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4 Reasons to Consider a Bad Credit Credit Card




People get sick. Jobs come and go. The roof leaks. Life happens, and sometimes that means you end up with a low credit score.


Credit cards for people with bad credit can make a big difference when you’re getting your finances back in shape. Here are some reasons you might want to consider applying for a bad credit credit card.


1. Applying for lots of credit cards hurts your score.


Every time you apply for a credit card, your score slips about five points. If your score is high, five points is just a blip. But if your score is low — anything below 630 is considered bad credit — you can’t afford to do anything that causes it to go down even further. So if you’ve been applying for the best credit cards out there without success, stop now. Get realistic and apply for a card that’s geared toward people in your situation. The card issuers will be more sympathetic to your plight, and you won’t keep bringing your score down even further by applying for cards without getting approved. And don’t worry — when your score improves, you’ll be able to apply for any card you want.


2. You’re responsible, but you need a chance to prove it.


The best credit cards for people with poor credit are often secured cards. With secured cards, you pay the card issuer a refundable deposit so they feel more confident you’ll pay back what you borrow. Getting a secured credit card gives you a chance to build up a positive credit history. To take advantage of the opportunity, make sure you pay on time, every time, and keep your overall balances as low as possible, and definitely below 30% of your available credit at all times during the month.


3. They’re not necessarily a bad deal.


It’s true — many financial products for people with few options have high, exploitative fees, like payday loans and some prepaid debit cards. But many of have annual fees comparable to other credit cards, and the Credit CARD Act of 2009 prevents credit card companies from jacking up the fees higher than 25% of your credit limit in the first year you have the card.


4. Bad credit credit cards build your score — debit cards don’t.


It’s pretty hard to get through life without plastic these days, so many people with poor credit (or even no credit history at all) get a prepaid debit card. While these are useful, they don’t report to the credit bureaus, so they don’t build your score and you’re never able to move up to a better card. Choose an option that will bring your score up if at all possible.


A good credit score makes it easier to find a place to live, get a job and get insurance — all things that will improve your sense of security and your quality of life. Make this the last credit card for poor credit you ever apply for. Use it as a tool for rebuilding your credit, and put good financial habits in place to ensure you’re never in this position again.




Image via iStock.


The post 4 Reasons to Consider a Bad Credit Credit Card appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1sMkIFo

When 0% Interest Credit Cards Are the Best Available Option

Deciding on a credit card to apply for can be confusing. Even for those with little understanding of how credit cards work, however, the appeal of a zero interest credit card is obvious. But is it the best card for you?


Like many questions in life, the answer is that it depends. Everyone has a unique credit history and financial situation, and with hundreds of different credit cards available, no one card is best for everybody. Here are some cases in which a 0 interest credit card may be best for you.


You already have a lot of credit card debt


If you have a lot of credit card debt, paying it down while interest mounts can feel like treading water. Getting a card with no interest can be a great option to consolidate existing credit card debt and pay it down. If you’re thinking of this option, check into cards that also offer 0% balance transfers at the same time. Saving money on interest that you’ll just pay in the form of balance transfer fees isn’t really saving any money at all.


This debt consolidation option is most attractive if you can pay down the existing debt before the introductory period is over. That’s the time frame for which you’ll be able to use the card without paying interest, and it varies by card offer. Make sure that if you decide on this option, you have a plan to pay down as much of your debt as you can during the 0 APR introductory period.


You have one big purchase to make


If you’re facing a large purchase you can’t quite afford in one payment, a 0 interest credit card offer may be just what you need. This option can give you the time you need to pay for something expensive without worrying about interest. Unlike the debt consolidation option, finding a credit card with a 0% balance transfer option may not be necessary.


Even though you may not have to worry about balance transfers in the case of a large purchase, you should pay attention to the length of the offer. If you’re going to buy your item interest free, it’s your responsibility to plan accordingly. Make sure you can pay off the balance on the card before the introductory period runs out, or else it might not be worth it.


What to know before you apply


In general, the best interest free credit card offers are available only to those with good or excellent credit. If that doesn’t sound like you, and you’re checking out 0 interest credit card offers, be sure to read the fine print, and make note of any extra fees. When deciding whether it’s worth it to get a no interest credit card, ensure those fees don’t cancel out what you’re saving on interest.


Image via iStock.


The post When 0% Interest Credit Cards Are the Best Available Option appeared first on NerdWallet Credit Card Blog.






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Credit History vs. Credit Report: What’s the Difference?

You know the difference between your credit score and credit report—but the difference between a credit history and a credit report still might be a head-scratcher for you if you have no credit.


Simply put, your credit history is included on your credit report, and you can’t have one without the other. Here’s how it works.


Credit history


Your credit history is an exhaustive record of all your lines of credit, bill payments and credit usage. If you don’t have any credit cards or loans, chances are you have no credit history. But that’s easy to fix.


There are credit cards for people with no credit; they’re called secured cards, and they report to the three major credit bureaus—Equifax, Transunion and Experian. To establish credit for yourself, consider applying for one. Make your payments on time and use less than 30% of your credit limit. By starting small, you can build a strong credit history over time.


Credit report


Credit reports are the documents potential lenders look at to see if you’re a responsible borrower. They include a person’s credit history as well as other information, like the borrower’s Social Security number and address. You’re entitled to one free credit report per year from each credit bureau.


If you have no credit history or use a credit card that doesn’t report to the credit bureaus, you won’t have a credit report. This doesn’t mean you have bad credit; it just means that lenders don’t have enough information to determine whether or not you’d be a responsible borrower.


If you have a longer credit history, here’s a look at what could be included on your credit report:


Bankruptcies, foreclosures, collections and public records—More than 3 million foreclosure filings were made during the economic downturn of 2008, according to a study by RealtyTrac. But come 2015, those foreclosures, which currently stay on credit reports for seven years along with bankruptcies, public records (such as liens) and payments that went into collections, will come off borrowers’ credit reports.


InquiriesHard inquiries stay on your credit report for two years and ding your credit score about five points each. Every credit card application counts as a separate inquiry, so if you have no credit, remember to apply to new cards one at a time.


Late payments—Late payments might not sound like a big deal, but like bankruptcies, they’ll be on your credit report for seven years. Automate your credit card payments to ensure you pay your cards on time, every time.


Closed accounts—If you close an account, it doesn’t just disappear. Accounts paid on time will show up for 10 years from the date of closure, but accounts paid late will show up on your report for seven years after the last missed payment. Before closing an account, think about the impact it will have on your credit report.




Credit history image via Shutterstock.


The post Credit History vs. Credit Report: What’s the Difference? appeared first on NerdWallet Credit Card Blog.






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4 Reasons to Consider a Bad Credit Credit Card

People get sick. Jobs come and go. The roof leaks. Life happens, and sometimes that means you end up with a low credit score.


Credit cards for people with bad credit can make a big difference when you’re getting your finances back in shape. Here are some reasons you might want to consider applying for a bad credit credit card.


1. Applying for lots of credit cards hurts your score.


Every time you apply for a credit card, your score slips about five points. If your score is high, five points is just a blip. But if your score is low — anything below 630 is considered bad credit — you can’t afford to do anything that causes it to go down even further. So if you’ve been applying for the best credit cards out there without success, stop now. Get realistic and apply for a card that’s geared toward people in your situation. The card issuers will be more sympathetic to your plight, and you won’t keep bringing your score down even further by applying for cards without getting approved. And don’t worry — when your score improves, you’ll be able to apply for any card you want.


2. You’re responsible, but you need a chance to prove it.


The best credit cards for people with poor credit are often secured cards. With secured cards, you pay the card issuer a refundable deposit so they feel more confident you’ll pay back what you borrow. Getting a secured credit card gives you a chance to build up a positive credit history. To take advantage of the opportunity, make sure you pay on time, every time, and keep your overall balances as low as possible, and definitely below 30% of your available credit at all times during the month.


