Sub prime merchandise card

Prime vs. Sub-Prime Credit Cards

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You may have heard various credit cards or credit card issuers described as "prime" or "sub-prime." While there are no exact standards, there are general differences between these categories.

  • Requires good credit
  • Lower interest
  • Higher credit limit
  • Lower or no annual fee
  • Lower "nuisance fees" (e.g. late or over-limit fees)
  • Possible rewards, like frequent-flyer points
  • Low-rate balance transfer offers
  • Convenience checks
  • Grace period on purchases

  • Some bad credit acceptable
  • Higher interest rate
  • Lower credit limit
  • Higher annual fee
  • Higher "nuisance fees"
  • No rewards
  • Possible application and setup fees
  • Possibly no grace period on purchases

While some credit card issuers specialize in one of the two segments (First USA=prime vs. Cross-country=sub-prime), others have both types of products.

Providian used to be very sub-prime focused, but then introduced Aria for the prime segment, while NextCard started out as strictly prime, but has expanded with two sub-prime cards for applicants who are turned down for the prime version. So the wide variation in terms, fees, interest, etc. can be present even among the offerings of the same bank, with an effort to match the product to the particular customer. Some banks might use different names for prime and sub-prime cards, or others might label them similarly.

The terms of a sub-prime card can sometimes become more favorable. As the cardholder establishes a positive payment history (perhaps 12-24 months), and as his/her general credit situation improves (e.g. negative credit report items aging or expiring) s/he may be in a position to request changes from the card issuer. A phone call or letter asking for a higher limit, lower interest rate, annual fee waiver, etc. may work. Emphasize the positive (e.g. on-time payments, lack of recent problems with other creditors, etc.) If you have other cards with better terms, mention them to give a sense of competition. It helps if your balance is paid down, preferably to zero.

There is nothing wrong or bad about sub-prime credit cards, per se. If they didn't exist, then a large number of consumers would have much more difficulty when establishing or re-establishing their credit. It is a fact of life that, in many situations, the choice is between an expensive card or no card at all. Unfortunately, certain issuers have developed reputations for extremely poor customer service, and borderline-deceptive/fraudulent billing practices thus giving the entire sub-prime credit card industry a bad name. Check out the discussions on our credit bulletin board, to get an idea of which issuers have the most egregious misbehavior, and which ones have relatively satisfied customers.

Some consumers get upset over the higher interest and fees for sub-prime cards, but those things are simply part of the price of reestablishing blemished credit. Credit card issuers are aware that people with previously damaged credit histories tend to present a higher risk of default, so sub-prime cards are designed to compensate for that. It is about general trends and numbers among many thousands of consumers- it is not a personal judgement.

The features and pricing of prime cards are part of the rewards of maintaining a good credit history. Thus, it would be unreasonable to expect them to be available a relatively short time after experiencing multiple charge-offs or other seriously negative events.

Sub-prime cards can be an important tool for turning generally bad credit into good credit. They can be a "second chance" while negative credit report items are still visible. This tends to involve work, diligence, and yes, some tolerance for higher interest and fees. Eventually they will have served their purpose, and you can request better terms, or close the accounts to make room for the prime cards that you will hopefully qualify for by then. View sub-prime credit cards as stepping stones to bigger and better things.


How to Build Credit With three Easy ways?

One of the most effective ways to build your personal credit is to add new, positive accounts to your credit report.

When you add new accounts, your high credit limit (the total credit available to you) will be increased.

This is a big turn-on for potential lenders; the “pre-approved” offers will start arriving in your mailbox. The goal, of course, is to earn better credit as reflected in a higher credit score.

But, as in many things in life, there’s a catch-22. In order to GET good credit, you usually must HAVE good credit.

Ask anyone with a high credit rating, and they’ll tell you they are flooded with offers of credit cards with reasonable rates every single week.

However, there are ways for those of us with less than stellar credit ratings to add new credit accounts to our files. In this article, we’ll briefly describe a few methods, some good, some questionable.

