Categories
Business Loans

Start Up Business Loans No Credit Check

A guide on start up business loans no credit check

Most of us tend to overlook our credit scores – not until a financial need arises that may require a business loan. This is the time you realize that credit scores are not only important when you need to purchase a home or your dream car, but it is also essential to have good business credit scores when you want a loan to pay for business expenses.

So whether you have been denied a business loan in the past due to poor credit or you are still looking for the best business funding option and you are aware that your score isn’t that attractive, you may have this question in mind – How can you find a start up business loans no credit check?

Getting a small business loan with no credit check

There is no denying the fact that finding small business capital loans with poor credit can be difficult. When talking about bank loans, lending institutions try as much as possible to reduce the risks involved when issuing a loan. Borrowers with good credit can easily qualify for these loans compared to their poor credit counterparts. Lucky enough, the emergence of online lending has made it possible for business owners to take out small business startup loans, no credit check.

In fact, some of them to do not even have credit score as a requirement to qualify for business loans. For instance, you can easily access a small business loan through invoice financing. With this alternative, the lender does not perform any credit check before approving the funds. Most of them will require you to be in business for at least 3 months, generate a specified amount of revenue and issue your customers’ outstanding invoices as collateral when providing the loan.

This works well for an established business. There are several other startup loans no credit check options available for new small businesses.

Types of small business loans with no credit check

Now that you already know that there are different financing options available for small businesses that do not require a credit check, we suggest that you find an option that will suit your business needs. Here are some of the options you can consider without worrying about a poor credit report.

  • Merchant cash advance
    This is a business lending option that provides businesses with a lump sum amount that is repaid back with a percentage of the business’s daily credit card receipts. You can easily qualify for a merchant cash advance if you have bad credit. Just like invoice financing, this is a perfect way for businesses to access fast cash to improve their cash flow.
  • Crowdfunding
    Crowdfunding has recently become a popular option for small businesses that want to introduce a new product or service in the market. With this option, you can easily raise business capital from customers, friends, family members, and individual investors. This is done by hosting an online campaign and reach your target group through social media and email. You can also get views about the product or service through feedback from backers.
  • Small business grants
    This is also an awesome small business financing option since unlike business loans, you won’t have to worry about paying the money back. You only need to qualify for the funds, which may be difficult for small business owners. The loans are also reserved for certain industries to fund specific projects like medical or scientific research among others.
  • Microloans for nonprofits
    If you are from a less advantaged background and want to start a small business, you can qualify for a microloan or funding from nonprofit organizations. With these options, no credit check is required so a poor credit history won’t hinder you from securing the funds. The lenders are not in the business of making money. Their main purpose is to assist traditionally marginalized groups to improve their lives.
  • Business credit cards
    If you have poor credit or the business is still brand new with no credit history, you might also consider a business credit card. As much as credit cards are overlooked by business owners, it is actually a good funding option for individuals who need small business startup loans. For business startups, lenders consider your personal credit score rather than the business financial history for approval.

4 best small business loans with no credit check

While accessing small business loans no credit check in a traditional bank is almost impossible, the above sources can work well for such business owners. Microloans, invoice factoring and are some of the business financing options that do not require a credit check. Here are the top companies that provide these 3 financing options:

  • Kiva U.S
    Kiva provides peer-to-peer microloans without performing a credit check. It can be a good option for people who have compelling business ideas and require a small loan. The money is paid back with no interest and fee charges. Businesses can borrow up to $10,000 with a loan term of 6-36 months.
  • PayPal Working Capital
    This is also an easy way to get a small business loan with no credit check. Besides, the loans are available at affordable rates. To qualify, you need to have a PayPal premier or business account that has been active for at least 3 months.You can borrow up to $97,000 with a loan term of 10 months. The loans have a one time fixed fee.
  • Square Capital
    Square Capital provides bad credit business loans for amounts up to $100K. The loans have a term of 18 months. The company lends to businesses that generate annual revenue of at least $10,000. The loan is paid by a portion of daily credit card transactions.
  • Kickstarter
    This is rewards-based crowdfunding that helps entrepreneurs with creative projects. Backers are not repaid with money, but a reward that you promise to give in your Kickstarter campaign. Just like other crowdfunding options, no credit check is performed.

Bottom line

While getting a traditional bank loan with no credit check can be tricky, there are several other ways you can receive business funding with poor credit rating. The only limitations are the maximum amount you can qualify for and the extra fee charges. You also have the option of improving your credit and qualify for loans with affordable rates like SBA and other term loans.

Categories
Business

Minority Business Loans

What Are Minority Business Loans?

Businesses almost always need loans to meet their daily needs to operate until their earning assets are adequate to cover their working capital needs. As the business continues to thrive and their own assets grow, they profit and can start repaying their loan to the bank. However, minority business loans are available as there are sources of business funding offered exclusively to minority-owned businesses.

Why small business loans for minorities are needed?

Based on data provided by U.S. Census Bureau, minority entrepreneurs owned nearly 27.6 million businesses and the number is growing yearly. However, their need for funds has always been a challenge for minorities. The Federal Minority Business Development Agency attested that most minority entrepreneurs have credit scores lower than other business owners and lack assets for loan security from financial institutions and land government contracts. According to recent studies, the average credit score given to minority business owner is only 707. This score is 15 points lower than the average of all other small business owners in the U.S.

Why Do Minorities Have Difficulty Accessing Small Business Loans?

Minority business owners find it difficult to obtain small business funding for these reasons:

  • Lack of assets
    Compared to their white counterparts, the wealth levels for African-Americans and Latinos are lower by 11 to 16 times.
  • Location of business in poor locations
    Small businesses are needed in poorer communities to motivate their economies, but big lending institutions do not typically approve funding programs, especially with long-term goals in mind.
  • Unreliable credit history
    Based on business records, the credit score average found in minority small business is only about 707 – that is 15 points lesser than other average U.S. small business owners.

Where to Find Minority Small Business Loans?

When seeking funding, even strong minority businesses have to face minor issues like having only a minimal collateral or inadequate credit history, resulting in denying an application or even giving loans with higher rates and shorter terms. Minority borrowers have destroyed their good record that is needed to qualify for credit needed by lending institutions for a minority-owned business. If you are looking for loans to bolster your minority business enterprise, there are lots of loans available. Below are listed many options offered for you to get the best one that suits your business.

Who qualifies for the loan?

Loans for minorities are available for (i) African-Americans; (ii) Natives of Alaska; (iii) American Indians; (iv) Asian-Americans; (v) Hispanic-Americans or (vi) Pacific Islanders. Only members of the above groups of a minority must own a minority-owned business and have ownership of at least 51% of the company.

Four Steps to Prepare for a Minority Business Loan

  1. Look at the Pros and Cons of a loan
    Any kind of debt is a serious matter; it is very important that you carefully consider how the amount of the loan can provide for your business and how much is the interest.
  2. Consider the Amount You Need
    You have to decide exactly how much working capital you need. Think about what you can afford, what you need the loan for and how long you’ll need to pay it back.
  3. Research for better deals
    Now that you’ve figured out what you need, it’s time to research and shop around for better deals. Make sure you’re getting the right type of loan for your needs at the best possible rate and with the simple application process.
  4. Opt for the Best Offer
    Compare differently available loans found on business centers to include APR and the repayment period. Round up alternative financing options or available grants program that may be a good fit.

Types of Loans Available for Minority-Owned Businesses

However, as of now, there are several avenues that have tried to bridge the gap of finance that exists by providing loans to minority-owned businesses who are often economically disadvantaged individuals. Study this list of loan types available for minority-owned businesses that any minority may qualify to get a quick loan to either start or expand their businesses.

  • The Black-Business Loan Fund (BBLF)
    For African Americans to qualify for this loan program, they have to own at least 51% of the total value of the business that has been operational in the last two years. No collateral is needed but you just need to make an application and that is all.
  • The SBA Community Advantage Loans
    The only thing that could be a hindrance to assessing this type of SBA loans is the aspect of creditworthiness. The SBA demands that an applicant can have access to capital for loans if they do not have bad credit.
  • Minority-Owned Business Loans
    The loan is offered by Accion an NGO that is fully dedicated to cushioning all minorities regardless of their origin or race. There is no restriction to this loan for you can use this loan to whichever type of business that you want.
  • The Business Diversity Lending Program
    Offered by Union bank, you have to fall under the bank’s race category, have active business for the last 2 years, run 51 % of the business and you can borrow less than $2.5 million. To get the loan, the application is done online.
  • The National-African American Micro Business Loan Fund
    This business loan is at present for the minority African-Americans who are residing in the following places: Chicago, Los Angeles, and New York. They can easily access loans of between $35,000 and $250,000.
  • Business and Industry Guaranteed Loan Program
    Once you approach a lender who can lend you credit, just fill out the documents and present them at the rural development office. The lender and the borrower will first discuss and agree with interest rates for the loans.
  • The Hispanic Small Business Loans
    Capital is the property owned and managed by Hispanics for they have created and provided a platform to guarantee the availability of money or rather capital to any Hispanic who starts or expands a business.
  • The ATNI Loan Fund
    The advantage of ATNI Loan Fund is twofold: they either give a borrower a full loan or at times act as an intermediary between the borrower and the financial institution. As community-based financing, they offer different types of business loans.
  • Latino Economic Centre Loans
    If you belong to the minority in Minnesota, then Latino Economic Development Centre will get you a soft loan to expand your business

Conclusion

There are many financial opportunities and financing options that most of the minorities have yet to explore. Many organizations are willing to give small business loans at low interest rates to minority groups with the aim of improving their lives. Minority business loans are quickly accessible and do not have a lot of restrictions.

Categories
bad-credit credit cards

Almost Instant Approval Credit Cards for Bad Credit

 

Improvement in technology and internet penetration has led to behavioral changes. People now expect things to get done fast, often with the click of a button. Speed and simplicity are the two most desired qualities in any process.

Credit cards are no different. People expect a simple and short application for their credit card, and they also expect to get approval quickly. They want the credit card in their hands by the end of the week or within a few days.

The expectations are the same for credit cards with bad credit. Even though a person with a low credit score tends to find it very difficult to get a credit card, he/she has some options on cards that are available to people with bad credit.

At the same time, the expectation of quick approval and simple application process holds true with even this segment of the consumer. And remember, this is a segment that has very few options when it comes to credit cards.

The reasons for wanting quick approval is not always behavioral. Sometimes, the person applying for the credit card is in an emergency. Perhaps some medical bills need to be paid or a vehicle breakdown has led to unexpected repair expenses that need to be paid in order to be able to drive to work.

There can be plenty of emergencies and other reasons for wanting quick approval and access to credit.

Near-instant approval of a credit card depends on two main factors, identity, and income. The credit card company has to be able to verify your identity and your income. If that part of the application is successful, then your credit card application is essentially being evaluated in real-time. You will most probably be able to see the approval (or denial) decision right away.

However, if the credit card company is not able to verify your identity for some reason, then it might take a few days and some additional documentation from your end to process the application.
The best way to increase your chances of almost instant approval is focusing on your credit score. Try to improve your credit score by as much as you can before applying.

To do so, you can pay off any small debts, pay existing and future bills on time, and clear any outstanding dues if possible. The higher your credit score, the faster the credit card approval.

Thus, keeping in mind the expectations and desires of customers, various credit card companies now offer credit cards for bad credit with fast or near instant approval. There are mainly two types of cards available to consumers with low credit scores, secured and unsecured cards.

There is a third option which is not really a credit card, but it is perhaps the quickest and simplest card to get. That card is the prepaid card. Let us look at each category more closely.

Secured cards

Secured card is great for someone with a low credit score because they have a high approval rate and are normally offered to a consumer who can pay a minimum security deposit.

It works on the principle of surrendering a fully refundable security deposit amount which sits in a protected savings account. This amount serves as collateral for your credit line.

So, while you are expected to pay your monthly bills, anything that does not get paid will be adjusted against the security deposit that you submit. As a result, secured credit cards are much easier to get than unsecured cards.

Capital One Secured Mastercard

Capital One offers a secured mastercard that is a bit different from a conventional credit card. Normally, the security deposit paid is the credit limit on the card.

However, Capital One’s secured mastercard has a variable deposit structure for the same amount of credit limit. For example, you could pay anything from $49 to $200 for a 200 credit limit. The amount you pay is decided by Capital One based on your credit profile and score.

Staying with credit limits, one can hope to see a potential increase in their Capital One Mastercard’s credit limits by making timely payments for at least 5 months. Good financial habits and timely payments can reward you with an increased credit limit.

There are no annual charges with the Capital One secured mastercard, so that is a relief and it lowers the cost of owning and holding the card. However, the APR rates are pretty high at 24.99%.

One important point about the approval process, it is fast and the application can be completed within minutes. There is no detailed credit check (i.e. hard check), so that quickens up the application and approval process.

One downside is the lack of a cashback or rewards program. This credit card is a no-nonsense card that has a fast approval process.

Discover It Secured Card

If cash backs and rewards are your thing, but you cannot get a conventional or an unsecured card because of bad credit, then Discover has “It” for you.

The Discover It card does not go into too much history and depth with your credit report. It also does not charge annual fees. So, easy to get approval and cheap enough to use, the Discover It secured card gives you the chance to build your credit score.

