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[C1196]Credit Card Bad Credit Rating

by Andre Vas, And

All of the above can block your access to obtaining a major credit card, such as VISA or Mastercard.

But bad credit is not the only reason you can be denied a major credit card. Some people simply have never used credit. People who like to pay cash only, have never financed a car, taken out a college loan, or a mortgage may have zero experience with credit. In that case, most card companies will reject your application, not because you have bad credit -- but because you have no credit rating.

Many women who marry young and do all their borrowing under their husband's name often find themselves with no credit rating after they are widowed or divorced. Thousands of women have been denied loans and credit cards on that basis.

Still other people carry too much debt to be considered a good risk. If you have a car loan, a student loan, a mortgage, two or three -- out cards, you are unlikely to be granted another credit card.

But in any and all of the above cases, you can still obtain a credit card. No matter how bad your credit, and even if you have declared bankruptcy, you can still be granted a VISA or Mastercard with a limit as high as $5,000, if you know the right company to call, and how to make your application.

We are going to reveal these card companies and the methods by which you can obtain a VISA or Mastercard later in this report, but first, let's talk about some of the other things you really should know about credit cards, including annual fees, interest rates, credit reports and more.

Your Credit Rating

How do credit card companies decide if you are a good credit risk or a bad credit risk? Well, it's sort of a Big Brother thing. There are several large agencies in America which track the borrowing and buying behavior of just about every single American who has borrowed money at one time or another.

The four major credit rating agencies are:

CSC Credit Service :: (Phone: 800-392-7816)
TRW Information Sys. :: (Phone: 800-392-1122)
Equifax :: (Phone: 800-685-1111)
Trans Union Corp. :: (Phone: 800-851-2674)

When you send in an application for a credit card, the card company contacts one of the above agencies, which pulls your file, if one exists, and let's the company know if you have any bad debts in your background.

If you have never borrowed money or used credit of any kind, your name will not appear in the data base of any of the above. If you have, there will almost certainly be information about you. If you have ever defaulted on a bill, or walked away from a debt owed, that information will be available. If you have never defaulted on a loan, but have made frequent late payments, that is recorded, too, and goes against your credit rating.

25 Percent Error Rate

If this sounds a bit like Big Brother, most would agree with you that it is. It's scary to think that some large anonymous corporation is keeping a file on you, but it's true. Furthermore, they will share your file with any lending institution that wants to know something about you. That's the price you pay to obtain credit. You've heard the statement, "there ain't no such thing as a free lunch."

When it comes to the game of credit, the lunch is definitely not free, neither in the monetary sense, or in the realm of personal freedom.

To top things off, credit agencies make errors in as many as one-fourth (25 percent) of all their reports. At this minute, false information about you may be ruining your credit rating.

To check your credit rating for errors, call the agencies at the numbers I provided above. They will request that you send them a written letter asking for a copy of your credit report. They will send you a copy of the information they have about you.

Now let's look at how card companies make the big bucks -- interest rates.

Interest Rates

A few decades ago there were laws against charging the kinds of interest rates credit cards get today. Exorbitantly high interest rates were called "usury," and were forbidden by federal law. Just 30 years ago loaning money at 20 percent would have landed any banker in prison. Such rates were the territory of loan sharks and organized crime.

Today, however, it's standard business. Some cards have rates approaching 21 percent. Some product manufacturers, such as Apple Computer, have credit plans that push a whopping 23 percent.

Most credit card companies attract customers with super low interest rates, sometimes as easy as 5 percent. But what they only tell you in the fine print, which few people bother to read, it that the interest rate jumps back up after six months. Many cards that start you out at 6 percent soon jump to 18 percent, or higher. By that time, most people have chalked up a balance and are stuck. Most people simply fail to notice when their rate increases. Credit card companies count on that. They like who take no interest in details. If you don't watch them, they'll watch you -- and your wallet -- and dip into it in the most insidious ways.

No Annual Fee Cards

Some credit card companies charge no annual fee for use of their card. Annual fees range from $18 to $55. You pay it every year simply for the privilege of using the card. Other companies charge no annual fee. You might think, then, that this is a better deal. Most often they are not. Cards with no annual fee almost always have a higher interest rate. If you leave a monthly balance, you'll always pay more than the annual fee in interest charges. Only if you never leave an unpaid monthly balance can you benefit form a card with no annual fee.

Perks and Freebies

One of those insidious ways is the offer such perks as frequent flier miles or annual rebates. Use the card so often, and get X amount of frequent flier miles. Use your card, and get credit toward the purchase of an automobile. Is this a good deal? Hardly ever. As you might have guessed, the offer of rebates and gifts is simply an inducement for you to pay super high interest rates. Unless you are a big spender and travel a lot, you'll rarely benefit from this kind of promotion.

