Subprime Credit Card
These credit cards have been designed to give you a second chance with your credit. It is for those with a low or damaged credit score.
They are often used to help rebuild a low credit score. They help because you can create a positive payment history and it can improve your ratio of available credit to debt.
These two factors are heavily weighted on your credit score. Improving them you can achieve a high score even with negative items on your report.
These cards will report to the major credit bureaus. They will come with an APR around 19% and will have an annual fee. However the benefit of improving your score will offset the high price of a low credit score.
These cards will come with a credit limit around $300 and they will give you periodic limit increases. However some cards like the Tribute MasterCard do offer a $70 limit for those with a very low score.
These cards will help to improve your score more than a secured card. This is because secured cards are reported as a secured account to the bureaus and this will be weighted less than an unsecured account.
It is still important to remove negative marks from your credit history. However it has been learned that after a negative mark ages for four years it has much less impact on your score.
For you to get the most out of your card you should strive to keep the monthly balance at 25% of your credit limit. This is because it shows the bureaus that you are using your card responsibly and that you do in fact use your card.
You can still get approval for a sub prime card even with; charge offs, collections, judgments, and even a bankruptcy. However each card has different approval requirements. Many of them will give you an instant decision upon submission of your application.
In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.
They are often used to help rebuild a low credit score. They help because you can create a positive payment history and it can improve your ratio of available credit to debt.
These two factors are heavily weighted on your credit score. Improving them you can achieve a high score even with negative items on your report.
These cards will report to the major credit bureaus. They will come with an APR around 19% and will have an annual fee. However the benefit of improving your score will offset the high price of a low credit score.
These cards will come with a credit limit around $300 and they will give you periodic limit increases. However some cards like the Tribute MasterCard do offer a $70 limit for those with a very low score.
These cards will help to improve your score more than a secured card. This is because secured cards are reported as a secured account to the bureaus and this will be weighted less than an unsecured account.
It is still important to remove negative marks from your credit history. However it has been learned that after a negative mark ages for four years it has much less impact on your score.
For you to get the most out of your card you should strive to keep the monthly balance at 25% of your credit limit. This is because it shows the bureaus that you are using your card responsibly and that you do in fact use your card.
You can still get approval for a sub prime card even with; charge offs, collections, judgments, and even a bankruptcy. However each card has different approval requirements. Many of them will give you an instant decision upon submission of your application.
In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.
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For more about bad credit credit cards or for a review of the Continetal Finance MasterCard visit us.
posted by Credit Counseling at
6:10 AM
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