Refundable security deposit is $200 for a credit limit of $200. A high APR of 24.99% is charged when you use this card. So, the benefits do come with costs.

However, the most standout feature of this card is the 2% cashback at select gas station and restaurants. Additionally, a 1% cashback on other qualifying purchases completes an impressive rewards program for a card meant for people with low credit scores.

FICO credit score can be monitored for free while using this card. So, if pushing up your credit profile is the goal, then Discover makes it convenient for you.

Make regular and full payments for 8 months and Discover might just return your security deposit to you as a reward for the steady and constructive use of the credit card.

OpenSky Secured Visa Card

Since we are talking about almost instant approval credit cards, the OpenSky Secured Visa credit card is quite well-known for having a fast approval process. One big reason for the quick process is the fact that there is no credit check involved during the evaluation stage (soft check may be performed).

There is no need to stress out about negatives in your past showing up on your credit report and denying you a credit card. Not having to go through a hard credit check also means that there is no risk of your credit score getting lowered because of frequent credit checks.

The OpenSky secured visa card sends your account information to the three main credit bureaus of the country. Hence, it is no wonder that 99% of people who started using this card without a credit score got one within 6 months of using the card.

This card is excellent to build your credit or to improve a bad credit score. Do keep in mind that these benefits come at a cost as the OpenSky card is subject to an annual fee of $35.

The minimum security deposit to be submitted is $200. The APR rate is actually quite low (relatively) at only 19.14%. So, this card does well among its competition. Just like the Capital One mastercard, this one has no cashback rewards either.

Unsecured

Unsecured credit cards do not involve any security deposit. They are simple like a line of credit that the cardholder gets for a certain annual fee. Since there is no “safety” of a security deposit, the fees and interest rates tend to be a lot higher.

Hence, holding and using an unsecured credit card is more expensive. Additionally, the rates of approval for an unsecured card are not as high as those for a secured credit card.

Many people often start with a secured card and then once their credit has improved up to a certain point, they move on to unsecured cards because they can get back the deposit “float” money.

Credit One Bank Platinum Visa

This is an excellent unsecured credit card for bad credit profiles, it also is one of the lowest cost unsecured cards, and it is a card with a rewards program. Credit One Bank Platinum Visa seems to have it all.

The annual fee on this Credit One card ranges between $0 and $99, and that amount is deducted from your credit card limit. Normally, a $300 line of credit is offered initially. This card is great for someone looking to meet emergency expenses or has bad credit but wants an unsecured credit card.

Your creditworthiness decides the APR that you will pay on the Credit One bank platinum visa card. The range of APR is from 20% to 25%.

The attractive feature of cashback rewards offers you 1% cashback on qualifying purchases from vendors that participate in the program. The option of setting up email and text alerts allows you to seamlessly monitor your account.

Another handy feature is the free online access to Experian’s credit score information. You can check the positive impact of your credit card use on your credit score. Terms and conditions apply for this feature, so read the documentation.

The Credit One bank platinum visa card is a bit of an all-rounder. You can use it to meet short-term expenses and emergencies. You can build up your credit score, or you simply use this card because every other option was closed to you.

Total Visa Unsecured

The Total Visa Unsecured card, being a visa card, is accepted all over the world. It is a simple unsecured credit card with basic features. It will help you improve your bad credit and move on to something with more features and options.

The Total Visa Unsecured has a $75 annual fee during the first year and then $48 thereafter. The APR rate is one of the highest we have seen at 29.99%. There may also be a one-time $89 fee. You must be wondering why to bother going for this card with so many fees and expenses.

First of all, it has a quick approval process. The application is also quite simple. Secondly, this card offers a person with bad credit a chance to rebuild his/her credit score.

Even if you have had a bankruptcy, you may apply for this credit card. A $300 credit limit minus the annual fee is good enough to start creating a credible record of spending and repayment. Credit bureaus keep a copy of your account information. No cash backs and rewards.

This card is just a simple and hassle-free way to get an unsecured card and put your head down towards rebuilding your credit.

Prepaid cards

Prepaid cards  are different from credit cards. But they are cards that can be used for payment and more importantly, they are the quickest approval cards. All you need to do is load the card up with some credit by paying cash and you are good to go.

The credit limit is what’s pre-loaded onto the card. Simple and easy to use, if it has a visa or mastercard logo, then many merchants in the country will accept your prepaid card. Another bonus with prepaid cards is no credit checks at all! Soft checks may be performed. So whether you have good credit or bad, that aspect is simply not a factor in the approval decision.

Brinks Prepaid MasterCard

With a short application process of about 10 minutes, the Brinks Prepaid MasterCard is a decent option among prepaid cards. You can get paid from your work via direct deposit to this card, you can reload money onto this card via machines and ATMs, and you can use it at most places since it is a MasterCard.

There is even a cashback program and a $10 purchase cushion when you are low on balance.

Midnight Prepaid Visa RushCard

The midnight prepaid visa is another great option for a prepaid card. You can pay bills, manage your account online, and receive direct deposit payments with this card. Being a visa, it will be accepted widely across the country. Your loaded funds are insured by FDIC, so there is an added layer of security.

The application is also quite simple and takes about 10 minutes.

Categories
bad-credit credit cards

Secured Credit Cards for Bad Credit

Secured credit cards are a great option for someone with a not-so-good credit. They can provide a credit card option to that person when almost every conventional financial institution is rejecting his/her application because of a bad credit score.

They can also offer a way of improving the bad credit scores and eventually take them to a high enough level where getting a normal credit card becomes possible. Before we compare the various secured credit card options, let us first understand what options a person with bad credit has as far as credit cards are concerned.

Bad Credit

Bad credit is a challenging situation that a person may have because of many reasons. Either the person has gone through a medical emergency which led to unexpected expenses that could not be paid, or the person had faced bankruptcy in the near past, or perhaps there was a tax lien or a court order that required the affected person to pay a large sum of money which could not be afforded. Many times, bad financial habits also lead to a bad credit score. Not paying bills on time, defaulting on interest payments, etc. are some examples of financial mismanagement.

The reasons for bad credit could be plenty and its effects are also multifold. Getting loans becomes a challenge. Applying for credit cards is not so straightforward either. Getting a cell phone contract can be difficult as well. Credit cards, in particular, are a key area because many people in the United States use a credit card.

Significance of credit cards

Credit cards allow people to make purchases right away and make payments for those purchases after a few days or weeks. So, credit cards are almost a way of life. The financial infrastructure in the country is set up in a way that makes it very easy and convenient to use credit cards. Hence, not having a credit card becomes an issue.

