Second Chance Credit Cards

If you need a second chance with credit - that's OK! There are many options you have to choose from and you need to realize you are not alone!

 

In fact the national average credit score is 692 according to a study by Experian one of the major credit bureaus. A score of 692 will not qualify you for many purchases and is not seen as a good score by lending institutions.

 

What To Do?

  1. Check your credit report - you can get a free copy of this just by visiting http://www.annualcreditreport.com
  2. Remove or Dispute any inaccurate items - it is estimated that 25% or one in every 4 people have an inaccurate item on their credit report that is bringing down their credit score and causing them to get 'declined' or pay higher fees and interest rates.
  3. Find the right credit card for you - and you have a lot of options!

What Card is the Best?

If your primary concern is fixing a damaged credit score then it is vital that you open new positive credit lines as this will help to show you are now being responsible with your finances through your monthly payments.

 

We recommend the Orchard Bank MasterCard. They have been a lender to indivudals with a damaged credit rating for a very long time! Long before our 'Credit Crisis' and current economic conditions!

 

Their application process is designed specifically for you because they will base your credit check and then extend you the cards that you qualify for. For example you may be able to qualify for an unsecured card, this is a card in which you are extended a credit limit and then must make payments.

 

However you could also qualify for a secured credit card. This just means you must secure your card with a deposit the amount is of your choosing and then you are extended a credit card. Both these cards will report monthly to the three major credit bureaus.

 

Therefore if you use your card responsibly and make on time payments, you will begin to establish a positive payment history. This 'positive payment history' accounts for roughly 30% of your credit score. In other words it is VERY important!

 

If your main concern is not fixing your credit score or if you are in a financial position where you are unable to make a deposit in order to get a credit card. Then we recommend a prepaid card. These cards are accepted world wide, over the phone, and online.

 

They will also provide you with a way to pay your bills through a bill payment center in your online account. Also you will be able to use free direct deposit and there are a variety of other benefits depending upon what card you get.

 

There cards have sprung up in response to the stricter approval requirements banks are using for unsecured credit. And in response to the 'Credit Crisis' and let us not forget they are without a doubt a new form of plastic for individuals with bad credit because of the 'strict' new legislation that our current elected representatives have passed on financial institutions.

 

Some may say this is wonderful that banks are unable to charge an arm and a leg to people with a bad credit rating for using unsecured credit. However we have found many more people that are still looking for these offers.

 

That don't mind paying a high interest rate or upfront fees in order to have access to unsecured credit. They see it as the price they have to pay for their earlier financial irresponsibility. And at the end of the day - we can guarantee one thing - banks will find a way to make their money and it will usually come at the expense of the people that can least afford it! Just look at overdraft fees!