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Apply Bad Card Credit Credit

Apply bad credit credit card

First lets get the word bad credit straight. It is a credit rating term. If youve failed to pay on a loan or missed a credit card payment, financial companies can easily label you as a bad credit risk; this makes your situation worse if you are looking for a loan or other financial assistance.

If you have a bad credit it signifies that you may be unable to get a credit card, a loan or a mortgage or even opening a bank account can be a problem. Before you apply for a credit card or for that matter a loan or a mortgage it is quite natural that the lender does a credit score for your application. The lenders to judge whether you are likely to pay the debts by assessing you on the basis of the questions you have answered while filling in the form. If you reach a score that is pre determined then you are likely to get the credit but if you do not reach the score then either your application is rejected or the lender may offer you a smaller amount of credit or he may charge you a higher rate of interest. You neednt get disappointed if you are refused by one credit company not all lenders follow the same rules of scoring. There are certain other points that the lender may consider like: your career prospects, you tenure with the bank you have an account in. If you have an account with a bank for 5 years can help you improve the score. The time you have stayed in you current residence. Apart from scoring the application the lender even checks up with the credit reference check to clarify your credit history. This is done to check your previous payments and history about your credit rating.

How to Apply

Applying for a bad credit- credit card is not a problem these days. There are lots of agents who provide services online to check whether you are eligible and qualify for a bad credit card or not. The

most important thing is that you should know when you have to apply for a bad credit- credit card. You can have an alternative as to the bad credit- credit card you can apply for a prepaid credit card. These pre paid credit cards have advantages like there is no credit check, no employment is required and there is no extensive application process. They look like normal credit cards with the only difference being that the card is preloaded with cash. This poses no risk for the credit card company as well as you. You can use this opportunity while searching for a good option apply for a bad credit- credit card.

Advantages and Disadvantages of Bad Credit- Credit Card

If you have a normal credit card at present and your credit rating is not good enough you should switch to a bad credit- credit card. It is not advisable to seek for a bad credit- credit card when you want to spend it for luxuries and unable to pay off the pending bills. This would further add up to your bad credit rating and pull you deeper into the debt rather than improving your condition. The bad credit- credit card offers credit at a higher interest rate than a regular credit card. So getting a bad credit- credit card in such a case would only worsen your situation rather than improving it.

If you have a bad credit history then these bad credit- credit card can help you rebuild your good credit status. You just have to be careful in the way you are using the bad credit- credit card. If you dont overspend on it and keep paying your bills on time this can help you improve your rating. The credit card company reports all your payments to the bureau for the rating. Once a good record has been established you can toggle your bad credit- credit card into a regular credit card.

Initially when you apply for a bad credit- credit card your credit limits are very low this is done because the credit card company probably wants to check your payment pattern whether you make your payments regularly or not. Gradually the credit limits are increased and you can spend more.

But always keep in mind that if you miss out even a single payment your rating will go even further down. The bad credit- credit card can be a boon to people and help improve their rating only when it is used in a proper manner.

How to improve bad credit

There are certain things that you can do to improve your bad credit history.

• You should make all your payments on time. Delaying any payment can add to the negative aspect.

• Cut down the number of credit cards that you have. Close all the credit card accounts and inform the credit reporting agencies about these closures.

• Cut down the amount you are spending from your credit card try paying cash wherever possible. You can ask your credit companies to reduce the credit limits.

• Avoid getting bankrupt, tax linen and collections. If you get bankrupt then this can affect your rating for the next 10 years.

• You can ask one of your friends or family members to co-sign a loan on a credit card for you. Then if you make your payment on time your rating can improve.

• Get a copy of your credit report and check it for flaws and errors.

It is always advised to improve your credit rating if you have fallen into a debt trap. If you improve it as soon as possible you can be secure for your future. Make all payments in time and cut down unnecessary expenditure.

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