Besides routine shopping and bill paying, credit cards also have another important use. It is used by people who face a financial emergency. An unexpected car breakdown leading to repair costs or unexpected medical expenses can be paid using a credit card if cash has run out. You get a few days of leeway by using credit cards, as you can pay off the outstanding dues when the next paycheck arrives.

So, given the importance of credit cards in shopping, bill payments, emergency funding, and a way to improve credit score, even a person with bad credit may want a credit card. Since getting a normal credit card from a conventional institution is not an issue, there are two options: secured cards and unsecured cards.

Unsecured credit cards

Unsecured credit cards are expensive and interest rates in such cards tend to be high. The user has to pay an annual fee and credit limits are generally around the $200 – $300 mark. Credit limits may increase, but that depends on your track record of timely bill payments once you start using the card. The possibility of a credit limit increase is not certain.

Additionally, as there is no collateral or security deposit, getting approval for such credit cards is not easy. This is because a person with bad credit is already a “risky” prospect. Add to that the fact that there is no security for the card issuer, it is logical to see why approval rates are low.

Unsecured cards are not recommended unless you have an urgent emergency and cannot get a secured credit card, which requires a security deposit.

Secured credit cards

Secured credit cards are the preferred option for people with bad credit. Their approval rates are a lot higher than unsecured credit cards. A successful applicant has to pay a security deposit to get a secured credit card. The deposit paid is also the credit limit of the card. So, there is some element of security for the card issuing company.

It can use money from the deposit if the user does not make the credit card bill payment. The interest rates and fees with secured cards are lower than with unsecured ones. So, it is more economical to hold on to a secured card rather than an unsecured card. Many of the secured credit card companies also send your account information to credit bureaus.

Thus, you can improve your credit score by using your secured credit card and creating a track record of timely payments.

Now let us look at some of the best secured credit cards that are available to a person who has bad credit and low credit scores (even as low as in the 300s):

  • Discover It Secured Card 

Discover is one of the top names in the secured card space. They have what is called the Discover It card. A minimum of $200 is required as a security deposit. With that amount, you get a credit limit of at least $200. Use the limit to pay expenses or build your credit.

Account details are passed on to credit bureaus, so you can use this card, make regular payments, and start improving your credit up to a point from where you can apply for regular credit cards.

The approval process is quite straightforward and Discover looks at a reasonable amount of past credit information. So, if there are any negative items in your credit report from the past, you probably do not have to worry too much unless the items were in the immediate past.

Another plus point is no annual fee on this card. Cashback rewards program is also included with the Discover It Secured card. You get 2% cashback at gas stations and some restaurants. You also get 1% cashback on a range of other purchases. Not any secured cards have the cashback program, so this one is a bonus.

Given all the benefits of the Discover It Secured card, there are some drawbacks too. Firstly, the APR on this card is pretty high at 24.99%. However, as a new customer, you get a reduced APR of 10.99% for the first six months of use.

  • Capital One Secured MasterCard

Capital One is another big name in the credit card business. They have a Secured MasterCard credit card which is suitable for a person with a low credit score. Depending on the applicant’s credit profile, a deposit of $49/$99/$200 is paid for a $200 initial credit line.

The interesting thing is that everyone gets a $200 credit line regardless of the deposit amount that they pay. Capital One evaluates the credit profile and then takes the call on what the deposit amount should be. This secured credit card is a great way to rebuild your damaged credit by making expenses and then paying the credit card bill on time.

Credit limit has scope for an increase from the initial $200 limit once you make regular and timely payments for 5 months. If you are responsible while using the Capital One Secured Mastercard, there are high chances of your credit limit going up after a few months. Just like the Discover It card reviewed above, Capital One goes only up to a limited length as far as credit history is concerned. So, you need not stress out on past bad credit events.

Annuals fees are not charges with the Capital One Secured Mastercard. Capital One also offers 27/4 seamless management of your credit card account with phone support and a mobile app. Coming to the drawbacks, first is the high APR.

This card has an APR of 24.99%. Another disappointment is the absence of a rewards and cashback program. This is a no nonsense no frills secured card where you can just put your head down and slowly rebuild your credit score before moving on to fancier credit cards with multiple options.

Wells Fargo Secured Credit Card

Wells Fargo has a secured credit card that offers some of the highest credit limits in the industry. You can get a credit limit of anywhere between $300 to $10,000. Since the starting limit is $300, that is also the minimum security deposit that has to be paid for obtaining a Wells Fargo secured credit card.

Another important distinction with the Wells Fargo credit card as compared to the Capital One and Discover cards reviewed above is the annual fee. While the previous two cards did not have any annual fees, the Well Fargo card has a $25 annual fee.

However, the APR is a lot lower than the Discover It and Capital One cards. It is only 20% which is decent enough considering that this card is for a person with bad credit.

Credit bureaus are kept updated with the account information of the Wells Fargo secured credit card. So, every instance of timely payment and responsible use gets reflected positively in your credit reports. You can use this card, just like the other secured cards, to improve and push up your credit score.

Approval rate on the Wells Fargo secured card is also understood to be high. So, you are encouraged to apply even if you do not have a good credit score.

There is no cashback program with this card, but useful benefits offered by Wells Fargo include travel assistance, roadside dispatch in case of a breakdown, emergency assistance, auto rental waiver for collision, and cell phone protection plan.

OpenSky Secured Visa Card

If fast approval and quick application processing is what you are looking for, have a look at the OpenSky Secured Visa credit card. No credit checks are performed with the OpenSky secured card application.

So, you need not stress out about major negative events in your past credit history affecting your application in a bad way, unless the event is too extreme. Without a hard credit check, even your credit score does not get pushed down.

Hard checks lower credit scores by a small amount.A minimum security deposit of $200 is necessary to open an account with OpenSky. APR rates are quite low at 19.14%, which is one of the lowest in the cards reviewed in this article.

This card reports all account information to three major credit bureaus. Thus, you can expect to see an improvement in your credit profile provided that you use the OpenSky Secured visa card responsibly and pay your bills on time.

The OpenSky secured visa card does not have any rewards or cashback program. It is simply a normal secured credit card that allows you to get out of your bad credit gradually until you can apply for cards with all sorts of benefits and features. The application process is fast and it does not go into your detailed credit history. For all these benefits, you do pay a $35 annual fee.

USAA Secured Platinum Visa Card

USAA cards are available to members of USAA, which means you need to be in the military or be a former military personnel to become a USAA member. This card will be of special interested to anyone with an armed forces background.

This card is slightly different from other secured cards because instead of paying a security deposit, you buy a certificate of deposit for 2 years. The amount can be anything between $250 to $5000 and the CD amount becomes your card limit.

