Why You Can’t Get Unsecured Credit Cards For Bad Credit
Posted by | Posted in Finance News | Posted on 05-07-2010
Do you have terrible credit because you just went through bankruptcy or foreclosure? You may have been trying to do some simple things like reapply for a credit card or refinance you home loan but may have been unsuccessful in every attempt.
In this article I going to discuss with you why you won’t be able to get another unsecured credit card for bad credit and what you can do build up credit as an alternative .
Must Have Good Credit
First off, in order to get a credit card you are going to need excellent credit almost 90% of the time, but the real question here is why do you need that credit card? If you have terrible credit because of bad spending habits, bankruptcy, or foreclosure, you may want to consider an alternative here.
Instead, look into a secured credit card like the Orchard Bank Secured Credit Card. Secured cards unlike unsecured cards will not give a credit limit but instead must be funded by your own money. These cards also work about the same as other credit cards but will make a much better safety net for you in the long run.
To Much Debt
The next reason you may not be able to get unsecured credit cards for bad credit is because you have to much debt. Having to much debt can send a red flag to lenders that you cannot handle cash flow.
To solve this issue check out my debt plans section and look into setting up your own debt snowball plan to help you eliminate your debt. As a good gauge to help you see how much debt you have if you add up all of your debt payments and it’s more than 36% of your income you have to much.
Missing Payments
Finally, the last reason why getting unsecured credit cards for people with bad credit is so hard is because they are missing payments on there other bills. Missing payments is one of the quickest ways to destroy your credit.
Instead if making payments is becoming tougher and tougher you may need to help of a professional. In situations like this you may need look into a debt relief program, or credit counseling.
Final Thoughts…
As a final thought some credit cards do will work if you have bad credit and if you do get excepted you will face a lower credit limit, higher interest rates, and bigger penalty fees. So you have to ask yourself is this what you really want to contend with?
Similar Posts:
- New Credit Card Rules – How the New Credit Card Laws Effect You
- Unsecured Debt Consolidation Loans
- Pros and Cons of Debt Management Programs
- Remortgages And Secured Loans Are Loans That Only Homeowners Can Apply For.
- Knowing About Cash Back Credit Cards: Good Or Bad Idea?
