Bad Money Habits

Whether you’re trying to build credit from scratch or improve your credit standing, bad credit credit cards may just be the best and easiest option you got. The emergence of various financial institutions that cater to people with bad credit standing has made it possible for various consumers to make purchases out of their credit cards. But as with other types of loans, credit cards for people with bad credit come with important rules and regulations that every credit cardholder should be aware of in order to make the most of their credit cards and at the same time avoid getting trapped in a cycle of debt.

First is to find out your credit score. It’s important to know such information so you’ll know how much you need to work for. The credit card you can be approved of may depend on your credit score. For now, as you are just starting to build or rebuild your credit score, it’s best to settle for credit cards for bad credit standing.

Then, you need to find a good and reputable institution that offers bad credit credit cards. There are several of them online, all claiming to offer the best and most reasonable terms. However, it is recommended that you shop around and compare all the offers. This way you can find the best repayment terms and the lowest rates and charges as possible.

Once you’ve found a bad credit credit card provider, make sure to understand the terms and conditions in order to avoid further financial problems.

Finally, you need to use your credit card with caution in order to avoid more debt and to avoid further ruining your credit score. Make small purchases and buy only things that you can afford to pay. Remember that the rates and charges for credit cards for bad credit people are higher than the other types.

You need to wise up with your finances by borrowing only when necessary. For instance, online loans may have helped you a couple of times, but if most of those times constitute having to buy a new gadget or designer shoes, then your priorities are skewed.

Online loans can help you out in different financial circumstances, but to truly maximize it, these circumstances should constitute a “need” than a “want.” For instance, if you need medication very badly, waiting for your banks’ approval of your loan will take time. But if you take bad credit loans, you’ll get the money you need very promptly.

Bad Credit Reputation Vs Good Credit Reputation

Bad credit puts people in really bad situations where interest paid is high and credit just accumulates with interest. It is just a tragically downward spiral where debtors just keep swimming into debt and are not able to come out of it. Lenders are like predators that are keen on the interest that can be collected from them.

Good Credit Reputation

Bad credit

Bad credit is the term used when borrowers are unable to pay back the credit amount. They default in returning back the loan taken and do not pay the interest either. When lenders lend money to such bad creditors they face an enormous risk in lending such money to defaulters. Bad creditors find it hard to get loan amounts from financial institutions too.

 

Effects of a bad credit rating

A credit is termed as bad credit depending on various factors such as amount owed, history of credit payments and the new enquiries of credit. The history of credit payment gives details about the repayment of loan on time or default amount, the total debt amount of mortgage, bill collections, credit cards and other debts of the individual The lender may have a mix of credits such as car loans, credit card , mortgage loan, etc. The credit score is very low for a person who has a bad credit history. In such cases he will not be able to get loans easily and his interest rates just keep increasing out of proportions making his payments almost double up with increasing interests.

 

Good Credit

Good credit is when the borrower borrows money and repays it completely and within the stipulated period. Having a good credit rating enables a person to borrow money for all purposes such as car loans, credit card purposes and for home mortgage loans too. A person gets good credit rating when his payment by credit card is fully honored and his monthly payments for his car and mortgage loans are paid promptly. The credit bureau is updated about the credit payments from credit reports and he gets a good credit.

 

Effects of a Good Credit Rating

When a person gets a good credit rating, he can get loans easily. The loans are available at lower interest rates as his credit history is good. He gets a good reputation at his workplace and at other places whenever he uses his credit card as his records for credit payment are good.

 

To err is human. There are many situations that put people in poor financial conditions. However doing the best to come out of debts and making prompt payments help people to come out of financial downturns. Cutting down on expenses, keeping fixed budgets and sticking on to expenses within budgets, working extra time to get out of bad credit loans are some of the measures that people can do to modify their bad reputation.  Availing bad credit loans are extreme steps that should be avoided to get away from bad credit ratings. Keeping a check on the credit ratings will help to improve the financial position of the borrower.

 

Credit card for bad credit- Eligibility to get

bad credit eligibilityToday, many people are interested in building or rebuilding their credit. When it comes to choosing the credit cards for bad credit, there are two common types available such as secured and unsecured credit cards. To improve your credit rating, you can take the benefits of free access to the internet to your credit report summary as well as your credit score. The credit one is a fully functional and unsecured credit card option that does not require depositing any funds. Once you use this, you will earn 1% cash back rewards automatically and also able to buy any items under the specific terms and conditions.

