Subprime Credit Card
These credit cards have been designed to give you a second chance with your credit. It is for those with a low or damaged credit score.
They are often used to help rebuild a low credit score. They help because you can create a positive payment history and it can improve your ratio of available credit to debt.
These two factors are very important when your score is being calculated. If these two factors are good then you can create a good credit score even with negative items on your credit report.
These cards do report monthly to all three major bureaus. Your APR will by approximately 19% and you will have some fees. Unfortunately this is the cost of your prior mistakes with credit, however this can be the last time you have to pay extra for your damaged credit.
These cards will come with a credit limit around $300 and they will give you periodic limit increases. However some cards like the Tribute MasterCard do offer a $70 limit for those with a very low score.
A sub prime credit card is superior to a secured card when it comes to credit reporting. With a secured card it will report to the bureaus as a secured account and will not help as much as an unsecured account.
It is still wise to remove negative items from your report. However it has been discovered that once a negative item ages four years it will have much less impact on your score.
For you to get the most out of your card you should strive to keep the monthly balance at 25% of your credit limit. This is because it shows the bureaus that you are using your card responsibly and that you do in fact use your card.
You can still get approval for a sub prime card even with; charge offs, collections, judgments, and even a bankruptcy. However each card has different approval requirements. Many of them will give you an instant decision upon submission of your application.
In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.
They are often used to help rebuild a low credit score. They help because you can create a positive payment history and it can improve your ratio of available credit to debt.
These two factors are very important when your score is being calculated. If these two factors are good then you can create a good credit score even with negative items on your credit report.
These cards do report monthly to all three major bureaus. Your APR will by approximately 19% and you will have some fees. Unfortunately this is the cost of your prior mistakes with credit, however this can be the last time you have to pay extra for your damaged credit.
These cards will come with a credit limit around $300 and they will give you periodic limit increases. However some cards like the Tribute MasterCard do offer a $70 limit for those with a very low score.
A sub prime credit card is superior to a secured card when it comes to credit reporting. With a secured card it will report to the bureaus as a secured account and will not help as much as an unsecured account.
It is still wise to remove negative items from your report. However it has been discovered that once a negative item ages four years it will have much less impact on your score.
For you to get the most out of your card you should strive to keep the monthly balance at 25% of your credit limit. This is because it shows the bureaus that you are using your card responsibly and that you do in fact use your card.
You can still get approval for a sub prime card even with; charge offs, collections, judgments, and even a bankruptcy. However each card has different approval requirements. Many of them will give you an instant decision upon submission of your application.
In sum if you have made mistakes in the past with your credit and want a second chance we suggest a sub prime card. It can improve your ratio of available credit to debt and build a positive payment history.
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We suggest the Tribute MasterCard or the Orchard Bank Credit Card for a review of these cards visit us.
posted by Credit Counseling at
4:16 AM
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