This card does come with an annual fee of $35. However, APRs can be quite low. The normal range is from 11.65% to 21.65%. However, if you are currently in service and are deployed, then you get an APR of 4% for up to 12 months of deployment. That is one of the big draws for the USAA Secured Platinum Visa card.

Another feature worth noting with this USAA card is no foreign transaction fee. While most other cards charge 3%, this one charges nothing. Other benefits are rental collision waiver, travel and baggage insurance, and extended warranty on certain products purchased through the card.

Some things to keep in mind

Now that you have read details of four top quality secured credit cards, you will have a basic understanding of the main features that are offered with such cards and how you can compare different secured credit cards for bad credit. While you do your research, keep in mind the following points:

  • Keep an eye on the fees: There are various kinds of fees that credit cards charge, from monthly fees, one-time fees, to annual fees.

You want to read about these fees because it is essentially the cost of owning the secured credit card. You will have to pay those fees with your hard earned money.

  • Apply with the best possible credit score: While you cannot completely control your credit score before applying for a secured card, you can definitely try and put your best foot forward. Before you apply, try to clean up first.

Pay all the bills that are outstanding and that you can pay. Credit card bills, utility bills, etc. Close out any small loans of you can. The better your credit profile, the better it will be during the application process. Small actions can lead to significant gains.

  • No card or credit limit is guaranteed: Nothing in this world is guaranteed and secured credit cards are no different. Do not think that by applying for a high-approval rate secured card, you are certain to seal the deal.

It is completely possible that in spite of doing all the right things your application gets turned down. Similarly, credit limit increases are also not guaranteed. They depend completely on the call that the credit card company takes. You just have to keep trying and follow best practices.

Categories
Unsecured Loans

Unsecured loans For Bad Credit

What is an unsecured loan?

Unsecured loans usually include credit card purchases, education, and unsecured personal loans. Being unsecured means that lenders take more risk. This is due to the fact that there is no collateral to recover in case of default. Unline secured loans like title loans and popular signature loans.

Unsecured loans have higher interest

Therefore the interest rates of unsecured cash loans are much higher. It is easier to be turned down for an unsecured loan, but such customers may still be able to obtain secured loans if they possess something valuable or if they need the loan to purchase something valuable.

If you have no assets an unsecured loan is more difficult

When applying for an unsecured loan, lenders expect their customers to repay them based on their financial resources. Lenders make their decision whether or not to grant the loan based on five basic criteria – character, capacity, capital, collateral, and conditions. They are used as a basis for assessing the customer’s ability to repay the debt.

Lenders of unsecured loans will check your credit

Lenders research their clients’ borrowing history for former successfully repaid loans. Based on the credit reports, the client’s credit score is calculated. Good credit is important when applying for an unsecured loan but even bad credit can be rebuilt.

Unsecured loan amounts depend on your income

Another important factor when applying for an unsecured loan is the borrower’s income. It must be sufficient to be able to repay the short term loan. Proof of income includes bank statements and tax returns.

If the customer’s credit and income aren’t good enough to qualify for an unsecured loan, a co-signer may be a sufficient guarantee for the lender.

Unsecured cash loans most notably include credit cards, personal loans, and lines of credit, some types of home improvement loans and student loans, and unsecured business loans.

Why are unsecured cash loans and lines of credit preferred?

The advantages of unsecured loans

The most notable advantage of an unsecured loan is that there’s faster approval that excludes most of the paperwork required for secured loans. Therefore, unsecured cash loans are actually harder to obtain because lenders require a much better credit score to compensate for the lack of collateral.

Unsecured loans can be issued faster

Also, unsecured cash loans that are faster to get come with a higher interest rate. There are some common cases when borrowers choose unsecured cash loans. These are the purchase of a vehicle, home renovations, medical and educational expenses. Debt and payday loan consolidation is also a common reason for taking out an unsecured loan. It should be noted that an unsecured title loan takes less time to process than a secured loan.

Example of uses for unsecured loans

It is preferable to take out an unsecured personal loan for home renovation because the borrower can have access to the amount quickly while the end costs are predictable. Ongoing expenses like tuition and medical bills would likely require an unsecured personal line of credit.

Consolidating debt with unsecured loans

Outstanding debts may be consolidated with a signature loan that has interest rates lower than those of credit cards.

Unsecured cash loans can be revolving. The first type is a loan that has a certain credit limit that can be spent, and after repaying – spent again, such as credit cards and personal lines of credit. On the other hand, term loans are being repaid in equal installments. The loan has to be repaid by the end of the term.

Unsecured cash loans offered by alternative lenders

Payday lenders and companies offering merchant cash advances are considered alternative lenders and they usually offer online loans that are not guaranteed by collateral. Of course, they do require some forms of securing their payment. Payday lenders accept a postdated check from their clients or have them agree to an automatic withdrawal from their checking accounts. Online-based merchant cash advance providers demand that their clients pay a percentage of the client’s online sales using a payment processing service. Therefore, these loans are unsecured, although having some partial guarantee.

Defaulting unsecured cash loans

If a loan customer cannot repay secured loans, the loan provider can repossess the asset and sell it, in order to cover his losses. The unsecured loan lender, on the other hand, cannot claim any property. There are other actions that a loan provider can take. He can commission a collection agency or he can sue the borrower. The court has its own methods of making the borrower repay, such as garnishing his wages or placing a lien on his house.

Types of unsecured cash loans

Signature loan

Signature loans are a type of unsecured loan that is secured only by the client’s signature. They are offered by banks and credit unions and have no obligatory purpose, so that the borrower may use them any way he wants. They are usually installment loans which means that they are repaid through equal monthly installments. They require good credit because they have low-interest rates. They also help to build a credit score.

Credit cards

The borrower can borrow whenever and whatever he needs as long it doesn’t exceed his credit limit. Nevertheless, they have high-interest rates. There are many online lenders so it isn’t hard to find an offer.

Student loans

Student loans are unsecured cash loans that are used to fund the educational expenses of students. They usually have features unavailable to other types of financing, like flexible repayment options, grace periods and interest subsidies. Good credit may not even matter. The only essential requirement is to be a student. They can be obtained through the Financial Aid office of the particular school.

Peer-to-peer loans

These allow borrowing from individual lenders and not from a traditional lender such as a bank. There are websites that allow their clients to post a loan request online, and people may fund your loan. These loans are usually fixed-rate installment loans with competitive interest rates. Good credit is generally required.

Unsecured cash loans and bad credit

It is much harder, but not impossible to get an unsecured loan with bad credit.  Since many lenders do not perform credit checks if you apply for installment loans. This would require higher interest rates than a borrower with a good credit score. If the offered lending terms don’t suit the client, he must focus on building a good credit score in order to be offered better terms. A borrower can improve his credit score by borrowing and repaying small loans on time. You can also look for lenders who do not perform credit checks if you are worried about your bad credit score.

