Sunday January 23, 2011
If you have bad credit and you've had a hard time getting a credit card the past two years, that may get easier. Jennifer Waters, a reporter for Wall Street Journal, predicts that credit card issuers are once again ready to lend to subprime borrowers - those with lower credit scores. But, borrowers with lower credit scores will pay a higher cost for credit cards both in annual fees and interest rates.
Credit card issuers have already started mailing out more credit card offers. If you've previously opted-out of credit card offers and you're ready to see what offers are available to you, visit OptOutPrescreen.com to opt back in.
The WSJ article also predicts an increase in cash-back credit card rewards. Not because credit card issuers are generous, but because of a recent study that shows cardholders charge more and repay slower on cash back rewards cards. Of course, that's a bad habit for credit card users because it means you're paying interest to get those rewards.
Source: WSJ: New Landscape for Credit Cards
Recommended Articles:
Tuesday January 18, 2011
If you have a bad credit score, you've probably been turned down for at least one credit card. It's tough to rebuild a bad credit score since few credit card issuers are willing to give out credit cards to people with bad credit history. Fortunately, there are a handful of issuers who have credit cards specifically for people with low credit scores.
For example, Capital One has two credit cards for people with bad credit - the Classic Platinum and the Standard Platinum. The two cards aren't that different, one has a higher annual fee and lower interest rate and the other has the opposite - a lower annual fee and higher interest rate. You'll get a minimum credit limit of $300, which is just enough to start rebuilding your credit.
Orchard Bank has a line of credit cards for people with bad credit. The one you're ultimately approved for depends on just how bad your bad credit is.
You can get a credit card with bad credit, you just have to know where to look. Don't be afraid to apply for a secured credit card. It requires a security deposit, but after 12 months of responsible use, you can often apply for an unsecured credit card.
Recommended Reading:
Thursday January 13, 2011
Last October, the Feds proposed an addition to the Credit CARD Act that would require credit card companies to request personal income rather than household income on credit card applications. A recent TIME blog post points out that if this rule is passed, stay-at-home moms could suffer since they would no longer be able to use their husbands' income to qualify for a credit card. Instead, these women could only get a joint credit card or become an authorized user on another person's credit card.
In a divorce, joint-only and authorized user credit cards could become useless - and even an extra burden. The judge may hold the wife partly responsible for the credit card balances she helped accumulate. And if the husband drops her authorized user status, those accounts disappear from her credit report and her credit score could fall as a result.
The rule doesn't necessarily discriminate against women, but targets anyone who doesn't have personal income, including stay-at-home dads and college students.
The comment period on the proposals recently ended, but as of now, the Federal Reserve hasn't announced the final rule.
Tuesday January 11, 2011
Most credit reports costs a minimum of $10.50 depending on where you purchase from. That's more than $30 for three credit reports at a time.
We're all entitled to a free annual credit report each year from AnnualCreditReport.com, but certain states have laws that grant an additional free credit report each year. Other states have laws that discount credit reports. For example, credit reports cost $3 in Minnesota.
Check out the list to see if your state has laws for free or discounted credit reports. If your state is on the list, make sure you use the credit bureau links at the bottom of the list to order your credit reports. Otherwise, you could end up paying full price for your credit report.
Related Credit Report Articles:
