Once credit reputations becomes tarnished with bad credit then it becomes extremely difficult to find credit which does not come at a hefty price. The only way to move out of the murky waters of sub prime lending offers available to those with bad credit, is to work to rebuild your credit score. This is ironically best done by using credit.
It is becoming increasingly difficult for those with bad credit to actually obtain credit cards as new amendments to the credit reform act are limiting the amount of fees which sub prime lenders are allowed to attach to their products. This in turn has lead to more sub prime lenders withdrawing their over priced credit offers.
The players who remain carry high fees and high interest rates, and are really best avoided. First Premier bank offers bad credit credit cards but are replete with hidden charges.
The best option for those with bad credit is to consider low fee secured credit cards. For a deposit equal to the credit limit you can rebuild your credit history as the issuers report to the main credit bureaus. It is much more sensible to pay a refundable security deposit than to throw money away on non returnable high application fees or processing fees, which unsecured credit cards for bad credit levy.
The two best offers are the Orchard Bank secured MasterCard and the Merrick secured Visa card. Both carry low fees, and the $35 annual fee on the Orchard bank card is waived for the first year. The annual fee on the Merrick card is $36, and the bank requires a minimum security deposit of $300, whilst Orchards minimum is $200. Both cards allow the transition to unsecured credit once they are used responsibly to rebuild credit.
Store cards are another option for those with bad credit. Famous for carrying exorbitant interest rates their rates actually pale in comparison to First Premier’s rate of 79.9% APR. Store cards should only be used by those with bad credit as a means of rebuilding credit. Credit can also be improved by signing up for the Fico Expansion scheme where regular bills such as utilities can be logged as paid on time.
Peer to peer lending offers an excellent credit alternative to those with bad credit, and can be obtained by requesting loans on internet sites designed for this purpose. Instead of banks acting as the lender a group of peer lenders assesses the risks you pose and offer structured loans with set repayment terms.
Those who simply wish to use credit and are not concerned about improving their credit score are best served by utilizing a low fee pay day loan. These are easy to obtain and can cost far less than the fees associated with the credit cards aimed at those with bad credit.
As lenders tighten their criteria the ease of obtaining credit with bad credit is becoming increasingly limited. Be cautious in the decisions you make and ensure that the terms are read and understood as many people with bad credit are falling for the current spate of online credit cards which are linked solely to one online shopping site, and carry high charges.