3. They’re not necessarily a bad deal.


It’s true — many financial products for people with few options have high, exploitative fees, like payday loans and some prepaid debit cards. But many of have annual fees comparable to other credit cards, and the Credit CARD Act of 2009 prevents credit card companies from jacking up the fees higher than 25% of your credit limit in the first year you have the card.


4. Bad credit credit cards build your score — debit cards don’t.


It’s pretty hard to get through life without plastic these days, so many people with poor credit (or even no credit history at all) get a prepaid debit card. While these are useful, they don’t report to the credit bureaus, so they don’t build your score and you’re never able to move up to a better card. Choose an option that will bring your score up if at all possible.


A good credit score makes it easier to find a place to live, get a job and get insurance — all things that will improve your sense of security and your quality of life. Make this the last credit card for poor credit you ever apply for. Use it as a tool for rebuilding your credit, and put good financial habits in place to ensure you’re never in this position again.




Image via iStock.


The post 4 Reasons to Consider a Bad Credit Credit Card appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Should I Get More Than One Bad Credit Credit Card?

Applying for a credit card is an important decision. Each new application reduces your credit score slightly, and too much available credit increases the risk that your spending will get out of control and you’ll rack up more debt.


In spite of all that, there are good reasons to apply for bad credit credit cards. In some cases, there are even good reasons to apply for more than one.


Let’s look at the factors that should guide your decision.


Why apply for a credit card for people with poor credit?


If your credit score is below 630, you may not be able to qualify for a regular credit card. A credit card for people with bad credit may be the best bet—and that will often mean a secured credit card. These cards require applicants to pay a refundable deposit, an extra guarantee that you’ll pay off your balance.


Using a secured credit card helps you demonstrate that you can be trusted to pay your bills on time. Regular, responsible use of the card will gradually raise your score so you’ll eventually be able to apply for other cards, even the best credit cards out there.


Why would I want to apply for more than one card?


Credit cards for people with bad credit often have low limits, which can be challenging especially if you’re trying to increase your credit score. That’s because part of your score is determined by the percentage of your available credit that you’re using. For example, let’s say you only have one credit card, and it has a credit limit of $300. If you have a $150 balance on the card, you’re using 50% of your available credit—and that will hurt your score. Credit utilization should be below 30% if at all possible, which means using only $100 on a card with a $300 limit.


It gets even trickier than that. Because you don’t know when the three credit bureaus — Equifax, Experian and TransUnion — will look at your credit history, you can’t risk having your credit utilization ratio be above 30% at any point during the month. So even if you pay your entire balance off each month, you need to make sure not to charge more that 30% at a time or risk bringing your score down.


So additional cards may benefit you because they’ll increase your available credit and make it easier to make larger purchases and pay them off right away without dinging your credit score.


What’s the catch?


Every time you apply for a new card, your score slips by five points. Applying for a lot of cards in a short period of time makes lenders nervous, so be careful. If you’ve recently applied for a credit card for bad credit, don’t apply for another one right away—and don’t apply for cards you don’t need. More credit is not necessarily a good thing, partly because frequent credit card applications hurt your score and partly because it makes it too easy to overspend.


The bottom line


Don’t apply for more credit cards than you need and focus on using your cards in a way that builds your score. Credit cards are valuable financial tools, but only if you’re careful.




Image via iStock.


The post Should I Get More Than One Bad Credit Credit Card? appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

How to Get an Unsecured Credit Card With No Credit History

You may have no credit, but that doesn’t mean you’re completely out of the running for an unsecured credit card. While good credit makes finding a credit card much easier, there are credit cards for people with no credit history.


A bank takes a certain risk with each credit card it issues. Your credit score and credit history are used in determining whether or not you are a good risk. With no credit, the bank doesn’t have much information to base their decision upon, so your options are limited.


Credit cards for no credit history


Secured credit cards are often offered as the most logical solution for people with bad or no credit. These cards require you to put a deposit down as collateral against the line of credit. If you fail to pay your monthly bill, the bank can use the deposit.


But there are some unsecured credit cards for people with no credit or bad credit. These cards will likely have higher fees and interest rates than other unsecured cards (those offered to people with good credit), but they won’t require an upfront deposit like a secured credit card. Read here for additional information on unsecured cards that are easy to qualify for.


Building your credit


Because you have no credit, managing your new card responsibly will have a major impact on your credit worthiness in the future. In other words, the habits you develop with this card now will determine your credit history. So use it wisely. Here are a few important guidelines for building healthy credit:



  1. Always pay your bill on time.

  2. Strive to pay off your balance in full each month to avoid sinking further and further into debt.

  3. Don’t max out your card or keep the balance high. Ideally, you’ll want to keep your balance below 30% of your limit. Once you cross that threshold, there’s a chance of negatively impacting your credit.

  4. Check your credit report and credit score before getting your new card and periodically after you’ve established credit.

  5. When it’s time to move on to a better credit card with lower rates and fees, think hard before canceling older cards. Part of your credit score is based on the length of your credit history. So an open account in favorable standing does more for your credit than closing it out.




Image via iStock.


The post How to Get an Unsecured Credit Card With No Credit History appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Should I Get More Than One Bad Credit Credit Card?




Applying for a credit card is an important decision. Each new application reduces your credit score slightly, and too much available credit increases the risk that your spending will get out of control and you’ll rack up more debt.


In spite of all that, there are good reasons to apply for bad credit credit cards. In some cases, there are even good reasons to apply for more than one.


Let’s look at the factors that should guide your decision.


Why apply for a credit card for people with poor credit?


If your credit score is below 630, you may not be able to qualify for a regular credit card. A credit card for people with bad credit may be the best bet—and that will often mean a secured credit card. These cards require applicants to pay a refundable deposit, an extra guarantee that you’ll pay off your balance.


Using a secured credit card helps you demonstrate that you can be trusted to pay your bills on time. Regular, responsible use of the card will gradually raise your score so you’ll eventually be able to apply for other cards, even the best credit cards out there.


Why would I want to apply for more than one card?


Credit cards for people with bad credit often have low limits, which can be challenging especially if you’re trying to increase your credit score. That’s because part of your score is determined by the percentage of your available credit that you’re using. For example, let’s say you only have one credit card, and it has a credit limit of $300. If you have a $150 balance on the card, you’re using 50% of your available credit—and that will hurt your score. Credit utilization should be below 30% if at all possible, which means using only $100 on a card with a $300 limit.


It gets even trickier than that. Because you don’t know when the three credit bureaus — Equifax, Experian and TransUnion — will look at your credit history, you can’t risk having your credit utilization ratio be above 30% at any point during the month. So even if you pay your entire balance off each month, you need to make sure not to charge more that 30% at a time or risk bringing your score down.


So additional cards may benefit you because they’ll increase your available credit and make it easier to make larger purchases and pay them off right away without dinging your credit score.


What’s the catch?


Every time you apply for a new card, your score slips by five points. Applying for a lot of cards in a short period of time makes lenders nervous, so be careful. If you’ve recently applied for a credit card for bad credit, don’t apply for another one right away—and don’t apply for cards you don’t need. More credit is not necessarily a good thing, partly because frequent credit card applications hurt your score and partly because it makes it too easy to overspend.


The bottom line


Don’t apply for more credit cards than you need and focus on using your cards in a way that builds your score. Credit cards are valuable financial tools, but only if you’re careful.




Image via iStock.


The post Should I Get More Than One Bad Credit Credit Card? appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1r3WN35

How to Get an Unsecured Credit Card With No Credit History




You may have no credit, but that doesn’t mean you’re completely out of the running for an unsecured credit card. While good credit makes finding a credit card much easier, there are credit cards for people with no credit history.


