If you have bad credit but
still need a credit card, it will be more
difficult to get a new credit card but
not impossible. Before we tell you how
you can get one, let's first examine your
reasons for wanting another credit card.
1. If you have a bad
credit history with low debt due
to bankruptcy or a Debt Management Plan,
then seeking a new credit card can
REBUILD your credit score. However, with
a bad credit history, the credit card
companies will charge you 20 to 30
percent annual interest rates. If you
still want a credit card, read our
instructions below for more information
on how to obtain a credit card with bad
credit.
2. If you are the average
American with more than $8,000 in credit card
debt AND HAVE BAD CREDIT - you
do not need another credit card
- you need professional help.
Recent changes to the bankruptcy law (The
Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005) will prevent the
majority of credit card debt laden
Americans from discharging their debt
under the "Fresh Start" Chapter
7. Instead, the legal system will stear
you towards Chapter 13 Bankruptcy where
you will still have to make payments
under a court guided repayment plan. The
new law also requires you to attend
Consumer Credit Counselor meetings, money
management meetings, (both at your
expense) and will end up costing you
higher legal fees for your attorney to
guide you through the new law. Seeking
out a ANOTHER credit card when you
already have bad credit and high credit
card debt is NOT GOING TO SOLVE
YOUR PROBLEMS. It's only going
to make your problems much worse. If you
have a Shopping Addiction and credit
problems, you should seek the help of a Consumer Credit Counselor
who can guide you to financial freedom
and zero debt.
How To Get a
Credit Card when you have Bad Credit
When it comes to
rebuilding your bad credit score with new
credit card, you basically have two
options.
1. A Secured
Credit Card, which means that
your bank or credit card issuer will
require you to deposit a certain amount
of money as collateral. This amount can
range from $300 to $2,000 - depending on
the credit limit for the secured credit
card for bad credit applicants. If you
fail to make your monthly payments, the
deposit will be used to satisfy the debt.
Some banks or credit card issuers will
allow you to deposit 50 percent of the
credit limit and pay you interest on your
cash deposit and your interest rates will
be lower than with a unsecured credit
card. However, you will probably also
have to pay application and processing
fees.
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