Bankrupt Credit Card

Jun 5th, 2014 | By | Category: Legal

You might be asking are there any credit cards for people with bad credit, the simple answer is yes however it is a little more complicated than that. This article will attempt to explain the land of the low-interest rate credit cards and easy approval credit cards and remove part of the ambiguity so you can make an informed decision. Your aim should be to borrow at the cheapest rate so we’ll look for ways to find low APR credit cards and see if people who’re unemployed, on benefits or have CCJ’s can get one.

Anything below 620 is considered sub prime which means that you will be charged more to borrow the same number of money compared to a person who has a credit score of 620 or more. The lower you go the harder it becomes to get credit. The interest on outstanding balances will be high sometimes over 40%. You could consider prepaid cards which will be considered later in the article. You first action should be to take a look at your credit file and reveal what score you have. If you do not need to take out the credit card straight away then take your time to improve your finances as you will be in a better place to ask for a low-interest rate credit card.

If you’re bankrupt and have CCJ’s then there is not much chance you will be able to have a credit card, personal loan or mortgage. You’ve proven to the lender that you cannot manage your money. You might have extenuating circumstances but these are seldom taken into account. If you do have bad credit but are fortunately not bankrupted with CCJ’s then you’d be able to ask for some low limit high interest credit cards that are being offered by AQUA and Capital One. Beware as these cards come with very high levels of interest and if you cannot pay the outstanding balance on the credit card every month your debt will spiral out of control.

Bankrupt Credit Card???

There are an increasing number of lenders who’re turning their attention to sub prime credit cards. Easy to get credit cards for people with bad credit, and high limit credit cards for people with bad credit are part of the marketing techniques that are being used to entice customers to borrow at high rates of interest. Some of the lenders include Capital One and AQUA who realise that some people may have a low credit score but this is temporary and they’ll finally get themselves out of trouble. If you do decide to apply then Capital Once sometimes gives you a decision in 1 minute and you could end up with zero percent for 12 or 24 months depending on your circumstance.

Improving or rebuilding credit-No matter if you’re bad credit or no credit, when used responsibly a credit card is one the most effective way of improving credit ratings and scores. Responsible credit card use means making timely payments every month and not going over your available credit limit. You don’t required to pay your balance in full, just on time. A good rule of thumb is to not spend more than 15% of your available line.

If you have got a really bad history and score then it is unlikely that you will keep your hands on a Visa or MasterCard. However, it is not the end of the world as there are prepaid cards that you can then use to proove to the lending companies and banks that you’re capable of managing your money properly. You can apply for prepaid credit cards and the chances are you will get one even if you’re bad history and score. Using these cards are simple, you transfer money from your current account to the prepaid card, there is usually a charge of 1-3% depending on the way in which much you transfer in. You can then go and use the Prepaid card the same way you use your Visa and MasterCard. Unfortunately there are so many fees that are attached to prepaid credit cards such as application and  replacement fees, inactivity charges, transaction fees, and inflated exchange rate charges.

Some of the cards that you should check out are Lebara Money,   Tavelex Cash Passport Globe,  Travelex Cash Passport Currency. There are fees and charges associated to the card but they are not too excessive. If you do get a prepaid card you aim should be to rebuild your credit. Never miss a payment and top up regularly, all the payments that you make will be noted and your credit score will improve during a period of time after which you can request a low-interest rate credit card.

So there you have it, the simple response to the question is yes, you will either be charged lots of interest and have a low limit or will have to resort to charge cards or  prepaid cards to proove that enables you to manage your line of credit. You will not be able to apply to American Express, Citi Bank however Capital One and Aqua might have a suitable Visa or MasterCard for you. Over time if you are able to manage your debt properly and lower your debt to income ratio the chances are you will be able to apply for easy approval credit low-interest rate credit cards.

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