A bank takes a certain risk with each credit card it issues. Your credit score and credit history are used in determining whether or not you are a good risk. With no credit, the bank doesn’t have much information to base their decision upon, so your options are limited.


Credit cards for no credit history


Secured credit cards are often offered as the most logical solution for people with bad or no credit. These cards require you to put a deposit down as collateral against the line of credit. If you fail to pay your monthly bill, the bank can use the deposit.


But there are some unsecured credit cards for people with no credit or bad credit. These cards will likely have higher fees and interest rates than other unsecured cards (those offered to people with good credit), but they won’t require an upfront deposit like a secured credit card. Read here for additional information on unsecured cards that are easy to qualify for.


Building your credit


Because you have no credit, managing your new card responsibly will have a major impact on your credit worthiness in the future. In other words, the habits you develop with this card now will determine your credit history. So use it wisely. Here are a few important guidelines for building healthy credit:



  1. Always pay your bill on time.

  2. Strive to pay off your balance in full each month to avoid sinking further and further into debt.

  3. Don’t max out your card or keep the balance high. Ideally, you’ll want to keep your balance below 30% of your limit. Once you cross that threshold, there’s a chance of negatively impacting your credit.

  4. Check your credit report and credit score before getting your new card and periodically after you’ve established credit.

  5. When it’s time to move on to a better credit card with lower rates and fees, think hard before canceling older cards. Part of your credit score is based on the length of your credit history. So an open account in favorable standing does more for your credit than closing it out.




Image via iStock.


The post How to Get an Unsecured Credit Card With No Credit History appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1r3WMMs

Common Credit Card Application Mistakes

When you apply for a credit card, you hope to be approved. But making common mistakes on credit card applications can earn you a denial right off the bat. Knowing what you’re up against before you fill in the blanks will help ensure you have the best shot at getting the credit card you want.


Credit card application mistakes are most detrimental for people with no credit history or those with bad credit. People with good to excellent credit rarely worry about these errors because they are not used to denials. Fortunately, you can improve a less-than-desirable credit history by approaching credit management and the application process with these potential mistakes in mind.


Lying


Credit card applications ask for your income, your account balances, employment status and even your monthly housing expenses. Fudging these numbers could give you access to more credit, but lying on a credit card application is considered fraud. Credit card fraud can carry significant penalties, including prison time — hardly worth the potential payoff of a higher credit limit.


Applying for too many cards too quickly


When your credit card application is denied, it’s tempting to fill out another and another. But too many credit inquiries can hurt your credit score and further increase the likelihood that you’ll be denied again. Instead of applying for credit cards en masse, choose one and wait at least six months before filling out another application.


Failing to read the fine print


Know what you’re getting into before you apply. Don’t accept the first credit card offer in your mailbox; instead look for the right credit card for your needs. Make sure you consider interest rates, annual fees and various rewards programs. Also, do some research on how easy or difficult it is to get a specific card. Applying for a credit card for people with excellent credit could be an exercise in futility if you have a less than stellar credit history.


Not considering a cosigner


If you go into the credit card application process knowing you might be denied, you should consider a cosigner. A cosigner essentially vouches for your creditworthiness and stands to take the fall if you fail to make your payments. But having a cosigner with good credit will increase the likelihood of an approval. You’ll want to find someone with whom you have a good relationship and make every effort to keep the credit card in good standing if approved, because you aren’t the only one with your credit on the line.


We all make mistakes, but the wrong move when applying for credit could cost you for years to come.




Image via iStock.


The post Common Credit Card Application Mistakes appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

5 Things To Do With Mail Credit Card Offers

You may have noticed an uptick in the number of credit card offers you’ve received in your mailbox this year. Direct-mail marketing for cards was expected to increase in 2014 as recession recovery continues.


But before you go hog wild and sign up for all the credit cards you get offers for, examine the offer to see if its claims hold up.


1. Read the fine print.


Mail credit card offers are essentially advertisements, so read them carefully. Here are some things to look for:



  • Annual Percentage Rate (APR): The yearly interest rate you will pay on your credit card balance. Generally, the better your credit is, the lower your APR will be. Look for offers that give you the lowest APR Avoid paying interest at all by paying off your balance completely each month.

  • Annual fees: Some cards charge yearly amounts simply for having them. Look for cards with low or no annual fees.

  • Credit limit: The maximum amount of money you can charge to a credit card. It’s normally determined after you apply, but some mail offers list minimum credit limits in the ad.

  • Penalty fees: These include late fees, over-the-credit-limit fees and more. As with all fines, you want to avoid high ones.


2. Is it a pre-screened offer?


Many mail credit card offers advertise that they’re “pre-screened” or “pre-approved.” This means the issuer bought your credit information from one of the three main credit bureaus – Equifax, Experian or TransUnion – and determined that you fit the minimum requirements for the card. Being pre-approved doesn’t affect your credit score until you apply for the card and doesn’t guarantee that you will be approved.


3. Apply if you’re interested.


If the card seems like a good fit for you, apply for it. The issuer will check your credit report and decide whether to approve you. A word of caution: Don’t apply for every card offer you receive. Applying for multiple cards in a short time frame can hurt your credit score.


4. Shred the mail offer.


Whether you decide apply for the card, shred the physical mail offer. It may contain personal information that identity thieves can swipe from your recycling bin and use against you.


5. Opt out.


If you’re tired of seeing credit card offers in your mailbox, call 1-888-5-OPTOUT or visit http://ift.tt/VQQvy8 to remove your name from mailing lists permanently or just for five years.


The Takeaway: Direct mail offers can be a good way to learn about a particular credit card, but you should always do extra research to understand exactly what the offer entails before you apply.


The post 5 Things To Do With Mail Credit Card Offers appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Common Credit Card Application Mistakes




When you apply for a credit card, you hope to be approved. But making common mistakes on credit card applications can earn you a denial right off the bat. Knowing what you’re up against before you fill in the blanks will help ensure you have the best shot at getting the credit card you want.


Credit card application mistakes are most detrimental for people with no credit history or those with bad credit. People with good to excellent credit rarely worry about these errors because they are not used to denials. Fortunately, you can improve a less-than-desirable credit history by approaching credit management and the application process with these potential mistakes in mind.


Lying


Credit card applications ask for your income, your account balances, employment status and even your monthly housing expenses. Fudging these numbers could give you access to more credit, but lying on a credit card application is considered fraud. Credit card fraud can carry significant penalties, including prison time — hardly worth the potential payoff of a higher credit limit.


Applying for too many cards too quickly


When your credit card application is denied, it’s tempting to fill out another and another. But too many credit inquiries can hurt your credit score and further increase the likelihood that you’ll be denied again. Instead of applying for credit cards en masse, choose one and wait at least six months before filling out another application.


Failing to read the fine print


Know what you’re getting into before you apply. Don’t accept the first credit card offer in your mailbox; instead look for the right credit card for your needs. Make sure you consider interest rates, annual fees and various rewards programs. Also, do some research on how easy or difficult it is to get a specific card. Applying for a credit card for people with excellent credit could be an exercise in futility if you have a less than stellar credit history.


Not considering a cosigner


If you go into the credit card application process knowing you might be denied, you should consider a cosigner. A cosigner essentially vouches for your creditworthiness and stands to take the fall if you fail to make your payments. But having a cosigner with good credit will increase the likelihood of an approval. You’ll want to find someone with whom you have a good relationship and make every effort to keep the credit card in good standing if approved, because you aren’t the only one with your credit on the line.


We all make mistakes, but the wrong move when applying for credit could cost you for years to come.




Image via iStock.


The post Common Credit Card Application Mistakes appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zCcL6h

5 Things To Do With Mail Credit Card Offers




You may have noticed an uptick in the number of credit card offers you’ve received in your mailbox this year. Direct-mail marketing for cards was expected to increase in 2014 as recession recovery continues.


But before you go hog wild and sign up for all the credit cards you get offers for, examine the offer to see if its claims hold up.