Be Choosy

In short, never sign up for a credit card until you compare rates. Shop around. Credit card companies are just as competitive as any other kind of business. That means interest rates that vary widely. In general, never go for a card that is five percent higher than the current prime rate.

How To Get A Lower Rate

What if you are already on the hook with a major credit card with an agonizing rate of interest? Pick up the phone, call your card company, and get tough. Often, if you ask for a lower interest rate, you'll get one -- it's as simple as that.

As further incentive, you can threaten to transfer your balance to another card company with a lower rate. Many card companies are more than willing to take you on as a customer by paying off one of their competitors for you. Of course, you are then beholden to them. That's okay if you score a lower interest rate.

How Anyone Can Get a Credit Card

Now what about all of you "hopeless cases" out there. What if you have deplorable credit, or no credit rating at all. You may have already been turned down by a half-dozen card companies. What can you do?

First, you should think long and hard about why you want a credit card in the first place. If you have a history of bad credit, a credit card may be the last thing you need. Many people feel that credit cards and the debt they lead people into is a modern form of slavery.

Credit cards are almost magically deceptive and alluring. They get at the deepest psychological lever of the human mind -- a lever which allows people to have the feeling they are getting something for free, when in fact, they are paying two, three, four, even ten times as much for that product because of the interest they will pay on each purchase.

On the other hand, not having a credit card is becoming less and less practical in modern America. You can't rent a car without a credit card. Carrying cash is dangerous. Checks are not accepted everywhere -- and traveling to another city or country is extremely difficult without the confidence and identity a credit card brings.

A Secured Card

If you decide you really need and want a credit card despite your past problems with credit, you should get what is called a secured credit card. Even people who have declared bankruptcy are granted secured cards.

A secured card works this way: you pay a lump sum of cash upfront either to your bank or the card company itself, usually from $200 to $2,500. The card company will then grant your credit for up to 150 percent of the amount of your deposit. If you pony up $500, you will be granted a $750 credit line. If you put up $1,000, you will get $1,500 in credit, and so on.

Your deposit money will earn a very nice 4 to 5 percent interest while it is held as collateral by your bank or the card company. The deposit money acts like a buffer for the lender. In the event you default on your card debt, the lender gets to keep your money. They may still incur a net loss, but the risk is far less.

Additionally, the interest you gain on your deposit will offset the interest on your monthly balance if you have one. If you get a secured card with an 18 percent interest rate, you can feel good about the fact that your pre-payment is earning 5 percent.

Which card companies offer secured credit card plans?

The following:
(At the time of writing, these details are correct. If they change by any chance, you'll have to look up the institutions in the Yellow Pages, or simply do a search online.)

CitiBank -- Minimum deposit is $300, which earns 4%.
Call: 800-933-2484

Federal Savings Bank -- Minimum deposit is $250, which earn 2.5%.
Call 800-285-9090

Orchard Bank -- Minimum deposit is $400, which pays 4%
Call 800-873-7307

Key Federal -- Minimum deposit is $300, which earns from 4% to 5%.
Call 800-228-2230

Signet Bank -- Minimum deposit is $200, which earns 5%.
Call 800-333-7116.

Using a secured credit card can also help repair your credit rating if you use it responsibly over a number of years.

Even if you do not have bad credit, a secured credit card is recommended for anyone who wants the safety and convenience of a credit card. Secured cards are a safe, responsible way to control your spending, and you actually earn money though interest on your deposit while you enjoy the use of your card.

However, many of us don't realize that thousands of men and women every year find out they have bad credit due to credit fraud, and if you're not 100% sure on how this happens, it's a method by criminal organizations that are stealing your identity and using it for financial criminal activities. Criminals do this by obtaining your credit information which can be as simple as getting their hands on your credit card or debit card numbers and your security access codes.

Now you may be wondering how they do this, and some methods that are common are as simple as getting a duplicate copy of your credit card copies out of your home or business garbage bin, or another method that is taking the Internet by storm, called Phishing.

This is where they send you an email to visit their site, and it looks exactly like your financial institution or membership's website. They request that you enter your personal data to update your credit accounts, and when you try to sign into the site by entering your personal information, the site will come up with error messages, but in the backend they captured all the personal information from you to start doing some financial damage!

Yes, mistakes with accounts do happen on occasion, but if you don't already know this, there are absolutely no companies that I know of out there that will contact you via your email address to correct personal information.

Talk to any banking institution or reputable online business that holds your personal data, and they will tell you they never contact customers for personal updates via the Internet. What they do in this case is contact you with a written letter, and have you contact them directly to verify personal information before making any updates or changes.

