Bad Credit Rating
What's the price to pay for bad credit rating?
Bad credit rating signal an end to my world
of credit cards?
Whether it’s due to bad spending habits or due to plain carelessness, a lot of people do end up earning a
bad credit rating in the initial few
years of their credit card usage. Well, credit cards are not the only way that you earn a bad credit rating. You
could also earn a bad rating because of defaulting on your mortgage payments, defaulting on your car loan payments
Bad Credit Rating Isn't The End
The question is that once you have earned a bad credit rating, is that it for you? Does that
mean that you cannot get a credit card (or another credit card)? Isn’t there a way out? There is a way out for
sure. The journey however, is not that fast and you will need to exercise a lot of patience in order to undo the
harm that you have done to yourself.
The credit card suppliers had recognized the needs of such people and hence brought in the concept of secured
credit cards (also known as debit cards).
As opposed to the normal (unsecured) credit cards, the secured credit cards require you to open a savings
account with the credit card supplier.
The credit limit is either equal to or less than your account balance (generally between 50-100%). Also the
terms and conditions are pretty strict on such credit cards. However, this is the price you have to pay for your
bad credit rating.
If you exhibit clean spending habits and pay your credit card bills in full and in time, your credit rating will
gradually start improving and after some time you could get into the positive region and obtain an unsecured
(normal) credit card. Since there are many banks and institutions that offer secured credit cards, you should do
some research before selecting the best one for yourself.
You also need to be on your guard against the fraudsters. There are hordes of them lurking in the darkness of
this business. They use deception with perfection to lure new customers into their net. Various tactics are used by
these fraudsters e.g. asking you to call a 900 number which is a premium number and is charged at rates of more
Another easy way to recognize these fraudsters is with the offers they make. Their offers are so very enchanting
that any sane person would immediately become skeptical. A lot of them offer to change your credit rating
One thumb of rule with credit rating repair is the fact that it can’t be changed
overnight. It needs a lot of discipline and perseverance on your part. No one else can come and change your credit
rating. So all such offers can simply be rejected as bogus.
There are some other measures that you could adopt in order to better your credit rating. These include things
like refraining from applying for too many credit cards or loans at the same time.
This is generally taken as an indicator of really bad financial position and no credit card supplier would want
to take the risk of doing business with such a person.
You could also go for professional help, if you find it too complicated to deal with the issue
of bad credit ratings. These consultants might charge you a fee for the services they provide, however you will
find that it’s worth spending on something like this, because of the benefits associated with having a good credit
You can still get a secured credit card. The only thing is that you have to be extra careful with the secured
credit card and build good credit card etiquette with the help of it (and improve your credit rating over a period
of time). Be consistent and be patient. So it’s not the end of world if you have a credit card with a bad