Secured credit cards. This is a good but somewhat limited way to build credit. Secured credit cards are usually easy to get, in terms of approval. But, they require cash up front (the amount of the card) as a “secured” deposit. So your money is tied up in the deposit until you either close the card or convert it to an unsecured card after you’ve built your good credit history. The unsecured credit cards typically have lower credit limits-often the amount of the deposit. These are not the most effective way to add to your high credit limit, but at least you won’t be running up a credit card bill you can’t pay.

Sub-prime merchandise cards. This is a card attached to a line of credit that allows you to buy merchandise from a specific vendor (usually the company that sold you the card). In most cases, you buy the goods through a catalog or online mall. While there are some ‘shady” operators offering sub-prime cards, the legitimate ones can be helpful. Here is how it works: you buy $1,000 of merchandise. You put down $300 cash, and finance $700 on the sub-prime merchandise card, and make payments. Your credit line will be reported to one or more of the major credit bureaus, thereby increasing your high credit limit. The sub-prime cards are easy to get, and if you maintain a good payment history with them, you’ll soon receive pre-approved credit offers. Note: don’t confuse these merchandise cards with sub-prime credit cards! Sub-prime credit cards have very low credit limits and require a large fee upfront to open. Beware!

Authorized user accounts. Adding a family member or friend as an “authorized user” on an existing credit card account has long been used as a way to establish credit. Many parents add their children as authorized users in order to help them build their credit history. It benefits the “authorized user” since they now share the glow of the good credit rating of the original card holder. However, the creators of the FICO credit scoring system (Fair Isaac Corporation) announced they are changing the way their scoring models treat credit card accounts that belong to authorized user cardholders. This comes as shifty credit repair organizations were selling “authorized user” account access to consumers with credit problems. This credit repair loophole was part of the motivation for the FICO score change. So, it appears there’s no great advantage now, particularly if you have to pay some company to be named an authorized user.

Building good credit is definitely worth the effort. A logical way is to start with one or two new accounts, and make sure you keep current with your payments. Your credit score will thank you for it.

In times like these, good credit is more important than ever. You can take charge of your financial affairs, and reap the rewards of lower interest rates, and even lower insurance premiums.

And if you arm yourself with the right information, you can do it all yourself!

You Can find all the information you need here at www.selfcreditrepair.net

Credit Secrets Everyone Should know

We are all becoming much more educated when it comes to credit. We have to avoid financial ruin in these days of increasing bankruptcies and home foreclosures.

You may think you know all the in’s and out’s of getting and maintaining good credit. Let’s find out, as we present “credit secrets” that every American should know.

Your credit score may well determine how much you pay for health insurance. You knew that your credit score, sometimes called your FICO score, determines the interest rate you will pay on loans. But did you know that your FICO score may also play a role in setting your auto, life, and health insurance premiums? Insurance companies now request a copy of your credit report since they believe there is a relationship between your score and claims you might make against their policies.

Debit cards are more risky than carrying cash. Many of us have a debit card in our wallet. It may say VISA on the front, but it is a debit card that directly deducts funds from our checking or savings account every time we use it. So, what’s the problem? More than $600 billion is lost to debit card fraud every year. If you carry cash, and you lose your wallet or are robbed, at least your loss is limited to the amount in your wallet. With a credit card, your liability is limited to $50 in the event of fraud. Not so with debit cards. Carry a debit card, and you put your entire back account balance at risk.

Use sub-prime merchandise cards to build your good credit. These cards are available to families with poor credit, but the catch is you typically have to put down a deposit, and you can only buy from the company that sold you the card. But many sub-prime merchandise cards report to the credit bureaus, and therefore using one will help raise your high credit limit and restore your debt-to-credit ratio. All good news for your credit report.

ATMs will give you money you don’t have. Although this may sound like a good thing, it’s not! Many people are not aware that if they try to make an ATM withdrawal for more money than they have in their account, the ATM will allow them to do it, but the bank will impose an overdraft fee that can be as high as $35. That’s a stiff penalty to pay, if you only withdrew $20 in cash! The culprit is the bank’s universal default clause (sometimes called “bounce protection”).