Why Are So Many People Trying To Repair Negative Score Reports When They Shouldn't Have To?

Many individuals that never had their identity stolen before probably scratch their heads and wonder how this can happen, and it occurs more often than you actually think. What it comes down to is that many people don't monitor all their credit cards, and they don't check their statement balances for errors as often as they should.

Also you can believe this or not, but when you move, how many times have you forgotten to forward your new mailing addresses to the credit card companies? Even if you do contact credit and banking institutions after you move into your new home, your card statements or new credit cards may already be sent out without you knowing, and you may not catch them in time.

I see it all the time, and in my home I still get old mail from the previous owners! I shake my head, because this is what the criminal organizations target every day, and you heard right, EVERY DAY! This is their livelihood, and they check for this type of mismanaged mail every day just like when you go to your office and check your work emails.

Once they come across an envelope that is sitting on your condo or apartment counter, as well as your home mailbox that is addressed ?Return to Sender?, or ?Recipient has Moved?, the thieves target this type of mail quickly, and they know what the credit card and debit card envelopes look like.

Before you know it, they have all your information, and they have won half the battle by stealing your personal identity, and eventually destroying your credit rating. Even though many credit companies, banks, and retail stores have security procedures, they're not always prepared for criminal activities such as phishing, and it is becoming a real concern, because this method can fool even the smartest people out there!

What Happens Once My Identity Has Been Stolen, And My Credit Is Abused?

When your identity has been taken by thieves and used for criminal activity, it will all come down to how you monitor your credit spending, and also how you often you check your ?Bureau Reports? from companies like Equifax. If it's not caught in time, your credit can be abused, and you may have accounts cancelled without you even knowing it's happening until it's too late!

If You Don't Periodically Check Your Credit Bureau Reports, You May Find A Surprise!

One of the major reasons why many people are surprised about their bad credit rating when they know they didn't do anything wrong, is when you don't check your credit activity reports periodically with your credit bureaus, this is why serious financial situations are not caught in time.

You are responsible in checking often with these bureaus, because if there are any reported credit issues, this is where you will find them. If you happen to detect any fraudulent activity, you must report it immediately. The quicker you catch the problems, the better chance you will be fixing them, rather than repairing your credit with creditors down the line.

At least every 6 to 12 months you should request by letter a complete report so you can go through it thoroughly, and not only catch fraud discrepancies, but also any errors that may have been issued by past creditors. If you feel you just don't have the time to monitor your reports, then there are many reputable credit-monitoring services out there that will do this for you for a monthly, or annual fee.

What Are The Main Steps To Prevent Me From Becoming An Identity Fraud Victim?

There are many steps to take to prevent yourself from becoming a victim of Identity Fraud, and the chance of having your credit rating damaged. Below I will list some of the most important ones, but there are many more steps that you should look into by contacting the local credit bureaus and government fraud protection agencies.

? Make sure you destroy all carbon copies of credit card and debit card transactions.

? Do not respond to any suspicious emails claiming to be your banking institution, or credit card companies. Even if you feel it's a legitimate email, contact the company by phone, and make sure they follow all security features, and then find out if there were any updates or personal information corrections.

? If you're planning to move, ensure that you contact all your banking and credit/debit card institutions you have an account with and change your address. It's also recommended to contact the mail service to have them re-route all your mail for a period of time they allow, so you will have enough time to contact everyone on your list.

? When you make your phone calls to change addresses, if any institution claims they have already sent out a card statement, or a new card, it may be your best interest to have them cancel that card, and re-issue a new one with a different card number. This is your choice if you feel that your information and credit is in jeopardy.

? Last point that I would like to express is that you should always be on top of your monthly transactions, and have a complete inventory of all your cards on when they expire. If you have several credit cards that you don't use, but you keep for certain reasons, then please make certain you check with the companies on occasion to see if there has been any activity without your authorization.

The end result is that you are responsible for all transactions on every card issued in your name, and if you happen to be a victim of credit theft or identity fraud, the bottom line is that you will have to prove to each company that you have outstanding debt with that it was not you making these transactions.

You may eventually get cleared of the problem accounts, but it could take years of your valuable time and frustrating effort. So be careful, and remember that preventative maintenance on your credit rating is far less stressful and time consuming than damage control after the fact!

Article Source : Check Credit Rating

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Both Andre Vas & William are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Andre Vas has sinced written about articles on various topics from Check Credit Rating, Finances and Credit Cards. . Andre Vas's top article generates over 201000 views. to your Favourites.

William has sinced written about articles on various topics from Kids and Teens, Bad Credit Loans and Travel and Leisure. William is the Author and owner of ?Free Credit Repair Information? available at Your source fo. William's top article generates over 3350000 views. to your Favourites.