The Tricks to Avoid with Bad Credit Credit Cards

Having bad credit makes you the target for some of the worst credit card deals you could ever imagine. Many lenders won’t grant credit to consumers that have bad credit histories – those with serious delinquencies and maxed out balances. But there are some that will, with a whole lot of almost-invisible strings attached.

Subprime credit cards are intended for consumers with credit scores lower than 620. To a credit-starved applicant, getting approved for any credit card is a godsend, even if the card robs you in fees.

What could possibly make a credit card so bad? Let’s start with a high annual fee. A few bad credit credit cards, like the Aspire Visa, have ridiculously high annual fees. We’re talking about a $150 fee that’s charged to the card before you ever make purchases with it. Usually, there’s no opting-out, you have to pay the fee whether you use the card or not.

These credit cards designed for people with bad credit come with a few other fees. Application fees, account establishment fees, fees for credit limit increases, and fees for additional credit cards aren’t unusual. The problem is that many of these fees are front-loaded onto the card when you receive it. You already owe them plus the annual fee.

To make matters worse, these subprime credit cards often have low credit limits. When I say low, I mean like $300. A low credit limit isn’t a bad idea for someone who’s trying to reestablish their credit habits. It’s manageable, but keeps a tight leash on the cardholder. However, initial fees slash the available credit to $150 or less, leaving the cardholder without much room for purchases. Especially if he doesn’t want to hurt his credit score even more by having a high credit utilization. Level of debt relative to credit limits – credit utilization – counts for 30% of each consumer’s overall credit score. A credit utilization lower than 30% is best. The Aspire Visa, and similar bad credit credit cards, leaves you with a 53% utilization and you don’t have anything to show for it but a piece of plastic.

Check the terms of the card for a minimum APR. Some bad credit credit cards add this clause to be able to charge you a high interest rate no matter what. A high minimum APR means you’ll never have a competitive interest rate on that card. You’ll always have high interest charges if you carry a balance on the card.

The government is working to stop these predatory creditors. In June 2022, the Federal Trade Commission (FTC) filed a $200 million lawsuit against one subprime credit card issuer, CompuCredit. The FTC sued the company for failing to disclose that its $300 limit credit card would leave cardholders with $115 available credit after $185 in fees were charged. The same company previously entered an $11 million settlement with the New York State Attorney General for similar charges.

If you’re looking for a credit card, but you have bad credit, consider applying for a secured credit card. With a secured card, you make a deposit against your credit line. Your deposit is kept in a savings account until you qualify for an unsecured credit card or you close your account. Many secured credit cards report to the credit bureaus, so using your card responsibly will help improve your credit.…

Here’s how to get an absolutely free credit score

You may have noticed a few TV commercials offering an absolutely free credit score lately letting you know that your credit score affects a lot of your life. They can affect what kind of interest rate you get on your credit cards, your auto loans, your payday loans and even your insurance rates. So it is to your benefit to know what your credit score is. Loan companies in Columbia, SC.

So how do you get an absolutely free credit score? There is no free government credit score like there is with credit reports so in many cases you have to pay for your score if you want to see it. This can cost you anywhere from $15 all the way to $45 if you want to see all three of your credit scores. However, there are ways to get your credit scores totally free.

What you have to do to get an absolutely free credit score is sign-up for a free trial offer of credit monitoring and when you do you will get a copy of all 3 of your free credit scores from the major credit reporting agencies – Experian, Equifax, and Transunion. Then if you decide to trial of credit monitoring is not for you you can just cancel and keep your scores. If you do not cancel, you will be charged a monthly fee of around $10-$15 for credit monitoring which has several benefits namely which is preventing identity theft.

Why is A Free Yearly Credit Score Unavailable from the Government?

Lots of people have the wrong impression that they can also obtain a free credit score once they have obtained their free yearly credit reports. The three major credit bureaus (Experian, Equifax, Transunion) will help you to have your credit report in order for you the state of your business. Also, it will give you the chance to change those factors that can affect your business. You should also have the understanding between a credit score and credit report in order for you to avoid any troubles.

In addition, you need to know the difference between the two in order to help you to go in with your business accordingly. The three major credit reporting agencies will be your best help in determining your credit report. Alongside the government credit reports, they will give the most comprehensive report that you need to know in order to help you with your business. These three credit bureaus have been authorized by the government to provide a free copy of your credit reports yearly.

Every year, they are giving free credit reports in order for these companies to know the position where they currently stand. However, you need to know that only one copy of this report is free. Any other copies that you will have mean that you will have to pay for it. Same goes with the issue concerning your free yearly credit score. If you want to know whether you have good or bad Experian, Equifax, or Transunion credit score, you will have to pay for it.

Companies under the government can only provide free credit reports, but if you are seeking for your absolutely free credit score, you need to pay a separate fee. However, there are several companies that can offer bundled service for you, they can provide you your credit report and at the same time, they can help you to know your credit score absolutely at no cost at all. Truly, this factor is quite confusing to people but once you get the hang of it; you are good to go.

In general, it is important for you to seek for your credit report in order to help you determine your creditworthiness and how likely you can get approved for a low rate mortgage loan on a home you want to buy.

This is where you can enhance those areas that are needed to be improved in order to maintain your credit. Your free yearly credit score with trial credit monitoring will likewise help you to successfully apply for a loan that can help you to further enhance your finances. All you need to do is to have your credit score from several companies in order for you to effectively assess the best way to help you continue with your business.…