Saturday May 19, 2012
If you have a bad credit score, you've probably been turned down for at least one credit card. It's tough to rebuild a bad credit score since few credit card issuers are willing to give out credit cards to people with bad credit history. Fortunately, there are a handful of issuers who have credit cards specifically for people with low credit scores.
For example, Capital One has two credit cards for people with bad credit - the Classic Platinum and the Standard Platinum. The two cards aren't that different, one has a higher annual fee and lower interest rate and the other has the opposite - a lower annual fee and higher interest rate. You'll get a minimum credit limit of $300, which is just enough to start rebuilding your credit.
Orchard Bank has a line of credit cards for people with bad credit. The one you're ultimately approved for depends on just how bad your bad credit is.
You can get a credit card with bad credit, you just have to know where to look. Don't be afraid to apply for a secured credit card. It requires a security deposit, but after 12 months of responsible use, you can often apply for an unsecured credit card.
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Thursday May 17, 2012
Can you imagine what your life would be like if you didn't have to send checks to creditors and lenders every month? How much money you'd be able to put aside for retirement, vacation, and other goals?
You can get out of debt and there are several ways you can do it. For example, you could knock out your debts one at a time by sending all your extra money to your creditors. Or, if you can't afford to pay your debt in full, you might settle your debts. Check out 10 Ways to Get Out of Debt for more ideas on paying off your debt.
More on Paying Off Debt
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Wednesday May 16, 2012
Thanks to the ubiquitous use of credit scores, today's young adults might have a harder time getting started in the real world without a good credit score. And as a concerned parent, you probably wonder what you can do to give them a headstart.
Start teaching your child the basics of credit early, little by little, as soon as they're old enough to understand. Even basics like "Always return what you borrow" and "Never spend all your money" help instill good credit habits in young ones.
You can help your child build a good credit score, but be careful that you don't do it too soon and that you don't put too much of your own credit on the line.
Help your child open and use a bank account to establish a bank history. A positive bank history won't establish a credit score, but an relationship with a financial institution may come in handy when it's time for the first credit card.
After that, follow these tips on how to help your child build a good credit score.
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Monday May 14, 2012
Many people still have huge misconceptions about what influences their credit score, according the results of the second annual consumer knowledge study about credit scores by the Consumer Federation of America (CFA) and VantageScore Solutions.
The bad news first:
- 56% of respondents said that age is a factor used to calculate credit scores
- 54% said marital status is a factor
- 21% believe ethnic origin in a factor
None of those factors is used to calculate credit score. In fact, it's against the law for lenders to discriminate against applicants for any of those things.
The survey also revealed that consumers don't realize the financial impact of having a low credit score or the impact loan shopping has on their credit score.
But, in a few other areas, consumers are more knowledgeable than they were last year. More people realize that businesses besides lenders use credit scores, that serious delinquencies and bankruptcy affect credit scores, and that there's more than one generic credit score.
Test your own credit score knowledge with a 21-question quiz at CreditScoreQuiz.com.
Brush up on your credit score knowledge:
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