1. Read the fine print.


Mail credit card offers are essentially advertisements, so read them carefully. Here are some things to look for:



  • Annual Percentage Rate (APR): The yearly interest rate you will pay on your credit card balance. Generally, the better your credit is, the lower your APR will be. Look for offers that give you the lowest APR Avoid paying interest at all by paying off your balance completely each month.

  • Annual fees: Some cards charge yearly amounts simply for having them. Look for cards with low or no annual fees.

  • Credit limit: The maximum amount of money you can charge to a credit card. It’s normally determined after you apply, but some mail offers list minimum credit limits in the ad.

  • Penalty fees: These include late fees, over-the-credit-limit fees and more. As with all fines, you want to avoid high ones.


2. Is it a pre-screened offer?


Many mail credit card offers advertise that they’re “pre-screened” or “pre-approved.” This means the issuer bought your credit information from one of the three main credit bureaus – Equifax, Experian or TransUnion – and determined that you fit the minimum requirements for the card. Being pre-approved doesn’t affect your credit score until you apply for the card and doesn’t guarantee that you will be approved.


3. Apply if you’re interested.


If the card seems like a good fit for you, apply for it. The issuer will check your credit report and decide whether to approve you. A word of caution: Don’t apply for every card offer you receive. Applying for multiple cards in a short time frame can hurt your credit score.


4. Shred the mail offer.


Whether you decide apply for the card, shred the physical mail offer. It may contain personal information that identity thieves can swipe from your recycling bin and use against you.


5. Opt out.


If you’re tired of seeing credit card offers in your mailbox, call 1-888-5-OPTOUT or visit http://bit.ly/1wQvecR to remove your name from mailing lists permanently or just for five years.


The Takeaway: Direct mail offers can be a good way to learn about a particular credit card, but you should always do extra research to understand exactly what the offer entails before you apply.


The post 5 Things To Do With Mail Credit Card Offers appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zCcH6D

Good Credit? 5 Tips to Keep it That Way

You worked hard to build up your credit and were rewarded with one of the best credit cards for good credit.


But now you have the challenge of keeping your credit score up.


A good FICO score ranges from 690-719. Credit cards for good credit have low interest rates and include opportunities to earn rewards.


But, little financial mistakes you make can add up to big negatives on your score. If you want to maintain your good credit, here are five ways to do it:


Pay all of your bills on time


Don’t wait until the last minute to pay your bills or let due dates pass. You need to pay all of your bills on time, including your credit card, car payments, student loans, utilities, internet, cell phone, rent or mortgage and more. Late payments will be reported to credit-reporting agencies, and before long you’ll see dings to your credit score.


An easy way to make sure your bills are paid is to set up automatic payments on all accounts.


Keep an eye on the amounts you owe


The amounts owned category of your credit report is based on your total debt and credit limit-to-debt ratio. Carrying a high limit that creeps too closely to your credit limit can hurt your credit score. It’s more important to pay your bills and keep a low debt. You should aim for a credit-limit-to-debt ratio of 70:30.


Don’t open several accounts at once


Just because credit cards for people with good credit are available to you, that doesn’t mean you should open too many at once. Even if you want to collect different rewards credit cards or you want to get a retail credit card to save a percentage on your order at checkout, you shouldn’t do it. Opening a few different accounts at once means hard inquiries will be made on your account, which dings your credit score. It also doesn’t look good on your credit report to rapidly increase your credit limit.


Don’t take out cash advances


There are always scenarios where plastic just won’t cut it and you’ll need some cash. Your good credit credit card may offer cash advances, but it’s not a good idea for you wallet or your credit score. Fees and immediate interest accumulation make these cash advances more difficult to pay back, which leaves you vulnerable to default.


If you do use a cash advance, make sure you have the money elsewhere to pay it back right away. Otherwise, lenders will report your default to credit reporting agencies, which will lower your credit score.


Don’t ignore your credit report


You may have good credit now, but if you don’t keep a close eye on your credit history, you might miss errors that could seriously affect your score. Remember that you can check your credit report three times a year, once at each of the three credit-reporting agencies: Equifax, Experian and TransUnion.




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The post Good Credit? 5 Tips to Keep it That Way appeared first on NerdWallet Credit Card Blog.






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Good Credit? 5 Tips to Keep it That Way




You worked hard to build up your credit and were rewarded with one of the best credit cards for good credit.


But now you have the challenge of keeping your credit score up.


A good FICO score ranges from 690-719. Credit cards for good credit have low interest rates and include opportunities to earn rewards.


But, little financial mistakes you make can add up to big negatives on your score. If you want to maintain your good credit, here are five ways to do it:


Pay all of your bills on time


Don’t wait until the last minute to pay your bills or let due dates pass. You need to pay all of your bills on time, including your credit card, car payments, student loans, utilities, internet, cell phone, rent or mortgage and more. Late payments will be reported to credit-reporting agencies, and before long you’ll see dings to your credit score.


An easy way to make sure your bills are paid is to set up automatic payments on all accounts.


Keep an eye on the amounts you owe


The amounts owned category of your credit report is based on your total debt and credit limit-to-debt ratio. Carrying a high limit that creeps too closely to your credit limit can hurt your credit score. It’s more important to pay your bills and keep a low debt. You should aim for a credit-limit-to-debt ratio of 70:30.


Don’t open several accounts at once


Just because credit cards for people with good credit are available to you, that doesn’t mean you should open too many at once. Even if you want to collect different rewards credit cards or you want to get a retail credit card to save a percentage on your order at checkout, you shouldn’t do it. Opening a few different accounts at once means hard inquiries will be made on your account, which dings your credit score. It also doesn’t look good on your credit report to rapidly increase your credit limit.


Don’t take out cash advances


There are always scenarios where plastic just won’t cut it and you’ll need some cash. Your good credit credit card may offer cash advances, but it’s not a good idea for you wallet or your credit score. Fees and immediate interest accumulation make these cash advances more difficult to pay back, which leaves you vulnerable to default.


If you do use a cash advance, make sure you have the money elsewhere to pay it back right away. Otherwise, lenders will report your default to credit reporting agencies, which will lower your credit score.


Don’t ignore your credit report


You may have good credit now, but if you don’t keep a close eye on your credit history, you might miss errors that could seriously affect your score. Remember that you can check your credit report three times a year, once at each of the three credit-reporting agencies: Equifax, Experian and TransUnion.




Image via iStock.


The post Good Credit? 5 Tips to Keep it That Way appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zC5Tpw

When to Apply for a Credit Card for Bad Credit

Applying for a credit card is dangerously easy. It only takes a few minutes, whether you do it online or fill out a paper form. But it’s a serious financial decision that should not be undertaken lightly.


If you’re a candidate for a credit card for people with bad credit, that’s even more reason to proceed with caution. Every time you apply for a credit card, your credit score takes a five-point hit. That’s no big deal if your credit is a healthy 750, but can make quite a difference if you’re trying to rebuild your credit from the low 600s or below.


Another part of your credit score—15%—is determined by the length of your credit history, which is calculated by looking across all your accounts to see how long they’ve been open. That means opening a new account brings down the average age of your accounts, and that can hurt your score.


Credit cards for people with poor credit serve an important purpose. Their value is not in the buying power they extend, but in the opportunity they represent to rebuild your credit. The best way to rebuild credit is to pay your bills on time and reduce the amount of available credit you’re using. That’s why your first move, if you already have credit card accounts open, is to make it an ingrained habit to pay the bills on time. Paying down debt is also very important, both for your credit score and for your overall financial well-being.


But if you don’t have any credit cards at all, it may be worth the small hit to your score to apply for a bad credit credit card. Once you’re approved, you must exercise iron control and charge no more than a third of the card’s available credit at a time. If you need to spend more than that in a given month, pay off the balance early so your new purchases don’t push your balance above that magic number even temporarily.


