When you are shopping for a credit card, it’s wise to compare fees, charges, interest rates, and benefits. Some credit cards that look like a great deal at first glance may lose their appeal once you read the terms and conditions of use and calculate how the fees could affect your available credit.
Many bad credit credit card issuers charge membership and/or participation fees. Issuers use a variety of names for these fees, including “annual,” “activation,”
People can view a list of credit card companies that issue unsecured credit cards to people with bad credit at http://www.badcreditmd.com/
For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards. A higher credit score means you are likely less of a risk, and in turn, means you will be more likely to get credit or insurance — or pay less for it.
If you are denied a credit card, the ECOA requires that the creditor give you a notice with the specific reasons your application was rejected or the news that you have the right to learn the reasons if you ask within 60 days. Ask the creditor to be specific: Indefinite and vague reasons for denial are illegal. Acceptable reasons might be “your income was low” or “you haven’t been employed long enough.” Unacceptable reasons include “you didn’t meet our minimum standards” or “you didn’t receive enough points on our credit scoring system.”
Sometimes you can be denied a credit card because of information in your credit report. In that case, the FCRA requires the creditor to give you the name, address, and phone number of the credit reporting company that supplied the information. Contact the company to find out what your report said. This information is free if you ask for it within 60 days of being turned down for credit or insurance. The credit reporting company can tell you what’s in your report; only the creditor or insurance company can tell you why your application was denied.
If a creditor says you were denied credit because you are too near your credit limits on your credit cards, you may want to reapply after paying down your balances. Because credit scores are based on credit report information, a score often changes when the information in the credit report changes.
Bad Credit MD is a free On-line information guide that helps people with credit problems in the United States, Canada, Ireland, United Kingdom, India, South Africa, Australia, and New Zealand.
Bad Credit MD has been in business helping consumers with bad credit since April of 2007 and is a subsidiary of Enticing Designs Publishing. The staff has various backgrounds in the financial and mortgage industry. This self-help site has over 500 pages of credit advice and articles. Its staff has researched its information with various governments around the world to provide the most comprehensive and accurate information free of charge.
