People with bad credit are often familiar with advertisements for secured credit cards with bad credit. You can get secured credit cards with bad credit scores and if you manage them wisely then you can improve your credit scores over time. You have probably seen the new prepaid credit cards. Some companies which supply prepaid credit cards with bad credit will report account activity to the major credit bureaus, but you will pay a fee for this service. They will only report your good credit activity for a period of one year and you must keep using the card and paying the fees for two years. You may be completely unfamiliar with unsecured credit cards for people with bad credit and you may think that they are a great idea, but there are many drawbacks.

Companies which offer unsecured credit cards for people with bad credit charge high fees. We looked at one that charges a $48 annual fee, a $29 account set-up fee, a $95 “program fee”, a monthly participation fee of $6 and if you want an additional card, you pay an additional $20. You may think that other unsecured credit cards for people with bad credit charge lower fees, but these are typical. These are not typical of the fees charged for “good credit” credit cards. With bad credit, you pay more and get less.

Companies which offer unsecured credit cards for people with bad credit assign low credit limits. The initial credit limit is typically around $250, depending on the company. Total fees are $178 or $198, if you want two cards. This means that you have $72 or $52 worth of available credit. You are paying $178 for $72 worth of credit and just for the privilege of carrying around this card. Companies that approve credit cards with bad credit scores believe that they can charge whatever they want. They believe that you are desperate for credit.

Companies which offer unsecured credit cards for people with bad credit charge high interest rates. The annual percentage rate (APR) for the card that we looked at is 9.9% for purchase, 19.9% for cash advances and will increase to 19.9% if you are late making a payment twice in one year. The average APR is about 13%, but as low as 0% on purchases for “good credit” credit cards. With bad credit you will not be able to qualify for this 0% APR special.

Companies which offer unsecured credit cards for people with bad credit suggest that these cards may improve your credit score. But they probably will not. According to Fair Isaac, the company that invented the current credit scoring process in the United States, many factors affect your credit score. Simply having a credit card will not improve your credit score. If you have “available credit” then it can improve your credit score, but $72 worth of available credit is not enough to make a difference. Even applying for credit cards with bad credit may decrease your credit score. When you apply, you authorize the company to look at the information on your credit report. This is recorded as an inquiry. Numerous inquiries have a negative effect on credit scores.

So, before you apply for credit cards with bad credit, take some time to learn about what affects your credit score and learn about credit repair options. If you have the money to pay the fees associated with unsecured credit cards for people with bad credit, then you can afford credit repair counseling. In fact, if you have the time to learn about credit repair, then you can do it yourself and pay nothing. For more information, visit Credit Fix Solutions.

The writers and editors of Credit Fix Solutions are committed to providing accurate information about bad credit and bad credit repair. Visit us at http://creditfixnow.blogspot.com.

Can we erase bad credit?

Yes. Erasing or repairing bad credit may seem like an insurmountable task, but it is possible. Some people say that only time and patience will repair bad credit and this is true to a certain extent, but there are things that you can do to “speed up” the process.

Can we erase bad credit legally?
Yes. In fact there are law firms that specialize in repairing bad credit.

Can we erase bad credit if we have had negative items reported to the credit bureaus?

Yes. Repairing bad credit is mostly concerned with removing negative items from your credit reports.

Can we get a credit card before we erase bad credit?

Yes. You can get a credit card before repairing bad credit, but you will pay higher interest rates and fees. If your credit scores are really low, you may only be able to qualify for a secured credit card. A secured credit card is one that requires you to make a deposit into a savings account and your credit limit is equal to the balance in the savings account. If you are successful at repairing bad credit, you will probably be surprised at the credit card offers you will receive.

Can we get a home loan before we erase bad credit?

You can probably qualify for a home loan with bad credit, but you will pay hundreds of dollars more per month than someone with good credit. So, the question you might want to ask instead is; should we get a home loan before we erase bad credit. Repairing bad credit will save you money in the long run, even if you are unable to do it yourself. The cost of hiring a law firm that specializes in repairing bad credit is small compared to the additional interest people with bad credit are required to pay. The reason is that lenders are allowed to charge different interest rates to different people. They are not allowed to discriminate because of race or sex, but they are allowed to discriminate because of past credit history. This is why many people are interested in repairing bad credit. These people know that they many be able to get credit, but they will pay more.

Can we erase bad credit on our own?

Yes. Companies that specialize in repairing bad credit can not legally do anything for you that you could not do for yourself. The only thing you may save by hiring someone to do it for you is time and frustration.

How can we erase bad credit?

Repairing bad credit includes many factors; correcting information on your credit report, removing negative items from your credit report, negotiating with creditors to remove negative items, having excessive inquiries removed and building good credit. The first step in a do-it-yourself program is to visit www.annualcreditreport.com and review the information on your credit report. No matter how bad it looks, don’t give up. Repairing bad credit is a lengthy process. There are books, software programs and kits for repairing bad credit. There is also a lot of free advice on the subject. There are law firms and other companies that specialize in repairing bad credit. They can do most of the work for you.

For more information about repairing bad credit, visit Credit Fix Solutions.

The writers at Credit Fix Solutions are dedicated to providing accurate information about repairing bad credit, visit us at http://creditfixnow.blogspot.com

There are mortgages for people with bad credit. But if you have bad credit you may be required to make a larger down payment and the lender may charge you higher interest rates. It is sometimes easier to qualify for a mortgage than for a credit card, but before buying a house with bad credit, it would be wise to make every effort to improve your credit score.

You may know that you have bad credit, but you may not know exactly what information is on your credit report. While there are mortgages for people with bad credit, they have higher interest rates. Experts recommend that before you consider buying a house with bad credit, you review the information on your credit reports.

In response to a recently enacted law, the three major credit bureaus created a website (www.annualcreditreport.com) to provide consumers with easier access to the information stored on their credit reports. Before you consider buying a house with bad credit or any other major purchase, visit this website. You are entitled to one free copy in a twelve month period. You are also entitled to a free copy if you have recently been denied credit. Before you look for mortgages for people with bad credit, it is advisable to make every effort to improve your credit score.

You can improve your credit score by disputing information on your credit report which is inaccurate, obsolete or unverifiable. If you dispute a negative item and the credit bureau cannot verify it, then they must remove it. You can do this yourself or you can hire a credit repair lawyer to do it for you. To get the best interest rates, repair your credit before buying a house with bad credit.

If you are buying a house with bad credit, good credit or excellent credit, lenders are not allowed to discriminate against you. They must consider all sources of reliable income, whether from employment, public assistance, child support or any reliable source. If a lender denies your application for a mortgage (including mortgages for people with bad credit) they must explain the reason for the denial. They must be specific. Statements about their minimum requirements are not specific enough. If you were denied because of a lack of verifiable income, consider a co-signer. A lender cannot refuse to accept a co-signer who is not your spouse. All of this applies to mortgages for people with bad credit as well as those with good credit.

If your application is denied because of information on your credit report, the lender must provide you with the name and address of the credit bureau that reported the information. Buying a house with bad credit may be harder that buying one with good credit. It may require a little more work on your part, but it can be done. It will be easier if you can repair your credit first. For more information about mortgages for people with bad credit, visit Credit Fix Solutions.

The writers of Credit Fix Solutions provide free, accurate information about buying a house with bad credit, repairing your credit report and general credit information. Visit us at http://creditfixnow.blogspot.com