meet the monthly payments.
Improving Your Credit Score
No matter how unfair it may seem to you, the fact is that if you have established bad credit, bad credit auto loans may well be your only means of bringing your credit back into good standing. The advantage of a bad credit auto loan is the opportunity for you to reverse your credit.
A loan may or may not have a competitive rate and the only way you can make sure of getting the best deal is by comparing it to other options. With a high interest rate you can easily end up paying far more in interests than purchase price of the car. So, it makes sense to take your time and shop around for options.
Online Bad Credit Auto Loan Shopping
Shopping online for bad credit auto loans is the best thing you can do because you’ll save time and money. Even if you eventually fail to secure your bad credit auto loan from any of the online lenders, you will still be well informed. Learning about them will result in having an awareness of the interest rates on offer on bad credit auto loans.
Car Dealerships
Car dealerships usually promote amazing deals but you need to know that those deals are only for people with perfect credit. You need to ensure that you qualify for them prior to applying because when you apply, the interest rates may undergo a drastic change from those that were advertised if you have bad credit. Shop around at as many different places as possible to acquire a better knowledge on bad credit auto loans before you apply for one.

Credit Cards For People With Bad Credit

By Joseph Kenny
When it comes to having bad credit ratings, or at least less than good credit ratings, it sure can make things a little tough financially to be able to do what you want. Many people today start getting into bad credit partly because of credit cards simply by taking full advantage of the "charge it" possibilities that a credit card gives you. A credit card - at least a certain kind, can actually help you to repair your credit - here's how.
While a credit card can actually help you to improve your credit ratings, you probably already know that you will not be able to get the best rates or features on a new credit card. The terms will generally be restrictive and your rates higher. It also means that any credit limits you get will be low - at least to start with, since the credit card company will consider you to be a higher risk than someone with good credit.
The first thing you need to do is to make sure that the credit card company you are applying to says that it reports to a major credit bureau. It may report to all three of the major ones (look for it) which are Experian, Equifax, and TransUnion. If it does not report to at least one of these, look for another card. It cannot help you to repair your credit even if you do make every payment on time.
The next thing is the interest rate - you will want to get one that has a very low rate of interest - the lower the better. This interest rate is what you will be paying each month on whatever balance you leave on the credit card. Ideally, you will want to pay off the full amount each month. This will allow you to build your credit rating faster.
Check out the various fees that apply. You may actually be surprised to find out just how many there are - a fee for just about everything. The idea they want to convey is that while they are willing to take a risk by issuing you a credit card, you will pay for the pleasure of it. The good news, though, is that by handling your finances well with the new card, you will get offers for better cards with time. Because there are so many fees, you do not just want to accept any card - compare them to discover which one has the least amount of fees. The truth is that when your fees are applied at the start, that there will be little room left to charge much of anything else.
Most credit cards that are issued for those with bad credit do not include the usual introductory offers that a regular card may have. There will not be any rebates or rewards, either. A couple of these cards may offer balance transfers.
For your own information, be sure to see if there is a time period stated in the application, that tells you how often the credit card company will review your account. This is important because your opportunity to get a better card can only be offered at that time. At those reviews, the issuing company may elect to raise your credit limit, lessen your fees, or some other such option. Even though you will pay more at the start, getting your credit card for people with bad credit is good because soon your credit rating can be improved and offers will come that you will enjoy more.
Joe Kenny writes for the Credit Card Store, offering views on poor credit credit cards, visit his other comparison site today to compare credit cards and find yourself a better credit card deal.

10 Step Credit Repair Guide

By Jeanette Joy Fisher
The process of clearing credit can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but you need to take reasonable actions toward your goal of clearing credit discrepancies. You can get the credit reporting agencies to help you instead of hindering your excellent credit quest with these tips.
1. Order credit reports.
2. Check for discrepancies.
3. Note problems and discrepancies in your Credit Dispute Log.
4. Contact disputed companies by telephone. (Contact original debtors, not collectors.)
Log the telephone call with a brief summary of agreements.
Remember to record the name of the contact representative.
5. Follow up with certified letter to original company.
6. Write letters to collectors, dispute bill, send documentation of payment to original company.
7. Fill out dispute form provided by credit bureau.
8. Write separate letter for each disputed item to credit bureaus.
Send letters by certified mail.
Enclose copies of supporting documentation.
9. Use the number provided by the credit bureau and call for progress; have your reference number handy.
10. Keep comprehensive records in your Credit File.
These ten steps will help you finance your dreams.
Copyright © 2005 by Jeanette J. Fisher. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)