Categories
Credit Cards

Credit Cards Can Give You Flexibility And Security

A credit card is a debit card where you pay on credit. For many, this provides flexibility and security in everyday life. It happens that unforeseen expenses must be paid immediately and then it helps to have a credit card available. What is important to remember is that a credit card is a type of loan that must be repaid to the card issuer. Like all other loans, this loan must be handled properly in order to avoid unnecessary fees and interest. Most credit cards come with travel and cancellation insurance.

 

Check your credit score before applying for a credit card

Check your credit score before applying for a credit card

When you apply for a credit card, the card issuer will conduct a credit check before accepting your application – if you have a low credit score you may be denied credit. On the other hand, if you have a good credit score you may get better offers than advertised. When the bank approves your application, they will set a maximum credit limit which is the maximum amount you can use. At the end of each month, you will receive a bank statement that gives you a detailed overview of how much you have available and what you have spent your money on. Most banks will give you an interest free period of 45 days to 50 days depending on which bank you are talking to. This means that if you treat your credit card correctly it should be possible to avoid interest and fees.

 

Make sure you pay down as much as possible

money loan

When repaying your debt, it is important that you try to repay as much as possible each month. If you choose to pay only the minimum amount each month, it may take an exceptionally long time to repay the credit you used. You should always pay the minimum amount to avoid penalties and unnecessary interest expense. For most credit cards, you will pay fees for cash withdrawals and transfer from card to account. If you do not want to pay any fees, you should consider purchasing a fee-free card, such as a fee-free Visa from Santander or Skandiabanken’s credit card.

A credit card offers you a safe and easy way to pay for merchandise purchases. Make sure you become the king of your finances so you avoid unnecessary interest and fees.

Categories
Loans

Loan despite credit bureau in 24 hours

If a loan has to be available in 24 hours despite Credit Bureau, it is not really an easy task. On the one hand, because there is no loan from any German bank without asking Credit Bureau. And if the query reveals negative entries, the borrower is not granted credit.

On the other hand, it is the 24 hours that make life difficult for many banks. Because a loan application must be properly examined. If it is also recorded via the Internet, data must be exchanged in a complex manner and legitimation must be carried out. Finally, the money from the loan should also reach the borrower’s account within these 24 hours. All in all, a package that has to be mastered first.

The Credit Bureau and the problems associated with it

Anyone looking for a loan in 24 hours despite Credit Bureau knows very well that their Credit Bureau is not “clean”. Otherwise he would take out a normal loan by asking Credit Bureau.

Credit Bureau, based in Wiesbaden, is the leading economic information database in Germany. She sees her area of ​​activity in storing all economic data of companies as well as of consumers. Credit-relevant information can be drawn from this data, since this can show the creditworthiness of a borrower. The Credit Bureau can be queried by companies, dealers and consumers. However, the latter are only allowed to obtain information about their own Credit Bureau.

If Credit Bureau is negative, this means that the consumer has not met his payment obligations to other contracting parties. In addition, a negative Credit Bureau could indicate that a judicial order for payment procedure is already in progress or that an enforcement order has been issued. In addition, Credit Bureau only deletes negative entries three years after they have been repaid. A negative Credit Bureau can therefore also exist if no liabilities are open at all, but the deletion period has not yet expired.

Is there a serious credit in 24 hours despite Credit Bureau?

Is there a serious credit in 24 hours despite Credit Bureau?

Now, of course, the question arises whether there is a serious loan in spite of Credit Bureau in 24 hours. Is it even possible to take out a loan under such conditions?

In fact, there are a few ways to get such a loan into action. However, these require a little effort and cannot guarantee that the money will actually be in the account within 24 hours.

The best chance of getting a really good loan despite Credit Bureau in 24 hours is when you get a second borrower and apply for the loan with your partner at the house bank or a local bank. There you can personally audition, describe the situation and submit all documents directly. A lengthy exchange by post, fax or email is not possible.

If a small loan amount is desired, the selected bank can check the loan application immediately. If the decision is positive under the conditions that can be provided, the money will be paid out. If desired, even in cash, so that the money is in any case available within 24 hours.

It takes a little longer if an international loan is chosen. In principle, this does not require Credit Bureau and is issued by Sigma Kreditbank, among others. Its registered office is in the Principality of Liechtenstein. The bank can be contacted directly via the Internet. Likewise the application for the loan. Loans of up to $ 5,000 are possible. However, there can be no guarantee that payment will be made within 24 hours.

The personal loan is also good but not in time. It is offered on portals on the Internet. The portals see themselves as intermediaries and bring financiers and borrowers together. The chances of getting a loan without Credit Bureau are very good if the project that is linked to the borrowing is plausible and understandable. However, the time factor could also be a problem here, as the loan is unlikely to be available within 24 hours.

Last but not least, we would like to mention the mortgage loan, which is often forgotten. It can be taken up at pawnshops by providing the pawnshop with a pawn. There is money for the deposit, which can be used for the project. If the pledge is released again within 3 months, it becomes the property of the borrower. If the borrower cannot release the pledge, the pawnshop will auction it. Despite everything, the borrower would have his loan in 24 hours despite Credit Bureau and could therefore dispose of the required money.

Categories
Payday Loans

Limitation of payday loans – what do you need to know?

Despite the fact that payday loans and other online loans are no longer considered usury, the debt problem is still extremely serious. It is estimated that up to 35% of people in the 30-39 age group have a problem with timely repayment of financial obligations.

Of course, not all debts relate to loans, but the availability of this type of products means that their percentage share in debt is growing. The problem is compounded by the fact that people who have low incomes, rarely exceeding USD 2,000 net, and therefore experiencing major problems with loan repayment and more prone to falling into a spiral of debt fall into debt.

What is a loan limitation period?

What is a loan limitation period?

In other words, the debtor is released from the obligation to pay the obligation after a certain repayment deadline. Limitation is a legal term, strictly regulated by the Civil Code and at present, pursuant to art. 118 of the Code, it may be 10 or 3 years, depending on the type of service provided. The second case concerns “claims for periodic benefits” included in the provision, i.e. when the money is borrowed for a specific period of time and the date when the money is given is known.

Therefore, non-bank companies, but also banks being creditors of the borrower must take into account a limitation period of 3 years. This is the period that begins to count from the time when the loan should be repaid.

This is different for installment loans, where the limitation period applies to each installment separately and is calculated from the moment when each installment should be paid. It is true that in January 2018 a draft amendment to the Civil Code was adopted, which provides, inter alia, reducing the limitation period for claims, but specific issues regarding entities such as loan companies will not change.

