In tough times it is common for someone to take a hit on their credit report. This might be anything from tardy payments on a small loan, to a major default on a home mortgage. Naturally, this has an effect on your eligibility for a successful credit card application, but it needn't be the end of the story - there are suppliers willing to issue cards, and the result of any application may strongly depend upon the circumstances of previous problems.
Unfortunately, our modern society often associates loan default and general financial difficulties with a weakness in character, which is of course nonsense. Absolutely anyone can find themselves this type of difficulty. What are the possibilities for a newly defaulted consumer applying for a new credit card? Of course, there are fewer successful application results in the present day than some years ago, due to the uncertainty about economic growth and job security, but we continue to live and work as usual - prudent use of a credit card can be an integral part of our lives, if controlled in the right way.
Before looking for, and eventually applying for a card, did you know that you could add a one hundred word statement to your official credit report? The 'Fair Credit Reporting Act' states that you can add a brief explanation about the exact circumstances surrounding a previous default, and this may have a major impact on your application. Remember that, although very careful with their ratings, card issuers are also people following company guidelines guidelines. In difficult times it's quite easy to fall foul of the credit system and some words of explanation can demonstrate goodwill and make all the difference.
Even though it is feasible to get a credit card even with poor credit, you may find that this kind of card is more expensive than a regular card, in a number of ways. There may be fees to pay up-front. These costs are applied to cover administrative setting up costs, but additionally to prove your commitment to a new contract between yourself and the card company. Of course, in their 'business' eyes, a person with bad past credit is a greater risk (in theory), and so this greater risk will normally be assured by applying a raised rate of interest on the card balance. This rate can differ between card issuers and needs to be offset against other factors, like the fixed costs, card limits, etc.
Another alternative is to apply for a secure card, if all else fails. You might think this is a waste of your time, as you would only be able to charge to the limit of the amount you already put into the card account. However, use the card carefully, make your payments regularly, and you could be on the road to slowly repairing your credit.
Unfortunately, our modern society often associates loan default and general financial difficulties with a weakness in character, which is of course nonsense. Absolutely anyone can find themselves this type of difficulty. What are the possibilities for a newly defaulted consumer applying for a new credit card? Of course, there are fewer successful application results in the present day than some years ago, due to the uncertainty about economic growth and job security, but we continue to live and work as usual - prudent use of a credit card can be an integral part of our lives, if controlled in the right way.
Before looking for, and eventually applying for a card, did you know that you could add a one hundred word statement to your official credit report? The 'Fair Credit Reporting Act' states that you can add a brief explanation about the exact circumstances surrounding a previous default, and this may have a major impact on your application. Remember that, although very careful with their ratings, card issuers are also people following company guidelines guidelines. In difficult times it's quite easy to fall foul of the credit system and some words of explanation can demonstrate goodwill and make all the difference.
Even though it is feasible to get a credit card even with poor credit, you may find that this kind of card is more expensive than a regular card, in a number of ways. There may be fees to pay up-front. These costs are applied to cover administrative setting up costs, but additionally to prove your commitment to a new contract between yourself and the card company. Of course, in their 'business' eyes, a person with bad past credit is a greater risk (in theory), and so this greater risk will normally be assured by applying a raised rate of interest on the card balance. This rate can differ between card issuers and needs to be offset against other factors, like the fixed costs, card limits, etc.
Another alternative is to apply for a secure card, if all else fails. You might think this is a waste of your time, as you would only be able to charge to the limit of the amount you already put into the card account. However, use the card carefully, make your payments regularly, and you could be on the road to slowly repairing your credit.
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