You have bad credit — it does not necessarily denote you have plague and you are forever intended to apply for the bad cards. Obviously, it can mean precisely that if you do not take appropriate steps immediately. Here are some things that you need to keep in mind.

The Bad Credit Cards Are Means To End

Yu have messed your credit. Do not expect to get platinum card with great interest rate. As you need to hit bad credit cards very first – ones with annual fees and higher than the usual finance rates.

There are lots of different types of bad credit cards but they can mostly be categorized as the prepaid cards, the secured cards and the unsecured cards.

The Prepaid Bad Cards – As these cards are in fact debit cards specially catered to the people having bad credit. In order to get one, you need to open bank account as well as deposit minimum money required. And this particular amount will serve as “credit limit”. Every time you buy anything with your credit card, money is subtracted from account and if money runs out, then you cannot use the credit card unless you are depositing the funds again.

but, this is not credit card as you are not actually borrowing the money, and therefore it will not actually improve the credit rating. However it gives the people with conveniences of the credit cards even though they are not capable to apply for real one because of their bad credit.

The Secured Bad Credit Cards – As these are good credit cards, but in order to apply one, you will need to open savings account, money deposited would be secured one as a collateral by issuing bank. Credit limit is been determined by amount that is deposited, or at times little more than allow cardholder allowance. If cardholder is failing to pay, then bank might take the hold of money in savings account.

Like the other bad credit cards, interest rates as well as other fees are thought to be much higher than the regular credit cards. Some banks might not report this accounts to the credit bureaus thus it is significant to ensure that bank does submit this reports if purpose is to get better cardholder’s credit score.

The Unsecured Bad Credit Cards – As these will work like the regular credit cards though the fees & interest rates are very much higher than the normal credit cards. The cardholder might start with the low credit limit, for about $250 that will boost little by little if account is been kept well. These cards generally need large open fees, & interest rates will be as huge as 25% whereas annual fees might go as huge as $100. However it is generally measured worth paying such price as they can actually get better one’s credit score. Again, it is significant to ensure that issuing bank will does report to the credit bureaus to make sure that credit score does perk up.

People with the bad credit score might still have the chance to get the credit cards. All thanks to the bad credit cards, people can stand the chance.

Find the best secured credit cards and more of Tom’s work at FINDsecuredcards.com.

When you originally applied for a credit card you were probably offered a £500 credit limit and over time you find that your credit card provider has increased your credit limit many times. Often they have increased it without you having requested an increase. After many years of using your credit card regularly your borrowing creeps up due to holidays, overspending, emergencies, treats, etc

In some cases the monthly interest and the payment protection insurance charged often means that you are not paying much off your credit card balance. If you only ever paid the minimum amount off your credit card each month then your credit card balance is unlikely to reduce by much.

Over the last twenty years we have seen the credit card companies reduce the minimum monthly repayment from 5% when first introduced to 2% today.

This has made borrowing money on your credit card more expensive as you are taking longer to repay the initial debt off and at the same time they have become more affordable if you only paid the minimum monthly repayment amount. This is of course a total contradiction if ever I heard one

If you spent £10,000 on your credit card and paid it back at the minimum monthly repayment of 2%; then it would take 47 years and 2 months to completely pay of the original balance, if you never used the credit card and it would cost you £16,221 in interest. When credit cards first introduced you had to make a minimum monthly repayments of 5%; it would have taken you 12 years to completely pay of the original balance borrowed and it would cost you £3,298 in interest and that’s if you never used the credit card.

Most people think their monthly repayment have become more affordable as they are now paying less for the same debt as they did twenty years ago. For example £10,000 paid back at the minimum monthly repayment of 5% per month is £500 per month; whereas the minimum monthly repayment of 2% per month is £200 per month.

Over the last twenty years as a nation we have become more affluent and our lifestyles have improved beyond our own beliefs. The credit card companies have increased our credit card balances and in order to keep up with our lifestyles we have continued to increase our borrowing and the use of our trusted flexible friend.

Over the last decade we have found it easy to consolidate our credit cards and our loans within our mortgages. This has been possible due to the increases in our property values, our earnings and the easy of borrowing money. Our day of reckoning has been due for a while and it seems all our chickens have come home to roost as most people have an unbelievable amount of credit card debt.

Each time we reach our credit limit the credit card companies increase our credit limits again and again. Then one day we discover that we are in debt to the credit card company for say £18,000. The question we should be asking is; are the credit card companies responsible for the amount of credit card debt we all have? Or should we have been more responsible in the way we used our credit cards.

After all Credit cards are woven into the very fabric of our lives, our finances and our society; many of us no longer carry much cash. We pay for everything with our credit cards and there is nothing that we cannot buy with a credit card. We use credit cards as though we have earned the money and it is in our bank accounts to pay for our purchases.

Contributing author Mark Aucamp has been providing Money Talk Blog with Money Saving Tips with regular posts and comments. Mark is acknowledged as having extensive experience in the field of Debt Management and providing Mortgage Advice and Solutions for the past 10 years. Mark is the Editor, administrator and author of the following Money Saving Tips Blog: – http://moneysavingtips.net moneysavingtips.net