There are lots of credit cards available, but the unsecured credit card for bad credit is the best choice among all others. There are three top reasons available to recommend this unsecured card for people that include:

  • The main reason is that it is not a secured card, so people do not have to make any deposit.
  • This type of card has an ability to get more rewards for purchasing gas and groceries. But the secured cards do not provide any rewards at all.
  • After making many payments on time, you can secure the credit line increase.

The advantages of having a secured credit card with bad credit

If you have a bad credit, the secure credit card is a right option to use that includes the following benefits such as:

  • The major benefits of using secured credit cards are improving the individual’s credit history, which becomes most essential eligibility criteria for those who apply for a loan in the future.
  • To get a secured credit card, there is no need of any credit card income proof to submit.
  • Most of the banks offer flexible options to the users for depositing amount. It does not set any low deposit requirement.
  • The individuals can also gain more interest on the deposit, which becomes a good way to generate returns.
  • You can also apply for add-on card to get a credit card that helps to improve your credit history.
  • When you move to some other city and do not have any permanent address, there is no need to submit any ID proof and address proof to get a secure credit card.

Things to consider while applying for a card with poor credit

Once you decide to get credit cards for bad credit, there are some important points to be considered in your mind that includes:

Annual fee

It remains vary or fixed every year

Charges

You should be well aware of different charges in advance. Once your card payment cheque gets bounced, the payment is made late.

ATM withdrawal

If you are using a credit card at an ATM for withdrawing cash, you should be aware of the charges both at the same bank and other bank.

Know the interest rate charged

In case of using secured credit card, you should know the charge of whether interest rates higher or lower.

 

107 Easy Ways for Saving Money

ways for savingsMaybe saving is the hardest thing to do. Especially, when the salary comes, it is hard to manage the eager to shop. Ironically, we regret after spending too much money on something. Sarcastically, the money we spend is parallel with the regrets we feel. Therefore, I will give you 7 easiest ways to save money, especially when you are shopping.

List things to purchase

It is very important to make the list of stuff purchase. The list will make you focus only purchasing the listed stuff. List only the things you need. Do not purchase the speculated things. So, purchase only the things you use or consume. Do not think like “how if I need this” or “are we gonna need that”. these kinds of thought will encourage you to purchase more.

 

 

Bring cash to shop

You have to bring cash instead of a card. More importantly, bring just a bit more from the main budget. the cash in your hand can make such thought that you have only that amount. However, bringing the card can suggest that you have unobvious money limit. Therefore, people who habitually bringing the credit card often experience a financial problem related to credit card.

Shopping when your stomach is full

Shopping when you starve, psychologically makes you want to purchase lavishly. When your stomach is full, your brain will send the signal that you feel enough. Meanwhile, when you are starving, you will tend to think that you need more things to buy. More importantly, shopping when your stomach is full will avoid you to buy meals during shopping, that is, of course, will spend more budget.

Go alone for shopping

Commonly, we see people do shopping with family or friends. However, it is very recommended not let your friends or family accompany you. bringing family members, especially kids can spend more budgets. Moreover, friends tend to influence you purchasing unimportant stuff. They tend to support you purchasing things you want, not you need. Whereas, shopping alone lets you making a logical decision.

Do not scroll online shops often

These days, although technologically easier to shop, the habits of exploring online shops can make you lavish. People tend to purchase things they do not need because the stuff is visually looked interesting. Sometimes, only because of the trend, people follow the popular stuff, not because they need to.

Make foods by your own

If you live by yourself or with family, as much as you can, do not have a habit of purchasing your daily foods. Purchasing meals will spend more budgets absolutely. Purchasing meals means you are not only paying the food, but also the cooker, the restaurant tax, etc. More essentially, if you live with family members, it is healthier to make your own meals.  Often, the budget to make certain food is the same with ready-to-eat meals. By purchasing only the ingredients, you can make more portions.

Turn off unused electricity

Electricity savings should not be only during the earth day. you need to make it as your habit. Do not turn on the room that is not used. Right after you charged the cell phones or laptops, put off the cable soon. When you are sleeping, turn off the lamp and unused room.