Saturday, January 10, 2009

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 as Bank of America, American Capital Mutual or Chase have an application from you, they utilize a statistical system to determine whether or not to allow credit to you by assigning numerical scores to assorted features related to creditworthiness. This agency the
creditor's measurement of your past and future ability and willingness to refund your debts. This system is based on your credit history, which is a record of how you have got borrowed and repaid debts. If this record shows late payments, skipping payments, exceeding card bounds or declaring bankruptcy you are considered a individual with "bad credit".

Then you're condemned, you're hopeless.. Cipher will ever impart you money or give you a credit card anymore, you may believe but then you should believe again. Even people with atrocious credit histories who have got been in a financial messiness because of former debt can get credit card offers. So, the reply to the inquiry I asked in the beginning of this article is "Yes": You can get a secured or prepaid credit card.

Banks and other credit companies need customers, even thoses in a bad financial situation. So these secured or prepaid cards offers are specifically targeted to assist people with poor credit, so that they too can have got all the benefits that follows such as a card.

What distinguise a secured card from an unsecured is that the card's account is usually related to a nest egg account. This is the manner the card is secured. Let's say you have got $1,000 in your account, then your credit bounds will be $1,000. With this construct in security, you will never be brought into a debt state of affairs again. After using this card for a while, most banks or finance companies will gradually allow you credit that transcends your economy account balance and you will at the same clip repair your credit history. This bad credit credit card is a great offer, that you should take advantage of if you have got a messy financial history and desire to reconstruct your credit.

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