Lenders use your credit history to determine how much of a risk they’re taking by lending you money or extending a line of credit. Thus having a bad credit history can keep you from getting good rates on loans or, particularly in this economy, any loans at all. And if you’ve ever been denied for credit, then you must know how lousy it feels to be discriminated because of past mistakes.
How to improve your situation?
But although it is a fact that lenders need to protect themselves, this doesn’t mean that you have to settle for predatory practices. There are other ways to improve your situation without getting trapped with dishonest lenders.
Shop around for the best deal
First of all, it’s important to do some research and shop around for the very best deal you can find. It is fact that all sub-prime credit cards are not created equal. There are lenders that will try to squeeze every penny out of you, while others have fair terms and conditions appropriate to your credit rating. It is better not to waste your time and effort in applying for credit cards that won’t help you build up your credit score.
Beware of sub-prime credit cards that advertise low interest rates.
The low interest rate may not mean low fee too. The card issuer will recoup that money somehow, usually in the form of hidden fees and unfair restrictions. It is also possible that the low rate maybe there for a short span of time after which you are stuck to pay high interest rate as most credit card interest rates are subject to change at any time.
Also, look for credit cards that don’t have monthly and annual fees, or account setup fees. These cards aren’t a very good deal if you’re getting a small credit limit to boost up your credit score as you’ll end up paying more than the limit in fee.
Make sure that the card issuer improves your credit score
Some lenders act like they’re doing you a huge favor by offering you a credit card when you are having bad credit and actually, they really are doing you a favor by trusting you. It is better that you make sure that the card issuer improves your credit score. Ensure that the issuer reports to TransUnion, Equifax, and Experian. You do want your timely payments and your hard work to count for something! There are cards available that will upgrade to unsecured after you’ve paid on time for a year. Others may offer an increase in the credit limit after a year.
Use the Internet to find good deals
The Internet is a valuable tool to compare credit card rates. It is possible to find the best deals on secured or unsecured credit cards with poor credit, online. Keep in mind that the terms and conditions vary from lender to lender and read all the terms carefully before deciding upon one.
We have credit card dept, we always paid on time , wife and i are retired with fixed income, iam 77 yrs old and my wife is 75 yrs old we used just about all our savings, was late on credit card payment,and then my payments went from 100.00 to 300.00 a month , i was in shock didn’t pay it, couldn’t pay it and the all others cards did the same so the total monthly payments would be about a $1000.00a month , NO WAY I COULD, and didn’t pay it, Told them they are worst than the Mafia and loan sharks, haven’t pay in a few months can’t do it we have a mortgage and a 2nd mortagte medical bills, medical plan and a lot of other bills ,GOOD OL USA