| Does a Credit Card for People with Poor Credit Make Sense? |
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Monday, October 29, 2007
If you have a serious interest at all in getting control of your financial situation, an unsecured credit card may be able to help. There are many guaranteed credit card acceptance and approval offers for people with poor credit but not necessarily extremely bad credit. When talking about secured versus unsecured, the issue comes down to wanting a cash deposit before the account can be opened. A secured credit card is little more than a debit card tied to your savings are checking account. The credit limit is usually equal to or just a little higher than the amount of deposit held as security. This means that you will not be able to spend the money in the account that is securing the credit card. An unsecured credit card is one that isn't tied to a bank account. The credit limit may be limited, but the credit itself is only secured by the things purchased in your promise to pay. If you find yourself with poor credit, gaining even more credit may be necessary to be able to effectively manage your financial situation. You probably get more than a few credit card offers in the mail each month. This is a good source of potential credit because the companies that send out these mass mailings are looking for business. Some may be willing to overlook that or bruised credit if only to add yet another credit card account to their books. Credit requirements differ depending on the company. Don't assume that because five of the last credit card offers you applied for were turned down but the next one will be also. It's critical however that you carefully review the details for each of these offers. Ideally, you want to find unsecured credit with a grace period. A grace period means the time the credit card company gives you between when the credit is used and when interest is charged. You also want to look for credit offers that did not have an annual fee. These fees are not as popular and fewer companies are charging them today. One of the fastest ways to be approved or get an answer to an application is to apply online. Many credit card offers to come through the mail have the option to be processed directly from your computer. Another great idea is to use the resources on the site below to apply for several credit cards all once. By gaining additional unsecured credit, you may be able to transfer a higher interest rate balance to the new lower card. This will free up cash to allow you to pay down the actual debt much faster. You will need to be very careful not to fall into the trap of using your new unsecured credit for general expenses or consumer items. The key to getting out of debt is to spend less and put that extra money directly into paying down your bills. Abigail Franks has researched debt consolidation options and found valuable information that could help you. On this site find information about bad credit loans and other personal loan options. quick unsecured personal loans- For short term financial needs In need of finances but don't own a house? Unsecured loans are what you need. These loans serve best for the borrowers who either don't have any security to offer or don't want to risk their assets. The dispatch of unsecured personal loans is comparatively faster than its secured counterparts. That is why they are often termed as quick unsecured loans. This is because no time is wasted on property valuation and concerned legal formalities. So, the borrower is at great mental comfort since he doesn't have to risk his fixed asset. However, the lender is at high risk since he has nothing to seize in case the borrower fails to repay him back. The lender covers the risk involved in the deal by charging high interest rate. Is it possible to avail cheap unsecured personal loan? Yes, it definitely is. Increasing competition among the lenders and the advancement of online media has paved the way to lucrative deals for unsecured personal loans as well. Most online loan lenders offer competitive APRs to the borrowers. However, things like the borrowers' credit history, disposable income, repayment records etc. are also taken into consideration. Do lenders grant bad credit unsecured personal loans as well? Lenders are also offering bad credit unsecured loans nowadays. These loans are for those who neither have a good credit history nor any security to pledge. The lender usually charges very high interest rates on such loans. These loans are often very expensive and less flexible. A limited amount can be borrowed for a short period. What are the add-on charges on unsecured personal loans? Since the risk for the lender is high in case of unsecured personal loans, the arrangement fees and early redemption fees charged by him are high as well. Early redemption charges are included in a loan agreement that will be levied on the customer, if they wish to repay the loan early. Arrangement fees are charged by the lender at the start of the loan term for meeting the pre-loan arrangements. It usually is 1%, but the borrower should ask about these charges in advance. So, with unsecured loans, you don't have to worry about risking your home. But quick unsecured loans can help you with short-term financial requirements. If you need to fund major projects, secured loans are better. About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Loans-Bazaar as a finance specialist. For more information on unsecured personal loans please visit at: www.loans-bazaar.co.uk The art of selecting an attractive deal of secured loans Are you heading towards purchasing a secured loan? Well, purchase of a financial product is a crucial and important decision, especially when it is a secured loan where your home is at stake. Cost of the loan is a significant factor to be considered while purchasing a secured loan, as secured loans are usually taken for quite a long period of time. Ask your lender about the total cost of the various secured loan deals offered by the lender and then select the one that is most economical. The Annual Percentage Rate (APR) includes all the costs associated with a loan (in addition to the interest rate), such as processing fees. As APR is one of the most crucial factors considered by borrowers while selecting a loan product; lenders try to outdo each other on this aspect of loan products. Use of flashy (and sometimes misleading) advertisements is quite a common marketing tool used by lenders to attract customers. However, do not get swayed by such advertisements. There are lenders who highlight the interest rate and not the APR in their promotional campaigns. If you select a loan offer from such lenders, you may end up paying much more than what you had perceived (by following the advertisements). Shopping around is essential, be it for various commodities of day-to-day life or for financial products. Interest rates vary widely from lender to lender. So, you should compare as many secured personal loans quotes as possible before selecting a particular secured loans product. It is usually not possible for a person to visit so many lenders physically, get loan quotes and compare them on own. This is the reason why online secured loans are gaining immense popularity among UK people. You can get information on various lenders and loan offers, compare various loan quotes and apply for a loan product online... with just a few mouse clicks. About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Loans-Bazaar as a finance specialist. For more information on secured personal loans please visit at: www.loans-bazaar.co.uk |
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