Bad Credit Loans and Credit Cards Becoming History

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Bad Credit Loans and Credit Cards Becoming History

By Credit Federal | Published 05/13/2009

There once was a time when almost anyone; despite very bad credit, could obtain a credit card or even an auto loan and certainly a mortgage. Now; however, bad credit people have far fewer resources as more offers become extinct, either by the lenders' decisions or by government interference. During this era of the credit crisis, bad credit people should focus on how to improve credit scores instead of trying to find credit that will either cost them dearly or has fallen off the market entirely.

As of the date of this article, the only known bad credit personal loan is a payday advance, which is limited to $1500 and has a short term. The only long term bad credit loans we're aware of are for auto purchases, and perhaps those are still available because these secured loans are not as high risk to lenders as unsecured loans. New and even used car loans have collateral involved and; typically, a co-signer to share repayment responsibility.

Our advice to people with credit scores in the 'no credit' to 'bad credit' range, is to make wise, responsible use of whatever subprime credit offers still remain available to establish or rebuild scores, before all such offers are completely extinct.

In regards to cash loans, as we mentioned earlier the only cash loan we know of is an unsecured personal (payday) loan of up to $1500. This type of cash loan currently welcomes all credit scores because there's no credit check, no cosigner and no security collateral requirements. Unfortunately, since there is no credit check, these lenders typically do not report your timely payments to a credit bureau, so they won't help you improve your score. You can; however, maintain the cash advance receipts to show your responsible repayments to other creditors. One responsible way to use a payday advance is to prevent a late payment or bounced check fees. Read our article Bad Credit Payday Loans Offer Unsecured Cash for Poor People.

In regards to credit cards, there are still a few bad credit card offers available, but you cannot be picky. Right now with legislatures threatening regulations that may increase credit card company risk and likewise threaten profits, you won't find the high limits, low interest and low fees that are now reserved only for good credit people who are a far lesser risk of default. If you get a credit card, make all payments timely and try to repay balances no later than 90 days from the date of charge(s). Eventually, your credit card issuer will see your responsible use and will likely increase your credit limit and may even offer a lower interest rate. Accept the offer, but don't let it go to your head and end up deep in credit card debt. Getting, keeping and responsibly using a credit card is the number one factor in obtaining a good credit report score.

As for auto loans, first make sure you can meet the monthly payments (use our auto loan payment calculator to estimate monthly notes). Auto loans are generally reported to at least one credit report bureau, and is a good way to show responsible loan repayment.

Budget! We listed this last because we know it's always the first thing you hear in regards to securing a financially healthy future. But before you can budget, first you need to know what all your bills are and other ways you spend money. For instance, how many times per month do you pump money into vending machines, and how much do you spend total? We offer free expense tracking software (valued at over $6,000) which you can download and use with no strings attached. Our software has been screened and scanned by 3rd party entities and is verified as 'virus free'.

More free tips and advice. You can cut costs by eliminating wasteful spending, getting rid of or reducing interest fees and clipping coupons, just to name a few. Use our search tool to locate more tips and advice, such as how to save money, get debt relief and how to improve credit.