Married women with joint credit, have no credit. If you are a married woman who holds all your credit accounts jointly with your husband, you have no credit yourself. If you ever get divorced down the road, you will have to start from scratch to build your own credit history. It’s better to start building credit in your own name now.

Maybe these facts aren’t classified “top secret,” but the more you know about how the credit business works, the better your financial picture will look.

In times like these, good credit is more important than ever. You can take charge of your financial affairs, and reap the rewards of lower interest rates, and even lower insurance premiums.

And if you arm yourself with the right information, you can do it all yourself!

You will find all the information you need here at www.selfcreditrepair.net

Bad Credit Repair : Secrets That Every American Should Know

It is your right as an American to know what bad credit information about you is being spread by the credit reporting bureaus.

Just contact the three major credit bureaus at the website annualcreditreport.com for your free copy once a year.

It is also your right to correct outdated or incorrect information in your credit report. That much should be common knowledge to every American by now.

But this article will introduce you to some little-known techniques that you can use to fix some of your financial problems.

Secret #1: The address you use when applying for credit makes a difference. If you don’t use your actual street address, but instead provide a mail box number, UPS store, or similar outfit on your credit application, it is less likely you’ll be approved. That comes up in the credit bureau systems as not being a real address.

Secret #2: It’s not enough to just remove negative information from your credit report; you must add positive accounts in order to rebuild your credit rating. One fast way to add a positive account is by getting a sub-prime merchandise card. But unlike a VISA or MasterCard, a sub-prime merchandise card only allows you to buy goods from a specific vendor. They are easy to get, and not only add a positive account to your credit report, but they also can raise your credit limit.

Secret #3: Being self-employed hurts your credit. If you are a sole proprietor, it is to your advantage to become incorporated. Lenders like stability, and employment with a company (even if it’s your own), looks better to them than someone who is self-employed.

Secret #4: Even if you have a good credit rating, you can still be over your head in debt. Your good rating is based on the past, but might have taken on more debt than you can handle. Before it impacts your credit rating, take action. Renegotiate your debts with your creditors in order to preserve your good credit.

Secret #5: It is false that by paying off your credit cards in full every month, you will have excellent credit. It is better to carry a balance, even though you’ll be paying interest on it every month. Keep a 10% to 30% debt to credit ratio. That demonstrates to potential new lenders that you are a solid, financial risk who can handle credit.

Secret #6: Avoid free credit report services. Most free services will give you the first 30 days free, and then nail you with a monitoring fee. You can get a free copy of your credit report once a year from an organization set up by the credit bureaus themselves.

Secret #7: Just one late payment can ruin all your hard work. If you’ve worked hard to clean up your credit report, don’t blow it by missing another payment date. Just one “late-pay” may have an impact on your credit rating.

In times like these, good credit is more important than ever. You can take charge of your financial affairs, and reap the rewards of lower interest rates, and even lower insurance premiums.

And if you arm yourself with the right information, you can do it all yourself!


ONLINE MERCHANDISE CREDIT CARDS

BUILD YOUR CREDIT AS YOU GO SHOPPING

Are you one of the many with bad credit or no credit established? Do you feel like you are stuck and have no means to begin the process of improving your credit score? Never again! The Merchandise Credit Cards offered by ValuePlus Financial can carry a credit line of up to $12,500. The majority of these cards will, regardless of past credit, be approved instantly online. For people with a lower credit scores, Merchandise Credit Cards are designed to help raise that score. If used judiciously, these cards provide an excellent opportunity for you to build or rebuild your credit, since they send reports to the credit bureaus. Review the various Online Merchandise Credit Cards offered below. Compare them, feature by feature. Once you decide on the one that is best for you, apply online using a secure server.

Sub prime merchandise card

Search through Online Merchandise Credit Cards Offers below.

Sub prime merchandise card

Determine which card is best for you by comparing offers side by side.

Sub prime merchandise card

Apply online by filling a secure application of the credit card of your choice.


sub prime merchandise card

Sub prime merchandise card

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