|
Author: Toni Phelps Article source: http://www.creditfederal.com/. Used with author's permission.
Many consumers search specifically for a bad credit credit card, merely for the sake of easy approval and getting their hands onto unsecured credit, without first trying to resolve their bad credit issues and preventing further damage to their credit score.
While there are plenty of bad credit credit card choices available, they can do more harm than good if not used wisely, or if the card issuer does not report timely payments to a credit bureau. Here are important factors consumers should consider:
1) Do you really need a credit card? Credit cards do make life more convenient by not having to carry cash, and they can make tracking expenses simpler. If the applicant's primary concern; however, is just to get unsecured credit (to make purchases when short of cash) versus the convenience factor, this should be a danger sign of the potential for accruing more debt than can be re-paid, or be re-paid timely.
2) How you used a credit card in the past? Consumers who were consistently late making payments or who did not frequently pay the balance in full every month, likely suffer bad credit for that very reason alone. Living above one's means often ends in financial disaster, and it's possible to dig a hole too large to get out of as late fees and interest charges accrue.
3) Can the credit card rebuild bad credit? If used wisely, consumers who are diligently attempting to rebuild credit can benefit from a credit card. How you re-pay credit card charges are one of the largest credit report scoring factors. But not every credit card issuer reports to a major credit bureau. Applicants should acquire a credit card that reports to at least one major credit bureau, i.e. Trans Union, Equifax or Experian. Here's how to maximize the credit reporting benefit:
- Use your credit card. A strange peculiarity amongst creditors, is that they view open lines of credit as potential debt. If; for example, you have a credit card with a $5,000 limit and it has no charges on it, it is viewed as a potential debt in that amount. Hence, if you have any other credit cards which have no balance and the issuers do not report timely payments to credit bureaus, it may be best to close those accounts. Simply not using the card does not close the account. You must contact the issuer and close the card account.
- Don't use your credit card simply for the sake of being able to make purchases during cash shortages. Use your card instead of the cash you budget for expenses such as your weekly grocery shopping, and use those funds to re-pay the charges.
4) Finally, when seeking a bad credit credit card, apply for one that may limit your potential for accruing debt. Instead of a $5,000 credit line, consider a credit card with only a $2,000 credit line. Because of your bad credit, you may discover that a higher credit limit bad credit credit card may also charge a higher interest rate because of the increased risk to the issuer. If you just need temporary credit; such as during Christmas, consider a retail or shopping card that reports timely payments to a credit bureau. Since retail and shopping cards limit purchases to a particular store or catalog, this can help curb desires to go on vacation spending sprees. Article by Toni Phelps of Credit Federal where you can find more information about bad credit credit cards and how to use them wisely.
The Morality of Child Labor
From the comfort of their plush offices and five to six figure salaries, self-appointed NGO's often denounce child labor as their employees rush from one five s...
Comparing Credit Card Offers
How do you start to compare credit cards? Finding out the best credit card to suit your needs can be a very time consuming process but one which can save you mo...
12 Handy Tips for Generating Leads through Cold-Calling
Cold calling can be a great way to generate quality leads. So you need to do it right. Following are some tips which will help you do just that.
Enjoy The Journey, As There Isnt A Destination
Stop spending all your energy chasing future dreams and start living your life right now. When we spend our time with our thoughts on the future we miss life w...
Gay Zombie Hunters Dilemma
The title of this article may lead you to believe that I hunt gay zombies. This is untrue, mostly because zombies who were once gay humans are now too gross to...
Employees - Treat Them the Way They Expect to be Treated
The successful manager thinks about the people they have to deal with, is sensitive to how they see things and knows that they might think differently than they...
7 Things Not To Do If You Want To Be Successful
Like most people you want to be successful but it's just not happening for you, well, read what 7 things you should not do if you want to be successful!
Things To Think About Before Buying A Dog
There is a lot to consider when bringing a Dog into your family and home. Here are a few thoughts on areas that you need to consider.
Who Invented the Telescope?
The invention of the telescope was fundamental to the study of Astronomy, but do you know who invented it?
Planning for the Unthinkable
It is only when something dreadful happens that suddenly we wake up to the fact that planning for an emergency is important. What are your plans for your family...
Quit Smoking
Consider this: Already since 1972, over 60 million people in the USA alone have successfully quit smoking! At one stage over 60% of the adult population was a...
Innovation Management – the power of decision makers
One of the most important aspects of creativity and innovation is access to decision makers. One of the fastest killers of creativity and innovation is the inab...
Make Use of the Signature Line in Your Email
Think about it, how many emails do you send out every day? How many of these forwarded jokes, pictures, stories etc do you receive every week?
Adsense or Affiliate Programs?
Google Adsense is a popular way to monetize the traffic to your website, but if you are not using this technique to maximize your profits from affiliate program...
Web Site Navigation
Once a visitor gets to your web site, you want to make sure they can find what they are looking for quickly and easily, or they will just go elsewhere. If a web...
The Sun and Swimwear - Stay Safe While Tanning on the Beach
With a little bit of knowledge put into practice, you can enjoy the beach without worry. The proper clothing, accessories, and a few sun safety tips will mean t...
Business Pain Defined
There is a painful spot in every business. When everything runs smoothly, then the pain is not visible. However, it may still be there, just well hidden. This a...
The Evils of Tanning Beds
Getting tired of that pasty white skin? Well, contrary to what neurotics in the dermatology profession (and their cheerleaders in the conventional media) what ...
I Was Just Diagnosed With Arthritis and I Want to Keep Exercising
Years ago, patients with arthritis would sit in their rocking chairs and over a period of time, they would lose their ability to function. Today we recommend j...
The Crazy Amazing Diet Maker
"How can we stop the obese from becoming more obese? Pretty simple. Stop feeding them." -- George Lundberg, MD.
Being Genuinely Curious
Roger's clients achieve success they didn't think possible by learning to be genuinely curious about other people's motives and reasoning. He offers a mindset t...
50 Benefits Of Joint Venture Marketing
In this article I will personally from my experience give you the 50 best benefits of Joint Venture Marketing...Check it out.
Securing a US Commercial Mortgage
What's the most efficient way to secure a US commercial mortgage? and how do you avoid the potential mountains of paperwork?
Telepathic Communication With Animals
Animal Communication, or telepathy with animals, is as common an occurrence in some people's lives as it is an oddity in the lives of others. Telepathy is an e...
|
Print this page