The bottom line is that you shouldn’t apply for credit cards you don’t need. Your score will take a hit when you hit the “apply” button, and cards for people with bad credit don’t tend to offer high credit limits, generous rewards or low fees anyway. So you should only apply for such a card if you really need one—especially if you don’t have any credit cards at all.




Caution image via Shutterstock.


The post When to Apply for a Credit Card for Bad Credit appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

When to Apply for a Credit Card for Bad Credit




Applying for a credit card is dangerously easy. It only takes a few minutes, whether you do it online or fill out a paper form. But it’s a serious financial decision that should not be undertaken lightly.


If you’re a candidate for a credit card for people with bad credit, that’s even more reason to proceed with caution. Every time you apply for a credit card, your credit score takes a five-point hit. That’s no big deal if your credit is a healthy 750, but can make quite a difference if you’re trying to rebuild your credit from the low 600s or below.


Another part of your credit score—15%—is determined by the length of your credit history, which is calculated by looking across all your accounts to see how long they’ve been open. That means opening a new account brings down the average age of your accounts, and that can hurt your score.


Credit cards for people with poor credit serve an important purpose. Their value is not in the buying power they extend, but in the opportunity they represent to rebuild your credit. The best way to rebuild credit is to pay your bills on time and reduce the amount of available credit you’re using. That’s why your first move, if you already have credit card accounts open, is to make it an ingrained habit to pay the bills on time. Paying down debt is also very important, both for your credit score and for your overall financial well-being.


But if you don’t have any credit cards at all, it may be worth the small hit to your score to apply for a bad credit credit card. Once you’re approved, you must exercise iron control and charge no more than a third of the card’s available credit at a time. If you need to spend more than that in a given month, pay off the balance early so your new purchases don’t push your balance above that magic number even temporarily.


The bottom line is that you shouldn’t apply for credit cards you don’t need. Your score will take a hit when you hit the “apply” button, and cards for people with bad credit don’t tend to offer high credit limits, generous rewards or low fees anyway. So you should only apply for such a card if you really need one—especially if you don’t have any credit cards at all.




Caution image via Shutterstock.


The post When to Apply for a Credit Card for Bad Credit appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1GW4Voa

How Long Will It Take to Go from No Credit to Good Credit?

When you have no credit, working your way up to a good credit score can make you feel like an impatient child on a long road trip, asking, “Are we there yet?” The difficult thing about credit scores is that they take a long time to build up but mere seconds to ruin.


If you start with zero credit and get a loan or a credit card, you’ll have a credit history but not a FICO score. This can make it tough to qualify for good credit credit cards. After six months of having a line of credit, you’ll have a FICO score, but it won’t be a perfect 850. If you make all your payments on time and borrow wisely, though, you could have a score over 700.


What can I do to improve my score right now?


Here are some ways you can give your limited credit history a boost:


Inherit your parents’ good credit


If your parents have good credit and one of their cards reports authorized user activity to the three credit bureaus, ask if they’ll add you as an authorized user. If they do, it will help diversify the types on credit on your report and improve your score.


Learn what counts


If you just got a credit card, take the time to learn how credit scores are calculated so you won’t make a rookie mistake, like forgetting to make a payment or hitting your limit.


Keep up the good work


Unlike bankruptcies and late payments, a good credit history stays on your credit report forever, as long as the accounts stay open. Make sure that you’re putting your best foot forward, even when no one’s pulling your score.


Age matters for credit scores


There’s one thing that all borrowers with perfect FICO scores have in common and younger borrowers lack: age.


Among the 0.2% of credit card users who have a perfect 850 credit score, the average age was 61, according to a 2011 report by SubscriberWise, a risk management firm. These elite borrowers had credit card files that were 30 years old, on average.


If you just got your first credit card, you’re not going to have a score over 800, no matter how hard you try. Instead of getting frustrated, make building your credit a long-term goal.


Keep accounts open — even ones you don’t use that often — so lenders can see your good borrowing behavior over time. Pay your bills punctually. Use less than 30% of your credit limit. By starting all these good credit habits early, your credit score will improve down the road.




Credit score illustration via Shutterstock.


The post How Long Will It Take to Go from No Credit to Good Credit? appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

How to Transfer a Balance from a Bad Credit Credit Card

If you’ve racked up some debt on a credit card, but have also improved your credit score by making consistent, on-time payments, you may be wondering: How do I transfer a balance from a bad credit credit card to a regular card with a lower interest rate?


A balance transfer can save you some serious cash on interest costs, especially if you transfer your debt to a card that offers a 0% APR period. Here’s what you need to know.


How balance transfers work


When you do a balance transfer, you are basically paying off your existing credit card(s) with a new one, hopefully with a lower interest rate. This will help you save on interest costs and hammer down the principal of your debt.


For example, if you’ve been paying 20% interest on your bad credit credit card with a $5,000 balance and paying just the minimum monthly payment of 2% ($100), you’ll end up paying $5,840 interest, according to TheCalculatorSite.


Transfer that balance over to a regular credit card with a 0% APR period of 12 months or longer, and you can take a big bite out of your credit card balance before any interest is charged.


Find a card that best suits you and apply


Keep in mind that balance transfers typically cost 3% to 5% in fees on the amount you are transfer, so a $5,000 balance transfer could cost anywhere from $150 to $250.


Factor in the length of the 0% balance transfer period versus the fee. If it’s going to take a while to pay off your debt, it’s best to look for the longest 0% period possible, because the interest savings will likely outweigh the fee.


If you plan on carrying a balance after the 0% period ends, you’ll need to consider what the ongoing interest rate is. And if you plan on making regular purchases on the card, see if the card offers any rewards on your spending.


Transfer your balance to the new card


Once you apply and get approved for the card, you’ll be able to do the balance transfer. Most banks allow you to complete a balance transfer online, but you can always contact the bank that you are transferring the balance to and ask them to help you.


Keep in mind that you’re still required to make minimum monthly payments on the new card. Failure to do so can result in a cancellation of the 0% APR promotion, so this is crucial. Consider setting up automatic monthly payments to be drafted from your checking account.


When it comes to your old card, continue making the minimum monthly payments if you still have a small balance after the transfer. If the card’s paid off in full, don’t cancel it: you’ll want to keep it open to maintain a low credit utilization ratio, which should help your credit score. But avoid running up new debt on the old card at all costs, as you’ll cancel out the benefit of the balance transfer and put yourself back where you started.


Transferring a balance from a bad credit credit card to a traditional card with a 0% APR promotional period can be a very smart way to pay down your debt. You just need to find a card that’s a good fit for your own personal situation and continue to make payments on time.




Image via iStock.


The post How to Transfer a Balance from a Bad Credit Credit Card appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Credit Card Debt vs. Student Loan Debt: Which to Pay Down First?

For college graduates with student loans and credit card debt, paying off what you owe can be a daunting task. But with a solid plan, it doesn’t have to be. One of the first things you’ll have to hammer out is what you’ll pay down first—your credit card bill or student loan debt.


How to get started


Financial experts agree that you should always make at least the minimum monthly payment on both your credit card and student loan accounts. Paying on time will ensure that your credit history remains in good standing.


After that, credit card debt should be your top priority when it comes to making extra payments. The reason is simple—federal student loan rates are almost always lower than the interest you’ll pay on credit cards. The average interest rate on new credit cards in December topped 14%. By comparison, federal student loans for the 2014-2015 school year carried a rate of 4.66%.


If you can’t pay


Keep in mind that if you run into a financial hardship, you’ll have the ability to defer your student loan without hurting your credit rating. In some cases, the federal government will also pay your interest fees during a deferment. These options are not available with a credit card.


On the other hand, in the unfortunate event that you have to file for bankruptcy, your unsecured credit card debt can be discharged, or forgiven, by a court. Student loan debt can almost never be dismissed through a bankruptcy filing.