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Bad Credit Loans and Credit Cards Becoming History - by <a href=http://creditfederal.com>CreditFederal.com</a> <img src="http://creditfederal.com/badcreditrepairtips.gif" border="1"> <div style="text-align: left; font-family: Verdana;"> There once was a time when almost anyone; despite very bad credit, could obtain a credit card or even an auto loan and certainly a mortgage. Now; however, bad credit people have far fewer resources as more offers become extinct, either by the lenders' decisions or by government interference. During this era of the credit crisis, bad credit people should focus on how to <a target='_top' href="http://creditfederal.com/improve-credit-score.html">improve credit scores</a> instead of trying to find credit that will either cost them dearly or has fallen off the market entirely. As of the date of this article, the only known <a target='_top' href="http://creditfederal.com/bad-credit-personal-loan.html">bad credit personal loan</a> is a payday advance, which is limited to $1500 and has a short term. The only <a target='_top' href="http://creditfederal.com/long-term-unsecured-loan.html">long term</a> bad credit loans we're aware of are for auto purchases, and perhaps those are still available because these secured loans are not as high risk to lenders as unsecured loans. New and even used car loans have collateral involved and; typically, a co-signer to share repayment responsibility. Our advice to people with credit scores in the 'no credit' to 'bad credit' range, is to make wise, responsible use of whatever subprime credit offers still remain available to establish or rebuild scores, before all such offers are completely extinct. In regards to cash loans, as we mentioned earlier the only cash loan we know of is an unsecured personal (payday) loan of up to $1500. This type of cash loan currently welcomes all credit scores because there's no credit check, no cosigner and no security collateral requirements. Unfortunately, since there is no credit check, these lenders typically do not report your timely payments to a credit bureau, so they won't help you improve your score. You can; however, maintain the cash advance receipts to show your responsible repayments to other creditors. One responsible way to use a payday advance is to prevent a late payment or bounced check fees. Read our article <a target='_top' target="_top" href="http://creditfederal.com/article/articles/651/1/Bad-Credit-Payday-Loans-Offer-Unsecured-Cash-for-Poor-People"> Bad Credit Payday Loans Offer Unsecured Cash for Poor People</a>. In regards to credit cards, there are still a few <a target='_top' href="http://creditfederal.com/bad-credit-card.html">bad credit card</a> offers available, but you cannot be picky. Right now with legislatures threatening regulations that may increase credit card company risk and likewise threaten profits, you won't find the high limits, low interest and low fees that are now reserved only for good credit people who are a far lesser risk of default. If you get a credit card, make all payments timely and try to repay balances no later than 90 days from the date of charge(s). Eventually, your credit card issuer will see your responsible use and will likely increase your credit limit and may even offer a lower interest rate. Accept the offer, but don't let it go to your head and end up deep in credit card debt. Getting, keeping and responsibly using a credit card is the number one factor in obtaining a good credit report score. As for <a target='_top' href="http://creditfederal.com/auto-loan.html">auto loans</a>, first make sure you can meet the monthly payments (use our <a target='_top' href="http://creditfederal.com/auto-loan-calculator.html">auto loan payment calculator</a> to estimate monthly notes). Auto loans are generally reported to at least one credit report bureau, and is a good way to show responsible loan repayment. Budget! We listed this last because we know it's always the first thing you hear in regards to securing a financially healthy future. But before you can budget, first you need to know what all your bills are and other ways you spend money. For instance, how many times per month do you pump money into vending machines, and how much do you spend total? We offer <a target='_top' href="http://creditfederal.com/track-expenses.html">free expense tracking software</a> (valued at over $6,000) which you can download and use with no strings attached. Our software has been screened and scanned by 3rd party entities and is verified as '<a target='_top' href="http://creditfederal.com/article/blogs/256/Electronic-Checkbook-Register">virus free</a>'. More free <a target='_top' href="http://creditfederal.com/article/search?&Query=tips&SearchType=1&Categories=a:1:%7Bi:0;s:1:%220%22;%7D&searchWhat=a:3:%7Bi:0;s:14:%22searchArticles%22;i:1;s:10:%22searchNews%22;i:2;s:11:%22searchBlogs%22;%7D&searchField=a:1:%7Bi:0;s:11:%22searchTitle%22;%7D%22">tips</a> and <a target='_top' href="http://creditfederal.com/article/search?&Query=advice&SearchType=1&Categories=a:1:%7Bi:0;s:1:%220%22;%7D&searchWhat=a:3:%7Bi:0;s:14:%22searchArticles%22;i:1;s:10:%22searchNews%22;i:2;s:11:%22searchBlogs%22;%7D&searchField=a:1:%7Bi:0;s:11:%22searchTitle%22;%7D%22">advice</a>. You can cut costs by eliminating wasteful spending, getting rid of or reducing interest fees and clipping coupons, just to name a few. Use our search tool to locate more tips and advice, such as how to <a target='_top' href="http://creditfederal.com/article/search?&Query=sav&SearchType=1&Categories=a:1:%7Bi:0;s:1:%220%22;%7D&searchWhat=a:3:%7Bi:0;s:14:%22searchArticles%22;i:1;s:10:%22searchNews%22;i:2;s:11:%22searchBlogs%22;%7D&searchField=a:1:%7Bi:0;s:11:%22searchTitle%22;%7D%22">save money</a>, get <a target='_top' href="http://creditfederal.com/article/search?&Query=debt&SearchType=1&Categories=a:1:%7Bi:0;s:1:%220%22;%7D&searchWhat=a:3:%7Bi:0;s:14:%22searchArticles%22;i:1;s:10:%22searchNews%22;i:2;s:11:%22searchBlogs%22;%7D&searchField=a:1:%7Bi:0;s:11:%22searchTitle%22;%7D%22">debt relief</a> and how to <a target='_top' href="http://creditfederal.com/article/search?&Query=improve&SearchType=1&Categories=a:1:%7Bi:0;s:1:%220%22;%7D&searchWhat=a:3:%7Bi:0;s:14:%22searchArticles%22;i:1;s:10:%22searchNews%22;i:2;s:11:%22searchBlogs%22;%7D&searchField=a:1:%7Bi:0;s:11:%22searchTitle%22;%7D%22">improve credit</a>. </div> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.