Bad Credit Advice

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Bad Credit Advice


Updated: December 26, 2012

By
Add to Favorites:
Bad Credit Advice
December
14

Though the general opinion goes that people with bad payment history and low credit score cannot qualify for big companies' credit cards, it is far not truth in reality. Bad and poor credit cards are willingly marketed to customers most urgently needing credit and most of the deals can pull debtors out of their financial troubles.

However, without the proper knowledge how to manage credit card debt most effectively, without the ability to adequately appraise certain situations, bad credit cards will only hurt. Some of our readers, who are mostly concerned with bad credit tips, ask their questions that clear up some points.

Q: I applied for a credit card but was denied. What are the possible reasons and how will it affect my credit score?

A: There are a number of reasons why your credit card application was not approved. Your low and unstable income, short-time job, temporary address or your poor or bad credit history might have caused the denial.

Anyway, even if you guess the reasons, it makes sense to request the credit report to find the explanation. Maybe there is a mistake in the credit report and the denial will hurt your credit rating just for nothing.

Remember a denial in credit damages one's credit history and score, so if you have bad credit, you'd better give up the idea of frequent applications.

Q: Why can't I get an unsecured credit card for bad credit with a lower interest rate?

A: As a matter of fact, you present a bad credit risk for your credit card company due to your insufficient or unfavorable payment history. Let's face it - you cannot guarantee full and timely bill payment and so the creditor tries to protect themselves through high interest rates.

We must admit, however, that it is not impossible to find low rates on bad credit cards. Take, for example, Centennial Gold MasterCard Visa card from First PREMIER bank that offers quite a competitive APR, but you will still be required to pay more in the form hefty set up and annual fees.

Q: When is it best to seek credit debt counseling?

A: Just when you suspect some financial pressure or doubt your credit solvency, you shouldn't waste time - go and ask for debt counseling. Regardless of the amount of debt and your general credit rating, debt counselors will give you sound advice or work out debt management plan.

Q: Are there any illegal credit counseling companies?

A: Unfortunately, very often debtors fall victims to illegal credit counselors. Thus, when seeking help, make sure that the company is certified and has a Consumer Credit Counselor certification. Your counselors must prove that they have taken and completed comprehensive debt counseling training and passed the exam. Otherwise, you will be left with a larger debt than before.

Q: If I decide to resort to credit repair and dispute inaccurate information in my credit report, what can be taken off the file?

A: Any unverifiable or inaccurate information, such as your old addresses, additional names, medial bills, divorce debts and others must be deleted. Unrelated to this category are child support, student loans, state or federal tax liens which cannot be removed from your credit file.

Q: Will they arrest me if I do not pay my debt?

A: Well, if you stay away from ID theft and credit card fraud, you cannot be arrested for abusing your paying obligations. However, creditors may sell your debt to debt collecting agencies and they will have you pay all the same.

What do you choose?

So, these are some of the most acute questions from customers with credit problems. Did you see any concordance with yourself? Follow the advice.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Affirm: A ‘Friendly’ Credit Alternative

Affirm: A ‘Friendly’ Credit Alternative

By Angela Rose, Posted: April 5, 2017

In 1789, Benjamin Franklin wrote, "In this world nothing can be said to be certain, except death and taxes." His statement holds true even today - especially when it comes to personal finance tools such as credit cards. Continue reading
5 Reasons to Get the Capital One Venture Miles Rewards Card

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading
Credit Card Tips For Holiday Shopping 2016

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading