Bad Credit History Credit Cards

Did you know there are over 100 millions Americans living with bad credit everyday? If you are one of them, you have come to the right place. Having bad credit can be frustrating and you may feel helpless sometimes, but there are steps you can take to rebuild your credit. You probably have many questions about what bad credit means and how much it can affect your life. We will answer some of the most frequently asked questions and show you how to re-establish your credit. Our goal is to provide you with tips & advice and resources necessary to help you get your credit back on track, regardless of poor credit score or past credit problems. Let's get started!

How Do I Know If I Have Bad Credit?

If you have applied for a credit card or a car loan in the past few months and got turned down because of low credit score, you probably have less-than-perfect credit. If your credit score is 619 or lower, then you definitely have bad credit. This credit score also known as FICO score is calculated based on many factors such as age of your credit history, payment history, how often you apply for credit cards & the amount of debt you carry.

Can I Still Get a Credit Card If I Have Bad Credit?

Yes, you can still get approved for a credit card even when you have bad credit. There are 3 different kinds of credit cards that are designed for people with bad credit or less-than-perfect credit.

• Unsecured Credit Cards - it's the most popular, function like a standard credit card, except the credit line will be lower and the fees higher. The biggest advantage of getting an unsecured credit card is that most issuers of unsecured cards report your account activities to major credit agencies, which may improve your credit history if you make the minimum payments to all creditors and maintain your balances under the credit limits.
• Secured Credit Cards - these are cards backed by a deposit you make into a bank account, which serves as security for the card. Your approval is much easier. Some issuers of secured credit cards also report to credit agencies.
• Prepaid Credit Cards - it require funds pre-deposited into an account in order to activate the card, and the charges you make to the card are deducted from this deposit. Since no credit check is required, your approval is also guaranteed. Only a few issuers of prepaid credit cards report to credit agencies. Therefore, prepaid credit cards are not ideal for building or rebuilding credit.

So which type of credit card is best for you? We'll explain below.

I Have Really Bad Credit, How Can I Build or Rebuild Credit?

Before you start building or rebuilding your credit, you need to ensure your credit report is accurate. If you have never checked your credit report, now it's the time. After you obtain your credit report, it's important to review everything and make sure every item is accurate, if there's any discrepancies, you need to dispute each item with the credit agencies. Your credit report will have more details on how to do that yourself.

After making sure your credit report is accurate, it's time to build or rebuild credit. Using a credit card is actually the easiest way to build or rebuild credit. If you have bad credit or no credit, it's best to start with a secured credit card. It requires a security deposit to get approved, but your approval is much easier and it looks and works just like a regular credit card. Although your credit limit will be relatively low in the beginning, it can be increased gradually when you pay your bills on time every month for at least 6 months. After a few months, given you pay your bills on time every month, your security deposit in most cases will be returned to you. Since most secured credit card companies report your account activities to the major credit agencies every month, your credit score will also start to improve over time as long as you make on-time minimum payments with all of our creditors and maintain account balances below the credit limits. After your credit score is improved, you can then try to apply for a regular unsecured credit card.

If you do not want to give a security deposit in order to get a secured card, you may try to apply for an unsecured credit card for bad credit. However, there may be high fees charged by the issuers in order to get you approved. If you can't get approved or do not wish to pay the fees, then a secured credit card is your best option.

I Don't Have Time to Research Offers, What's Your Recommendation?

There are options for those wishing to establish or rebuild credit. However, finally there is a credit card that offers a reasonable interest rate with low fees and is specifically designed for those with less than pristine credit. It's the Orchard Bank Classic MasterCard issued by HSBC! The Orchard Bank Classic MasterCard features a very respectable 7.90% - 19.90% regular APR and initial credit lines up to $1,500.

Of particular value is the fact that the Orchard Bank Classic MasterCard reports cardmember repayment behavior to all three major U.S. credit agencies. Other payment card options for bad credit do not typically allow customers to rebuild their credit history. This is a critical step in creating a solid repayment record that opens new doors for low cost credit in the future. With relaxed credit underwriting criteria, applicants are much more likely to be approved. And, getting approved is the name of the game when bad credit is in your history. Once approved, it's just a matter of staying disciplined and making on-time credit card payments to begin building a solid credit record. It's usually best to pay as you go with credit cards and living within your means. But, as we all know, that's not always possible for those of us who are struggling to keep our financial heads above water. And that's where the 7.90% - 19.90% interest rate can help you pay outstanding balances over time without taking too much of a toll on your finances.

Other benefits of the Orchard Bank Classic MasterCard include worldwide acceptance at over 22 million locations and cash access at over 770,000 MasterCard/Cirrus locations around the globe. And, online shopping can be accomplished with peace of mind because the Orchard Bank Card provides complete protection from unauthorized purchases.

So, maybe it's time to finally get your credit back on track. Or, if you are just starting out it could be a great time to start building a good credit rating. Having a MasterCard credit card is essential in today's world if you want to make a hotel reservation, rent a car or book an airline flight. And with the Orchard Bank Classic MasterCard, your chances of getting approved are better than ever.

If you'd like to apply or learn more about the Orchard Bank Classic MasterCard, please click here. To consider other offers, please check out bad credit credit cards.

I Have Additional Questions, Do You Have Customer Service Support?

Yes. If you have additional questions, we are here to help. Please feel free to contact us.

 

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