Is There Something Called a Bad Credit Credit Card?
Is there something out there called a bad credit, credit card? Well, when a bank or Credit company such as Bank of America, Washington Mutual or Chase obtain an application from you, they use a statistical system to establish whether or not to grant credit to you by assigning numerical reports to various characteristics related to creditworthiness. This means the creditor's measure of your past and future ability and willingness to repay your debts. This system is based on data from your credit history, which is a record of how you've borrowed and repaid debts. If this record shows late payments, skipping payments, exceeding card limits or claiming bankruptcy you're considered a person with "bad credit".
Then you're condemned, you're hopeless.. No one will ever lend you money or give you a credit card any longer, you may think however you should think again. Even people with horrible credit histories who have been in a financial mess due to previous debt can get credit card offers. So, the answer to the question I asked in the beginning of this article is "Yes": You can get a secured or prepaid credit card.
Banks and other credit companies require customers, even thoses in a poor financial condition. So these secured or prepaid cards offers are specifically targeted to help individuals with poor credit, so that they too can have all the benefits that follows such a card.
What distinguish a secured card from an unsecured is that the card's account is usually related to a savings account. This is the way the card is secured. Let's say you have $1,000 in your account, then your credit limit will be $1,000. With this build in security, you will never be taken into a debt situation again. After using this card for a long time, most banks or finance companies will slowly but surely grant you credit that exceeds your saving account balance and you will at the same time repair your credit history. This bad credit, credit card is an excellent offer, that you should take advantage of if you have a messy financial history and want to restore credit credit.