Credit Cards For Less Than Perfect Credit

Why do you need to build up credit? Nowadays, having good credit is a must if you want to be able to afford having all the necessities of life without any hassle. Having credit denotes that you are financially responsible and, therefore, reliable. You need good credit to buy or rent a car, buy or rent a house, to set up utilities, and to obtain loans, among other reasons. But how do you build credit nowadays, when every financial institution requires having credit already in order to be approved for a credit card?

This is a question many people ask themselves constantly, because it is so hard to obtain the approval of a credit card company with no history at all.

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Earlier this month, California became the seventh state whose legislature passed a bill that would limit employers’ ability to check the credit reports of people interviewing for jobs unless the information was vital to the job’s duties.

The bill, headed for Gov. Jerry Brown’s desk, follows similar legislation signed into law in Connecticut (in July) and Maryland (in April) and similar laws passed in previous years in Hawaii, Illinois, Oregon and Washington. At least 18 other states have introduced similar legislation, according to the National Conference of State Legislators.

The recent escalation in legislative activity on the issue comes as nationwide unemployment continues to hover above 9 percent and the U.S. pover

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If your wallet is overflowing with credit cards and you can’t keep up with your credit card bills each month, perhaps it’s time to cut down on those credit cards and consolidate your bills into one, manageable bill.

Here’s how to do it:

• Lay all of your credit cards in front of you and add up your total amount of credit card debt. Then, take note of the interest rates on all credit cards. Once you have a total amount, it is time to identify if you possess a credit card with enough credit to accommodate your other debts, as well as a competitive interest rate. If you have a card that fits the bill, contact the creditor and inquire about a balance transfer offer. If the creditor cannot provide you with a good balance transfer offer, it may be time to look elsewhere.
• Head to the Internet and compare the latest balance transfer offers. We like using the Internet to find credit cards with balance transfer offers because many of the websites compare credit cards, side by side, thereby allowing you to better compare their rates and features.
• Pay close attention to the card’s balance transfer offer. Look for the card’s promotional rate, the length of the promotional rate and balance transfer fees. In addition, pay close attention to the interest rate of the credit card once the promotional rate has ended. It is important to note that some balance transfer credit cards offer low promotional rates on balance transfer offers, but don’t extend the rate to purchases. The balance transfer fee is particularly important, as it could add up to hundreds of dollars in fees. For example, if the balance transfer fee is five percent and you transfer $10,000, your balance transfer fee would total $500.
• Look closely at the card’s terms and conditions. Before you accept a credit card offer for a balance transfer, carefully read the card’s fine print. If there’s something you don’t understand, ask! The best way to ensure you are making the best decision regarding a balance transfer is to fully understand the card’s terms and conditions.

Dear Erica, Im working on repairing my credit. It had been ages since I received solicitation letters for credit cards; but over the past few months I began receiving them. I recently applied for a card, and I was actually approved! Now that I have it, Im afraid to use it. I want to, but my fear is that I’ll fall into the trap again of getting into debt. It’s difficult to live on only a debit card. Why are these card companies soliciting my business again? All advice is appreciated. Ned

Dead Ned, I’m so glad you are on your way to a new and improved relationship with plastic! Here are the two basic ways to repair credit wounds:

1. Wait

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Dear Credit Guide, Can you give me a break down on when and where Im supposed to use a credit card? Emergencies only? What about little things like McDonalds? It sounds crazy, but I really dont know when youre supposed to use it! Barry

Dear Barry,

These are sane, not mad, questions! And I’m going to have you answer them. How? First, by completing a brief exercise. So grab a pen, some paper and a calculator.

1. Write down the amount of money you earn on a monthly basis, after taxes, retirement contributions and everything else is deducted from your paycheck.

2. Make a detailed list of what you regularly spend money on in a month. I

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If you have several credit cards and carry balances on more than one, it is important to stay proactive and pay attention to each card limit. Lowered credit limit on a card with balance increases the credit utilization rate and often makes credit score go down. If two or three issuers have your credit card limits lowered, the scores will likely go down quite significantly.

Who is the most vulnerable to such a scenario? Credit card holders who transfer balances at 0% percent interest on two or three cards and set up monthly automatic payments. And with banks lowering credit card limits, it is easy to suddenly discover your utilization rate is too high and credit score went down 50 or more points.

Check credit card limit often
Every time you login into the account, look at it carefully.

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