Verdict


On balance, it’s clear that paying down credit card debt, starting with the card that carries the highest interest rate, should take precedent over your student loan.


One method that will help you reduce and manage your debt is to apply for a 0% balance transfer card. That will allow you to transfer your high interest credit balances to a card with 0% APR introductory period.


But keep in mind that your 0% interest rate will eventually expire. That is why it’s important to pay off all or as much of the debt you transferred before the expiration, or you won’t be saving much money at all—money that you could have put toward paying off your student loan.




Image via iStock.


The post Credit Card Debt vs. Student Loan Debt: Which to Pay Down First? appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

How Long Will It Take to Go from No Credit to Good Credit?




When you have no credit, working your way up to a good credit score can make you feel like an impatient child on a long road trip, asking, “Are we there yet?” The difficult thing about credit scores is that they take a long time to build up but mere seconds to ruin.


If you start with zero credit and get a loan or a credit card, you’ll have a credit history but not a FICO score. This can make it tough to qualify for good credit credit cards. After six months of having a line of credit, you’ll have a FICO score, but it won’t be a perfect 850. If you make all your payments on time and borrow wisely, though, you could have a score over 700.


What can I do to improve my score right now?


Here are some ways you can give your limited credit history a boost:


Inherit your parents’ good credit


If your parents have good credit and one of their cards reports authorized user activity to the three credit bureaus, ask if they’ll add you as an authorized user. If they do, it will help diversify the types on credit on your report and improve your score.


Learn what counts


If you just got a credit card, take the time to learn how credit scores are calculated so you won’t make a rookie mistake, like forgetting to make a payment or hitting your limit.


Keep up the good work


Unlike bankruptcies and late payments, a good credit history stays on your credit report forever, as long as the accounts stay open. Make sure that you’re putting your best foot forward, even when no one’s pulling your score.


Age matters for credit scores


There’s one thing that all borrowers with perfect FICO scores have in common and younger borrowers lack: age.


Among the 0.2% of credit card users who have a perfect 850 credit score, the average age was 61, according to a 2011 report by SubscriberWise, a risk management firm. These elite borrowers had credit card files that were 30 years old, on average.


If you just got your first credit card, you’re not going to have a score over 800, no matter how hard you try. Instead of getting frustrated, make building your credit a long-term goal.


Keep accounts open — even ones you don’t use that often — so lenders can see your good borrowing behavior over time. Pay your bills punctually. Use less than 30% of your credit limit. By starting all these good credit habits early, your credit score will improve down the road.




Credit score illustration via Shutterstock.


The post How Long Will It Take to Go from No Credit to Good Credit? appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1zBVxpx

How to Transfer a Balance from a Bad Credit Credit Card




If you’ve racked up some debt on a credit card, but have also improved your credit score by making consistent, on-time payments, you may be wondering: How do I transfer a balance from a bad credit credit card to a regular card with a lower interest rate?


A balance transfer can save you some serious cash on interest costs, especially if you transfer your debt to a card that offers a 0% APR period. Here’s what you need to know.


How balance transfers work


When you do a balance transfer, you are basically paying off your existing credit card(s) with a new one, hopefully with a lower interest rate. This will help you save on interest costs and hammer down the principal of your debt.


For example, if you’ve been paying 20% interest on your bad credit credit card with a $5,000 balance and paying just the minimum monthly payment of 2% ($100), you’ll end up paying $5,840 interest, according to TheCalculatorSite.


Transfer that balance over to a regular credit card with a 0% APR period of 12 months or longer, and you can take a big bite out of your credit card balance before any interest is charged.


Find a card that best suits you and apply


Keep in mind that balance transfers typically cost 3% to 5% in fees on the amount you are transfer, so a $5,000 balance transfer could cost anywhere from $150 to $250.


Factor in the length of the 0% balance transfer period versus the fee. If it’s going to take a while to pay off your debt, it’s best to look for the longest 0% period possible, because the interest savings will likely outweigh the fee.


If you plan on carrying a balance after the 0% period ends, you’ll need to consider what the ongoing interest rate is. And if you plan on making regular purchases on the card, see if the card offers any rewards on your spending.


Transfer your balance to the new card


Once you apply and get approved for the card, you’ll be able to do the balance transfer. Most banks allow you to complete a balance transfer online, but you can always contact the bank that you are transferring the balance to and ask them to help you.


Keep in mind that you’re still required to make minimum monthly payments on the new card. Failure to do so can result in a cancellation of the 0% APR promotion, so this is crucial. Consider setting up automatic monthly payments to be drafted from your checking account.


When it comes to your old card, continue making the minimum monthly payments if you still have a small balance after the transfer. If the card’s paid off in full, don’t cancel it: you’ll want to keep it open to maintain a low credit utilization ratio, which should help your credit score. But avoid running up new debt on the old card at all costs, as you’ll cancel out the benefit of the balance transfer and put yourself back where you started.


Transferring a balance from a bad credit credit card to a traditional card with a 0% APR promotional period can be a very smart way to pay down your debt. You just need to find a card that’s a good fit for your own personal situation and continue to make payments on time.




Image via iStock.


The post How to Transfer a Balance from a Bad Credit Credit Card appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1C75BGH

Credit Card Debt vs. Student Loan Debt: Which to Pay Down First?




For college graduates with student loans and credit card debt, paying off what you owe can be a daunting task. But with a solid plan, it doesn’t have to be. One of the first things you’ll have to hammer out is what you’ll pay down first—your credit card bill or student loan debt.


How to get started


Financial experts agree that you should always make at least the minimum monthly payment on both your credit card and student loan accounts. Paying on time will ensure that your credit history remains in good standing.


After that, credit card debt should be your top priority when it comes to making extra payments. The reason is simple—federal student loan rates are almost always lower than the interest you’ll pay on credit cards. The average interest rate on new credit cards in December topped 14%. By comparison, federal student loans for the 2014-2015 school year carried a rate of 4.66%.


If you can’t pay


Keep in mind that if you run into a financial hardship, you’ll have the ability to defer your student loan without hurting your credit rating. In some cases, the federal government will also pay your interest fees during a deferment. These options are not available with a credit card.


On the other hand, in the unfortunate event that you have to file for bankruptcy, your unsecured credit card debt can be discharged, or forgiven, by a court. Student loan debt can almost never be dismissed through a bankruptcy filing.


Verdict


On balance, it’s clear that paying down credit card debt, starting with the card that carries the highest interest rate, should take precedent over your student loan.


One method that will help you reduce and manage your debt is to apply for a 0% balance transfer card. That will allow you to transfer your high interest credit balances to a card with 0% APR introductory period.


But keep in mind that your 0% interest rate will eventually expire. That is why it’s important to pay off all or as much of the debt you transferred before the expiration, or you won’t be saving much money at all—money that you could have put toward paying off your student loan.




Image via iStock.


The post Credit Card Debt vs. Student Loan Debt: Which to Pay Down First? appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1C75B9o

What FICO Score is Considered Fair Credit?




Average credit may be nothing to write home about, but you’re definitely in a better place than those with bad or no credit. Understanding how credit scores work and how to take yours from fair to good could open up new opportunities and lower rates for you down the road.


Your FICO score is a number that sums up your creditworthiness. It is a snapshot of your current credit standings and is used by banks in determining whether you’re worthy of a credit card and if so, which type.


Under the FICO scoring system, anything less than 630 is considered “bad credit,” a score from 630 to 689 is considered “fair,” 690 to 719 is a “good” credit score, and 720 to 850 is “excellent.”


As someone with a credit score between 630 and 689, you likely receive credit card offers for fair credit including cards with moderate interest rates and fees. You are still blocked from many of the premium cards with the best rewards offers, however. Gaining access to those cards would take good to excellent credit.


