Bad credit: Credit Cards options

What is bad credit?

Bad credit is a term that varies widely from person to person and company to company. For some a few late payments would signify a person as having bad credit. For others, bad credit would be a result of defaulting on several accounts or even filing for bankruptcy. Technically speaking, most creditors would consider having a credit score lower than 600 as bad credit. Common problems that may cause a consumer to have a bad credit score include:

• Late or missed payments
• Purchases above the credit limit
• Loans or credit cards accounts that have been written off
• Collection accounts
• Bankruptcy

Can I obtain credit even if I have bad credit?

There are plenty of credit card companies that offer people with bad credit credit cards. A search will provide an abundance of credit card options. Before applying, be sure to read the fine print and understand the terms and conditions set forth by the credit card company. Some of the major credit card companies that offer cards to high risk customers include:

• Orchard Bank:

• This credit company offers a variety of cards for people that have bad credit histories. Cards charge a minimal amount of fees, usually just an annual fee.

• First Premier:

• First Premier offers credit cards for individuals who have poor credit histories. They charge higher fees and most of them charge an account set up fee, program fee, participation fee and an additional card fee.

• Centennial:

• This is another company that offers credit cards to those who have bad credit history. This creditor charges high fees including an account set up fee, a participation fee, a progr an annual fee, and an additional card fee.

How are credit cards for those with bad credit different?

There are differences between credit cards for consumers with good and excellent ratings and those who have sub prime scores.

• The first and most easily identifiable difference is the availability of credit. There are significantly less credit options available for someone who has poor credit.
• Most credit cards for bad credit also have high annual fees. Mainstream credit cards usually do not have this fee.
• High risk credit cards also have several additional fees. These fees include monthly account maintenance fees, program fees, participation fees, account set up fees, credit limit increase fees and fees for additional cardholders.
• These cards also offer lower initial credit limits than their mainstream counterparts.
• Credit cards for bad credit usually do not offer any reward programs.

Can people with bad repair their credit history?

People with poor credit histories can repair their credit. It is a long and tedious process, but can greatly impact the quality of credit offers they receive in the future.

• The first step one should do when attempting to improve their credit history is to look for credit agencies mailing lists. The site can be found by doing an internet search.
• Then order a copy of your credit report from each of the big 3 credit reporting agencies.
• Examine your credit report for any incorrect information. Make sure all addresses are current and correct. Send a letter to the credit agencies telling them to remove inaccurate details like wrong names, addresses or employers.
• Familiarize yourself with the Fair Crediting Reporting Act and the Fair Debt Collecting Practices Act. You may also want to do a web search for forums or message boards that specialize in credit issues.
• Never pay anyone to fix your credit report. They often fail to deliver and can not do anything.
• Seek for any information that you feel is inaccurate. Most credit agencies offer a website where you can file a dispute. You can also write the agency if you believe that there is an inaccuracy.
• Make sure that you are provided with an updated copy of your credit to ensure that the corrections were made.
• Demand that collections agencies should validate any debt they are attempting to collect. Make sure that the debt is yours and that the amount they are attempting to collect is correct.

Bad credit is something that can be easily overcome by using the preceding techniques, obtaining and diligently paying credit cards for people with bad credit and patience, as derogatory credit can only be reported for seven to ten years. Obtaining credit cards for bad credit is one the first things you can do to get your credit back on track. Many of them have been able to do this successfully with the advice of experts.