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Credit Cards for Bad Credit

There are many companies which offers credit cards to people with bad credit on the marketplace in 2015. For years, lenders have left the market open for people whose credit needs repairing or rebuilding by offering higher APRs, larger transaction fees, and bigger annual fees. As a general rule, you either need to accept a high APR or high fees, though some brands balance out the equation a little better than others. Whether you need to build or rebuild your standing in the financial system, you’ll need to get back on the proverbial horse.

The fact is,  obtaining a line of credit and making regular payments can make a huge impact on your FICO score. As long as you play by the rules — pay above the minimum, carry very little debt from month to month, and refuse to charge your card all the way to its full credit limit — using a VISA or MasterCards can improve your credit history faster than almost any other financial move.

In recent years, with the real estate and banking crunch and the global economic downturn, companies have maintained their customer base by offering even more promotions for people like you. I’m not just talking about secured cards which are issued on the basis of collateral. There are unsecured options for people with bad credit, and some of them are well worth looking into. If you’ve recently lost a job and found yourself in debt, had to file for bankruptcy, or just need to open a new line of credit in order to rebuild your FICO score, one of these deals will be perfect for you.

Unsecured Cards for People with Bad Credit

A secured credit card, tied to a savings account and featuring serious limitations on your credit activity, is not for everyone. For starters, your credit limit with almost all secured cards will be around $5,000.

Credit Card Hidden Fees

SOAR MasterCard Has 2 Activation Fees

Also, many secured credit cards neglect to report your credit activity to all three major credit bureaus — how are you supposed to build credit without the credit bureaus being aware of your activity?

For many people, obtaining an unsecured bad credit credit card is the only answer. Here are the best available, according to their terms and conditions.

Premier SOAR Mastercard

This Mastercard offered by First Premier Bank is aimed at people with all credit types , according to the company’s website. Most programs report to three credit bureaus, but the SOAR MasterCard guarantees monthly reporting to four major credit bureaus. This means you can be sure positive activity with your Premier SOAR MasterCard will lead to a boost to your credit score.

SOAR is a branded Mastercard, giving you the convenience of spending anywhere Mastercard is accepted. With a decent 9.9% APR and a low $48 annual fee, you may be ready to jump on this card’s bandwagon. However, there are a few downsides. A $7 card activity fee will be charged every month — that takes $84 a year right out of your pocket.

Besides that, there are not one but two activation fees — an industry standard $29 one-time fee, and a one-time “program fee” that is a staggering $95.

Between the annual fee, the activity fee, and the activation fees, you are out $256 before you ever swipe the card. To be honest, Premier is preying on people with poor credit. You might decide it’s worth the expense, but be aware of the hefty fees attached to this otherwise attractive deal.

Orchard Bank Classic MasterCard

Unlike the Premier card, the Orchard Bank Classic MasterCard won’t drown you with fees and finance charges. You may not be guaranteed acceptance, but Orchard Bank advertises their willingness to work with people who have bad credit, and depending on your individual situation, you are likely to be approved for this MasterCard. Their rather hefty 14.9% interest rate is buffered by low fees and good conditions. You will pay a one-time fee of $49 for account processing (essentially an activation fee), and a super low $49 annual fee. That’s $98 to get your credit card activated — a low number in the world of lending.

There’s more good news — you may find that you qualify for a special 0% introductory APR based on your creditworthiness. If you’ve spent a little time improving your score, Orchard may decide to reward your efforts with no interest for up to 6 months. Of course, after the Introductory period ends, a variable interest rate will apply — currently between 9.90% and 15.99%. That low annual fee is also subject to change due to your credit situation. The annual fee will fluctuate between $0 and $49, depending on your creditworthiness. Orchard Bank looks like a company dedicated to their customers with a spotty history.

Total Visa

If you’re looking for an offer that will give you a decision instantly, check out Total Visa. Their customer service department will give you an instant online decision when you apply. This is another program with a relatively high APR and what seems like a low fee system — just $49 to activate your card, and a $49 annual fee. However, Total Visa also charges that mysterious $95 program fee, as well as a monthly card fee of $7. If you can get past the hefty fee schedule, you’ll find that Total Visa reports to three major credit bureaus, and offers their customers a Zero Liability program for any fraudulent card activity. Unique to cards of this sort, the Total Visa gives you absolutely free online access to your account — other companies charge monthly fees for online access, or even fees for each time you access your account online.

When choosing a charge card, keep a few things in mind. If you’re planning on applying for a card not found on the above list, watch out for lenders who prey on their customers. A great way to ferret out these types of lenders is to look at their fees and interest rates –if you’re applying for a program which requires an insurance policy or huge annual fee (anything above $75), you can be sure they’re in it for the money. The best way to tell if a lender has your best interest at heart is to call their customer service department before you apply. Ask any and all questions you have, including questions about hidden fees, transaction requirements, or their reporting policies to credit bureaus. Their responses should give you a good indication of what to expect.

YouTube Video: Boost Your Credit Score

Lynnette Khalfani-Cox, who is known online as “The Money Coach”, offers the advice on this video. If you have a bad credit rating, it doesn’t have to remain bad. In most cases, people can rebuild their financial reputation within 2 years. It might not be fun, but it’s going to be worth the effort.

My girlfriend recently sent me an article about the human body’s ability to regenerate itself. The human body completely regrows itself every 2 years. Almost 98% of the body regrows within one year’s time. It’s amazing, but you aren’t the same person you were only 2 short years ago.

Credit scores are the same way. Unless you’ve declared bankruptcy, your score regrows every 2 years. If it it isn’t completely different in a year’s time, you can improve your history significantly within 1 year’s time. It’s like night and day, my friend. Keep it in mind.

Your financial status is not as hopeless as you think it is. Make a home budget and maintain discipline for a while and your situation is going to improve quickly. Time is going to pass anyway, so you might as well be improving your situation.

I’ll eventually discuss improving your financial literacy, getting a better education, and boosting your income. Until you grow your income, you’ll have to manage how much cash flows out. One day in the not-so-near future, you’ll put it all together and start to grow your savings.

As for unsecured lending, you can find a pile of unsecured credit cards for consumers with bad credit. The key is to sort through the pile and find the brand that works for you.

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