Moving your score up the ranks takes time and concentrated effort, but it doesn’t have to be difficult.


Your credit score is determined from a combination of your payment history, your credit utilization, new credit, the types of credit used and the length of your credit history. By paying attention to how your actions impact these factors, you can move out of the “fair” range and into good credit territory.


Some quick tips on increasing your credit score:


Always make your payments on time.


One late or missed payment can blemish your credit score. Automate your monthly payments, set reminders or take steps to ensure no due dates slip by unnoticed.


Limit new credit applications.


The more you ask for additional credit, the more likely those inquiries will hurt your credit score.


Track your credit score and review your credit report for errors.


Knowing where you stand will help you gauge how your efforts are paying off. Also, if you find errors on your credit report, getting them corrected could immediately raise your score.


Budget and use your credit wisely.


Don’t use your credit card to purchase things you can’t afford. Your credit cards aren’t an exception to your budget; they are part of it.


Fair credit isn’t a bad thing. You’re doing better than many people out there. But there’s certainly room for improvement. Moving your credit from fair to good could translate to better loan terms when you’re ready to purchase a home and better credit card offers from the banks.




Image via iStock.


The post What FICO Score is Considered Fair Credit? appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1AwEsM8

Why Am I Getting Bad Credit Credit Card Offers?




Most people receive credit card offers in the mail on a regular basis. But what if it slowly dawns on you that some of the offers in your mailbox are credit card deals for people with bad credit?


Don’t take it personally. If you’ve ever received invitations to join AARP even though you’re only 27, or coupons for a store that specializes in petite clothing even though you’re 5 foot 11, you know that advertisers don’t always get things exactly right.


But it’s possible that a credit card for people with poor credit may actually be right for you. For example, people with no credit history at all often have a hard time when applying for traditional credit cards. And with a run of unemployment or general bad luck, it’s lamentably easy for credit scores to dip below 630, which means you’re in low credit score territory.


If that’s the case, there’s no shame in applying for one of the major credit cards that caters to people with bad credit.


Bad credit credit cards differ from regular cards in a few key ways. They may be secured credit cards, meaning that you have to pay a refundable deposit to show the bank that you are serious about paying back what you borrow. They may have higher interest rates than cards available to people with stronger scores, and the rewards you’re offered may not be as juicy.


But these may be the best credit cards to apply for in your particular situation. Getting a credit card and being careful to pay the bills on time will go a long way toward rebuilding your score, which is crucial if you want to get ahead financially. Better credit isn’t just about being able to get the very best credit cards or even a mortgage. It also makes it easier to find a landlord willing to rent to you, get a better job and get car insurance.


And let’s face it: If you’ve contacted a bankruptcy lawyer recently, or have otherwise tipped credit card companies off that you may need to rebuild your credit, you may be receiving those particular offers for a good reason — because those cards are right for you.


The important thing is that you learn to use credit responsibly, build up your score and start paying down debt and saving a cash cushion so you’ll be able to ride out the next wave of unexpected financial challenges you encounter.


There’s no shame in needing to rebuild your finances. In fact, you should be proud of yourself for taking the necessary steps to provide financial security to yourself and the people you care about — even if that means applying for a credit card for people with poor credit.




Bad credit illustration via Shutterstock.


The post Why Am I Getting Bad Credit Credit Card Offers? appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/1sLYbZs

What FICO Score is Considered Fair Credit?

Average credit may be nothing to write home about, but you’re definitely in a better place than those with bad or no credit. Understanding how credit scores work and how to take yours from fair to good could open up new opportunities and lower rates for you down the road.


Your FICO score is a number that sums up your creditworthiness. It is a snapshot of your current credit standings and is used by banks in determining whether you’re worthy of a credit card and if so, which type.


Under the FICO scoring system, anything less than 630 is considered “bad credit,” a score from 630 to 689 is considered “fair,” 690 to 719 is a “good” credit score, and 720 to 850 is “excellent.”


As someone with a credit score between 630 and 689, you likely receive credit card offers for fair credit including cards with moderate interest rates and fees. You are still blocked from many of the premium cards with the best rewards offers, however. Gaining access to those cards would take good to excellent credit.


Moving your score up the ranks takes time and concentrated effort, but it doesn’t have to be difficult.


Your credit score is determined from a combination of your payment history, your credit utilization, new credit, the types of credit used and the length of your credit history. By paying attention to how your actions impact these factors, you can move out of the “fair” range and into good credit territory.


Some quick tips on increasing your credit score:


Always make your payments on time.


One late or missed payment can blemish your credit score. Automate your monthly payments, set reminders or take steps to ensure no due dates slip by unnoticed.


Limit new credit applications.


The more you ask for additional credit, the more likely those inquiries will hurt your credit score.


Track your credit score and review your credit report for errors.


Knowing where you stand will help you gauge how your efforts are paying off. Also, if you find errors on your credit report, getting them corrected could immediately raise your score.


Budget and use your credit wisely.


Don’t use your credit card to purchase things you can’t afford. Your credit cards aren’t an exception to your budget; they are part of it.


Fair credit isn’t a bad thing. You’re doing better than many people out there. But there’s certainly room for improvement. Moving your credit from fair to good could translate to better loan terms when you’re ready to purchase a home and better credit card offers from the banks.




Image via iStock.


The post What FICO Score is Considered Fair Credit? appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7

Why Am I Getting Bad Credit Credit Card Offers?

Most people receive credit card offers in the mail on a regular basis. But what if it slowly dawns on you that some of the offers in your mailbox are credit card deals for people with bad credit?


Don’t take it personally. If you’ve ever received invitations to join AARP even though you’re only 27, or coupons for a store that specializes in petite clothing even though you’re 5 foot 11, you know that advertisers don’t always get things exactly right.


But it’s possible that a credit card for people with poor credit may actually be right for you. For example, people with no credit history at all often have a hard time when applying for traditional credit cards. And with a run of unemployment or general bad luck, it’s lamentably easy for credit scores to dip below 630, which means you’re in low credit score territory.


If that’s the case, there’s no shame in applying for one of the major credit cards that caters to people with bad credit.


Bad credit credit cards differ from regular cards in a few key ways. They may be secured credit cards, meaning that you have to pay a refundable deposit to show the bank that you are serious about paying back what you borrow. They may have higher interest rates than cards available to people with stronger scores, and the rewards you’re offered may not be as juicy.


But these may be the best credit cards to apply for in your particular situation. Getting a credit card and being careful to pay the bills on time will go a long way toward rebuilding your score, which is crucial if you want to get ahead financially. Better credit isn’t just about being able to get the very best credit cards or even a mortgage. It also makes it easier to find a landlord willing to rent to you, get a better job and get car insurance.


And let’s face it: If you’ve contacted a bankruptcy lawyer recently, or have otherwise tipped credit card companies off that you may need to rebuild your credit, you may be receiving those particular offers for a good reason — because those cards are right for you.


The important thing is that you learn to use credit responsibly, build up your score and start paying down debt and saving a cash cushion so you’ll be able to ride out the next wave of unexpected financial challenges you encounter.


There’s no shame in needing to rebuild your finances. In fact, you should be proud of yourself for taking the necessary steps to provide financial security to yourself and the people you care about — even if that means applying for a credit card for people with poor credit.




Bad credit illustration via Shutterstock.


The post Why Am I Getting Bad Credit Credit Card Offers? appeared first on NerdWallet Credit Card Blog.






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Best Credit Card Offers for Entertainment




If hanging around the house isn’t how you typically spend your time, you’ll need a credit card that offers great entertainment benefits. But with all the credit card deals on the market these days, you might be having a hard time choosing the one that’s right for you.


