Bad Credit Cards - Offering More than One Way Out

Bad Credit Cards - Offering More than One Way Out
by: Margaret Winfrey



Bad credit cards are those specifically aimed at helping those with poor
credit ratings, or even no credit ratings. Although at the moment the
credit industry is feeling the pinch, there are still credit cards
available for those with poor or bad credit. However, if you consider
that you fall into this category, or have been experiencing difficulty
obtaining a credit card because of your credit file, there are a few
aspects of adverse credit cards that you need to be aware of.

The first is that credit companies offering cards to those people who
have an adverse credit history are taking a greater risk than they might
be with those who have good credit ratings. You might consider this
unfair - perhaps there are mitigating circumstances in your past that
mean that you are being declined for reasons that don't seem entirely
clearer to you.

If this is the case, then you have a certain amount of control, and
whilst the figures in black and white seem to suggest that the offer on
the table is fixed, in many cases you might find that the underwriters
have some control, and if you do have mitigating circumstances and can
prove the case, then although there is no guarantee, you might find that
the rate is reduced slightly. In some cases what might happen is that the
account is monitored and after a period of a few months, as long as the
account has been kept in good order, the rates may be reduced, the limit
raised or some other benefit provided to you.

In some cases this happens automatically, and you might find that if you
open a bad credit card account you will receive notification a few months
later advising you that your credit limit has been raised or the interest
rate lowered. This will provide you with an incentive to keep your
account in good order.

Another major benefit of this relates to your credit file. If this
contains adverse credit information, whether a few missed or late bills
or even court judgements or bankruptcy, then it will be important to
repair this and improve your credit score. If you have successfully
secured a bad credit card you will have the opportunity to take the first
step to achieve this. By making payments regularly, and in full if
possible, with no late or missed payments registered, you can help to
improve your overall score.

By improving your credit score using this credit card you provide the
option in the future for opening a standard card that will almost
certainly have a much lower rate of interest and fewer charges. For many
people, a credit card for those with bad credit is the first rung on the
ladder to recovering or rebuilding a good credit file.

Credit cards for those with bad credit are not guaranteed, and if your
credit file is very poor you might find it difficult or impossible to be
accepted. For most, however, options are available, although they could
take a bit of finding. You should be aware of the fact that if you make
too many applications to firms specializing in bad credit cards this will
reflect on your credit record. Each company to which make an application
will carry out a credit search, and this search will be recorded on your
record, leaving a bad credit search footprint. The more such footprints,
the lower your credit score.

It is often worth getting hold of a copy of your credit file so that you
can see specifically what is on it that could be preventing you from
being able to open a standard credit card. If the information is
inaccurate, this needs reporting and you should be able to have it
removed.

You may also be able to include your own notes on your file which explain
certain entries, giving additional information. If notes exist on an
account then a credit company cannot automate a credit check, and it will
need to be flagged for an underwriter to have a look. This can help you
open a bad credit card that might have a lower rate.

Bad credit cards are of great benefit to those people who have poor
credit, perhaps through circumstances in the past that were beyond their
control. The convenience of being able to pay using a credit card,
particularly over the phone or online, is undisputed, and not having
access to a card can present real problems. However, it is important to
be very aware of not only the increased charges associated with bad
credit cards but also the consequences of not maintaining such a card in
good order.

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About The Author
For more information on http://www.mycreditcard.com/credit-cards/credit-cards-for-bad-credit.php, bad credit cards, credit cards for bad credit, and more, go to MyCreditCard.com where you can compare bad credit cards and other credit card offers and applications from major banks and issuers.