Bad Credit


By : Mike Reindhart

If you find that you have made some mistakes and now have bad credit, you may have given up on ever getting an unsecured credit card. The truth is that bad credit and bankruptcy do not necessarily deprive a person from obtaining a credit card. There are unsecured credit cards out there that are designed especially for people with bad credit who have also had difficulties being approved for a major credit card.

What is an unsecured credit card? The easiest way to explain it is to first define a secured credit card. A secured credit card is one where you deposit money into an account that is tied to the card. You can use the card to buy items up to the amount of money that is deposited in that account before your credit card cannot be used anymore.

An unsecured credit card is the exact opposite. They offer a credit line to people based on their credit history and then allow charging up to that credit limit. They are generally given to people with good credit histories and a past demonstration of being able to pay their bills in a timely manner without over-extending their credit.

So how can people with bad credit get an unsecured credit card? Because there are companies out there that specialize in giving unsecured credit cards to people with bad credit. Their thought is that even people with bad credit deserve the chance to rebuild their credit somehow. For example, the Imagine card from Master Card guarantees that all applications are accepted.

How can they do this? The answer is actually quite obvious if you really think about it. Getting an unsecured credit card with bad credit is expensive and your credit limits are quite low. With the Imagine Card that we mentioned above, you will either receive a card with a $70 or a $300 credit limit and you’ll have to pay an annual fee as high as $155!

However, let’s think about what having an unsecured credit card really means to you if you have bad credit. First, you are getting a credit line with a “real” credit card that can help build your credit. As you pay off your balance every month, you are building a solid credit history and your credit line could be increased incrementally. The annual fees might actually be dropped as well eventually.

You have to remember, though, that you are trying to rebuild your credit and having an unsecured credit card requires a certain amount of self-control, so you’ll need to have a plan on what to do if you are tempted to over-spend. Just make timely payments and your unsecured credit card could erase your bad credit eventually and set you on the road toward good credit!

You want to own your own home, but you have bad credit and are having trouble obtaining a mortgage loan. Is there anything you can do? Initially, you would think not, but actually, there are ways you can get a mortgage loan when you have bad credit.

There’s no use wondering what happened to get you into a bad credit situation. Life happens. And when it does, sometimes your credit can suffer. Just because your credit isn’t perfect doesn’t mean that you should miss out on the opportunities available to everyone else. See, there are companies that actually understand this and they specialize in bad credit mortgage loans that can get you the money you need to buy a home and stop paying rent!

These companies offer many different types of mortgage loans for people with bad credit, but like other companies like these, the loans are probably going to be at a high interest rate, so you’ll want to thoroughly check out all programs available to you. If your payment is going to be too high, you’ll want to steer away from those loans or else you’ll get into more problems.

The Federal Government even knows that people with bad credit can still pay a mortgage and they are willing to help out with government subsidized loans like FmHA that is a mortgage loan based on income. Actually, these types of mortgage loans are perfect for people with bad credit because it gives them not only a home, but a payment they can afford and the chance to rebuild their credit.

FmHA mortgage loans are perfect for people with bad credit. They have strict guidelines that they have to adhere to as far as what types of homes will qualify and the paperwork is heavy, but in the long run, it’s certainly worth it. So many people dream of owning their own home but think that they can’t get a mortgage loan because they have bad credit.

The key here is to do your homework and look around for a mortgage company that specializes in mortgage loans for people with bad credit. There are companies out there that will offer up credit to you albeit at larger interest rates than a regular mortgage, but the important thing to remember is that it is possible.

Having bad credit doesn’t mean you can’t get a mortgage loan. It just means that you’ll have to do a little more work finding a company that will work with you. Owning your own home isn’t out of reach just because you have bad credit. It can happen, so dream big and start today!