Prescription and consequences of non-repayment on time

The three years indicated are a short period during which the borrower could theoretically achieve the repayment of the loan until he was released from the obligation to settle the debt. In practice, however, this is not so simple, and the matter of limitation is more complicated. This procedure applies only to cases where during these 3 years the creditor does not take any action to enforce the debt. What does it look like in the case of loan companies?

Debt collection procedure begins relatively quickly. The reprimanding process, i.e. monitoring and admonishing the overdue borrower may take several months, but these are active and registered activities, even if the borrower does not respond to these prompts. In addition, the debt is transferred to the debt collection company quite quickly and, although its activities may be different – more or less ethical – their idea is to agree amicably with the client and individually resolve the embarrassing situation.

The limitation period also breaks every step of the debtor. In practice, it will be the borrower’s contact with a loan company, response to a prompt, consent to individual debt repayment, participation in mediation or meeting with a debt collector.

Even if the limitation period finally ends, information on the debt will still appear in the BIK. A negative entry in such a database will quite effectively hinder your life, not only when you have to apply for a loan. Problems can also arise with taking a payday loan as proof.

How to avoid negative consequences of repayment?

money cash

The most important issue here is responsible lending, which means lending amounts adequate to your financial standing and carefully analyzing your repayment plan. You should also consider the option of extending the repayment period and use this option if it is available in the offer of the selected loan company or try to get a consolidation loan to pay off loans.

Another important issue is to read the contract carefully and carefully read the table of fees and commissions due to the loan company. These, according to the law, must be public, and the client must be familiarized with the full loan costs.

Categories
Credit Cards

Credit Cards for Bad Credit no Deposit

What are Unsecured Credit Cards?

Unsecured cards are traditional cards that can be used to make purchases and payments. They also attract fees and interest rates just like traditional cards. However, these cards are not backed by cash deposits. Cash deposits are requested by some credit card companies and they are used as collateral for the credit card. Cards that are backed by cash deposits are referred to as secured cards.

How Do Unsecured Cards Work for Bad Credit?

Lenders and credit card companies find it risky to offer credit to people with bad credit. Such people are likely to default on the credit. It is not new that people with bad credit are denied of credit facilities. Some card companies also offer their credit card to people with bad credit but they reduce the risk of defaulting by asking for a cash deposit.

Credit cards for bad credit

This means that most companies prefer to offer secured cards to people with bad credit. In this case, they will use the cash you used as a deposit to pay the debt. Most of these cards also have low lines of credit initially. Luckily credit card companies have been generous about people with bad credit who cannot present down payments as well.

Unsecured credit cards for bad credit?

There are unsecured loans for borrowers with bad credit. Although these loans do not require initial cash deposits and they also have higher lending limits, they have their downsides as well. Unsecured loans for bad credit have higher interest rates. Although some do not charge annual fees, the ones that charge these fees charge high ones.

Bad credit makes it difficult to for you to access credit facilities. Nevertheless, it is still possible to get loans and sign up for credit cards. There are credit card options for people with poor credit. Check them out.

Credit One Bank Premium Visa Card for bad credit

This card offers a lot of features for people who need the convenience of a credit card. You can check if you qualify for this card without harming your credit. The interest rate on their cards ranges from 19.74% to 25. 74%. The rate is a variable rate which means that it can change depending on several factors. The application process is simple and you can complete an application in 8 minutes. The rates and fees depend on your qualification level and the exact card you opt for.

Some qualified card users even enjoy $0 annual fee. There is a cash back program that allows you to enjoy rewards on card usage. The rewards depend on the card type as well. When you sign up for this card, you get to enjoy free online access to Experian credit score. You can track your score monthly. They also review your payment history periodically and offer opportunities for you to increase your line of credit. This card also offers you the opportunity to build your credit since they report to the credit reporting bureaus. This firm has served people, several people, since it was founded in 1984. It currently serves over 7 million customers nationwide.

Fingerhut Credit Account for bad credit

Fingerhut does not charge you a processing fee for applying for the card. You do not need to worry about an annual fee since there is none. This card is similar to a store card and offers you the convenience of shopping with your line of credit. You can shop at shops including KitchenAid, Samsung, Shark, LG, Song, NinJa, Addidas, Dell, and Graco.

You should consider this card if you need a card that will help you to put your credit back on track. This is because Fingerhut reports to all three credit reporting bureaus. When you make full payments at the end of the month, you can build a good credit in no time. The entire application process is simple and fast. You can complete an application in 5 minutes. Fingerhut only charges interest on balances you carry from one month to the next month. This means that if you make full payments before the billing cycle ends, you will not be paying interest on your purchases.

Total Visa Card no deposit bad credit

The Total Visa Card is another card that is available for people with bad credit scores. They will offer you a quick response after you complete the application. The credit score requirement ranges from 300 to 670 and you will need a checking account to qualify for this card. Once your application is approved you will be required to pay an $89 processing fee for this card. This card is accepted by merchants throughout the country and it is also easy to make online purchases with this card. This card helps you build credit history. If you make regular monthly payments, you can build a good credit since they report to all three credit reporting bureaus. They will also give you the opportunity to increase your line of credit without extra charges. Unfortunately, this card does not offer cash backs rewards, points, or air miles.

Indigo Unsecured MasterCard for bad credit

Indigo is popular among people who have filed for bankruptcy in the past. Most credit card companies do not have offers for people who have a history of bankruptcy, however, Indigo does not check that. They offer their cards at an APR of 23.9%. The good thing is that you can avoid this rate if you make full payments before the billing cycle ends. The APR is only charged on balances that have been carried from the previous cycle to the current cycle. Indigo charges an annual fee that ranges from $0 to $99. However, you may pay less in the first year. The annual fee for the first varies and it depends on your credit score. You may pay $0, $59, or $75 in the first year. If you are wondering if you will be approved for this card, you can check your eligibility without harming your credit score. This company conducts a soft inquiry to see if you qualify. Indigo charges 1% of each transaction when you make a foreign transaction.

Milestone Gold MasterCard for bad credit

This card is another card that is great for people who have filed for bankruptcy in the past. If you have a bankruptcy on your report, that will not disqualify you from getting this card. You can check if you qualify for the Milestone Gold MasterCard without affecting your credit score. This company conducts a soft inquiry. When you sign up, you will get a free online access to your account. You can also choose a card design without paying any fee for it. This card is accepted in over 35 million locations in the United States. The annual fee ranges from $35 to $99, however, you will not pay more than $75 in the first year. You may pay an account opening fee and this may be $5, $25, or $50. You will be a 1% fee if you make a foreign transaction. The ongoing APR charged for this card 23.90%. The company also charges 29.90% as the APR on a cash advance. You can consider this card if you are looking for a card that will help you to build your credit score. This card reports to all three credit reporting bureaus and if you make regular payments, your credit history will improve.

