Archive for July 2012

Poor Rating Credit Cards – Credit Cards For People With Bad Credit

July 13, 2012

If you have anything less than a perfect credit score you could struggle to get the credit card that you want. This is because many card providers see people with a poor financial history as a high risk and given the current economic climate many are unwilling to take this risk and give credit to everyone that wants it. But fear not, if you have little, bad or even no credit at all or you have been refused elsewhere because of defaults and CCJs, there are now some great options available for you. Poor rating credit cards are now hugely popular and widely available. They are specifically aimed at those who have a bad credit history and what’s great with a poor rating credit card is that now you can get the financial freedom you what whatever your financial past.

The great things about poor rating credit cards is that they can be used exactly the same as standard credit cards in that they have worldwide acceptance, you can use them to make purchases on the internet, over the phone, in shops, retailers and restaurants and they have useful security measures. Credit cards are an easy way of financing purchases and they are a more convenient, not to mention safer alternative to carrying around large amounts of cash. The main benefit of a poor rating credit card is that you can actually use them to build or rebuild your credit rating as many of them come with a credit building facility. This means that as long as you use the card responsibly you will repair some of the damage to your credit score which will result in better loan and credit card terms and conditions in the future meaning you will be offered more credit and lower interest rates.

The main drawback of poor rating credit cards is that because you are considered to be more of a risk by the card providers the interest rates can be much higher than standard credit cards. You will also find that you are likely to be given a lower credit limit because of your credit history. Despite this if you use the card sensibly you will improve your credit score which will stand in your favour in the future when applying for financial products There can be fees, associated with these cards so always make sure you read the terms and conditions fully before applying. Make sure you compare poor rating credit cards through sites like Which Way To Pay so you can be sure you find the best card for you. 

Take Control Of Your Debts With A Consolidation Loan

July 5, 2012

If you are looking for a way to tackle your debts you might want to consider taking out a debt consolidation loan. You should consider all of your debt solution options however before you make your decision.

Consolidation loans are suited to those who are struggling to cope with multiple debts from multiple creditors. They way they work are essentially you take out a loan to pay off your existing debt. Consolidation loans therefore bring together all your expensive debts into what should be a single more affordable and manageable monthly payment. These loans should work out more affordable because they usually come with a lower interest rate than the average interest rate on all you existing debt combined. However, you need to make sure that this is indeed the case. To reduce your monthly outgoings even further you could look into repaying the loan over a longer period of time.

Please note that despite consolidation loans having the ability to make repaying what you owe lot more manageable ultimately it will not reduce what you owe. The amount you owe will increase so you need to make sure a consolidation loan the right option for you because the longer it take you to repay the loan, the more interest you will pay overall. Essentially therefore, consolidation loans can end up costing you more in the long run. Some would argue that you shouldn’t take out another loan on top of what you already owe as this increases the risk of further debt which is definitely an argument worth considering.

Consolidation loans are suited to those looking for a way to reduce their monthly payments which should help you get back on track with your finances and budgeting more effectively.