But don’t worry – the Nerds are here to help. Here are the 3 best credit cards to apply for if you enjoy painting the town red:


Best overall: Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points



Citibank ThankYou Preferred Credit Card

Apply Now

on Citibank's

secure website



For earning extra rewards on all your leisure spending, the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points is the only card you need. With it, you’ll earn 2 ThankYou points per dollar spent on entertainment and dining out and 1 ThankYou point per dollar spent on all other purchases.

Wondering what constitutes “entertainment”? Everything from amusement parks to concert tickets to cultural events – no matter what you’re into, you’ll be earning extra rewards with the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points.


When it comes time to cash in your ThankYou points, you’ll have a wide range of options to choose from. But the Nerds recommend sticking to gift cards and cash equivalents so that you’ll be getting the most bang out of every point.


Also keep in mind that the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points gives you entrée to Citi Private Pass, a feature that hooks you up with access to exclusive events. This is just one more reason the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points is one of the best cards out there for your entertainment needs.


To get you started, the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points provides a decent signup bonus: Earn 20,000 bonus ThankYou® Points after $1,500 in card purchases within 3 months of account opening - redeemable for $200 in gift cards or other great rewards. And since it charges an annual fee of $0*, you can rock on without shelling out any extra cash.


Best if you like to hang with friends at bars: Chase Sapphire Preferred® Card



Chase Sapphire Preferred Credit Card

Apply Now

on Chase's

secure website



If meeting pals for happy hour or catching a game at the bar on Saturday afternoon is your favorite form of entertainment, be sure to bring the Chase Sapphire Preferred® Card along. With it, you’ll earn 2 points for every dollar spent on travel and dining out and 1 point per dollar spent on all other purchases.

Generally, points earned with the Chase Sapphire Preferred® Card are worth $.01 apiece. But if you cash them in for travel through Chase Ultimate Rewards, their value goes up by 25% each. This means that, if you choose this redemption option, you’re effectively earning 2.5% on your dining out dollars. (You’ll also have the option to transfer your points to participating frequent traveler programs at a 1:1 ratio when you’re ready to redeem them.)


And remember: Bars are usually coded as restaurants on your credit card statement, so you can expect to be earning sky-high rewards on every beer you buy.


If you enjoy traveling and go overseas frequently, think about packing the Chase Sapphire Preferred® Card in your carry-on. It comes chip-enabled and charges no foreign transaction fees.


Looking for a stellar signup bonus? The Chase Sapphire Preferred® Card won’t let you down. You’ll Earn 40,000 bonus points after you spend $4,000 in the first 3 months. The card does charge an Introductory Annual Fee of $0 the first year, then $95. But most barflies will get enough value out of the rewards rate to justify this expense.


Best if you prefer to entertain at home: Blue Cash Preferred® Card from American Express



American Express Blue Cash Preferred Credit Card

Apply Now

on American Express's

secure website



If you’ve elevated entertaining at home to an art form, you’ll want to keep the Blue Cash Preferred® Card from American Express close at hand. With it, you’ll earn 6% cash back on every dollar spent on groceries, up to $6,000 spent per year. You’ll also earn unlimited 3% cash back at gas stations and select department stores, and 1% cash back on all other purchases.

Because throwing a party usually involves buying a lot of food and drinks, you could end up cashing in big with the Blue Cash Preferred® Card from American Express when you prep for your favorite pastime. We can’t think of another card that offers a rewards rate this high at the grocery store, so taking advantage of it is a smart idea.


To sweeten the deal a bit, the Blue Cash Preferred® Card from American Express provides a signup bonus: Get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months. Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period.


The Blue Cash Preferred® Card from American Express does charge an annual fee of $75. But as long as you’re spending at least $27 per week at the grocery store, this cost is offset by the card’s high rewards rate. Party on!


Image via iStock.


The post Best Credit Card Offers for Entertainment appeared first on NerdWallet Credit Card Blog.






Source Article :http://bit.ly/16wgfMT

Best Credit Card Offers for Entertainment

If hanging around the house isn’t how you typically spend your time, you’ll need a credit card that offers great entertainment benefits. But with all the credit card deals on the market these days, you might be having a hard time choosing the one that’s right for you.


But don’t worry – the Nerds are here to help. Here are the 3 best credit cards to apply for if you enjoy painting the town red:


Best overall: Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points



Citibank ThankYou Preferred Credit Card

Apply Now

on Citibank's

secure website



For earning extra rewards on all your leisure spending, the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points is the only card you need. With it, you’ll earn 2 ThankYou points per dollar spent on entertainment and dining out and 1 ThankYou point per dollar spent on all other purchases.

Wondering what constitutes “entertainment”? Everything from amusement parks to concert tickets to cultural events – no matter what you’re into, you’ll be earning extra rewards with the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points.


When it comes time to cash in your ThankYou points, you’ll have a wide range of options to choose from. But the Nerds recommend sticking to gift cards and cash equivalents so that you’ll be getting the most bang out of every point.


Also keep in mind that the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points gives you entrée to Citi Private Pass, a feature that hooks you up with access to exclusive events. This is just one more reason the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points is one of the best cards out there for your entertainment needs.


To get you started, the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points provides a decent signup bonus: Earn 20,000 bonus ThankYou® Points after $1,500 in card purchases within 3 months of account opening - redeemable for $200 in gift cards or other great rewards. And since it charges an annual fee of $0*, you can rock on without shelling out any extra cash.


Best if you like to hang with friends at bars: Chase Sapphire Preferred® Card



Chase Sapphire Preferred Credit Card

Apply Now

on Chase's

secure website



If meeting pals for happy hour or catching a game at the bar on Saturday afternoon is your favorite form of entertainment, be sure to bring the Chase Sapphire Preferred® Card along. With it, you’ll earn 2 points for every dollar spent on travel and dining out and 1 point per dollar spent on all other purchases.

Generally, points earned with the Chase Sapphire Preferred® Card are worth $.01 apiece. But if you cash them in for travel through Chase Ultimate Rewards, their value goes up by 25% each. This means that, if you choose this redemption option, you’re effectively earning 2.5% on your dining out dollars. (You’ll also have the option to transfer your points to participating frequent traveler programs at a 1:1 ratio when you’re ready to redeem them.)


And remember: Bars are usually coded as restaurants on your credit card statement, so you can expect to be earning sky-high rewards on every beer you buy.


If you enjoy traveling and go overseas frequently, think about packing the Chase Sapphire Preferred® Card in your carry-on. It comes chip-enabled and charges no foreign transaction fees.


Looking for a stellar signup bonus? The Chase Sapphire Preferred® Card won’t let you down. You’ll Earn 40,000 bonus points after you spend $4,000 in the first 3 months. The card does charge an Introductory Annual Fee of $0 the first year, then $95. But most barflies will get enough value out of the rewards rate to justify this expense.


Best if you prefer to entertain at home: Blue Cash Preferred® Card from American Express



American Express Blue Cash Preferred Credit Card

Apply Now

on American Express's

secure website



If you’ve elevated entertaining at home to an art form, you’ll want to keep the Blue Cash Preferred® Card from American Express close at hand. With it, you’ll earn 6% cash back on every dollar spent on groceries, up to $6,000 spent per year. You’ll also earn unlimited 3% cash back at gas stations and select department stores, and 1% cash back on all other purchases.

Because throwing a party usually involves buying a lot of food and drinks, you could end up cashing in big with the Blue Cash Preferred® Card from American Express when you prep for your favorite pastime. We can’t think of another card that offers a rewards rate this high at the grocery store, so taking advantage of it is a smart idea.


To sweeten the deal a bit, the Blue Cash Preferred® Card from American Express provides a signup bonus: Get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months. Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period.


The Blue Cash Preferred® Card from American Express does charge an annual fee of $75. But as long as you’re spending at least $27 per week at the grocery store, this cost is offset by the card’s high rewards rate. Party on!


Image via iStock.


The post Best Credit Card Offers for Entertainment appeared first on NerdWallet Credit Card Blog.






Source Article http://ift.tt/1y39EC7