There Are Many Reasons Your Credit Rating May Fall

Category: Finance, Credit.

Are you one of many people today that needs to find a company that offers credit cards to people with bad credit?

Unexpected illness, mismanagement of credit, job loss can all lower your rating and there isn t anything you are able to do. There are many reasons your credit rating may fall. Even if it s just a month or two of delays, it s a delinquency that will show and bring your credit rating down. It is a period of time that you have to look a bit harder to find a company willing to help you re- establish your credit. Even something that is not of your doing such as identity theft can make a shambles of your credit. They normally will do this by offering you a credit card for people with bad credit. It will also show you the price you ultimately have to pay to restore your credit worthiness.

By researching, you will get an idea of the types of credit cards for people with bad credit that is available today. That price is called interest. Companies such as Providian Financial, Citibank and Capital, Orchard Bank One all have plans to give credit cards to people with bad credit. Most of the companies that offer credit cards for people with bad credit charge 25 to 30 percent annual percentage rate or APR. Because of this price( interest) you need to manage your money and credit issues much wiser than before as there wouldn t be many other choices after these. What this then does is starts you back on an upward movement with your credit rating.

By doing business with one of the above preferred companies is they do report to the 3 major credit scoring companies. Of course that is conditional on you making your payments on time each and every month. Another way for a person to secure a credit card for people with bad credit is with what is called a Secured Credit Card. The extra interest you pay by using a credit card for people with bad credit is a small price to get your credit back on solid ground. This is a very helpful way to regain a credit card and proceed to restore your credit. It looks and works the same as any other credit card.

How this works is some companies that deals with credit cards for people with bad credit requests a savings deposit that equals the credit limit on the card. Now some institutions that offer this credit card for people with bad credit will increase the credit limit by doubling or tripling the savings deposit amount. This types of programs will over time become regular credit cards and the deposit plus interest credited back to the account holder. These cards also report to the credit agencies so you are improving your credit rating with these types of credit cards for people with bad credit also.