Capital One QuickSilverOne Cash Rewards Credit Card for bad credit

If you need a card that offers flat rate rewards, this card is a good option. This unsecured card is available for people who do not have good credit scores. With an annual fee of $39, you will get to enjoy several cash back rewards. You will earn 1.5% cash back on every purchase you make and there are no limits. The good thing is that these rewards do not expire as well. The APR charged on this card is 24.99%. There is no balance transfer fee and there is also no penalty APR. This means that you do not have to pay more if you miss payments. There is a 3% fee for cash advances. The percentage is calculated on the cash transfer amount. The fee will, however, not be less than $10. You will also enjoy protection against fraud when you lose your card. Plus, you will get the opportunity to increase your line of credit if you make payments on time for the first five months. And you can also monitor your credit profile with the CreditWise app. Signing up for this card also allows you to enjoy some insurance benefits. You will enjoy auto rental insurance, extended warranty coverage, and travel accident insurance.

Discover it Student Cash Back for bad credit

If you are a student looking for a credit card that has low credit card requirement and does not request for collateral, this card is one of the best options. There is no annual fee when you sign up for this card.The APR charged on the card is variable and it ranges from 14.99% to 23.99%. There is no foreign transaction fee when you use this card. The purchase intro APR for the first six months is 0%. You get to enjoy several rewards when you make purchases with this card. Also, you will earn 5% cash back rewards when you make payments restaurants, grocery shops, Amazon.com, or gas stations each quarter. You will also enjoy 1% cash back on other purchases. There is a quarterly limit to the rewards though. There is a reward for students who perform well as well. They get $20 statement credit when their GPA is 3.0 or higher. There is a late fee but you will not be charged if you late for the first time. When you sign up for the Discover it student card, you get free social security number alerts.

Capital One Platinum Credit card for bad credit

Capital One issues this card for people with poor credit. This card does not attract an annual fee but there is a 24.99% APR. Several other charges have been waived on this card. There is no foreign transaction fee, no penalty APR, and there is also no balance transfer fee.There is, however, a 3% charge on cash advances. The 3% is calculated on the cash advance amount. This is usually not less than $10 though. You will enjoy fraud coverage in case your card gets stolen. You will also enjoy price protection, auto rental insurance, travel accident insurance, and extended warranty coverage. There is a mobile app that allows you to access your account at any time. You can make payments by visiting the local branches. You also have the convenience of paying by check, or online. Another great feature is that you can choose due dates that are most convenient for you. When you make regular payments for the first five months, your line of credit will be increased. You can also build your credit when you use this card.

Credit One Bank Platinum Visa with Cash Back Rewards for bad credit

You can quickly check if you qualify for this card. The entire process is also secure. This card company charges an APR that ranges from 19.74% to 25.74%. The annual fee also ranges from $0 to $99.The cash advance fee is 8% of the cash advance amount and the foreign transaction fee is 3% of the transacted amount. You will get a 1% cash back on all eligible purchases. You do not need to sign up for the rewards. They are automatically posted to your account each month. This card comes with a $0 fraud liability which means you will not be held responsible for any unauthorized charges. You have the option of choosing a card design, however, you may be charged for this service. At the same time, you can request an increase in your line of credit but this will be processed at a cost. You can check if you pre-qualify for this card without harming your credit score.

Journey Student Rewards from Capital One for bad credit

This is another student card issued by Capital One. With this card, there is no annual fee. The APR charged on this card is 24.99%. You do not need to worry about penalty APR or balance transfer fees. Capital One, however, 3% of the amount you are processing for a cash advance as a cash advance fee. However, this fee will not be less than $10. You will enjoy 1% cash back on all purchases. This percentage can increase to 1.25% when you make on-time payments for that month. You can use this card to build your credit history and get access to a higher line of credit when you make on-time payments for the first 5 months. Also, you can enjoy $0 fraud liability when your card gets stolen. You can easily manage your account from the Capital One mobile app. Cardholders enjoy additional benefits including extended warranty protection on some selected purchases, travel accident insurance, and Master Rental coverage.

Do your research for bad credit credit cards for bad credit

When you want to choose a credit card, it is important to do some research and compare the options. This will help you to choose one card that will work for you. It is important to check these things before making a choice.

APR rates

The APR includes the rates such as interest rates on the card. It has a big impact on the total amount you will be paying. The APR varies from one credit card company to another. It is important to check and compare the amounts these companies are charging as APR before choosing the card you want. You can save a lot on rates if you choose to take your time to choose the card with the best rate.

Annual fee for the bad credit credit card

This is charged as a percentage of the line of credit annually. This fee can also impact the cost of the card. Credit card companies charge varying fees. Some even waive the annual fees completely. Some companies reduce the rate for the first year. You should check the options available before making a choice.

Credit Score Requirements

Some credit card companies offer their cards at a higher credit score. If you do not have an excellent credit score, you cannot access this card. It is advisable to check and see if your score is okay before you apply. This increases your chances of accessing the credit.

Credit Limits

You should also check the amount the lender is willing to offer to you. Compare the options and make sure that the amount will cover your expenses. You should also check if there are options for you to increase your credit limit. Some card issuers allow you to increase your limit after using the card responsibly.

Rewards

You can also look at this when you apply for a card. Some lenders offer better rewards even though their fees are lower. Such deals are better. It will be great if you can find a card like that. You can also check the cardholder benefits.

Reporting to the credit bureaus

Some cards allow you to build your credit history since they report to the credit bureaus. If you do not have a good credit history and you want to build one by getting a card and making regular payments, make sure you get a card that reports to the three main bureaus.

Additional fees for bad credit

There are foreign transaction fees, balance transfer fees, late fees, cash advance fees, and even credit limit fees in some cases. Check out these fees and make sure you choose a card that does not burden you with too many different types of fees. You can even get a card that will waive off some of these fees.

When considering all these, make sure that you choose a card that favors the things that you prioritize on this list. If you get access to a card that works for you with your poor credit, you should continue work towards improving your credit score.

There are several things you can do to improve your credit score. The most common steps taken to repair credit include the following. You should review your credit report for errors. If there are errors, you should file disputes to correct them.

You should also reduce spending so that you can reserve more money to pay up your debts. Make regular payments to improve your credit history.

You can also consider debt consolidation if you are struggling with several high interest loans. If you succeed in improving your credit score, you can start applying for other credit cards with high credit score requirements. Cards with high credit score requirements have low APRs and high rewards.

You will also get access to several credit card options when you have a high credit score. Hence, when you improve your credit score, you can opt for these credit cards with lower APRs and better rewards.